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PAYE codes 2012-13

Posted by: edwinsmith on January 23rd, 2012

HMRC are currently in the process of sending out revised tax codes for the 2012-13 tax year. Not everyone will receive a code - some codes are simply updated by the employer to reflect new levels of the personal allowance in accordance with instructions issued by HMRC.

Check your code to ensure it is correct and raise any problems with HMRC so that a correct tax code can be issued before the start of the 2012-13 tax year.

If you require help with your code then please contact us.

Filed under: PAYE, Tax

Capital expenditure before 31 March 2012 / 5 April 2012

Posted by: edwinsmith on January 16th, 2012

The Annual Investment Allowance (AIA), which enables businesses to claim full tax relief on most plant and machinery, reduces in April 2012 from £100,000 to £25,000.

Where a business has a chargeable period that spans the operative date of the decrease, the maximum allowance for that business’s transitional chargeable period comprises two parts:

(a) the AIA entitlement, based on the previous £100,000 annual cap for the portion of a year falling before the relevant operative date; and

(b) the AIA entitlement, based on the new £25,000 cap for the portion of a year falling on or after the relevant operative date.

However, capital expenditure qualifying for AIA in the period from 1 April 2012 / 6 April 2012 cannot exceed the entitlement for that period even though it is within the total available for the year.

If you are planning capital expenditure in an accounting period which straddles 31 March 2012 for companies or 5 April for businesses within the charge to income tax, then you need to consider carefully the timing of the expenditure to maximise full tax relief e.g., it may be more tax efficient to bring forward the timing of capital expenditure from May 2012 to March 2012. Please contact us for more information.

Filed under: Tax

PAYE and cancelling your payment booklet if you no longer need one

Posted by: edwinsmith on January 9th, 2012

If you pay at a bank, Post Office counter or by cheque in the post you need a PAYE payment booklet. However you don't need one if you pay HM Revenue & Customs (HMRC) electronically.

You can advise HMRC online to stop issuing further payment booklets by following the relevant link to your HMRC Accounts Office below.

Cancel Cumbernauld accounts office payment booklet

Cancel Shipley accounts office payment booklet

Filed under: PAYE

More than one job? Are you paying too much National Insurance?

Posted by: edwinsmith on January 3rd, 2012

If you have more than one job you can avoid overpaying national insurance contributions by deferring some of your contributions if both of the following apply:


  • you pay Class 1 National Insurance contributions with two or more different employers
  • you expect to pay contributions on weekly earnings of at least £817 in one job or £956 in two jobs throughout the tax year


The deadline for applying for 2011/12 is 14 February 2012.

To apply you can complete form CA72A Application for deferment of payment of Class 1 National Insurance contributions or if you require further help please contact us.

The renewals for 2012/13 should be issued by HMRC shortly.

Filed under: PAYE, Tax