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Self Employed Class 2 National Insurance Contributions – Changes To Payment Dates

Posted by: edwinsmith on December 21st, 2010

From April 2011 the payment dates for Class 2 NIC will change.

These contributions for the self employed will be paid at the same time as the self assessment tax payments are made, being 31 January and 31 July. Those paying by a monthly Direct Debit can still continue on this basis (see below for transitional changes in first year).

Payments by Direct Debit

Those currently making payments by monthly Direct Debit will have collection delayed to meet the new due dates and to bring the payment dates into line. This will mean the following.

  • for the first year only, monthly Direct Debits will stop for a short period and then start again
  • Class 2 contributions due for April 2011 will be requested from your bank in August 2011
  • payments thereafter will be monthly unless you choose to pay 6 monthly from April 2011 (see below)

A new option to pay by 6 monthly Direct Debit, collected in January and July each year, will be available from April 2011 for those who do not wish to spread their payments

Payments made by internet/telephone banking, CHAPS, Bank Giro, Post Office or post

You will receive just two payment requests from HM Revenue & Customs (HMRC) in the year, in October and April (instead of four bills), showing payments due by 31 January and 31 July respectively. You do not need to wait until the due date to make payment.

HMRC will be issuing detailed information to those affected by the changes via a series of special mail shots in the coming weeks.

Please contact us for further information.

Filed under: Tax

December Online Tax Return Registration

Posted by: edwinsmith on December 17th, 2010

Self Assessment taxpayers are being advised by HMRC to register now to be able to send their 2009/10 tax return online before the 31 January 2011 deadline.

Any outstanding 2009/10 Self Assessment returns must now be completed online as the 31 October paper-filing deadline has passed.

If you’re completing your return online for the first time, you’ll first need to register for online filing. You’ll immediately get a User ID, and an Activation Code will be posted to you. Once you’ve activated your account, you can complete your tax return online.

HMRC are advising that it’s important to register as early as possible as it can take up to seven working days to receive your Activation Code and January is normally very busy.

The alternative is to appoint an accountant to complete your tax return as most will have software that can file tax returns online.

Please contact us for more information.

Filed under: Tax

Tax credit renewal reminders for those that provided estimates

Posted by: edwinsmith on December 8th, 2010

Tax credit claimants who renewed at 31 July 2010 using estimated figures should give HMRC final 2009/10 figures by 31 January 2011.  This particularly applies to the self employed tax credit claimants who may not have known their final 2009/10 profit figure at 31 July 2010.

HMRC is writing to those likely to be affected.

If the final figures are lower than the estimate, claimants are likely to have a tax credit underpayment for 2009/10 and they could be entitled to a higher award in the current year. However, failing to provide the correct details could lead to an overpayment and supplying incorrect information could even lead to a penalty.

 Please contact us if you have any questions.

Filed under: Tax