Copyright © 2024 Thesaurus Software Ltd T/A Bright Software Group.
3 Shortlands, Hammersmith, London, W6 8DA
[email protected] 0345 9390019Apr 2014
29
HMRC have started a new campaign targeting employees with second incomes and who have not paid tax on this second income source.
This drive is the latest in a series of targeted tax clampdowns on certain professions or areas, like consultancy work, with warnings that HMRC will be using all resources available to trace offenders.
Examples given within the Campaign Scope are as follows:
- Receiving payment for organising parties/events or providing entertainment.
- Making and/or selling Craft Items
- Taxi Driving; Hairdressing; Fitness Training; Landscape Gardening; Regular Car Boot Sales, Market Stalls, etc.
- Consultancy Fees or Public Speaking or Training Fees
As in previous campaigns, HMRC have adopted a “carrot and stick” approach where they offer more lenient terms if any tax due is paid voluntarily. HMRC stated they will take account of the level of help provided and the accuracy of details given when offering reduced penalties but also warn those choosing not to declare their second income - “Where additional taxes are due HMRC will usually charge higher penalties…up to 100% of the unpaid liabilities or up to 200% for offshore related income.”
Apr 2014
22
The HMRC deadline for 2013/14 FPS submissions has now lapsed (19th April). Therefore, if you attempt to submit an FPS for a 2013/14 pay period HMRC will reject it.
Any 2013/14 payroll submissions, including additional payments, corrections or omissions, must now be submitted to HMRC using the Earlier Year Update (EYU) submission.
HMRC published a new 2013/14 End of Year guide today, http://www.hmrc.gov.uk/payerti/end-of-year/finish-payroll.pdf
A BrightPay 2013/14 end of year checklist is also available, simply click here https://www.brightpay.co.uk/5_Steps_to_EOY.pdf.
Apr 2014
8
Who can claim
The Employment Allowance is available from 6 April 2014. If you are eligible you can reduce your employer Class 1 NICs by up to £2,000 each tax year.
You can claim the Employment Allowance if you are a business or charity (including Community Amateur Sports Clubs) that pays employer Class 1 NICs on your employees' or directors' earnings.
If your company belongs to a group of companies or your charity is part of a charities structure, only one company or charity can claim the allowance. It is up to you to decide which company or charity will claim the allowance.
You can only claim the £2,000 Employment Allowance against one PAYE scheme - even if your business runs multiple schemes (also see the further guidance on claiming the Employment Allowance).
Not all businesses can claim the Employment Allowance, see excluded employers for more information.
Excluded employers
You cannot claim the Employment Allowance, for example if you:
- employ someone for personal, household or domestic work, such as a nanny, au pair, chauffeur, gardener, care support worker
- already claim the allowance through a connected company or charity
- are a public authority, this includes; local, district, town and parish councils
- carry out functions either wholly or mainly of a public nature (unless you have charitable status), for example:
You do not carry out a function of a public nature, if you are:
providing security and cleaning services for a public building, such as government or local council offices
supplying IT services for a government department or local council.
Personal and Managed Service Companies who pay contract fees instead of a wage or salary, may not be able to claim the Employment Allowance, as you cannot claim the allowance for any deemed payments of employment income.
Service companies can only claim the allowance, if you pay earnings and have an employer Class 1 NICs liability on these earnings.
Apr 2014
7
HMRC has recently issued letters entitled 'Paying PAYE electronically' to employers who are due to make their one off annual 2013 to 14 PAYE payment for month 12, 6 March to 5 April by 19/22 April 2014.
HMRC has published the following message on their ‘What’s New’ pages:
Employers who pay PAYE only once a year and are due to pay month 12 of 2013 to 14
"Most employers now report their PAYE information in real time, known as Real Time Information (RTI). This means each time you pay an employee you must submit details about employees’ pay and deductions to HMRC using payroll software. As part of this change and our ongoing drive to encourage employers to pay using electronic methods of payment, we have stopped automatically issuing letters with a payslip to all employers who pay their PAYE on an annual basis in one single month of the year.
If you have received one of the ‘Paying PAYE electronically’ letters we will not be sending you a payslip to pay your month 12 payment and we are encouraging you to follow the guidance on the letter and pay us electronically.
As the letter advises, paying electronically is more secure, faster, easier and allows you to pay by the 22 April instead of the 19 April if you paid by cheque in the post.
If, exceptionally, you are unable to pay using an electronic method then you will find a pro-forma payslip and guidance on how to use it elsewhere on this website.
Your payment is due on the 19 April if paying by cheque in the post or 22 April when paying electronically. We may charge interest and late payment penalties if you do not make your payment on time."
Feb 2014
24
When taking on a new employee employers reporting their PAYE in real time are no longer required to submit a completed P46 or P45 Part 3 to HMRC
Instead they will need to gather specific information to enable you to complete and submit a Full Payment Submission (FPS) to HMRC the first time you pay a new employee.
In light of this change of process, HMRC are replacing the P46 starter forms on their internet site with Starter Checklists to help you gather the information needed to submit a FPS. The main checklist can be found at http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=kPZMkDs75qQ&formId=7377
You do not need to send the checklist to HMRC, and there is no obligation for you to use one, you can, if you prefer, obtain the starter information for the FPS using your own forms and practices.
