July 31st – ensure you have the funds available to pay the second “payment on account” for 2021/22
The second income tax payment on account becomes due for payment on 31 July – interest is charged on late payment and penalties can also be levied. This will, in most cases, be the same amount as was paid “on account” on 31 January. However, it is possible to reduce the amount if it is […]
Class 1A NI and P11d forms
The deadline for supplying P11d forms showing the benefits in kind for employees is 6 July and the Class 1A NI liability is due for payment on or before 19 July. A benefit in kind can arise on company cars and/or vans, medical benefits, and many other items which might have been paid by the […]
Trivial Gifts!
As a caring employer, you may like to consider using the “trivial gifts” exemption to benefit your staff. You are permitted to give gifts of up to £50 per gift per employee. This must be for a non-work reason – so cannot be e.g., as a reward for good performance, and it cannot be cash […]
PAYE Tax Coding – is your Coding right?
Many employees simply look at the money coming into the bank – without ever looking at their payslips! An important figure on the payslip is the gross pay – is the amount being paid at the agreed rate? Another very important figure though is the PAYE tax code, which determines the amount of tax being […]
Tax returns can be filed now!
There are advantages in filing your tax return as soon as practicable and 2021/22 tax returns can be filed now with HMRC. It is possible that not all the information might be to hand yet – e.g., P11D benefits forms might not have been issued by your employer, but much of the information should be […]
Extracting funds from your company – Salary, Dividend, Interest, Rent …?
Rates from April 2022There are many factors to consider in determining the most tax efficient methods of extracting funds from your company, whilst complying with all the tax rules and regulations. Paying a salary will incur employees’ national insurance and employers’ national insurance unless covered by the Employment Allowance. However, these expenses are tax deductible […]
VAT visits and inspections
VAT officers can visit your business to inspect your VAT records (known as compliance checks) and make sure you’re paying or reclaiming the right amount of VAT. HM Revenue and Customs (HMRC) usually contact you to arrange a visit. They normally give you 7 days’ notice. They’ll confirm what information they’ll want to see, how […]
Not yet VAT registered?
Keep a close eye on your turnover!
Now that businesses are open again, turnover in the business is hopefully picking up If you are not VAT registered though, you do need to monitor the sales closely as there are strict rules as to when you have to register for VAT. Each month you need to total your sales for the month. You […]
The real effects of the Health and Social Care policy levy from April 2022
The chancellor announced the introduction of the above levy in October 2021 to come into effect from April 2022. Reference has been made to a “1.25% increase”. Whilst the NI rate might go from 12% to 13.25%, in percentage terms this is a 1.25/12 = 10.4% increase. There is a slight increase in the bands […]
Making Tax Digital for VAT
Whilst covered in recent newsletters, time is now running short, and all businesses have to submit VAT returns digitally from April 2022. Not only that, but the underlying records also need to be digital; either a spreadsheet or accounting software. The spreadsheets need a digital link, provided by third party bridging software, to file the […]
