Archive for March, 2015

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PAYE and RTI Penalties

Tuesday, March 10th, 2015

PAYE end of year – pay on time reminder

HMRC are reminding employers that with the end of the 2014/15 tax year approaching they will soon need to make their final 2014/15 PAYE (RTI) submission.

For most employers, the final submission will be their final Full Payment Submission (FPS) which advises HMRC about the very last employee payments for 2014/15 and this needs to be made on or before 5 April 2015. Details of how to make the final submission can be found on the GOV.UK website using the link below. Alternatively if you would like help with your payroll please do get in touch.

HMRC are also advising employers to take extra care as the deadline for electronic payment of 22nd March falls on a Sunday.

HMRC are advising that employers should ensure their payment reaches HMRC on time, which means that cleared funds should be in HMRC’s account by the 20th unless employers are able to arrange a Faster Payment. For more details about paying HMRC electronically visit Pay PAYE tax.

 

HMRC concession for late RTI returns and payments

HMRC have announced that employers will not incur penalties for delays of up to three days in filing RTI returns. There is no change to the filing deadlines and employers should generally file their full payment submissions (FPS) ‘on or before’ each payment date unless a concession applies.

HMRC are also advising any employer that has received an in-year late filing penalty for the period 6 October 2014 to 5 January 2015 and was 3 days late or less, to appeal online by completing the ‘Other’ box and add ‘Return filed within 3 days’.

In addition, to prevent unnecessary penalties being issued, HMRC will be closing around 15,000 PAYE schemes next month that have not made a PAYE report since April 2013 and which appear to have ceased.

HMRC will write to the affected schemes to tell them about the planned closure and what to do if they are, or should be, operating PAYE.

Employers with fewer than 50 employees are reminded that PAYE late filing penalties will apply to them from 6 March.

This entry was posted on Tuesday, March 10th, 2015 at 11:28 am by Slaters and is filed under HMRC, PAYE, RTI. You can follow any responses to this entry through the RSS 2.0 feed.

Advisory fuel rates for company cars

Tuesday, March 10th, 2015

New company car advisory fuel rates have been published which took effect from 1 March 2015. Due to the reduction in fuel prices many rates have reduced this quarter between two and three pence so please take care to update your expenses payments. However, the guidance states: ‘You can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 March 2015 are:

Engine size Petrol
1400cc or less 11p
1401 cc – 2000cc 13p
Over 2000cc 20p

 

Engine size LPG
1400cc or less 8p
1401 cc – 2000cc 10p
Over 2000cc 14p

 

Engine size Diesel
1600cc or less 9p
1601cc – 2000cc 11p
Over 2000cc 14p

Other points to be aware of about the advisory fuel rates:

  • Employers do not need a dispensation to use these rates. Employees driving employer provided cars are not entitled to use these rates to claim tax relief if employers reimburse them at lower rates. Such claims should be based on the actual costs incurred.
  • The advisory rates are not binding where an employer can demonstrate that the cost of business travel in employer provided cars is higher than the guideline mileage rates. The higher cost would need to be agreed with HMRC under a dispensation.

If you would like to discuss your car policy, please contact us.

This entry was posted on Tuesday, March 10th, 2015 at 11:18 am by Slaters and is filed under Company car, Employers, PAYE, Tax. You can follow any responses to this entry through the RSS 2.0 feed.

PAYE end of year – pay on time reminder

Tuesday, March 10th, 2015

HMRC are reminding employers that with the end of the 2014/15 tax year approaching they will soon need to make their final 2014/15 PAYE (RTI) submission.

For most employers, the final submission will be their final Full Payment Submission (FPS) which advises HMRC about the very last employee payments for 2014/15 and this needs to be made on or before 5 April 2015. Details of how to make the final submission can be found on the GOV.UK website using the link below. Alternatively if you would like help with your payroll please do get in touch.

HMRC are also advising employers to take extra care as the deadline for electronic payment of 22nd March falls on a Sunday.

