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Please tell us, because the taxman won’t be

Posted by: edwinsmith on September 30th, 2010

As part of a cost cutting measure, HM Revenue & Customs (HMRC) have reviewed the forms it sends to tax agents (accountants) and advisers and decided that some forms will no longer be issued to agents and the issue of some other forms will be suspended in the meantime and reviewed further.

The most important form changes are listed below.

Being withdrawn September 2010

  • P800 - Tax Calculation form


Being withdrawn October 2010

  • SA 250 - Letter telling the customer about their Unique Taxpayer Reference (UTR) and detailing the requirement to complete an annual Self Assessment tax return


  • SA 251 - Letter to advise a client that HMRC will no longer require future Self Assessment tax


Being withdrawn December 2010

  • P2 - PAYE Coding Notice - before the 2011/12 annual coding run


We recommend that if you receive any of the above forms to forward a copy to us as soon as you receive it so that we can review the form, making any corrections and have the records on file.

Please see the HMRC’s website for a full list of agent form changes and please contact us if you would like to discuss these changes further.

Filed under: Tax

Employers CD-ROM update September 2010

Posted by: edwinsmith on September 23rd, 2010

If you are using the 2010 CD-ROM, HMRC have issued an important update.

You should download and install the Employer CD-ROM September update by clicking the link. This should be completed even if you have previously updated the Employer CD-ROM.

You will know that your CD-ROM has successfully updated if the Home Page shows in the top right hand corner 'September Updated Edition'.

Installing the update now will make sure your 2010 CD-ROM is compatible with the new PAYE tools when they become available next year. HMRC will not send you a paper Employer Annual Pack and Employer CD-ROM to finalise 2010-11 and start 2011-12. Instead of a CD-ROM a set of PAYE tools will be available to download straight to your computer. They will be compatible with your 2010 CD-ROM as long as you have downloaded the September update. The tools will include:

  • the Employer Database
  • all the calculators
  • forms to fill in from the database
  • learning modules

We will alert our clients nearer the time, but if you would like to receive an email alert from HMRC when the new downloads are available please review our previous article Employer email alerts service to register.

Filed under: PAYE

NIC holiday for Employers

Posted by: edwinsmith on September 16th, 2010

The government scheme to allow certain employers a 12 month holiday from paying class 1 employers National Insurance contributions (subject to certain conditions) began on 6 September 2010.

The scheme has the potential to save the employer up to £5,000 per employee for the first 10 employees hired, subject to the following conditions:

  • The business must be based in a qualifying location (explained below)
  • The business must be considered as new according to the guidance issued and have started trading during the qualifying period
  • The employees included must be hired within the first 12 months of business 

If you believe your business satisfies the qualifying conditions, you should contact HM Revenue and Customs to confirm your entitlement to join the scheme (you must not take advantage of the scheme before obtaining HMRC’s approval).

Locations covered

In order to qualify for the holiday, the business must be able to demonstrate that the principal place of business is in one of the following locations:

  • Northern Ireland
  • Scotland
  • Wales
  • East Midlands
  • North East
  • North West
  • South West
  • West Midlands
  • Yorkshire and Humber

The principal place of business is where the majority of business activities are carried out.  If there is no one obvious place of business because it is internet based or the activities are carried out equally in numerous locations, the principal place of business will be deemed as the administrative base  i.e. where your paperwork is stored or meetings are held. 

If you are unsure which region your business falls into, there is a region finder on the Government office network website.  If your principal place of business is in another European Union country you should contact the HMRC New Employer helpline.

If you believe that your business meets the location criteria and would like further information on the new business and qualifying employee guidelines, please contact us.

Filed under: PAYE

Revised tax calculations issued by HMRC

Posted by: edwinsmith on September 8th, 2010

HM Revenue and Customs (HMRC) are currently issuing letters to tax payers who they believe have under or over paid tax during the tax years 2008/09 and 2009/10. 

The revised calculations are based on information provided by employers and pension providers who have paid income to the individual after deducting PAYE and National insurance at source.

Most individuals will have paid the correct tax and therefore should not expect to receive a letter, but those who do should check the tax calculation carefully to ensure the details are correct.

In order to check that a revised tax calculation is correct, you should

  • Agree the amounts shown on the calculation to your forms P60, P11d or annual certificates for each source of income. 
  • Ensure that the correct allowances have been applied to your calculation based on your age, marital status and any other circumstance affecting personal allowance.

If you agree that your calculation is correct then you do not need to take any action as any repayment will be made to you within seven days and any payment due under £2,000 will be collected from your future income using your PAYE coding notice which will be applied to your future salary or pension. Payments due over £2,000 will be collected separately and HMRC will tell you how to make this payment.

If you believe that your calculation is incorrect then you should contact HMRC as soon as possible to inform them of the error.

In some cases, where the underpayment should have already been collected by HMRC based on information already provided, it may be possible to be granted an extra statutory concession so that you do not have to pay back the amount.  This is a rare situation and is at the discretion of HMRC, so any individual who believes this is the case should contact HMRC as soon as possible.

If you would like assistance with checking your revised tax calculation or understanding future PAYE coding notices, please contact us to arrange a consultation.

Filed under: PAYE, Tax