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Phishing emails increase in the tax credit renewal season

Posted by: CarolineMeredith on May 28th, 2013

HMRC are warning of an increase in phishing emails in the run up to the tax credit renewals deadline. Phishing emails usually promise money back and ask you to click a link which takes you to a replica website. Credit or debit card details are requested together with other personal and sensitive data.

This can often lead to identity theft and / or money taken from bank accounts.

HMRC have confirmed that they will never ask you to disclose personal or payment details by email. Suspect emails should be forwarded to phishing@hmrc.gsi.gov.uk and then deleted.

If you believe you may have acted upon this type of email, then you should report the matter to your bank or credit card issuer as soon as possible.

HMRC have provided a list of the emails and messages that may be sent out on the website and so if you are unsure, then check this list first. You can also contact us.

Filed under: PAYE, Self Assessment, Tax

Renewing your tax credit claim

Posted by: CarolineMeredith on May 20th, 2013

Tax credit claimants are asked to renew  tax credits claims once a year.

By the 28 June, everyone who makes a claim for tax credits should receive a tax credit renewal pack. It is important to renew your claim to ensure that you have been paid and continue to be paid the correct amount.

What will I receive in my renewal pack?

This will depend upon your own circumstances, but you will receive either just an Annual Review Notice or the Annual Review Notice plus an Annual Declaration form.

If you are expecting a pack and have not received one by 28 June, then you should contact the tax credit helpline.

How do I renew my tax credit claim?

If you have received a pack which contains just an Annual Review Notice, your claim will be renewed automatically but you do need to make sure that you contact the tax credit office if you have had any changes in circumstances, your income is different to what’s shown in the notice, or there are mistakes or missing details.

If your pack also contains the Annual Declaration form then you will need to renew your claim. This can be done by completing that form and returning it, or by calling the tax credit helpline. A claim cannot be renewed online.

What is the tax credit renewal deadline?

The renewal deadline is normally 31 July, but your pack will state an alternative date if this does not apply to you. The sooner you renew, the sooner the tax office can make sure you have and are receiving the right amount of money.

As part of the renewal process you will need to provide the amount of your total income. This is often where we get involved and if you need assistance with the calculation of this then please contact us.

Filed under: Tax

Charities Online – Gift Aid and tax repayments

Posted by: edwinsmith on May 14th, 2013

HMRC have made available a new online service from 22 April 2013 for Charities and Community Amateur Sports Clubs (CASCs) to make Gift Aid tax repayment claims electronically.

The new service has built-in checks to prevent mistakes and should be faster to process the repayment. When you submit a claim successfully online you will get an on-screen confirmation reference number and you will also receive separate confirmation when the payment is made into your bank account.

Changes have also been made to the rules for sponsored events and aggregating donations. More information can be obtained from HMRC where you will also find the link to register for Charities Online and a demonstrator.

If you require further help please contact us

Filed under: Charities, Tax

Companies that have CIS deductions on their own income and claiming repayments

Posted by: edwinsmith on May 7th, 2013

There are companies (Limited) that do not hold the gross payment certificate within the Construction Industry Scheme (CIS) who have CIS deductions of tax from their own income.

These deductions can be set off against their own PAYE/NI liabilities as an employer and due to be paid to HMRC each month. The PAYE/NIC liabilities would also include CIS tax that they deduct from payments to their own subcontractors.

If the company’s own deductions cannot be set off against PAYE/NIC liabilities or there is an excess being carried forward then the amount will need to be reclaimed at the end of the tax year.

For 2012/13 the claim should be made as soon as the Employer’s year end return form P35 has been submitted or for RTI Pilot employer’s the submission of the final Employer Payment Summary (EPS -see below for RTI effects on CIS) and the P11d(b) if you pay benefits to employees. A separate claim must be made for repayment as the P35 or EPS alone are not a claim for repayment. The claim can be made to the following address. 

PAYE Employer Office                                                                                
Room BP4009
Benton Park View
Newcastle Upon Tyne
NE98 1ZZ 

It is possible for the repayment to be set off against other tax liabilities such as corporation tax but the company would need to make a separate request to HMRC. The CIS deductions cannot be claimed on the company’s Corporation Tax Return (CT 600). Please refer to CIS repayment claims for full details on repayment claims to HMRC.