HMRC also has a separate checklist to help you gather information if you take on a new employee who has been seconded to work in the UK from overseas. The checklist and guidance can be found at http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=2Abcj2SjIsA&formId=7398
Reminder
The data items; “Living in UK for 183 days or more”, “Living in UK for less than 183 days”, “Employee Working both in and out of the UK but Living Abroad” and “Indicator of European Economic Area citizen” must be left blank unless the employee is seconded to you from an overseas employer.
Feb 2014
21
Abolition of Employers National Insurance Contributions for Under-21s
From 6th April 2015 employers will no longer be required to pay Class 1 secondary National Insurance Contributions (NICs) on earnings up to the upper earning limit (UEL), for employees under the age of 21. The upper earning limit in 2015-16 is expected to be £813 per week (£42,285 per annum); employer NIC will be liable as normal beyond this limit. The saving to the employer will be £500 where an employee earns £12,000 per annum and £1,000 where an employee earns £16,000 per annum.
The aim of the policy is to encourage employers to employ individuals under the age of 21. Under current law, employers are liable to Class 1 secondary NICs on all earnings paid to employees over the age of 16 provided their earnings exceed the secondary threshold which is currently £148 per week.
This move follows the introduction of the Employment Allowance of £2,000 per year for all businesses and charities, to be offset against their employer Class 1 secondary NICs liability from April 2014.
Feb 2014
20
0800 904 7900
HM Revenue & Customs (HMRC) appreciate that some individuals and businesses may find it difficult to meet their tax obligations due to the severe floods.
A new helpline has been set up to support those affected with fast, practical help and advice on tax matters such as offering time to pay tax debts for those affected by flooding.
The helpline is: 0800 904 7900. Opening hours are Monday to Friday 8.00 am to 8.00 pm, Saturday and Sunday 8.00 am to 4.00 pm
Jan 2014
12
If you miss the 31st January tax deadline…consider your excuse to HMRC
31 January deadline for online tax returns
You must send, and pay your tax liability, your online Self Assessment tax return for 2012-13 by Friday 31st January 2014. If your online tax return is late, you will have to pay a penalty.
Exception – Reasonable excuse for missing the deadline
If you miss the 31st January deadline you may not have to pay a penalty if you have a reasonable excuse. For example, there may have been an unexpected or unusual event, beyond your control, which meant you couldn’t send your return on time.
HMRC recently reflect on top 10 oddest excuses
HMRC recently revealed the 10 oddest excuses they received for submitting late tax returns, assume these are considered unreasonable….
The following bizarre, exotic and flimsy excuses have all been used by tardy taxpayers:
1. My pet goldfish died (self-employed builder)
2. I had a run-in with a cow (Midlands farmer)
3. After seeing a volcanic eruption on the news, I couldn’t concentrate on anything else (London woman)
4. My wife won’t give me my mail (self-employed trader)
5. My husband told me the deadline was 31 March, and I believed him (Leicester hairdresser)
6. I’ve been far too busy touring the country with my one-man play (Coventry writer)
7. My bad back means I can’t go upstairs. That’s where my tax return is (a working taxi driver)
8. I’ve been cruising round the world in my yacht, and only picking up post when I’m on dry land (South East man)
9. Our business doesn’t really do anything (Kent financial services firm)
10. I’ve been too busy submitting my clients’ tax returns (London accountant)
All of these people and businesses received a £100 penalty from HM Revenue and Customs (HMRC) for filing late. They appealed against the decision using these excuses, but were unsuccessful.
Nov 2013
25
HMRC have recently introduced a new way of handling calls on some of their helplines and they are looking for Employers to offer their feedback through a short survey.
The new system is called Intelligent Telephony Automation or ITA. HMRC say that this new technology will help improve the handling of calls, instead of being offered different options or pressing different buttons the system will recognise and react to what the customer says. The customer will be put onto the correct adviser for their question even if they have called an incorrect telephone number.
HMRC are also automating elements of the security process, based on the information that the customer provides the system, the adviser will know why they are calling and whether or not the customer has passed security. HMRC are hoping that this will speed up the time that advisers spend with customers and it will allow them to focus on the issue and the call could be completed a lot quicker.
This new system will prompt customers to say a few words and the reason for their call. It is designed to recognise key words or phrases such as Maternity/RTI/P45 and can forward the call onto the correct Adviser or ask further questions if required. HMRC say the system has been widely tested with all accents from all over the UK. The HMRC would like customers that have called the helpline and have used the ITA system to complete a short survey by Friday 29th November to give their feedback and to see if there are any ways that the system could be improved.
Nov 2013
9
10% of 1.1m people affected by High Income Child Benefit Charge have still not contacted HMRC and could face losing the benefit and receive penalties.
Parents on individual salaries of £50,000 or higher were required to either opt out of receiving Child Benefit or register for Self Assessment by the October 5th deadline, in order to avoid financial penalties. Families in which parents each earn less than £50,000 are likely to continue to receive child benefit without having to pay the money back.
Penalties will be raised on a case by case basis and depending on the circumstance, the penalty could be reduced to zero, however tax would still be applicable.
It must also be noted that eligibility for child benefit depends not just on earnings but on "adjusted net income". This includes all taxable net income, including rental income and investments. bonuses and benefits in kind.
Copyright © 2024 Thesaurus Software Ltd T/A Bright Software Group.
3 Shortlands, Hammersmith, London, W6 8DA
[email protected] 0345 9390019