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Dates and Deadlines November 2013

Posted by: edwinsmith on October 31st, 2013

Upcoming deadlines for businesses and individuals

1 November: Corporation tax payment for a company not within the instalment regulations: year ending 31 January 2013.

2 November: Submission of form P46 (car) for changes in quarter to 5 October 2013

5 November: End of month 7 for PAYE (RTI). All FPS (Full Payment Submissions) due if taking advantage of concession.

7 November: Online VAT return due to be filed and electronic payment of VAT due to be cleared into HMRC bank: quarter ended 30 September 2013.

11 November: Direct debit VAT payment will be taken: quarter ended 30 September 2013.

19 November: CIS monthly return deadline: month ended 5 November 2013.

19 November: Cheque payments for PAYE/NI, student loan, CIS  to be cleared into HMRC bank: month ended 5 November 2013.

22 November: Electronic PAYE/NI etc payments to be cleared into HMRC bank: month ended 5 November 2013.

30 November : Company tax return CT600 due to HMRC: years ending 30 November 2012.

30 November: Company accounts (Private Limited Co) due to be filed: years ending 28 February 2013.

30 November: Company accounts (Public Companies) due to be filed: years ending 31 May 2013.

1 December : Corporation tax payment for company not within the instalment regulations: years ending 28 February 2013.


HMRC Campaigns: Let property

Posted by: edwinsmith on October 31st, 2013

HMRC are currently running the Let Property campaign aimed at property landlords who have not disclosed rental income and will be open for at least 18 months. This campaign is separate to a previous campaign called the Property sales campaign which closed in August 2013.

HMRC do hold information and intelligence systems on properties that can help them identify individuals who have not declared their rental income.

Therefore it is important for landlords/individuals to use this campaign to come forward and declare all their rental income and obtain best terms for penalties. HMRC will be able to issue higher penalties or even pursue a criminal prosecution for those that HMRC find from their own enquiries to have not disclosed rental income.

Please contact us for further advice.

HMRC Campaign – health and well being professionals

Posted by: edwinsmith on October 23rd, 2013

On 7 October 2013 HMRC introduced another campaign targeting health and well being professionals and offers them a time limited opportunity to bring their tax affairs up to date on the best terms available.

This covers health and well being professionals working with physical therapy -  physiotherapists, occupation therapists, chiropractors, osteopaths, chiropodists, podiatrists etc and those working with alternative and other therapies - dieticians, acupuncturists, speech, language and art therapists etc.

The campaign is not aimed at doctors and dentists (who have been targeted in previous campaigns) nor at nurses and social workers.

As with other similar campaigns that have been run before a specific time period is being offered to health professionals to notify HMRC by 31 December 2013 that they would like to take part in campaign and bring their tax affairs up to date. If taking part in campaign then to obtain best possible terms tax would need to be disclosed and paid by 6 April 2014.

Initially you would need to notify HMRC (by 31 December 2013):

  1. online by completing a notification form on the HMRC website
  2. by phone on Telephone: 0845 600 4507

HMRC will then send you Disclosure Reference Number and Payment Reference Number.

You will then need to make the formal disclosure to HMRC (by 6 April 2014):

  1. completing and submitting a disclosure form on the HMRC website
  2. printing and posting the completed form

Full details on the process of providing information to HMRC and obtaining best terms (reduced penalties, extended payment arrangements) can be found on  Health and Wellbeing Tax Plan: Your guide to making a disclosure - GOV.UK  which will also include the address to use if posting the disclosure form.

Health professionals need to be aware that after 31 December 2013 HMRC will be taking a lot closer look at the tax affairs of these professionals and by volunteering for the campaign then there is the opportunity to reduce possible penalties that would otherwise be charged by HMRC if they initiated any enquiries.

Please contact us for further advice

Employee shareholder status

Posted by: edwinsmith on October 16th, 2013

On 1 September 2013 a new employment status was introduced being ‘employee shareholder status’ where employees could forego certain employment rights in exchange for acquiring shares worth at least £2,000 in their employer company (or parent company).

The main aim of this scheme is to encourage employee share ownership but although there are tax incentives for using the scheme the employee will lose some employment rights.

The employee concerned with acquiring shares must receive advice from an independent adviser on the terms and effect of the employee shareholder agreement. The employer company will be required to meet reasonable costs for the advice to employee, whether the individual accepts the employee shareholder position or not, but this will not be treated as giving rise to a taxable benefit to the employee (see below for corporation tax relief).

There are tax incentives for the employee in respect of the shares which are detailed as follows:

  1. Income tax and National Insurance is not usually chargeable on the first £2,000 of share value received by an employee shareholder. As long as they meet certain conditions then employee shareholders are treated as if they have paid £2,000 worth for their employee shares. This means if an employee shareholder receives £2,000 worth of shares under the agreement no tax or NI is chargeable at the time of the award. If the award is worth more than £2,000 then tax (and NIC if applicable) is only chargeable on the value received in excess of £2,000. It will be dependent on the type of shares issued.
  2. There will usually be a capital gains exemption for gains on the disposal of up to £50,000 worth of shares received by the employee shareholder on shares that have met the criteria for the above tax relief.

These special tax rules for income tax only apply to the initial shares received when an individual becomes an employee shareholder. Shares issued later will be taxed in the normal way.

Where the employee shareholder or anyone connected to them have a ‘material interest’ in the company because they hold 25 % or more in the company then  the special tax rules for income tax and capital gains tax will not apply and the employee shareholder shares are taxed in the normal way.

The employee will lose some employment rights such as some unfair dismissal rights, statutory redundancy pay but will retain rights such as statutory sick pay, maternity pay, paid annual leave etc – for full details see Gov UK - employee shareholders .

Employers who award employee shareholder status may obtain agreement of a proposed share valuation with HMRC.

The Employer may also be able to claim deductions for corporation tax relief on:

  1. the acquisition of shares by employee shareholders (subject to the normal qualifying rules).
  2. where a company meets the costs of advice provided to an individual considering an employee shareholder offer (providing these costs are incurred by the company wholly and exclusively for the purposes of its trade)

Further details on the above corporation tax relief can be found at HMRC - Employee shareholder

Employers will need to provide details of employee shareholder shares awarded on HMRC Form 42 (Employment-related securities) at the end of relevant tax year.

Please contact us for further advice on this new employment status scheme.

Filed under: Employers, Tax

Time limits for claiming capital gains losses

Posted by: edwinsmith on October 3rd, 2013

If you have made a capital loss on the sale of a chargeable asset you need to tell HMRC in writing about the loss within four years from the end of the tax year in which the loss occurred for it to become an allowable loss to be deducted from your gains, unless the loss was made in 1995-96 or an earlier year. If you made a loss in 1995-96 or an earlier tax year but have not used it, you do not need to tell HMRC about the loss until you want to use it.

If you completed a Self Assessment tax return for the year in which you made the loss, this should have been reported on the capital gains pages of your return. If you did not complete a Self Assessment tax return for the year in which you made the loss, use the table below to determine the deadline for a claim.

Tax year Tax year ended on You must claim by
2009-10 5 April 2010 5 April 2014
2010-11 5 April 2011 5 April 2015
2011-12 5 April 2012 5 April 2016
2012-13 5 April 2013 5 April 2017

For those not in self assessment, claim the loss by writing to HMRC either to the postal address on the most recent correspondence from them or to:

HM Revenue & Customs
Capital Gains Tax
PO Box 1970
L75 1WX

You must keep any records showing how you worked out your loss and include your calculations with your tax return or correspondence.

If you require any help, please contact us.

Filed under: Self Assessment, Tax