With the introduction of PAYE Real Time Information (RTI) on the 6 April 2013  there are changes that CIS employers need to be aware of specifically relating to CIS deductions from their income.

The regulations concerning monthly contractor returns (CIS 300) will remain unchanged.

After 6 April 2013 where a limited company employer has CIS deductions taken from their own income then the company will need to make an Employer Payment Submission (EPS) showing these deductions taken from the tax year to date in order to subtract (or set off) from the amount of PAYE/NIC/CIS charge due to be paid to HMRC for the month.

Where the company own CIS deductions exceed their monthly PAYE/CIS liabilities then the excess will be carried forward to the next month and if they continue to exceed the monthly PAYE/CIS liabilities the excess will be carried forward until the end of the tax year.

As mentioned above the company will not be able to claim a repayment until the final EPS has been submitted for the tax year (due by 19 April each year where payments to employees are made in the period 6 March to 5 April). The company tax year for CIS deductions would need to have ended and the company will need to have paid all amounts due to HMRC for the tax year in their capacity as employer/contractor.

The full details of changes for RTIand CIS scheme can be found at HMRC website RTI main changes and effects on the Construction Industry Scheme 

Please  contact us if you require any further advice or assistance on these matters

Filed under: Employers, PAYE, Tax

Dates and deadlines: May 2013

Posted by: CarolineMeredith on May 1st, 2013

1 May: Corporation tax payment for a company not within the instalment regulations: year ending 31 July 2012

2 May: Submission of form P46(car) for changes in quarter ended 5 April 2013

5 May: End of month 1 for PAYE, all RTI submissions due if taking advantage of concession.

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 2013

10 May: Direct debit VAT payment will be taken: quarter ended 31 March 2013

19 May: Employer annual return P35 for year ended 5 April 2013 should be submitted by this date

19 May: CIS monthly return deadline: month ended 5 May 2013

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

22 May: Electronic PAYE/NI etc payments to be cleared into HMRC bank: month ended 5 May 2013

31 May: Provide all employees who were working for you at 5 April form P60 for 2012/13 by this date

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

31 May: Company accounts (Private Limited Co) due to be filed: years ending 31 August 2012

31 May: Company accounts (Public Companies) due to be filed: years ending 30 November 2012

1 June 2013: Corporation tax payment for company not within the instalment regulations: years ending 31 August 2012

Filed under: Dates and deadlines

April 2013 email newsletter

Posted by: edwinsmith on April 30th, 2013

To view a copy of our April 2013 newsletter please click here.

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

Filed under: Newsletters

Submitting forms P11D, P11Db and P9D for 2012/13

Posted by: edwinsmith on April 29th, 2013

Many small employers have probably used HMRC’s Basic PAYE Tools package in the past for filing expenses and benefit forms P11D, P11Db and P9D. These forms are the Employer’s annual return of expenses payments and benefits paid to employees which need to be submitted to HMRC by 6 July 2013. 

From 6 April 2013 HMRC’s basic PAYE Tools package will no longer have the function to submit these forms.

As a reminder forms P11D are for employees earning at a rate of more than £8,500 p.a. including expenses payments and benefits and P9D for those under £8,500 p.a. P11D forms would be required for directors even if under £8,500. 

If you don’t have your own commercial package with the facility to submit these forms then you can use the HMRC PAYE online services which will allow you to complete the necessary details and submit the information on line. 

You need to be registered for PAYE online services HM Revenue & Customs: Register for HMRC taxes and sign up for online services but this should be done anyway as part of PAYE RTI. 

The P11D/P9D function under PAYE online services will lead you through the process of completing the form and highlight the various categories of expenses and benefits that may apply to the employee concerned. Once the P11D information has been completed for all employees then you will be asked to complete form P11Db as part of the submission process. A copy of the submitted form P11D can be printed out to provide the employee. 

Forms P9D can be completed in a similar way using these services. For more details on types of expenses and benefits to include on forms P11D and P9D see HM Revenue & Customs: Expenses and benefits A to Z

Paper forms can be completed if preferred and can be downloaded from the following HMRC links. 

Form P11D.pdf ,  Form P11Db.pdf and  Form P9D.pdf 

Once completed you should then post the paper forms to the following address. 

