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Revised advisory fuel rates 1 September 2014

Posted by: edwinsmith on September 5th, 2014

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 11p ↓
1601cc to 2000cc 13p ↓
Over 2000cc 17p ↔

 

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 September 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 November 2014 and any changes made will be effective from 1 December 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:

  1. Reimbursement to employees of fuel used for business travel in a company car;
  2. Repayment by employees of fuel used for personal travel in a company car;
  3. 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.

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

Changing your business address or name? Who and how to notify.

Posted by: edwinsmith on August 11th, 2014

LIMITED COMPANIES – change of registered office

If you are changing your registered office address you need to complete form AD01.  This can either be done on line at Companies House or by post.  The corporation tax department of HMRC gather data from Companies House on change of registered address and so it should filter through to the corporation tax office.  However, it would be advisable to check with them that it has been updated.

BUSINESSES WITH AN HMRC ONLINE BUSINESS TAX DASHBOARD

The dashboard can be used to update three business taxes.

  1. Corporation tax or self-assessment
  2. PAYE for employers
  3. VAT

If you do not have a business dashboard account but you are registered on line for corporation tax, VAT or PAYE then you can use your on line account to register a change of business address.  Please note the corporation tax office will not accept a change in the registered office address as this needs to be done through Companies House first as mentioned above.  Agents on line accounts do not have the facility for informing HMRC of a change of address.

If you do not have an on line account then you will need to inform HMRC for the following taxes as follows:-

VAT 

Complete form VAT484, section 1, and forward to HMRC at the address shown on the form.  This form can be downloaded from the HMRC website.

PAYE

Employers should write to HMRC at the following address:-

H.M. Revenue and Customs – Customer Operations Employer Office, BP 4102, Chillingham House, Benton Park View, NEWCASTLE-UPON-TYNE, NE98 1ZZ.

 

Further information can be obtained on HMRC website or please contact us.

Revised advisory fuel rates 1 June 2014

Posted by: edwinsmith on May 29th, 2014

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 June 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 August 2014 and any changes made will be effective from 1 September 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:

  1. Reimbursement to employees of fuel used for business travel in a company car;
  2. Repayment by employees of fuel used for personal travel in a company car;
  3. 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.

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

Tax tables 2014-15

Posted by: edwinsmith on May 9th, 2014

The latest version of our tax tables document has been published on the publications and useful links page.

 

VAT fuel scale charge changes from 1 May 2014

Posted by: edwinsmith on May 9th, 2014

VAT fuel scale charges, for taxing private use of road fuel, are amended for periods commencing on or after 1 May 2014.

The scale charge for a particular vehicle is determined by its CO2 emissions figure. Where the CO2 emissions figure of a vehicle is not a multiple of five, the figure is rounded down to the next multiple of five to determine the level of the charge. For a bi-fuel vehicle which has two CO2 emissions figures, the lower of the two figures should be used.

For cars which are too old to have a CO2 emissions figure HM Revenue & Customs (HMRC) have prescribed a level of emissions by reference to the vehicle's engine capacity (cc) as follows:

  Cylinder   capacity            CO2 band
  1,400cc or less   140
  1,401cc to 2,000cc   175
  Over 2,000   225 or above

The HMRC website has details of the CO2 emissions amounts and the related fuel scale charges. The tables on the HMRC website show VAT inclusive scale charges applicable in each accounting period, depending on whether it is a 12 month, three month or one month accounting period. Further into the document you will find the tables showing the actual vat to be paid.

If you have any questions then please contact us.

Filed under: VAT

Dates and deadlines: April 2014

Posted by: edwinsmith on April 1st, 2014

Dates and deadlines: April 2014

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

Reduction in main rate of corporation tax to 21%.

5 April: End of month 12 for PAYE (RTI). All FPS (Full Payment Submissions) due if taking advantage of concession. This concession ends on this date for employers with less than 50 Employees.

2013/14 tax year end.

6 April: Start of new tax year 2014/15.

Start of new PAYE (RTI) reporting concession for existing employers with less than 10 employees.

7 April: Online VAT return due to be filed and electronic payment of VAT due to be cleared into HMRC bank: quarter ended 28 February 2014.

10 April: Direct debit VAT payment will be taken: quarter ended 28 February 2014.

14 April: Submission of forms CT61 together with payment of tax due: quarter ended 31 March 2014

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

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

Final EPS submission including Employer end of tax year 2013/14 declarations should be submitted to avoid late filing penalty.

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

30 April : Company tax return CT600 due to HMRC: years ending 30 April 2013.

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

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

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

 

2014 Budget

Posted by: edwinsmith on March 20th, 2014

The key announcements in the 2014 Budget are as follows:

PERSONAL TAXATION

Income Tax

From 6 April 2015, the personal allowance for those born after 5 April 1948 will be increased by £500 from £10,000 to £10,500.

