Tag Archives: HMRC

HMRC targets health professionals

Physiotherapists, osteopaths, chiropractors, chiropodists, podiatrists, homeopaths and psychologists are among the health professionals being targeted in HMRC’s Health and Well Being Tax Plan campaign, launched on the 7 October. 

Under the campaign health professionals with undeclared taxable income are being offered a time-limited disclosure opportunity to bring their tax affairs up to date ‘on the best terms available’. The opportunity to voluntarily join the scheme will run until 31 December, with a deadline of 6 April 2014 for the disclosure and settlement of unpaid tax.

Marian Wilson, Head of HMRC Campaigns, said:

“I urge health and wellbeing professionals to take advantage of our quick and straightforward way of bringing their tax affairs up to date. Help, advice and support is available.

“After the opportunity closes on 6 April, HMRC will use information it holds from third parties and regulatory bodies to identify people who have not paid what they owe. Penalties – or even criminal prosecution – could follow.”

If you would like further advice or assistance in relation to this campaign, we can help.

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HMRC targets residential property landlords

HMRC’s newly announced Let Property Campaign is designed to encourage residential property landlords to come forward and voluntarily disclose any undeclared rental income to HM Revenue & Customs (HMRC).
Although the campaign will be directed at all residential landlords, HMRC is particularly focusing on:
• Landlords who let to students/groups of workers.
• Landlords who let out holiday accommodation.
• Landlords who let out properties for multiple occupancy.
HMRC estimates that up to 1.5 million landlords may be underpaying £500 million in tax every year. In a departure from previous campaigns and in recognition of the sheer scale of the potential numbers involved, HMRC intends to run the campaign for at least 18 months.
Help is available for landlords by calling HMRC’s Let Property Campaign Hotline on 03000 514 479 between 9am and 5pm, Monday to Friday. HMRC also intends to work with a variety of bodies over the next few months to develop tools and guidance, to enable landlords to bring their tax affairs up to date and then remain compliant.
The Let Property Campaign follows hard on the heels of the Property Sales Campaign, which is directed at people who may have sold residential property, in the UK or abroad, that was not their main home. Such property disposals are potentially liable to Capital Gains Tax. The opportunity to voluntarily disclose any undeclared property disposal proceeds closed on 6 September 2013 for the Property Sales Campaign.
If you would like further advice or assistance in relation to this campaign, please do get in touch. Telephone: 01242 223160, email admin@grantandco.co.uk.
For more information about us please visit our website.

Payroll News

 The 2013 / 2014 TAX YEAR holds many changes and challenges for employers

Today we published a Payroll Newsletter highlighting the many changes and challenges faced by employers in the coming tax year.  The full article can be read here, but these are some of the headlines:

Income Tax Allowances 

The basic personal allowance for 2013-14 increases to £9,440 and the tax code for emergency use will be 944L. 

Income Tax bands and rates

The tax bandwidths for 2013-14 are as follows:

Basic rate = 20%         £1 to £32,010

Higher rate = 40%       £32,011 to £150,000

Additional rate = 45%            £150,001 and above 

NICS

The Lower Earnings Limit, the amount of earnings which allow an employee to qualify for certain state benefits, increases to £109 per week.

The Primary Threshold, above which employees begin to pay National Insurance, increases to £149 per week.  The main rate of Class1 NIC’s due on earnings above this threshold and up to the Upper Earnings Limit remains unchanged at 12%.

The Upper Earnings Limit reduces to £797 per week.  The rate of employee Class 1 NIC’s on earnings above this point remains unchanged at 2%.

The Secondary Threshold, above which employers Class 1 NIC’s become due, increases to £148 per week.

The Class 1 employer rate of NIC’s remains unchanged at 13.8%.

Statutory Payments 

The Statutory Sick Pay (SSP) rate increases to £86.70 per week.

The weekly rate for Statutory Maternity Pay (SMP), Ordinary Statutory Paternity Pay (OSPP), Additional Statutory Paternity Pay (ASPP) and Statutory Adoption Pay (SAP) increases to £136.78.

REAL TIME INFORMATION

From 6 April 2013 it becomes compulsory for the large majority of employers to begin reporting PAYE information to HMRC in real time – known as Real Time Information or RTI.  We have written about the changes previously in our blog (https://grantandcoaccountants.wordpress.com/2012/12/05/real-time-information-are-you-ready/), but essentially this means:

  • If you currently use commercial payroll software you will need to check that it is RTI compliant, upgrading your software if necessary.  If you currently use HMRC’s free Basic PAYE Tools software be aware that it will only be suitable for employers who have fewer than nine employees during a tax year. If you are likely to exceed this number you will need to either invest in commercial software or employ the services of a payroll provider such as ourselves.
  • You will need to send PAYE information to HMRC every time you pay your employees, on or before the time that you pay them, rather than after the tax year end as at present.

The new types of submission required by HMRC under RTI are as follows:

  • Employer Alignment Submission (EAS):  This is a one-off submission that      employers with 250 or more employees, or those whose PAYE scheme is      administered by two or more payroll systems / providers, have to send to HMRC to help align employee data with HMRC records.
  • Full Payment Submission (FPS):  The FPS must be sent to HMRC each time you pay your employees and contains key employee data plus details such as the amount you paid your employee(s) and deductions such as PAYE and NICs.
  • Employer Payment Summary (EPS):  This submission is required when you      haven’t paid any employees in a pay period or if you need to reduce the amount of PAYE/NI due to be paid to HMRC.  This may be because of things like SSP and SMP recovery, CIS deductions suffered and NIC holiday.  This must be submitted within 14 days of the end of the tax month, i.e. by 19th.
  • Earlier Year Update (EYU): This submission is used if you need to correct data submitted to HMRC in a previous tax year (only applicable for corrections to 2013/2014 and later years).
  • NINO Verification Request (NVR):  Once you have started submitting data to      HMRC via RTI you can use a NVR to verify or obtain a National Insurance number for new employees.

