Blog

Tax on Dividends

This blog provides an overview regarding tax on dividends and is based on the HMRC web site https://www.gov.uk/tax-on-dividends.

Overview on Tax on Dividends
You may receive a dividend payment if you own shares in a company. However, you do not pay tax on the first £5,000 of dividends you receive in any tax year (from 6th April of one year to 5th …

PAYE Settlement Agreements

Overview of PAYE Settlement Agreements
This page provides an overview of PAYE settlement agreements and is based on information obtained from the HMRC website https://www.gov.uk/paye-settlement-agreements.

A PAYE Settlement Agreement (PSA) allows you to make one annual payment to cover all the tax and National Insurance due on small or irregular taxable expenses or benefits for your employees.

If you get a PSA for …

  • Posted: January 13, 2018
  • Tags: PAYE
    Tax
  • Comments: 0

Money Laundering Regulations Overview

This blog provides a Money Laundering Regulations Overview. It is based on information from the HMRC web site https://www.gov.uk/guidance/money-laundering-regulations-introduction.

“Dirty” money is money that is obtained from the proceeds of illegal or criminal activity. Criminals will seek to make this money “Clean” by undertaking a number of activities or transactions, possibly at a financial loss to themselves.

Money Laundering also includes any …

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National Insurance and Tax after State Pension age

This blog provides an overview of what happens to national insurance and tax after a person reaches state pension age and is based on information obtained from the HMRC web site https://www.gov.uk/tax-national-insurance-after-state-pension-age.

You do not pay national insurance after you reach state pension age unless you are self employed and are paying class 4 contributions.

In addition, you only pay income tax if your taxable income (including your private and state pension) is more …

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What to do if you need to change your Tax Return

This blog describes what you have to do if you submit but then have to change your tax return. It is based on the HMRC website https://www.gov.uk/self-assessment-tax-returns/corrections.

You can make a change to your tax return after you’ve filed it, for example because you made a mistake. You will need to make your changes by:

31 January 2018 for the …

Tell HMRC about a new employee

This blog provides an overview of what you should do as an employer to tell HMRC about a new employee and is based on information obtained from the HMRC web site https://www.gov.uk/new-employee.

Overview

You must tell HMRC when you take on a new employee and be registered as an employer. There are certain steps that you have to follow when you take on a new …

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Voluntary National Insurance Contributions

This blog provides an overview of why you would want to make voluntary National Insurance contributions and is based on information obtained from the HMRC web site https://www.gov.uk/voluntary-national-insurance-contributions.

You may have gaps in your National Insurance (NI) payments records if you have not always paid NI. This could be because you were:-

Employed but had low earnings
Unemployed and were not claiming benefits
Self employed but did not pay contributions due to small …

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Who has to complete a tax return

This blog provides an overview as to who has to complete a self assessment tax return and is based on information obtained from the  HMRC web site https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return.

The tax year runs from 6th April of one year to 5th April of the following year. For example, the 2016/17 tax year runs from 6th April 2016 to 5th April 2017. Any individual will have to …

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Can the Marriage Allowance save you tax

This blog examines whether the Marriage Allowance can save you tax and is based on information obtained from the HMRC web site https://www.gov.uk/marriage-allowance/how-it-works. The information is based on the 2016/17 tax year.

The Marriage Allowance enables you to transfer £1,100 of your personal allowance to your husband, wife or civil partner in the 2016/17 tax year. Your Personal Allowance is the income that you do not have to pay tax on (£11,000 …

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VAT Annual Accounting Scheme

This blog provides an overview of the VAT Annual Accounting Scheme and is based on information obtained from the HMRC website at https://www.gov.uk/vat-annual-accounting-scheme.

VAT registered businesses usually file their VAT returns with HMRC four times per year on a quarterly basis. However, this is not the case with the VAT Annual Accounting Scheme.

With the VAT Annual Accounting Scheme, you will:-

Submit one VAT return per year
Make advance payments towards the annual …

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  • Posted: December 24, 2017
  • Tags: Tax
    VAT
  • Comments: 0

Self Employment Business records

This blog provides an overview of the self employment business records that you have to keep and is based on information obtained from the HMRC web site https://www.gov.uk/self-employed-records.