The basic rate limit threshold will be reduced to £31,785 for 2015/16 from £31,865.  The personal allowance and basic rate limit will be £42,285, a 1% increase on 2014/15 £41,865 as previously announced in the Autumn statement 2013.

For people born on or before 5 April 1948 there is no increase in the personal allowance, currently £10,500 with a higher allowance of £10,660 for those born before 6 April 1938.

Legislation will be introduced in the Finance Bill 2014 so that a spouse/civil partner can transfer part of their personal allowance to the other spouse/civil partner. For 2015/16 £1,050 of the personal allowance will be transferable from an individual whose income is below the personal allowance or who is liable at the basic rate, dividend ordinary rate or starting rate for savings. The receiving spouse/civil partner is eligible to receive the allowance if they are liable to tax at the basic rate, dividend ordinary rate or starting rate for savings. For 2016/17 the amount transferable will be 10% of the personal allowance.

For 2015-16 the main rates of income tax will remain at the 2014/15 rates - 20% basic rate, 40% higher rate and 45% additional rate.

From 6 April 2015 the starting rate of tax for savings will reduce from 10% to nil. The maximum amount of taxable savings income that can be eligible for the starting rate will also increase from £2,880 to £5,000. When combined with the increase in the personal allowance, this means that savers will not be liable for tax on any interest if their total taxable income is less than £15,500. The eligibility requirements to enable an individual to have their interest paid gross will change to accommodate the new provisions.

ISA

From 1 July 2014 all ISAs will reform in to a simpler New ISA (NISA) with the overall annual subscription limit increasing to £15,000, £4,000 for Junior ISAs. There will be changes so that the full amount subscribed can be in cash and a wider range of securities will be eligible to be included.

Company Car Tax rates 2017/18 and onwards

For 2017/18 and 2018/19  there will be an increase in the appropriate percentage for company cars emitting more than 75g of carbon dioxide per kilometre of two percentage points to a maximum of 37 per cent.

Van Fuel Benefit Charge 2015/16

The van fuel benefit charge will increase by inflation in 2015-16 based on the increase in the September 2014 Retail Price Index (RPI).

Company Car and Van Fuel Benefit Charge 2015/16

The rate of fuel benefit charge for company cars and fuel benefit charge for company vans will also increase in line with inflation (based on RPI) for 2015-16. The increase will be based on the September 2014 RPI figure.

Pensions

Changes to the limits from 27 March 2014 to drawdown, trivial commutation and small pots will affect the benefits to be taken as pension income drawdown and taxed lump sums.

The government has also announced a consultation document to consider proposed changes from April 2015 to allow greater flexibility for withdrawing from pension contribution schemes.

These changes will have a major effect on retirement options and strategies and we will produce a separate article on this in the next month or two. Please speak to us in the meantime.

CAPITAL TAXATION

Seed Enterprise Investment Scheme – Capital Gains Reinvestment Relief

Legislation will be introduced in Finance Bill 2014 to make permanent the capital gains tax (CGT) relief for reinvesting gains in SEIS shares without time limit. The relief will apply to half the qualifying re-invested amount.

BUSINESS TAXATION

Research and development tax relief for small and medium sized companies

From 1 April 2014 the rate of research and development payable tax credit will be increased from 11% to 14.5% for loss making small and medium sized enterprises.

Class 2 National Insurance process simplification for the self-employed

Legislation will be introduced to simplify the administrative process for the self-employed by using Self Assessment to collect Class 2 NICs alongside income tax and Class 4 NICs. The intention is for this to apply from April 2016.

Annual Investment Allowance

The maximum annual amount increases on 1 April 2014 for corporation tax and 6 April 2014 for income tax from £250,000 to £500,000 for the period to 31 December 2015. From 1 January 2016 it will revert back to the original annual maximum of £25,000.

VAT

Registration and deregistration limits

From 1 April 2014, the taxable turnover threshold which determines whether a person/entity must be registered for VAT will increase to £81,000 (currently £79,000).

The deregistration threshold will increase to £79,000 (currently £77,000).

The registration and deregistration threshold for relevant acquisitions from other EU Member States will also be increased to £81,000 (currently £79,000).

Changes to the rules on prompt payment discounts

To bring the UK in line with European law from 1 April 2015 businesses will need to account for VAT on the amount received for a supply. Currently HMRC accept VAT calculated on the prompt payment discount figure even if the discount is not taken. A consultation process will take place to implement the new rules. However, this will apply to telecommunications and broadcasting services where there is no obligation to provide a VAT invoice from 1 May 2014.

