HMRC has details of all credit and debit card payments to UK businesses which they can use to identify individuals and businesses who may not have paid what they owe.  If you have not declared all your income and HMRC catch you, you will have to pay the undeclared tax, a penalty of up to double the tax you owe, and you could even go to prison if they pursue a criminal prosecution.

It is important for individuals to use this campaign to come forward and declare all their income under a ‘voluntary disclosure’ in order to obtain best terms for penalties. Under this campaign an individual will have four months to pay any additional liabilities from the date they receive HMRC’s acknowledgement of their notification.

Further information can be obtained here on HMRC website or please contact us for further advice.

This benefits couples (married/civil partnerships) where one spouse/civil partner has a total income less than their personal allowance (for 2015/16 £10,600). The recipients of the allowance will be able to reduce their tax liability by up to £212 (£1,060 x 20%).

This transfer of allowances is not eligible to:

1. Couple/civil partnerships where one/both pays tax at the higher/additional rate.
2. Married couple already claiming the married couple allowance – this is where at least one of the couple was born before 6 April 1935.
3. Non UK domiciled individuals who elect to pay tax on the remittance basis of tax or who would be higher rate or additional rate tax payers if their worldwide income was within the scope of UK tax.

Please contact us if you would like further assistance.

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 March 2015. However for the first month employers may continue to use the previously published rates if they choose to.

These rates will be reviewed again in May 2015 and any changes made will be effective from 1 June 2015. The revised fuel rates will be published on the fuel rates page on the HMRC website when they are released.

Advisory fuel rates can be used to calculate the following:

Reimbursement to employees of fuel used for business travel in a company car;
Repayment by employees of fuel used for personal travel in a company car;
Allowable input VAT claims on business mileage claims in personal cars made by employees.
A more detailed explanation of the use of these rates is on the HMRC website.

The rates applying for earlier periods are also on the HMRC website.

If you have any questions regarding the use of advisory fuel rates or mileage payments please contact us.

This will mean that most individuals with a total income of less than £15,600 will not pay any tax on their savings. If someone’s total income (such as wages, pension, benefits and savings income) is less than their personal allowance, plus £5,000, they will be able to register for tax-free savings at their bank or building society. If no tax is due on savings then an individual will be able to register their bank accounts for interest to be paid without tax being deducted by completing Form 85. There is also a help sheet in this link  that will help individuals work out if they qualify for 0% starting rate

Other individuals may have some of their savings interest eligible for the 0% starting rate and some taxable at 20%. In these circumstances an individual will still have some tax deducted but be will be able to reclaim some tax from HMRC using Form R40.

For further details please see Changes to starting rate of tax for savings interest.

Please contact us for further advice or assistance with forms.

HMRC can still be contacted by phone to query or amend PAYE codes - Telephone: 0300 200 3300.

Please contact us if you would like to assistance with checking PAYE code number.

Engine size Petrol LPG
1400cc or less 13p ↓ 9p ↔
1401cc to 2000cc 16p ↔ 11p ↔
Over 2000cc 23p ↓ 16p ↔

Engine size Diesel
1600cc or less 11p ↔
1601cc to 2000cc 13p ↔
Over 2000cc 16p ↓

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 December 2014. However for the first month employers may continue to use the previously published rates if they choose to.

These rates will be reviewed again in February 2015 and any changes made will be effective from 1 March 2015. The revised fuel rates will be published on the fuel rates page on the HMRC website when they are released.

Advisory fuel rates can be used to calculate the following:

Reimbursement to employees of fuel used for business travel in a company car;
Repayment by employees of fuel used for personal travel in a company car;
Allowable input VAT claims on business mileage claims in personal cars made by employees.
A more detailed explanation of the use of these rates is on the HMRC website.

The rates applying for earlier periods are also on the HMRC website.

If you have any questions regarding the use of advisory fuel rates or mileage payments please contact us.

1. £6.50 (£6.31) - the main rate for workers aged 21 and over
2. £5.13 (£5.03) - the 18-20 rate
3. £3.79 (£3.72) - the 16-17 rate for workers above school leaving age but under 18
4. £2.73 (£2.68) - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship

If you have any queries please contact us

As a minimum, you’ll need to provide the following information for each staff member to set up the membership

1. -        name,
2. -        postal address,
3. -        date of birth
4. -        and National Insurance number

Your pension scheme provider should tell you what additional information they will need in order to make en employee an active member and you will need to provide this information to them in writing, which can include email.

If you are automatically enrolling a lot of staff at the same time (at staging or after postponement), it may take the provider longer than usual to make all of them active members, so it would be a good idea to find out how long the provider expects to take creating active membership for your staff after you have given them the information they need.

Before you staging date you should agree with the pension provider the contributions rates and the due dates for payment of contributions.  Information on the minimum contributions and due dates for payment can be found at on the Pensions Regulator website

You will also need to find out whether the pension deductions should be made from the employees’ gross or net pay (this will vary depending on the pension scheme provider).

