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Communicate with staff
It is a legal requirement for employers to write to each member of staff to tell them how automatic enrolment affects them and about their rights. Our publications page includes a summary of the information that should be communicated the each category of staff member.
The Pensions Regulator have published a letter template tool to assist with this task. The tool can be accessed at http://www.thepensionsregulator.gov.uk/employers/letter-templates-for-employers.aspx
Once you know that you have staff to automatically enrol, you must send their details to your pension scheme to ensure active membership. Then you must write to these staff to tell them they’ve been automatically enrolled and that they have a right to opt out of the pension scheme – this must happened within six weeks of your staging date. Please see our previous article on how to find out your staging date.
Once your staging date has passed and your existing employees have been automatically enrolled, you must write to any new employees within six weeks of the day a new staff member joins or becomes eligible to be automatically enrolled.
The exception is for existing scheme members who must be contacted within two months.
The letters may be sent to staff by post or email, but the information must be sent in writing and must be sent individually. A third party such as an accountant or financial adviser may send the letters on the employers behalf, but it remains the employers responsibility to make sure the right information gets to the right member of staff at the right time.
To see The Pensions Regulators full guidance on providing information to employees click here
This is the seventh instalment in a series of articles regarding auto enrolment as detailed on our Employer Action Plan. Previous instalments detailed below:
2 -
3 -
4 –
5-
6-
For more information on pensions or to discuss your auto enrolment action plan please contact us.
Employer provided beneficial loans – limit increase
The exemption threshold for employer provided beneficial loans which do not attract a tax charge is rising from 6 April 2014 from £5,000 to £10,000. The limit applies to the combined value of all outstanding loans during the tax year. This means that provided the total of all outstanding loans to an employee (or their relative) during the year is less than £10,000 there is no benefit in kind charge on the employee and hence no reporting requirements on form P11D at the end of the tax year.
If the exemption threshold is exceeded then a benefit in kind charge arises. If no interest is charged or at a rate lower than the official average rate of interest set by HMRC, then the value of the benefit is calculated using the official average rate of interest (less any lower rate of interest charged to the employee). The official average rate of interest for 2014/15 has reduced from 4% in 2013/14 to 3.25%.
If you would like to discuss loans to employees including directors please contact us.
Withdrawal of renewals basis for residential let property
The renewals basis which allowed for tax relief on white goods, furniture and soft furnishings for residential let property has been withdrawn from 6 April 2013 for income tax and 1 April 2013 for corporation tax.
This relief was one of the extra statutory concessions that have been available for some time but HMRC are now withdrawing these concessions.
The withdrawal of the renewals basis concession is causing some concern to tax advisers and tax payers but we have detailed below what we believe will be the affect of the withdrawal of this concession.
This will not affect furnished residential let property where the wear and tear allowance (10% statutory allowance) is available as detailed in our online article tax-relief-on-wear-and-tear-of-furniture-let-property for fully furnished lettings.
However the withdrawal of the renewal basis will affect unfurnished residential lettings. Capital allowances are not allowable against income from unfurnished residential lettings. Therefore the costs of replacing any free standing equipment (such as a fridge freezer) in an unfurnished residential property will not be deductible as an expense.
Where white goods are fitted such as integrated hobs and ovens then these will be recognised as part of the entirety of the property and so would be deductible as a repair when replaced.
Small items such crockery, rugs i.e. low cost furnishings would be tax deductible from income from unfurnished residential lettings.
For full details on HMRC updated guidance on repairs concerning furnished, part furnished and unfurnished lettings see HMRC - Property businesses deductions - repairs and renewals.
Please contact us for further advice tax implications of income from let properties.
Dates and deadlines June 2014
Upcoming deadlines for businesses and individuals:
1 June: Corporation tax payment for a company not within the instalment regulations: year ending 31 August 2013.
5 June: End of month 2 for PAYE (RTI). All FPS (Full Payment Submissions) due if taking advantage of concession where still available.
7 June: Online VAT return due to be filed and electronic payment of VAT due to be cleared into HMRC bank: quarter ended 30 April 2014.
11 June: Direct debit VAT payment will be taken: quarter ended 30 April 2014.
19 June: CIS monthly return deadline: month ended 5 June 2014.
19 June: Cheque payments for PAYE/NI, student loan, CIS to be cleared into HMRC bank: month ended 5 June 2014.
22 June: Electronic PAYE/NI etc payments to be cleared into HMRC bank: month ended 5 June 2014.
30 June : Company tax return CT600 due to HMRC: years ending 30 June 2013.
30 June: Company accounts (Private Limited Co) due to be filed: years ending 30 September 2013.
30 June: Company accounts (Public Companies) due to be filed: years ending 31 December 2013.
1 July : Corporation tax payment for company not within the instalment regulations: years ending 30 September 2013.
6 July : P11ds and P11d(b) due for submission to HMRC by this date: Tax year 2013/14.