HMRC are advising that employers should ensure their payment reaches HMRC on time, which means that cleared funds should be in HMRC’s account by the 20th unless employers are able to arrange a Faster Payment. For more details about paying HMRC electronically visit Pay PAYE tax.

This entry was posted on Tuesday, March 10th, 2015 at 11:16 am by Slaters and is filed under Employers, PAYE, RTI. You can follow any responses to this entry through the RSS 2.0 feed.

Registration opens for new married couples tax break

Tuesday, March 10th, 2015

HMRC have announced that registration for the new ‘Marriage Allowance’ for married couples and those in civil partnerships is now open.

From 6 April 2015 certain married couples and civil partners may be eligible for a new Transferable Tax Allowance referred to by the Government as the ‘Marriage Allowance’. The allowance will enable eligible spouses and civil partners to transfer a fixed amount of their personal allowance to their spouse. The option to transfer is not available to unmarried couples.

The option to transfer will be available to couples where neither pays tax at the higher or additional rate. If eligible, one partner will be able to transfer 10% of their personal allowance to the other partner which means £1,060 for the 2015/16 tax year which could save them tax of up to £212 a year.

Couples can register their interest to receive the Allowance.

The government estimates that more than four million married couples and 15,000 civil partnerships will be eligible for the tax break.

Chancellor of the Exchequer George Osborne said:

‘We made a promise to introduce a recognition of marriage into our tax system – and now we’re delivering on that promise.

This includes updating the tax system so that it recognises marriage and civil partnerships.

Our new Marriage Allowance means saving £212 on your tax bill couldn’t be simpler or more straightforward.’

From April, HMRC will contact those who have already registered for the ‘Marriage Allowance’ to apply. People can register at any point in the tax year and still receive the full benefit of the allowance. It is also possible to claim the allowance after the end of the tax year where claimants are unsure if they will qualify.

Applying online is simple. One person in a couple will apply online to transfer the allowance to their spouse or civil partner, and HMRC will tell the recipient about the change to their Pay As You Earn (PAYE) tax code.

This entry was posted on Tuesday, March 10th, 2015 at 11:14 am by Slaters and is filed under Personal Tax, Tax, Tax planning, Tax relief. You can follow any responses to this entry through the RSS 2.0 feed.

Fines for non compliance with Pension Auto Enrolment

Tuesday, March 10th, 2015

Fines for those who fail to comply with Pensions Auto Enrolment

The Pensions Regulator (TPR) has issued 166 Fixed Penalty Notices of £400 to employers who failed to meet their obligations in the last quarter of 2014.

The number of employers approaching the date when they must confirm that they have complied with new workplace pensions duties (known as a declaration of compliance) is now beginning to rise significantly as Auto enrolment is rolled out across all employers. In future months, TPR expects to see more employers who, despite the message to prepare early, leave it too late or do not comply at all.

The Pensions Regulator’s Director of automatic enrolment, Charles Counsell, said,

‘My message to all employers is that failing to declare within five months of your staging date means you risk being fined, which is why we recommend you start your automatic enrolment planning and preparation 12 months before staging.

It appears some medium employers waited for a prompt from the regulator before completing their automatic enrolment duties. Employers must complete all their duties including making their declaration of compliance to The Pensions Regulator.’

Experience to date also shows that employers should begin gathering the information they need to complete their declaration of compliance well in advance of their deadline.

If you would like help or advice with auto enrolment please get in touch.

This entry was posted on Tuesday, March 10th, 2015 at 11:10 am by Slaters and is filed under Auto Enrolment, Employers, HMRC, Pension, Personal Pension, Workplace Pension. You can follow any responses to this entry through the RSS 2.0 feed.

Pension changes from next month and year end planning

Friday, March 6th, 2015

There are a number of changes to the taxation of pensions from next month. We have copied into this article postings to the GOV.UK website regarding some of the more significant options available from April 2015.

What happens to your pension when you die?

Instead of paying the 55% rate of tax when passing on their pension, people who die under 75 with defined contribution pensions can from April 2015 pass on their unused pension as a lump sum to a person of their choice tax free.