EXCISE DUTY

From 6 pm on Thursday 19 March 2014 the following changes will take effect:

Tobacco duty – 2% above the rate of inflation

The following increases are effective from 24 March 2014:

Alcohol duty – inflationary increase on duty for wine and made-wine, and sparkling cider of a strength exceeding 5.5%. The duty rates on beer will decrease by 6% for low strength beer, 2% for the standard rate of beer duty and 0.75% overall for high strength beer. The duty rates on spirits, ordinary cider and perry have been frozen.

The exemption cut-off will change for vehicle excise duty on 1 April 2014 for vehicles registered before 1 January 1974. This will change annually so that vehicles over 40 years old will be exempt from vehicle excise duty.

OTHER DUTIES

There are proposed reductions to bingo duty and a higher machine game duty.

 

A document containing the tax rates applying for 2014-15 will be available for download from our website downloads page in due course.

Printed tax tables are also being produced and if you would like to receive a copy then please contact us.

Please contact us at Edwin Smith if you would like to discuss any of the measures announced in the 2014 Budget in more detail or to apply any changes to your specific circumstances.This article is for general information only and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking any action on the basis of the contents of this web page.

Revised advisory fuel rates 1 March 2014

Posted by: edwinsmith on February 28th, 2014

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  ↔ 17p  ↑

 

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 March 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 May 2014 and any changes made will be effective from  1 June 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:

  1. Reimbursement to employees of fuel used for business travel in a company car
  2. Repayment by employees of fuel used for personal travel in a company car
  3. 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, Tax, VAT

VAT Bad debt relief

Posted by: edwinsmith on December 23rd, 2013

If you are VAT registered, made supplies to a customer and have not been paid then you should consider making a claim to recover the VAT that has been paid to HMRC on the respective supply.

There are various conditions and rules that need to be followed in order to claim the VAT bad debt relief and although these rules have been around for some time it is useful to remind ourselves of the various steps that need to be followed to make a valid claim.

Current time limit to make a claim for bad debt relief
The general time limit for making a claim for supplies made after 30 April 1997 is 4 years and 6 months from the later of the due date of payment for the supply or the actual date of supply (there are other rules that may apply for supplies made between 1 April 1989 and 30 April 1997). The due date of payment may be determined by your normal credit terms or an arrangement made with customer if longer.

Conditions to make a claim for bad debt relief
In order to claim relief from VAT on bad debts there are 7 conditions that need to be met. The first five detailed below apply to supplies made after 30 April 1997.

1. You must have already have accounted for the VAT on the supplies and paid it to HMRC.
2. You must have written off the debt in your day to day VAT accounts and transferred it to a separate bad debt account.
3. The value of the supply must not be more than the customary selling price.
4. The debt must not have been paid, sold or factored under a valid legal agreement (see 3.12 of HMRC VAT notice 700/18).
5. The debt must have remained unpaid for a period of six months after the later of the time payment was due and the date of supply

Conditions 6 and 7 wholly apply to supplies made before 30 April 1997 –see HMRC VAT notice 700/18.

If you account for VAT under the cash accounting scheme or one of the special VAT retail schemes then the above the bad debt relief will not apply as no VAT would have been paid to HMRC relating to the supply.

How to make claim for bad debt relief
The amount of VAT being claimed should be included in Box 4 of your VAT return which covers the date when the conditions are met to make a claim.

Records required in respect of claim for bad debt relief
You must keep records in respect of the claim which include a copy of the VAT invoice in respect of the supply for which you are making a claim – full details on these records are shown in 2.5 of HMRC VAT notice 700/18. These records must be kept 4 years from the date you make the claim.

Since 30 April 1997 you do not need to notify the customer that you are making a claim for VAT bad debt relief.

Bad debt relief claims in respect of part paid supplies
If you are making a claim for bad debt relief in respect of supplies for which you have received part payment then you can only claim a refund on the VAT relating to the amount that is still unpaid. The payment should also be allocated to the earliest supply (unless customer specifies payments relates to a particular supply which paid for in full). An example of the operation of the rules for allocating payments of part paid debts is shown in 3.3 and 3.4 of HMRC VAT notice 700/18.

Other circumstances
Where you have provided finance in respect of a supply or provided security in respect of a debt or there are other unusual circumstances relating then you consider sections 3.5 to 3.13 of HMRC VAT notice 700/18.

Payment received on supply after making claim for bad debt relief
If you have received a refund in respect of a claim for VAT bad debt relief and you later receive a payment for the supplies then you must repay the VAT element included in the payment. The payments received for the supply/supplies must be shown in a separate bad debt account. The VAT being repaid should be shown in Box 1 of your VAT return. If you are no longer VAT registered then you must still repay the appropriate VAT and contact HMRC for guidance.

If you require further advice or assistance with VAT bad debt relief claim then please contact us.

Filed under: Business, Company, VAT

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:

  1. Reimbursement to employees of fuel used for business travel in a company car
  2. Repayment by employees of fuel used for personal travel in a company car
  3. 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