PAYE

Dates and deadlines December 2013

Posted by: edwinsmith on November 30th, 2013

Upcoming deadlines for businesses and individuals

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

5 December: End of month 8 for PAYE (RTI). All FPS (Full Payment Submissions) due if taking advantage of concession.

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

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

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

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

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

30 December : Submission of electronic 2012/13 self assessment tax return if require unpaid tax to be collected by tax code.

31 December : Company tax return CT600 due to HMRC: years ending 31 December 2012.

31 December: Company accounts (Private Limited Co) due to be filed: years ending 31 March 2013.

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

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

Filed under: Dates and deadlines, Employers, Individuals, PAYE, Tax

Revised advisory fuel rates 1 December 2013

Posted by: edwinsmith on November 28th, 2013

H.M. Revenue and Customs (HMRC) have published the latest advisory fuel rates relating to mileage payments for business travel in company cars. These are as follows:

Engine size	Petrol	LPG
1400cc or less	14p ↓	9p ↓
1401cc to 2000cc	16p ↓	11p ↔
Over 2000cc	24p ↓	16p ↔

Engine size	Diesel
1600cc or less	12p ↔
1601cc to 2000cc	14p ↓
Over 2000cc	17p ↓

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 December 2013. 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 2014 and any changes made will be effective from 1 March 2014. 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 on business mileage claims

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.

Filed under: Company, Employers, PAYE, Tax, VAT

Automatic closure of unused PAYE schemes by HMRC

Posted by: edwinsmith on November 14th, 2013

HMRC issued a notice on their website in October stating that with effect from 28 October 2013, they will be issuing letters to employers, (RTI206), to advise that they have closed their PAYE scheme. This will have been due to a period of inactivity meaning that they (HMRC) believe that the scheme is not required.

Any PAYE schemes set up since 5 April this year will be shut down automatically if the employer has not made any RTI submissions, paid subcontractors or paid HMRC within 120 days of it being set up.

Schemes registered as annual PAYE schemes will not be affected.

Employers are reminded that to close a scheme down, they will need to make a final RTI submission and tell HMRC that the scheme should be closed where it is no longer required. This will avoid unnecessary penalties being issued and unnecessary correspondence and calls to HMRC to correct their records where they are chasing for returns and payments which are not due.

If you have received a letter and you believe your scheme is still required, then you will need to contact HMRC. You may also need advice on how to manage your scheme. Please contact us for advice and assistance.

Filed under: Employers, PAYE, Tax

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.

Filed under: Dates and deadlines, Employers, PAYE, Tax

September 2013 email newsletter

Posted by: edwinsmith on September 30th, 2013

To view a copy of our September 2013 Edwin Smith newsletter please click .

Please also consider subscribing by using the link on the left hand side.

Filed under: Audit, Charities, Employers, Newsletters, PAYE, Self Assessment

Age exception certificates and State Pension Age calculator

Posted by: edwinsmith on September 27th, 2013

Employers need to be aware that HMRC will no longer issue age exception certificates (CA4140) to confirm that a person has reached State Pension age (Spa) and therefore the employee concerned is no longer liable to pay Class 1 National Insurance Contributions (NICs). Employers still continue to be liable for their portion of the NICs if the person is working as an employee.

This means that employers will need to obtain a copy of an employee’s birth certificate or passport as evidence of the employee’s date of birth. This can be scanned or photocopied by the employer and kept on file as proof that employee Class1 NICs are not payable.

If for any reason an employee is reluctant to provide a birth certificate as it may contain sensitive information that they do not wish to disclose then the employer should advise the employee to contact HMRC at the following address to obtain a letter confirming they have reached SPa.

HM Revenue and Customs

National Insurance Contributions and Employer Office

Individuals Caseworker

BentonParkView

Longbenton

Newcastle upon Tyne

NE98 1ZZ

State pension age calculator

If you want to confirm the date you will reach SPa there is a State Pension Age Calculator available at www.gov.uk/calculate-state-pension

Please contact us for any advice on payroll issues.

Filed under: PAYE, Tax

Revised advisory fuel rates 1 September 2013

Posted by: CarolineMeredith on August 29th, 2013

H.M. Revenue and Customs (HMRC) have published the latest advisory fuel rates relating to mileage payments for business travel in company cars. These are as follows:

Engine size	Petrol	LPG
1400cc or less	15p ↔	10p ↔
1401cc to 2000cc	18p ↑	11p ↓
Over 2000cc	26p ↑	16p ↓

Engine size	Diesel
1600cc or less	12p ↔
1601cc to 2000cc	15p ↑
Over 2000cc	18p ↔

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 September 2013. 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 November 2013 and any changes made will be effective from 1 December 2013. 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 on business mileage claims

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.