At the Autumn Statement 2014, the Chancellor also announced that from April 2015 payments from certain kinds of annuities that pay out income after you die (joint life and guaranteed annuities) will be tax-free when paid to a beneficiary, if the original policyholder dies below age 75.

For people who die over the age of 75 with unspent defined contribution pensions, they can pass this on to a person of their choice who will be able to take it as a lump sum taxed at 45% or as income and pay their normal rate of income tax.

Withdrawals from your pension

From April 2015, no matter how much you decide to take out from a defined contribution pension after retirement, withdrawals from your pension will be treated as income; the amount of tax you will pay on what you withdraw will depend on the amount of other income you have in that year, as long as you are 55 or over. . This is instead of being taxed 55% for full withdrawal, as it has been previously.

Most people will still be able to access 25% of their pot in one go without paying any tax.

When can you take advantage of the new pension withdrawals?

If you are over the age of 55, or will be from April 2015, you will be able to take advantage of the new system from then, subject to your pension scheme rules.

If you’re younger than 55 then you will be able to take advantage of the new system when you reach normal minimum pension age under the tax rules (this is currently age 55).

If you are over the age of 55, or will be from April 2015, you will be able to take advantage of the new system from then, subject to your pension scheme rules.

If you’re younger than 55 then you will be able to take advantage of the new system when you reach normal minimum pension age under the tax rules (this is currently age 55).

Before making any decisions on your pension pot you should take proper advice.

Pension providers or schemes will be required to tell people about the guidance service in the information they send to people when they are approaching retirement. This guidance will be available through a number of different channels – via the internet, over the phone, or face to face at a Citizens Advice Bureau.

It will be entirely impartial, so won’t be given by anyone who could be trying to sell you a product.

Year End Pension Planning

Take advantage of the pension carry forward rules in order to benefit from any unused allowances from the previous three tax years.  This is generally the difference between the old £50,000 limit and the pension input each year and can be added to your relief for 2014/15.  Note that the annual pension allowance is £40,000 from 6 April 2015.
For example if your pension input was £20,000 in  the 2011/12 tax year, then there is potentially up to £30,000 unused relief from that year available to add to your £40,000 2014/15 pension allowance. You would need to make gross pension contributions of at least £70,000 (£40,000 plus £30,000) to avoid losing this generous relief.

This entry was posted on Friday, March 6th, 2015 at 12:00 am by Slaters and is filed under HMRC, Pension, Personal Pension, Personal Planning, Workplace Pension. You can follow any responses to this entry through the RSS 2.0 feed.

Payment in 30 days

Tuesday, March 3rd, 2015

In a recent speech Business Minister, Matthew Hancock, announced that the government-backed Prompt Payment Code will now promote 30-day terms as standard, with a 60-day maximum limit. Unless signatories can prove exceptional circumstances for longer terms, they will be removed from the Code.

The change will be rigorously enforced by the new Code Compliance Board, which will include people from business representative bodies who will investigate challenges made against signatories to the Code by their suppliers. The Compliance Board will remove signatories found to be in breach of the Code’s principles and standards.

The Prompt Payment Code sets out fair and agreed practices for businesses to follow when dealing with, and paying, their suppliers. More than 1,700 businesses and public authorities have so far committed to these principles, which include paying suppliers within an agreed timeframe and communicating with them effectively.

Business Minister Matthew Hancock said:

“Making small businesses wait an unreasonable time for payment is entirely unacceptable. I know first-hand the great burden that late payment can place on firms – and how it can strain family finances – which is why I am committed to stopping it.

Big companies should lead by example and pay small suppliers within 30 days. I have already written to the FTSE 350 urging them to sign up to the Prompt Payment Code.

Fairer payment practices will help small businesses grow and create jobs. This is a key part of our long-term economic plan to build a better Britain.”

