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Repayment claims for limited company subcontractors

Posted by: edwinsmith on July 14th, 2014

As a reminder (see last year’s article Companies-that-have-cis-deductions-on-their-own-income-and-claiming-repayments ) a claim must be made in writing for a repayment where a limited company has ended the tax year with CIS tax owing to them under the PAYE (RTI) system and the company is not able to recover the tax against PAYE/NIC /CIS tax payments due in the current year. The company must have made the Final Employer payment Summary (EPS) and all associated Full payment Submissions (FPS) for year in respect of claim.

The HMRC CIS repayment claim help card details the information that should be provided with repayment claim which should be sent to the address below.

PAYE Employer Office

Room BP4102

Benton Park View

Newcastle Upon Tyne

NE98 1ZZ

In previous years there have been delays in repayments made being made by HMRC but the help card mentions that CIS repayment claims will be processed within 25 days of HMRC receiving claim in writing and the claim matches the information held by HMRC.

A repayment can be set off against other HMRC liabilities of the company such as corporation tax, VAT etc but this request must be made in the tax repayment claim with the appropriate tax references (see help card link above).

If there are sufficient PAYE/NIC deductions in the following year to which the claim relates then it would be easier to claim the tax repayment by reducing the PAYE/NIC liability payments for that year.

Where a limited company is subject to the deduction of CIS tax from its subcontractor income then it should be considered if an application appropriate for gross payment status. A company would need to meet the criteria for three tests for business, turnover and compliance –see HMRC - Payments under CIS - gross or under deduction.

Please contact us for further advice or assistance in respect of CIS tax repayment claims.

Filed under: Company, Employers, PAYE

Employer provided beneficial loans – limit increase

Posted by: edwinsmith on June 24th, 2014

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.

Filed under: Business, Employers, National insurance, PAYE

Dates and deadlines June 2014

Posted by: edwinsmith on June 1st, 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.

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

Ending of Statutory Sick Pay percentage threshold scheme

Posted by: edwinsmith on May 29th, 2014

From April 2014 HMRC have abolished the Statutory Sick Pay (SSP) percentage threshold scheme (PTS). The PTS scheme compensated mainly smaller employers for higher than average sickness absence.

Prior to April 2014 an employer was entitled to recover some of the SSP paid to their employees if the total of SSP paid in tax month was greater than a set percentage of their gross Class 1 National Insurance Contributions -NIC (employer and employees) liability for that month.

Employers will have until 5 April 2016 to recover SSP (under PTS where available) paid for sickness absences occurring before 5 April 2014 (2013/14).

Where a payment for SSP is being made from 6 April 2014 for a period of incapacity before 5 April 2014 but has been notified late then the employer will need to make an application for recovery using form SP32  ‘late claim for recovery of statutory payments or NIC compensation’. The claims under PTS for up to six years can be made up to 5 April 2016 after which time no claims can be made. Claims using form SP32 will be repaid by way of payable order.

If SSP has already been paid but just not recovered, a claim under PTS at 5 April 2014 and then the normal process for making adjustments to a closed PAYE year will need to be followed - correcting payroll errors of a previous year.

Employers will still have to pay SSP (see sick pay entitlement) and will be obliged to produce records that confirm they have met their legal SSP obligations should HMRC require them. The record keeping requirements for SSP prior to 5 April 2014 have been abolished but employers must keep the following records for SSP for three years from the end of the tax year they relate to.

  • All sickness periods lasting at least 4 days;
  • Your SSP payments; and
  • Any weeks you didn't pay and why.

Please contact us for further information

Filed under: Business, Employers, National insurance, PAYE

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.

 

Filed under: Business, Capital Gains Tax, Charities, Individuals, Inheritance Tax, National insurance, PAYE, Self Assessment, Tax, VAT

Dates and deadlines May 2014

Posted by: edwinsmith on May 1st, 2014

Upcoming deadlines for businesses and individuals:

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

2 May: Submission of form P46(car) for changes in quarter ended 5 April 2014

5 May: End of month 1 for PAYE (RTI). All FPS (Full Payment Submissions) due if taking advantage of concession where still available.

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

12 May: Direct debit VAT payment will be taken: quarter ended 31 March 2014.

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

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

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

31 May: Provide all employees who were working for you at 5 April form P60 for 2013/14 by this date.

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

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

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

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

 

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

Tax codes and Class 2 NIC underpayments

Posted by: edwinsmith on April 16th, 2014

Some taxpayers will have received tax codes for 2014/15 which contain a reduction to their personal allowances for class 2 national insurance underpayments. Relevant taxpayers should have received correspondence from HMRC last year regarding the outstanding liabilities asking for payment. Taxpayers were advised that if payment was not subsequently made, then the collection would be made via a salary, pension or other PAYE income by making an appropriate adjustment by the PAYE code.

There is still the opportunity to make payment and if the debt is paid, HMRC will amend the tax code.

An individual can contact the HMRC National Insurance contribution helpline on telephone: 0300 200 3505 for information on how to make a payment.

If you need any additional advice then please contact us.

 

Filed under: National insurance, PAYE, Tax
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