Filed under: Employers, PAYE, VAT

PAYE RTI reconciliation problems

Posted by: edwinsmith on August 28th, 2013

If you use the business tax dashboard and are an employer, then you will know that you can view your PAYE balance online. This should provide an accurate picture of your account. However, since the dashboard is not updated daily, it may provide an inaccurate picture.

HMRC have confirmed that at present, for real time submissions, updates will only be made twice a month, after the 6^th and 19^th for the tax month just ended. This means that larger employers may find it difficult to review their PAYE record and discrepancies may have arisen due to the time in which it takes HMRC to process the RTI data.

There have been a number of problems reported with employers being chased for underpayments and some being advised to reduce the next payment for overpaid PAYE.

For the system to work correctly, employers must also ensure that the correct payment references are used when making PAYE payments. More information about using the correct numbers can be found here.

HMRC has admitted that it is having some problems and as a result has set up a dedicated team to look why some PAYE schemes have experienced ongoing problems in reconciling what HMRC say is due and what has been paid.

If we run your payroll scheme, then contact us for advice. If not, then review your business tax dashboard to see if you can reconcile the submissions and the payments made, and certainly make contact with HMRC if you believe HMRC to be wrong.

If you employ a large number of staff this may prove difficult under the current circumstances, meaning you may need to wait for the dedicated team to review your account.

Filed under: Employers, PAYE

The Business Tax Dashboard

Posted by: edwinsmith on August 20th, 2013

The business tax dashboard is a service provided by HMRC within your government gateway / online account. If you wish to use the service you will need to register for it from within your online account when you log in to either your corporation tax or self assessment service.

Once registered, it can be accessed straight away. From within the dashboard you can see on a single page, the tax position for the business related taxes you are registered for.

For each tax, you will be able to see the overall position and more detailed information such as payments made, interest on late payments, penalties incurred and direct debit plans.

You can use the dashboard to view information as follows:

Corporation Tax - information for accounting periods from 1 October 1993 onwards
Self Assessment - information for the tax year 1996-97 onwards
PAYE for employers - information for the tax year 2010-11 onwards
VAT - information for the current date and previous 15 months

Contact details can also be changed from the dashboard.

The system is updated overnight from Monday to Friday but the drawback is that the dashboard will only reflect returns and payments that have reached HMRC systems. HMRC have updated their guidance and have confirmed that for real time submissions, updates will be twice a month, after the 6^th and 19^th for the tax month just ended.

You can sign into your online account here.

Filed under: Employers, PAYE, Self Assessment, Tax

Employer payrolled benefits and P11d forms

Posted by: edwinsmith on June 21st, 2013

Employers can make arrangements with HMRC to payroll benefits in kind. This means that benefits in kind and expenses would be put through the payroll for employees. The employees would then be taxed in ‘real time’ rather than be taxed at some future time via their PAYE tax code or if applicable through their self assessment form.

In practice the cash equivalent of the benefit in kind would be calculated on an annual basis and split over 12 months if employee paid monthly or 52 weeks if paid weekly and the appropriate amount added to the payroll.

This can be done for all benefit in kinds or the employer can choose specific benefits to be payrolled which can be agreed with HMRC.

Employers making payrolled benefits still need to complete and submit P11d forms and will be liable to penalties if forms not submitted. Detailed below is an extract from HMRC on the steps to take when submitting forms - HMRC - P11d forms

If all benefits have been payrolled and P11ds filed online.

notify HMRC that you will be sending P11Ds for directors or employees where payrolling has taken place in that year, in order to avoid incorrect processing of the data - there's an HMRC online form payrolled benefits you can use to do this or you can telephone HMRC's Employer Helpline.
complete the 'amount made good or from which tax deducted' boxes (where this box is available for the relevant benefit).
complete the P11D(b) form as normal, ensuring that the total expenses and benefits provided are included irrespective of payrolling.

If some benefits have been payrolled for some or all employees and P11ds filed online.

complete the 'amount made good or from which tax deducted' boxes (where this box is available for the relevant benefit).
submit P11D information, either online/electronically or on paper for non-payrolled benefits.
submit P11D information, either online/electronically or on paper for payrolled benefits, where the benefits that have been payrolled have a corresponding entry for 'amount made good or from which tax deducted'.
submit separately on paper, P11D information for other payrolled benefits - these separate P11Ds and lists must be clearlymarked 'PAYROLLED' .
complete the P11D(b) as normal, ensuring that the total expenses and benefits provided are included, irrespective of payrolling .

Benefits have been payrolled for some employees and paper P11ds.

clearly mark all relevant paper submissions 'PAYROLLED', whether they be individual P11Ds or in list format .
complete the P11D(b) as normal, ensuring that the total expenses and benefits are included, irrespective of payrolling .

Please contact us if you require any further advice on payrolling benefits in future or completing p11d forms.

Filed under: Benefits, Employers, PAYE, Tax

Accountants Reading