You should also discuss with the provider how they handle ‘opt-outs’ (including how an employee can obtain the opt-out notice), and what the provider will need from you in order to process ‘opt-ins’ and joiners to the scheme.

You'll need to assess the ages and earnings of each member of staff on your staging date and you will have 6 weeks to automatically enrol anyone who’s eligible (or 1 month from the end of the postponement period, if applicable)

Active scheme membership must take effect from the date they first became eligible for automatic enrolment.  This means that contributions will be due and you must calculate them from that date. Before the end of the six week period after staff first become eligible for automatic enrolment, you must write to everyone you have automatically enrolled about the scheme, the contribution rates and about their right to opt out.

Tips:

1. You must not say or do anything that could be viewed as influencing any of your staff to opt out of your pension scheme. This is referred to as 'inducement' which is a breach of the law and could result in fines.
2. It’s important your staff records are up to date – make sure you hold all their latest information. You should carry out this data check as part of your general preparations for automatic enrolment.
3. Keep records of who you've enrolled as you will need to make a declaration to the Pensions Regulator on how many you've enrolled into which scheme.

This is the ninth installment in a series of articles regarding auto enrolment as detailed on our Employer Action Plan. Previous installments detailed below:

1 – Know your staging date

2 -

3 -

4 –

5-

6-

7-

8-

For more information on pensions or to discuss your auto enrolment action plan please contact us.

1. the worker must personally provide services, (which are not excluded services) to the client, and
2. there must be a contract between the client (or a person connected with the client) and a person who is not the worker, the client or a person connected with the client (that is, “the agency”) and under or in consequence of that contract: (i) the worker’s services are provided, or (ii) the client or any person connected with the client pays, or otherwise provides consideration for the services, and
3. the worker must be subject to (or to a right of) supervision, direction or control (by any person) as to the manner in which they provide their services, and
4. remuneration receivable by the worker in consequence of providing the services does not constitute employment income/employed earners earnings before the provisions of the agency legislation are applied.

If it is held that the manner in which the worker provides the services is not subject to (or to the right of) supervision, direction or control by any person the agency must keep and be able to show evidence to that effect.

The agency legislation will not apply in the following circumstances: 

1. if the remuneration the worker receives in consequence of providing the services is otherwise chargeable as employment income before the agency legislation is applied, or 
2. when the worker is legitimately self-employed. There is an associated record keeping requirement to demonstrate when this is applicable, or 
3. where it can be shown that the worker is not subject to (or to a right of) supervision, direction or control by anyone, as to the manner in which they provide the services. There is an associated record keeping requirement to demonstrate when this is applicable, or
4. if the worker provides their services wholly in their own home, or on other premises which are not controlled or managed by the client, unless the worker is required to do so at those premises because of the nature of the services and work being provided to the client, or 
5. if the worker provides their services as an actor, singer, musician or other entertainer or as a fashion, photographic or artist’s model.

The last three points are referred to as ‘excluded services’ in the new legislation.

Penalties have been introduced for the keeping and preserving of records and returns.

Prior to 6 April 2014 the conditions for the agency legislation to apply included the condition for an agency contract to exist between the worker and the agency but this is not included in the new conditions.

Self employed individuals may now find themselves classified as an employee of the agency under the new legislation. If you are ceasing self employment and require assistance with the cessation then please contact us. If you require further advice please also contact us.

1 July: Corporation tax payment for a company not within the instalment regulations: year ending 30 September 2013

5 July: End of month 4 for PAYE, all RTI submissions due if taking advantage of concession.

5 July: PAYE settlement agreements to be agreed with HMRC by this date: tax year 2013-2014

6 July: Forms P9d, P11ds and P11d(b) due for submission to HMRC by this date and provide employees with copies: tax year 2013-2014

7 July: Online VAT return due to be filed and electronic payment of VAT due to be cleared into HMRC bank: quarter ended 31 May 2014

10 July: Direct debit VAT payment will be taken: quarter ended 31 May 2014

19 July: CIS monthly return deadline: month ended 5 July 2014

19 July: Cheque payments for PAYE/NI, student loan, CIS  and Class 1a NIC to be cleared into HMRC bank: month ended 5 July 2014 plus quarter 1 for quarterly payers

22 July: Electronic PAYE/NI etc and Class 1a NIC payments to be cleared into HMRC bank: month ended 5 July 2014 plus and quarter 1 for quarterly payers

31 July: Company tax return CT600 due to HMRC: years ending 31 July 2013

31 July: Company accounts (Private Limited Co) due to be filed: years ending 31 October 2013

31 July: Company accounts (Public Companies) due to be filed: years ending 31 January 2014

31 July: Second payment on account of tax due: tax year 2013-2014

31 July: Finalise tax credit renewals: tax year 2013-2014

1 August 2014: Corporation tax payment for company not within the instalment regulations: years ending 31 October 2013

2 August: Submission of form P46 (car) for changes in quarter to 5 July 2014