You must keep records of your business income and expenditure for your tax return if you are self employed as either a:-

Sole Trader
Partner in a Business Partnership

You must also choose an accounting method to use. The two options are:-

Traditional Accounting
Cash Basis

Traditional …

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Staff Christmas Parties

This blog provides an overview of an employer’s obligations to report National Insurance benefits given to their employees relating to staff Christmas parties and is based on information obtained from the HMRC web site https://www.gov.uk/expenses-benefits-social-functions-parties.

 

Overview

As an employer providing social functions and parties to your employees, you have certain National Insurance and reporting obligations.

There are several factors that determine what you need to report and …

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Companies House Authentication Codes

This blog provides an overview of Companies House authentication codes. It is based on the Companies House web site https://www.gov.uk/guidance/company-authentication-codes-for-online-filing

What is an Authentication Code?

The Companies House code is a 6 character alphanumeric code issued by Companies House to each company. The code is used to authorise information filed online at Companies House.

Obtaining an Authentication Code

A  code can be requested from Companies House. Once a code is requested, it is sent to the …

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Companies House Filing Deadlines

Overview of Companies House Filing Deadlines
This blog provides an overview of Companies House filing deadlines. Accounts for a private limited company have to be filed at Companies House 9 months after the financial year end. For example, if the year end is 31st December 2016, the accounts have to be filed at Companies House by 30th September 2017.

However, this is not the case for a newly formed limited company. When a …

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Employment Allowance

This blog provides an overview of the Employment Allowance that you can claim as an employer and is based on information obtained from the HMRC web site https://www.gov.uk/claim-employment-allowance.
Introduction to Employment Allowance
With the Employment Allowance, an employer can receive up to £3,000 off their National Insurance bill during the tax year. The allowance will reduce your Employer’s National Insurance liability each time the payroll is run until the £3,000 has been used up or …

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PAYE Forms

PAYE Forms: P45, P60 and P11D
This blog provides an overview of the most common PAYE forms and is based on information obtained from the HMRC web site https://www.gov.uk/paye-forms-p45-p60-p11d.
PAYE Forms: P45
You will receive a form P45 from your employer when you stop working for them. Your P45 shows how much tax you have paid on your salary so far in this tax year (6th April to 5th April). A P45 has four parts (Part 1, …

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  • Posted: December 16, 2017
  • Tags: PAYE
    Tax
  • Comments: 0

Company Tax Returns

This blog provides an overview of company tax returns and is based on information obtained from the HMRC web site https://www.gov.uk/company-tax-returns.

Overview

Your company or association must file a company tax return when you receive a “Notice to deliver a Company Tax Return” from HMRC. You must still send a return if you make a loss or have no corporation tax to pay. You do not need to send a company tax return if you …

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VAT Flat Rate Scheme

This blog provides an overview of the VAT Flat Rate Scheme and is based on information obtained from the HMRCweb site https://www.gov.uk/vat-flat-rate-scheme.

The amount of VAT that a business pays or claims back from HM Revenue & Customs (HMRC) is usually the difference between the VAT charged by the business to customers and the VAT that the business pays on their own purchases.

However …

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  • Posted: December 10, 2017
  • Tags: Tax
    VAT
  • Comments: 0

Statutory Sick Pay

Statutory Sick Pay (SSP)
This blog provides an overview of Statutory Sick Pay (SSP) and is based on information obtained from the HMRC web site https://www.gov.uk/statutory-sick-pay.

Overview

You can receive £89.35 per week Statutory Sick Pay (SSP) if you are too ill to work. It is paid by your employer for up to 28 weeks. You need to qualify for SSP and have been off …

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Introduction to PAYE and Payroll for Employers

This blog provides an introduction to PAYE and payroll for employers and is based on information obtained from the HMRC web site https://www.gov.uk/paye-for-employers
Introduction to PAYE and Payroll for Employers
As an employer, you normally have to operate PAYE as part of your payroll. PAYE is the system used by HMRC to collect income tax and national insurance from employment.

You do not need to register for PAYE if none of your employees are …

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