HMRC NIC&EO
Room BP2101
Lindisfarne House
Benton Park View
Longbenton
Newcastle Upon Tyne
NE98 1ZZ 

For assistance with completing your year end forms or for further information on the above topic please contact us

Filed under: Employers, PAYE, Tax

Real Time Information : Basic PAYE tools problems

Posted by: CarolineMeredith on April 23rd, 2013

Many of our small clients who run payroll themselves are using the HMRC basic tools software to do so.

We have received a few enquiries regarding problems with the software.

HMRC have a dedicated area for service issue problems for the Basic PAYE tools software on their website and this can be found in the service issues area of the website.

HMRC have also issued guidance on the Basic PAYE tools error messages on their website.

For any general questions, then do remember to talk to your usual contact.

Filed under: Employers, PAYE, Tax

Private residence – relief from capital gains tax

Posted by: edwinsmith on April 22nd, 2013

Private residence relief is available for capital gains tax on the disposal of your own home if you satisfy both of the following two conditions for the whole time you have owned it (subject to any restrictions below applying):

  1. The property has been your only home or main residence
  2. You have used it as your home and nothing else

 

This relief may also be available if you sell part of the garden without selling your home at the same time.

If you do not satisfy both the above conditions then you will need to work out the period of ownership for the purposes of calculating the relief. This commences on the later of the date of purchase or 31 March 1982, and ends on the date of disposal. As long as the property has been your only or main home at some point during your period of ownership, the last three years (36 months) always qualify for relief even if you did not live there in that period. From 6 April 2014 this has been reduced to 18 months for the final period of ownership - . Other periods of absence from the home may qualify for full relief, if for example you have been working away from home in certain circumstances or were unable to take up residence within the first 12 months of ownership.

There are restrictions to the relief if:

  1. The garden or grounds, including the site of the house, are larger than 5,000 square metres
  2. Part of the home has been exclusively used for business purposes
  3. You have let out all or part of your home – but you may qualify for letting relief
  4. The main reason you bought it was to make a profit from a quick sale

 

The maximum amount of letting relief due is the lower of:

  1. £40,000
  2. the amount of private residence relief due
  3. the amount of the gain arising by reason of the letting

 

If you have two or more homes, a nomination can be made to HMRC advising which property is to be treated as the main home as you are only entitled to private residence relief on one home. Nominations must be made within two years of the date from which you change the number of properties you live in. Each time you change the number of properties you live in a new nomination should be made. If a nomination is not made HMRC will decide which property to treat as your main home based on the facts.

The above is a brief summary of relief. Further information can be obtained from HMRC website or if you require further help please contact us

Filed under: Self Assessment, Tax

Registering for self-employment and national insurance

Posted by: edwinsmith on April 15th, 2013

If you have commenced self-employment you should register with HMRC as soon as you start business. This can be done online with HMRC. If you are taking on employees in your new business you can also register for a PAYE scheme at the same time as your online registration. 

The latest date to register is by 5 October after the tax year has ended so any self-employment which started in 2012/13 must be registered with HMRC by 5 October 2013. Normally, paper tax returns must be then be filed by 31 October after the end of the tax year or by 31 January after the end of the tax year if your return is done on line.  Any tax outstanding is also due by 31 January after the end of the tax year. For 2012/13 and assuming the return is done on line the tax return and payment of tax is due by 31 January 2014. If you register late you may incur a penalty. 

If you are self-employed you normally have to pay class 2 and class 4 national insurance contributions and you register for this when you register your business as above. 

Class 2 national insurance contributions are due at a flat rate per week, £2.70 for 2013/14. You can choose to pay your class 2 contributions either by monthly or six monthly direct debit, or you can pay in January and July in response to payment requests from HMRC which each cover a period of 26 weeks. Exceptions to class 2 NIC liability are detailed at HMRC along with further information.

Class 4 national insurance contributions are due on annual profits over a certain amount and are calculated and paid when calculating your annual tax liability. For 2013/14 the class 4 is calculated as 9% of annual profits between £7,755 and £41,450 plus 2% on profits over £41,450. Exceptions to class 4 NIC liability are detailed at HMRC along with further information. 

If you require further help please contact us

Filed under: National insurance, Self Assessment, Tax
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