Landlords can claim a special tax allowance of up to £1,500 per property for expenditure on energy-saving insulation. This includes loft, wall, floor or hot water system insulation installed in residential properties.
This is a one-off allowance for expenditure made before 6 April 2015. It cannot be claimed by those who are claiming rent a room relief or if there is commercial letting of furnished holiday accommodation.
See the details here:
New tax incentives for childcare have been announced. To be eligible, families will have to have all parents in work, with each earning less than £150,000 a year and not already receiving support through Tax Credits or Universal Credit.
The relief will be 20% of the costs of childcare up to a total of childcare costs of £6,000 per child per year. The scheme will therefore be worth a maximum of £1,200 per child.
The scheme will be phased in from autumn 2015. For the first year of operation, all children under five will be eligible and the scheme will build up over time to include children under 12.
The current system of employer supported childcare will continue to be available for current members if they wish to remain in it or they can switch to the new scheme. Employer supported childcare will continue to be open to new joiners until the new scheme is available.
The Government will consult on the detail of the new scheme but it is expected that parents will be able to open an online voucher account with a voucher provider and have their payments topped up by the Government. Parents will be able to use the vouchers for any Ofsted regulated childcare in England and the equivalent bodies in Scotland, Wales and Northern Ireland.
The existing system of employer supported childcare is offered by less than 5% of employers and used by around 450,000 families. It provides an income tax and national insurance contributions (NIC) relief. The maximum relief is an exemption from income tax and NIC on £55 a week. This relief is per employee so if both parents are in employment the maximum exemption is £110 per week. In the new scheme the limit is per child.
Follow the link for more information
In April 2013, employers must start sending PAYE information to HMRC in real time. This means sending details to HMRC every time you pay an employee, at the time you pay them.
By providing this information in real time, HMRC will be able to tell you how much you should pay each month. This will make it easier for you to pay the right amount each time and help you to avoid making late payments and incurring penalties.
This checklist will help you to start sending your PAYE information to HMRC in real time from 6 April 2013. Start preparing your business by doing these things now, ticking them off as you go.
From 6 April
You need to change some of the ways you report PAYE, including:
• providing new information in your payroll records, such as hours worked
• completing employee information for temporary and casual workers and employees paid below the National Insurance Lower Earnings Limit
• letting HMRC know whenever you change a payroll ID – otherwise HMRC will treat the change as a new employment, which will result in duplicate employment and incorrect tax codes
• how you tell HMRC about starters and leavers.
If you use an agent, payroll bureau or payroll service provider, you must talk to them now about the service they will provide for you in future, and ask what you need to do to get ready for RTI.
If you pay by Bacs using your own Service User Number, you need to speak to your solution supplier or bureau.
If you run your own payroll system, you need payroll software that is ready for RTI in order to send your PAYE information to HMRC online, every time you pay an employee. You can do this in three ways:
1. Using commercial payroll software, upgrading your existing software if necessary (your provider can advise on this).
2. Using a payroll service provider, such as an accountant or a payroll bureau, who will do it for you.
You need to get prepared by making sure you hold accurate and up-to-date information about all your employees (name, date of birth, gender, address and valid National Insurance number).
If you are planning to send your returns yourself, you need to register for PAYE Online to get your PAYE login details (if you have not done so already).
Have recorded a webinar (online presentation) which will take you through the changes and help you get ready for Real Time PAYE. You can watch our webinar whenever it suits you – it is available 24 hours a day.
It is easy to view the webinar
All you need to do is follow the link below to the HMRC YouTube channel.
Get ready to operate PAYE in real time.
This webinar will help you to prepare for reporting PAYE information to HMRC in real time. It concentrates on the key actions you need to take to get ready for the changes coming in. It also explains about the different types of submission that will be made in real time.
To view the recording go to ‘Get ready to operate PAYE in real time’ recorded webinar.
Live Q & A sessions
After viewing the recording you can take part in a Q&A session at the time shown below. This is a live session with HMRC staff and they will give you the opportunity to ask any questions you may have. Simply follow the link below to take part in this live session.
Tuesday 26th March from 14:30 to 15:30 (Opens new window)
If this date does not suit you, we have many more dates on our website and we will add to these every week.
From April 2013, you can use Charities Online for repayment of tax on other income and claims for top-up payments under the new Gift Aid Small Donations Scheme (GASDS).
