Automated Accounts review
Especially for those that use Xero or QuickBooks! If you use Xero or QuickBooks for accounting purposes, there are various tools available that can link to the accounting records, interrogate them, and produce reports of potential anomalies. This might be postings with unexpected tax codes, or unexpected nominal accounts being used, possible capital expenditure analysed […]
Payroll and withdrawal of Employer’s allowance
Employers can, subject to certain exceptions, claim £5,000 Employers Allowance – a reduction in the Employers National Insurance rates payable to HMRC. However, if the Class 1 Employer’s liability exceed £100,000 in the previous tax year, then the allowance is not claimable. Care is needed to both ensure that a valid claim can be made, […]
PAYE Tax codes! HMRC systems can cause headaches and extra work……?
A real-life scenario: An employee earns £3,125 per month – £37,500 p.a. However, in April she had a bonus of £7,300 – making her gross pay for the month £10,425. Her tax code in April was 1216L – a reduction from the expected 1257L due to benefits in kind. However, in late May, just before […]
Are you an “accidental landlord” and are you disclosing the income to HMRC?
Are you an “accidental landlord” and are you disclosing the income to HMRC? An accidental landlord is one where a property owned was never intended to be let out, but for a variety of reasons it has been. This might be due, for example, to inheriting a property that has not been sold, or being […]
Will ChatGPT transform how we process tax?
Generative artificial intelligence such as ChatGPT will have significant implications for accountants but AI tools need training to be a true expert in tax and accounting, argues Russell Gammon, chief solutions officer, Tax Systems Since ChatGPT was unleashed on an unsuspecting world in November last year, the technology landscape has changed irrevocably. With millions of […]
Accounting for VAT on fuel private usage
HMRC publish annually the scale rates to be used to account for VAT where VAT is reclaimed in full on fuel but there is a private element to the motoring costs. The rates to be used from 1 May 2023 were released on 21 April 2023 and the link is shown below. The VAT amount […]
Pay your tax on time – interest charges rise again on late payment?
Following the recent decision to increase the Bank of England base rate to 4.25%, HMRC has announced increases to both the interest charged on late paid tax and the rate paid on repayments of tax. As HMRC interest rates are linked to the Bank of England base rate, the 23 March 2023 increase from 4% […]
P11D Benefits in Kind – electronic filing only!
The HM Revenue and Customs (HMRC) February employer bulletin announced that you will no longer be able to submit P11D forms in paper format from 6 April 2023. Paper forms sent to HMRC on or after 6 April 2023 will be rejected as they will not be in the prescribed format. This means that any […]
Salary…. or not…. or dividend?
The tax system is complex – and it does not get any easier!! Changes to the tax system from April 2023 make tax planning increasingly more problematic. The corporation tax rate was 19% in 2022/23 – but from April 2023, it could be 19%, or 26.5% on some profits or 25%. Dividends taxable at 0% […]
The tax year end is also the payroll year end….
So, get it right
If you are an employer running payroll, you will need to report to HM Revenue and Customs (HMRC) on the previous tax year (which ends on 5 April 2023), give your employees a P60, and prepare for the new tax year, which starts on 6 April. Important dates around payroll year-end include: The late filing […]