The following forms will no longer be required to be submitted to HMRC under RTI – P14/P35 end of year return, P45 starter / leaver form (although no longer required by HMRC, a P45 should still be issued to leavers), P46 starter form, CA6855 NINO trace form, P38(s) student form.

More information can be found at www.hmrc.gov.uk/payerti/at-a-glance.pdf.

Clients taking advantage of our outsourced payroll service need not take any action, as we have updated our payroll software, successfully taken part in HMRC’s pilot scheme and are fully RTI compliant. However, if you require any further information regarding RTI please give us a call. 

Making your PAYE payment to HMRC 

From the 2013 / 2014 tax year there will be just one HMRC bank account for making PAYE payments (including Income Tax, NIC’s, Construction Industry Scheme and Student Loan deductions), as follows:

Sort code 08 32 10
Account number 12001039
Account name HMRC Cumbernauld

Employers who previously paid using the Shipley account will need to update to the bank details shown above.

Student employees 

From 6 April 2013 students will be treated in exactly the same way as other employees and form P38(s) will be withdrawn. 

Auto Enrolment

As you are probably aware, starting with large employers (greater than 10,000 employees), from October 2012 a new system of workplace pensions is being rolled out.  Gradually, more and more people working for large and medium sized employers will be enrolled. By early 2014, everyone working for a company or organisation with a workforce of 350 people or more should have been signed up.  Smaller employers will then gradually be brought in, until by 2018 everyone should finally be in the scheme.

We will cover this topic in a separate newsletter shortly, but in the meantime if you would like an overview of Auto Enrolment or would like to know your Auto Enrolment staging date, please do get in touch. 

If you would like further advice or information on any payroll issues, then we’d be pleased to help.   

Telephone – 01242 223160

Email – payroll@grantandco.co.uk.

Are you up to date with your VAT returns?

Are you up to date with your VAT returns?

This week HMRC launched a VAT Outstanding Returns campaign, aimed at VAT registered businesses with one or more returns outstanding.  The campaign gives businesses the opportunity to file any overdue returns and pay any VAT due electronically by 28 February in return for what HMRC descibe as the ‘best terms available’ in respect of any penalties and surcharges that may be incurred.

After 28 February, businesses are being warned that if they have not submitted their outstanding VAT returns and paid what they owe HMRC will target them and place their tax affairs under greater scrutiny.

If you would like any advice or assistance in getting your VAT affairs up to date, please call us on 01242 223160.

REAL TIME INFORMATION – are you ready?

As you will probably be aware April 2013 brings an important change to the way in which PAYE is reported to HMRC.  The introduction of Real Time Information (RTI) means that rather than just sending your PAYE information to HMRC after the end of the tax year, you will be required to send an online report every time you make a payment to your employees. 

What are the challenges for me as an employer? 

  • If you are not already registered for PAYE online you will need to do so.
  • If you currently use commercial payroll software you will need to check that it will be RTI compliant, upgrading your software if necessary.
  • If you currently use HMRC’s free Basic PAYE Tools software be aware that when RTI comes in it will only be suitable for employers who have fewer than nine employees during a tax year.  If you are likely to exceed this number you will need to either invest in commercial software or employ the services of a payroll provider.
  • Prior to April 2013 you will need to ensure that your payroll data meets the quality required under RTI, checking that employee details such as date of birth, gender, address and National Insurance number are correct and entered in full.  You will also be required to include new information, such as the number of hours your employees work.
  • It will become compulsory to complete employee information and report payments for temporary / casual workers and employees paid below the National Insurance Lower Earning Limit (LEL).
  • You will need to review certain payroll procedures such as the way starters and leavers are processed.
  • From 2014 it is expected that HMRC will introduce penalties for late and or inaccurate RTI returns and for late payment of PAYE/National Insurance.

 How can Grant and Co help? 

We are able to offer a complete, outsourced payroll solution provided by the experienced staff in our dedicated Payroll Department.  We already look after the payroll function for over 100 clients and having successfully joined HMRC’s voluntary pilot scheme we are ahead of the game when it comes to RTI.  Alternatively, we can provide RTI advice and / or training.

If you would be interested in a cost effective, proven and reliable solution to the challenges of Real Time Information then talk to us about how we can tailor our payroll service to your specific business needs.  Contact Sara or Tamsin on 01242 223160, or payroll@grantandco.co.uk for more information and a no obligation quote.

Link

December 2012 Tax Newsletter

December 2012 Tax Newsletter

Seed Investment Enterprise Scheme (SEIS) developments, Child Benefit changes, the relaunch of Business Records Checks (BRC) and whistle blowing are all topics covered in this month’s edition of our Tax Newsletter.

If you would like further information or advice on any of the above topics, then do please get in touch.

Real Time Information

We are pleased to announce that we have sucessfully joined HMRC’s RTI pilot and are now fully RTI compliant.

Real Time Information brings a major change to the way PAYE is reported to HMRC.  From April 2013, instead of the current system whereby an annual employer’s return (P35) is sent to HMRC at the end of the tax year, information about PAYE payments will need to be reported in real time each time an employee payment is made.

If you require any help, advice or information about RTI and how it affects your business and payroll process, then please do get in touch.  Maybe you feel that now is the time to outsource your payroll function?  We have a dedicated, highly experienced Payroll Team and offer a cost effective payroll solutions to suit individual business needs.    Telephone Tamsin or Sara on 01242 223160, or call in to see us.