Tax Tips and News for June 2014

This issue … Marginal Tax Rates, Real Time Information (RTI) Interest, VAT and Discounts, Auto-enrolment, June Questions and Answers, June Key Tax Dates Marginal Tax Rates What rate of tax would you pay on an additional £1 of earnings? If your annual income is between £41,865 and £150,000 you may think the tax rate would be 40%, but the peculiarities of the UK tax system mean you could pay…

Tax Tips and News for March 2014

This issue ... Budget News, Business Journeys, RTI Penalties, Let Property Campaign, VAT on Books and Leaflets, March Question and Answer Section, March Key Tax Dates 2014 Budget News Summary This was a Budget for bingo-playing baby-boomers who have not started to draw their private pensions. George Osborne announced some sweeping reforms to the taxation of pensions and halved bingo…

Minimum Wage Fines Quadruple for Employers

Employers who choose not to pay their workers the National Minimum Wage (NMW) will soon see fines quadruple, with a penalty being put into place of £20,000 per-employee underpaid, plus an added financial penalty of 100% of the unpaid wages owed to workers. Under previous rules, such employers caught breaking NMW law were required to pay the unpaid wages, plus just 50% of the total underpayment…

Disguised Employment Relationships via LLPs

Defining disguised employment as: a limited liability partnership (LLP) member who works for the LLP on terms that are tantamount to employment; Chancellor of the Exchequer George Osborne announced during Budget 2013 that the government was due to consult on a number of changes to the tax rules on partnerships, including the act of disguising employment relationships through LLPs.Read more

Tax Tips and News for January 2014

This issue ... New RTI Relief, Capital Allowances on Fixtures, Disguised Employment, Partly-exempt Businesses, January Question and Answer Section, January Key Tax Dates New RTI Relief Have you been struggling to send full payment summary (FPS) reports under RTI to HMRC on or before the days on which your employees are paid? This is particularly difficult when your workers receive irregular…

Top Tips on RTI for SMEs

Back in April 2013 HMRC introduced Real Time Information (RTI) PAYE reporting, a new system designed to improve the accuracy of returns while ensuring employers such as yourself are paying the correct amount of tax. Unlike in the previous system whereby you would submit an end of year return to HMRC with the full tax liability of each employee, under RTI PAYE reporting you're required to…

How The Cap on Income Tax Reliefs Affects You

Last year the Chancellor announced the government was intending to introduce a cap on currently unlimited income tax reliefs, due to take effect from the tax year 2013-14. This cap has now been put into place, with HMRC having since published guidance on the new rules. The cap has been set at either £50,000, or 25% of your adjusted total income for the current tax year (whichever is the…

Small business owners get £2,000 Employment Allowance Tax cut

The Employment Allowance tax cut will give businesses and charities up to £2’000 a year tax saving. The planned tax cut will be introduced from April 2014 through the National Insurance Contributions Bill and is expected to benefit more than 1.2 million small businesses in UK. The aim of the Employment Allowance is to assist small businesses to grow by supporting the cost of employment. When…

RTI Relaxation

The real time information (RTI) system for submitting PAYE information to HMRC must be used by small employers from April 2013. However, there has recently been a temporary RTI relaxation of one of the reporting requirements for employers with fewer than 50 employees.Read more

What is RTI?

Real Time Information: New Changes to PAYE From April 2013, HMRC is introducing a new way of reporting Pay As You Earn (PAYE). The new RTI system is designed to improve the accuracy of returns, and to ensure that employers are paying the correct amount of tax.Read more