GASDS is a new scheme being introduced in April 2013. It means that charities and Community Amateur Sports Clubs (CASCs) can claim a top-up payment on cash donations of £20 or less without the need to collect Gift Aid declarations. Charities will generally be able to claim on small donations of up to £5,000 per year. Claiming for £5,000 of small donations will result in a repayment of £1,250 for the charity or CASC.
The GASDS is ideal for small cash donations received in collection boxes, bucket collections and during religious services. Charities and CASCs wishing to claim under GASDS will still need to make Gift Aid claims in respect of other donations for which they have a Gift Aid declaration in the same tax year, for example, on regular donations received from supporters. This is called the ‘matching rule’: every £10 of donations claimed under GASDS must be matched with £1 of donations claimed under Gift Aid in the same tax year.
Payments under this scheme must be claimed using the Charities Online service, through either, the online form, the database option or the ChR1 paper claim form.
For further information click on the link.
It has never been more important to keep good VAT records, with HMRC vowing to scrutinise the tax affairs of those who have payments outstanding after 28 February.
When it comes to VAT, this can be an expensive problem, as the business has no right to claim input VAT unless it holds a valid VAT invoice.
HMRC’s VAT Outstanding Return campaign is focused on businesses that have VAT returns outstanding.
Over 50,000 businesses that have failed to submit VAT returns will have their tax affairs closely scrutinised by the Revenue from 28 February if they fail to voluntarily come forward.
According to HMRC, records businesses should keep are:
• VAT records of sales and purchases
• Separate summary of VAT, or VAT account
• No set way of keeping records, but can be adapted from normal business records
HMRC has the discretion to accept alternative evidence in the absence of a valid VAT invoice, but in this case the tribunal would only allow for around £6,000 of the claim.
While the VAT Act 1994 was amended in 2003 to allow HMRC to accept additional information as alternative evidence, what it accepts as this is tightly controlled.
Input tax deduction without a valid VAT invoice – HMRC Statement of Practice
1. Do you have alternative documentary evidence other than an invoice (e.g. supplier statement)?
2. Do you have evidence of receipt of a taxable supply on which VAT has been charged?
3. Do you have evidence of payment?
4. Do you have evidence of how the goods/services have been consumed within your business or their onward supply?
5. How did you know that the supplier existed?
6. How was your relationship with the supplier established? For example:
7. How was contact made?
8. Do you know where the supplier operates from (have you been there)?
9. How do you contact them?
10. How do you know they can supply the goods or services?
11. If goods, how do you know the goods are not stolen?
12. How do you return faulty supplies?
For more information on VAT records and record keeping, see:
•HMRC: Accounts and records for your VAT
http://www.hmrc.gov.uk/vat/managing/returns-accounts/accounts.htm
Under this scheme, for a limited period and subject to meeting certain conditions, new businesses may qualify for a deduction of up to £5,000 from the employer NICs that would normally be due – for each of the first ten employees they take on.
The NICs you are entitled to withhold under the scheme does not have to be repaid at a later date.
The NICs holiday is voluntary – you do not have to take advantage of the scheme. If you decide not to apply or you do not meet the qualifying conditions, you must simply calculate Class 1 employer NICs in the normal way and pay them to HM Revenue & Customs (HMRC) with your monthly/quarterly payment.
Business location – why it’s important
You can only apply for the NICs holiday if your principal place of business is located within designated areas of the UK at the time your business starts up. The included countries and regions are:
•Northern Ireland
•Scotland
•Wales
•East Midlands
•North East
•North West
•South West
•West Midlands
•Yorkshire and Humber
The NICs holiday is available to new businesses that start up during the period from 22 June 2010 to 5 September 2013.
For further information follow the link.
http://www.hmrc.gov.uk/paye/intro/nics-holiday/index.htm
If you are unsure whether your business falls within a qualifying region, you can check by reading more about this in the guide on checking your business location.
In these uncertain times, businesses are at risk from a whole range of factors including changes in consumer demand, increases in operating costs and let’s not forget the banks! Businesses have never needed support as they do now.
That’s why we have decided to start up a monthly coffee morning open to local businesses and individuals in the hope we can offer guidance, financial advice, answer your queries and give you the support you need.
We have a tax specialist that can advise you on Tax planning, personal tax, corporation tax and inheritance tax. We also have a network of professionals we can put you in touch with if you require specialist advice in banking and insurance
Come and visit our friendly team at the The Paine Suite in the Nostell Estate! As well as offering free advice, we also offer free parking, free coffee and not to mention free cake!
