Edwin Smith - Chartered Accountants
  • Home
  • About Edwin Smith
  • Accounting Services
  • Contact Edwin Smith

Dates and deadlines: February 2014

Posted by: edwinsmith on January 31st, 2014

Upcoming deadlines for businesses and individuals

1 February: Corporation tax payment for a company not within the instalment regulations: year ending 30 April 2013.

1 February: Late filing penalty issued for Self Assessment return not filed for 2012/13.

1 February:  Submission of form P46 (car) for changes in quarter to 5 January 2014.

5 February: End of month 10 for PAYE (RTI). All FPS (Full Payment Submissions) due if taking advantage of concession.

7 February: Online VAT return due to be filed and electronic payment of VAT due to be cleared into HMRC bank: quarter ended 31 December 2013.

12 February: Direct debit VAT payment will be taken: quarter ended 31 December 2013.

19 February: CIS monthly return deadline: month ended 5 February 2014.

19 February: Cheque payments for PAYE/NI, student loan, CIS  to be cleared into HMRC bank: month ended 5 February 2014.

22 February: Electronic PAYE/NI etc payments to be cleared into HMRC bank: month ended 5 February 2014.

28 February: First surcharge of 5% applies for self assessment tax unpaid for 2012/13 after this date

28 February : Company tax return CT600 due to HMRC: years ending 28 February 2013.

28 February: Company accounts (Private Limited Co) due to be filed: years ending 31 May 2013.

28 February: Company accounts (Public Companies) due to be filed: years ending 31 August 2013.

1 March : Corporation tax payment for company not within the instalment regulations: years ending 31 May 2013.

 

Filed under: Business, Company, Dates and deadlines, Employers, Individuals, PAYE, Self Assessment

Tax return deadline extension in limited circumstances

Posted by: edwinsmith on January 31st, 2014

There has been no official deadline extension for 2012/13 tax returns  but HMRC have recognised a select number of tax payers who have either registered very recently for the online services or lost their user ID and password and realise that they have left it too late to enable them to obtain the relevant passwords etc and file on time. HMRC has allowed a little extra time for taxpayers who fall into these categories.

This will only apply to taxpayers who did the following between midnight on 21 January 2014 and midnight on 31 January 2014:

Either:

  1. Enrolled for the self assessment service, or
  2. Requested a replacement user ID or password.

This extension only applies to taxpayers who were already registered for self assessment and have a unique tax reference (UTR), and so this will not assist those who are late to notify HMRC of a liability to charge.

The return would also need to be submitted via the HMRC software and so this cannot apply to partnerships and trustees as the HMRC free software cannot be used for these returns.

The few tax payers who can benefit can avoid the late filing penalty providing their return is submitted by 15 February 2014. However, a penalty notice is likely to still be issued leaving the taxpayer to appeal against it within 30 days of issue. You would need to show that you fall within the circumstances shown above.

Tax payments

Tax due must still be paid by 31 January 2014. If it is not, interest will accrue and the usual surcharges will also apply.

If you are struggling with your taxation affairs and need assistance, then please consider contacting us.

Filed under: Individuals, Self Assessment

Employers – Eye tests and the provision of glasses

Posted by: edwinsmith on January 24th, 2014

Where an employee is required to use display screen equipment (usually a computer with a Visual Display Unit -VDU) as part of his normal duties for an employer then there are tax reliefs available to the employer and employee concerning the employer payments for eye tests and the provision of glasses.

If an employee is required to use a VDU in the above circumstances then no taxable benefit will arise on the cost of

  1.    an eyesight test, and

 2.    glasses or contact lenses required solely for VDU use that the eye test shows is necessary where

the test is required under Health and Safety at work regulations and if shown to be necessary by the test.

A special prescription should be obtained for VDU use in order to take advantage of tax relief.

 Where glasses etc are for general use, but include a special prescription for VDU use, a proportion of the cost relating to the special prescription will be exempt from a taxable benefit.

The provision or payment by an employer towards the cost of glasses etc for general use, including use with a VDU, but without a special prescription for VDU will give rise to a taxable benefit.

For Class 1 National Insurance Contributions (NIC) there are similar exemptions from liability if a special prescription for VDU use is obtained in above circumstances regardless of whether employer contracts with optician or employee arranges test etc and employer reimburses them.

However if the eye test identifies a general need for glasses (as well as special prescription for VDU use) and the employer  reimburses employee for whole costs then liability for Class 1 NICs will arise on the amount exceeding VDU related prescription. This amount will effectively be treated as part of employee’s salary and PAYE/NIC calculated on this amount in normal way for salary etc.

If the employer contracts with the optician then amount paid by employer will be disregarded for Class 1 NICs but the amount exceeding VDU related prescription will need to be treated as benefit in kind to employee and entered on the relevant year end P11d forms (Employers return of benefits and expenses paid to employees). Therefore in this situation Class 1a NIC would be payable by the employer but employee would not suffer Class 1 NIC liability.

Please contact us if you would like further advice in this area.

Filed under: Benefits, Employers, Individuals, PAYE

Employers’ National Insurance annual employment allowance

Posted by: edwinsmith on January 17th, 2014

From April 2014 all businesses and charities will be entitled to an annual £2,000 employment allowance against their Class 1 secondary National Insurance bill (employers NIC).

The annual employment allowance will apply per employer, regardless of how many PAYE schemes are operated.  Therefore, businesses with more than one PAYE scheme will need to choose which PAYE scheme to claim it against.

The employment allowance will be claimed by reducing the Class 1 secondary employer national insurance contributions on the Employer Payment Summary (EPS) and will be included each month until the allowance is fully claimed or the tax year ends.

Please contact us or your normal payroll provider if you are unsure whether your payroll software has been updated to incorporate this facility.

If your payroll circumstances are complicated or you would like further advice on the annual employment allowance please contact us.

 

Filed under: Company, Employers, PAYE

Patent Box Scheme

Posted by: edwinsmith on January 6th, 2014

From 1 April 2013, the Patent Box allows companies to benefit from a lower rate of Corporation Tax on profits earned from their patented inventions and certain other innovations. 

Your company may benefit if it holds a patent granted by the UK Intellectual Property Office, the European patent office or certain countries in the European Economic Area, undertakes qualifying development activities and generates income from one of the following sources:

  • selling patented products - that is sales of the patented product or products incorporating the patented invention or bespoke spare parts
  • licensing out patent rights
  • selling patented rights
  • infringement income
  • damages, insurance or other compensation related to patent rights

Your company may also benefit from a tax saving on the ‘notional royalty’ of using a manufacturing process that is patented or providing a service using a patented tool.

The regime will be phased in for qualifying income generated from 1 April 2013  and the full amount of the benefit will become effective from 1 April 2017.  During the interim period, you will need to apply an appropriate percentage to the profits your company earns from its patented inventions.

The appropriate percentages for each financial year are:

  • 1 April 2013 to 31 March 2014: 60 per cent
  • 1 April 2014 to 31 March 2015: 70 per cent
  • 1 April 2015 to 31 March 2016: 80 per cent
  • 1 April 2016 to 31 March 2017: 90 per cent
  • from 1 April 2017: 100 per cent

The actual saving is generated by calculating a and subtracting this from your taxable profits. Your accountant or tax advisor will be able to assist with the formula required to calculate the deduction.

There is further guidance regarding the scheme qualifications and how exactly the deduction is calculated on the HMRC website  Patent Box Scheme claims

If you are unsure whether your company will qualify for the Patent Box scheme, or for advice on other corporation tax matters, please contact us.

Filed under: Business, Company, Tax