Businesses will be actively encouraged to start complying with the strengthened Prompt Payment Code in the coming weeks. The changes complement the tougher reporting laws in the Small Business, Enterprise and Employment Bill. These new laws will force the UK’s largest companies to publish their payment terms, increasing transparency and empowering small businesses. The Code Compliance Board will be able to use this data to review the status of signatories to the Code and challenge those that either do not pay their suppliers promptly or insist on excessively long standard terms.

The Prompt Payment Code is a voluntary Code to drive a change in payment culture. It is administered by the CICM on behalf of BIS. More information about the Code can be found at Prompt Payment Code website.

This entry was posted on Tuesday, March 3rd, 2015 at 12:00 am by Slaters and is filed under Accountancy, Accounts - General, Accounts preparation, Bookkeeping, Budget, Business, Business planning, Company Tax, HMRC, Management accounts, Payment Terms, Tax. You can follow any responses to this entry through the RSS 2.0 feed.

Tax Diary March/April 2015

Monday, March 2nd, 2015

 1 March 2015 – Due date for Corporation Tax due for the year ended 31 May 2014.

 2 March 2015 – Self Assessment tax for 2013/14 paid after this date will incur a 5% surcharge.

 19 March 2015 – PAYE and NIC deductions due for month ended 5 March 2015. (If you pay your tax electronically the due date is 22 March 2015.)

 19 March 2015 – Filing deadline for the CIS300 monthly return for the month ended 5 March 2015.

 19 March 2015 – CIS tax deducted for the month ended 5 March 2015 is payable by today.

 1 April 2015 – Due date for Corporation Tax due for the year ended 30 June 2014.

 19 April 2015 – PAYE and NIC deductions due for month ended 5 April 2015. (If you pay your tax electronically the due date is 22 April 2015.)

 19 April 2015 – Filing deadline for the CIS300 monthly return for the month ended 5 April 2015.

 19 April 2015 – CIS tax deducted for the month ended 5 April 2015 is payable by today.

This entry was posted on Monday, March 2nd, 2015 at 12:00 am by Slaters and is filed under Capital Gains Tax, Company Tax, HMRC, Personal Tax, Tax, Tax planning, Tax relief, VAT. You can follow any responses to this entry through the RSS 2.0 feed.

Domestic employment arrangements

Monday, March 2nd, 2015

Did you know that if you take on domestic help you may be considered an employer?

Anyone who works in a private home is treated as an employee if they only work for one family, except for au pairs. This includes nannies, housekeepers, gardeners and anyone else working for one family. You’re their employer if you hire them.

As an employer you would need to ensure that an employee:

  • has an employment contract
  • is given payslips
  • does not work more than the maximum hours allowed per week
  • be paid at least the National Minimum Wage

They’re also entitled to employment-related benefits, if they meet the eligibility requirements. These include:

  • statutory maternity pay
  • statutory sick pay
  • paid holiday
  • redundancy pay

Additionally, domestic employers must:

  • check if the person can work in the UK
  • have employer’s liability insurance
  • register as an employer and send employer tax returns each year – even if they pay the employee in cash

Running a home with staff is the equivalent of running a business with staff, there are a multitude of legal matters you will need to consider. 

This entry was posted on Monday, March 2nd, 2015 at 12:00 am by Slaters and is filed under Employers, Personal Planning, Workplace Pension. You can follow any responses to this entry through the RSS 2.0 feed.

When was the last time you reviewed your Will

Monday, March 2nd, 2015

Do you have any idea if your estate will have an inheritance bill when you die? How much will it be? Who will have to pay it?

Planning opportunities arise if:

  1. If you have assets that you would like to give away.
  2. If you have any interests in a business or company, or own agricultural property.
  3. If you have assets that you would like to gift, but are concerned that other parties may seek to control those assets against your wishes.

These and many other scenarios, particular to your circumstances, may be available. The key is to explore these planning strategies before the burden of responsibility for settling tax is passed to your executors, and ultimately, your family and beneficiaries.

 

This entry was posted on Monday, March 2nd, 2015 at 12:00 am by Slaters and is filed under Personal Pension, Personal Planning, Will. You can follow any responses to this entry through the RSS 2.0 feed.

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