Please find below all the articles that have been tagged as 'HMRC'.
As the sole owner/director of your company you face a dilemma over how to extract income from that company. If you pay yourself a salary of more than £8,060 per year you will have to pay class 1 NIC at the rate of 12% on the excess pay above that threshold up to £42,385 pa. However, income tax is not due until your salary tops £10,600 (the value of your personal allowance for 2015/16).
One solution is to take a salary of up to £8,060 and any further income…
Read MoreThe forms P11D and P9D need to be submitted to HMRC by 6 July 2015 where expenses or benefits were provided to your employees in 2014/15, which are not covered by a dispensation, or are not otherwise exempt from tax. If the forms are not submitted on time, HMRC will issue penalties.
But how does HMRC know whether a P11D or P9D is due to be filed? In pre-RTI years when you completed the end of year form P35 you had to say whether a P11D was due. Those…
Read MoreA question we are often asked is, how can I reduce my tax bill?
A simple question on the face of it, but how simple is the UK tax system?
An income taxpayer might reasonably assume that there are only three rates of tax within the UK, basic rate tax at 20%, higher rate tax at 40% and the additional rate at 45%, and they would technically be correct. However the reality of the UK tax system is that your personal circumstances…
Read MoreDo you know when your younger workers will reach their key birthdays: 18 and 21? It is essential to know exactly when these dates fall, as reaching such a milestone will change the level of national minimum wage (NMW) which must be paid to that worker. The current and proposed NMW hourly rates are:
| Age or status of employee: | From 1 October 2014 | From 1 October 2015 |
| 21 and over | £6.50 | £6.70 |
| 18 to 20 | £5.13 | £5.30 |
| Under age 18 | £3.79 | £3.87 |
| Apprentices under 19 or in 1st year | £2.73 | £3.30 |
An employee’s pay must be increased from the beginning of the pay period…
Read MoreIf you help to run a charity you need to keep on top of the tax and audit regulations that apply to charities, and the gift aid scheme.
A person with earnings or pension income of less than £10,600 and interest of up to £5,000 will pay no income tax in 2015/16. These individuals should not make gift aid declarations for donations made on or after 6 April 2015, as they do not pay the income tax which the charity reclaims in respect of that donation.
As a charity you…
Read MoreIf you have not made arrangements to settle your outstanding self-assessment tax, which was due for payment on 31 January 2015, penalties could be levied by HMRC. In order to avoid a 5% surcharge being levied on your balancing payment for 2013/14, payment will need to be made no later than 2 March 2015. HMRC is taking a very stringent approach with taxpayers with little clemency for late payment. The easiest method to settle the outstanding tax is via…
Read MoreThis sounds like a friendly retail outlet where you might buy a pint of milk on a Sunday evening. In fact it is short-hand for the online portal which UK businesses should use from 2015 to account for VAT they owe in respect of digital services provided to customers in other EU countries.
We mentioned this new rule in our July 2014 newsletter. “Digital services” includes a multitude of products such as:
– music downloads;
– video on demand;
– electronic books;
– online games;
– anti-virus services;
– software purchased by download;
– charges by…
Here at Morgan Hemp we are keen to keep our clients abreast of news, issues and events to help you keep your finances in order and to make sure you are not losing out.
Heading in to the festive period you are probably making plans for a Christmas party. But have you thought about making sure the big annual celebration isn’t a gift to the taxman?
Entertaining your employees can be allowable for tax relief in your business accounts, and it…
Read MoreThe Scottish people have spoken and the majority have decided they want Scotland to remain part of the UK. However, that doesn’t mean everything will remain the same. We already know there will be two new taxes in Scotland from 1 April 2015, and a variation to income tax rates for Scottish taxpayers from 6 April 2016.
If you are planning to buy land or buildings in Scotland, you should be aware that the…
Read MoreIf you are a contractor in the construction industry it is essential that you deduct the right amount of Construction Industry Scheme (CIS) tax from payments you make to subcontractors.
A common misunderstanding about the CIS is that deductions of CIS tax only have to be made from labour costs. This is not the case, but it may work out like that in practice.
HMRC’s instructions are clear, the contractor must deduct the following cost…
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