fpdteam, Author at Bennetts Accountancy

Tax Diary November/December 2024

7th October 2024 by fpdteam

1 November 2024 – Due date for Corporation Tax due for the year ended 31 January 2024.

19 November 2024 – PAYE and NIC deductions due for month ended 5 November 2024. (If you pay your tax electronically the due date is 22 November 20244.)

19 November 2024 – Filing deadline for the CIS300 monthly return for the month ended 5 November 20244.

19 November 2024 – CIS tax deducted for the month ended 5 November 2024 is payable by today.

1 December 2024 – Due date for Corporation Tax payable for the year ended 28 February 2024.

19 December 2024 – PAYE and NIC deductions due for month ended 5 December 2024. (If you pay your tax electronically the due date is 22 December 2024).

19 December 2024 – Filing deadline for the CIS300 monthly return for the month ended 5 December 2024.

19 December 2024 – CIS tax deducted for the month ended 5 December 2024 is payable by today.

30 December 2024 – Deadline for filing 2023-24 self-assessment tax returns online to include a claim for under payments to be collected via tax code in 2025-26.

Source:HM Revenue & Customs| 06-10-2024

When you must register for VAT

3rd October 2024 by fpdteam

The taxable turnover threshold for VAT registration is currently £90,000 and has applied since April 2024.

Businesses must register for VAT if they meet one of the following conditions:

At the end of any month, the value of taxable supplies made in the past 12 months exceeds £90,000; or
At any point, there are reasonable grounds to believe that the value of taxable supplies in the next 30 days will exceed £90,000.

For condition 1, HMRC provides the following illustrative example. On 15 July your total taxable turnover for the last 12 months is £100,000. That’s the first time it has gone over the VAT threshold. You must register by 30 August. Your effective date of registration is 1 September.

For condition 2, HMRC provides the following illustrative example. On 1 May, you arrange a £100,000 contract to provide services. You’ll be paid at the end of May. You must submit your VAT registration application by 30 May. Your effective date of registration will be 1 May.

The £90,000 registration threshold also applies to relevant acquisitions from EU Member States into Northern Ireland.

Additionally, businesses without a physical presence in the UK may still be required to register for VAT if they supply goods or services to the UK or expect to do so in the next 30 days.

Source:HM Revenue & Customs| 30-09-2024

Tracing lost pension details

3rd October 2024 by fpdteam

An online service is available on GOV.UK at www.gov.uk/find-pension-contact-details to help people find their lost pension funds.

You can use this service to find contact details for:

your own workplace or personal pension scheme; or
someone else’s scheme if you have their permission.

Whilst the service won’t confirm if a person has a pension or what its value is it does provide contact details for contacting pension schemes to make further enquiries.

To use this service, the applicant needs to enter their employer’s name or the name of the pension scheme.

Suggestions for finding the name of an historic employer include:

looking through old paperwork;
asking former colleagues if they know the employer or scheme name;
using the search function on the Companies House website as it holds names of all closed and existing companies registered in the UK.

The pension tracing service is a free service. You can also request contact details from the Pension Tracing Service by phone or by post.

Source:Pensions Regulator| 30-09-2024

Relief for company tax losses

3rd October 2024 by fpdteam

Corporation Tax relief may be available when a company or organisation incurs a trading loss, a loss on the sale or disposal of a capital asset, or on property income. Tax relief may be available to reduce Corporation Tax by offsetting it against other profits or gains from the same accounting period.

Additionally, companies can carry a trading loss back to previous years to claim relief by offsetting it against earlier profits, which may result in a Corporation Tax refund.

Typically, such claims can only be made after submitting a Corporation Tax return to HMRC. Losses can only be carried back to the preceding accounting period if the company was trading in that period.

Any claim for trading losses must be included in the Company Tax Return. The trading profit or loss for Corporation Tax purposes is worked out by making the usual tax adjustments to the figure of profit or loss shown in the company’s or organisation’s financial accounts.

Qualifying losses that are not offset in the current period or carried back can also be offset against profits in future accounting periods. There are restrictions on the total amount of carried forward losses that can be offset against profits.

Source:HM Revenue & Customs| 30-09-2024

Starter checklist for PAYE

3rd October 2024 by fpdteam

When hiring a new employee, employers must determine the appropriate tax code and starter declaration for their payroll software. Using incorrect tax codes can result in the new employee over or underpaying their taxes. To ensure the correct information is entered, employers need certain details from the new employee, most of which are usually provided on the employee's P45. It's important to remind new employees to bring their P45 on their first day.

If the employee does not have a P45, the required information can be gathered by asking them to complete HMRC’s online PAYE starter checklist. If they cannot use the online version, a paper version is also available. Employers must keep this information in their payroll records for the current tax year and the following three tax years. Once the information is collected, employers can use HMRC’s online tool to determine the employee’s tax code.

The starter checklist should be completed by new employees in the following cases:

They have a student or postgraduate loan
Their personal details differ from those on their P45
They do not have a P45
They have been sent to work temporarily in the UK by their overseas employer

Once the checklist is completed, the employee can submit it to their employer via email, post, or in person. There is no need to send the checklist to HMRC.

Source:HM Revenue & Customs| 30-09-2024

Check your State Pension age

3rd October 2024 by fpdteam

HMRC’s 'Check your State Pension age' tool is available at www.gov.uk/state-pension-age/y.

The online tool allows taxpayers to check the following:

the earliest age they can start receiving the State Pension;
their Pension Credit qualifying age; and
when they will be eligible for free bus travel.

The State Pension age is currently 66 years old for both men and women but will increase again from 6 May 2026 to 67 years old for those born on or after April 1960.

The Pensions Act 2014 requires the Secretary of State for Work and Pensions to regularly review the State Pension age. This helps ensure that the government is able to consider the latest information to inform any future decision on the State Pension age. This review includes life expectancy and population projections, the economic position and the impact on the labour market.

The government is currently required to provide 10 years notice of changes to State Pension age, enabling people to plan effectively for retirement. It is thought that all options for increasing the rise to the State Pension age from 67 to 68 that meet the 10 years notice period will be in scope at the next review.

Source:HM Revenue & Customs| 30-09-2024

Cash in Child Trust Funds

3rd October 2024 by fpdteam

HMRC has issued a press release urging 18-22 year olds who have yet to claim their Child Trust Fund (CTF) cash to do so as soon as possible. According to HMRC, over 670,000 young adults in this age group have unclaimed funds, with the average savings pot estimated to be marginally in excess of £2,000.

Anyone who turned 18 on or after 1 September 2020 could have unclaimed money in a dormant CTF. Parents of children aged 18-22 should also check if their children have claimed the funds to which they are entitled.

Children born between 1 September 2002 and 2 January 2011 were eligible for a CTF account, with the government contributing an initial deposit, typically at least £250. These accounts were set up as long-term savings for newly born children.

HMRC’s Second Permanent Secretary and Deputy Chief Executive, said:

Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money and we’re making the process as simple as possible.

You don’t need to pay anyone to find your Child Trust Fund for you, locate yours today by searching ‘find your Child Trust Fund’ on GOV.UK.

Approximately 6.3 million Child Trust Fund (CTF) accounts were created during the scheme's operation. If a parent or guardian was unable to open an account for their child, HMRC stepped in and set up a savings account on the child’s behalf.

Source:HM Revenue & Customs| 30-09-2024

Beware fake parking fine texts

30th September 2024 by fpdteam

The Driver and Vehicle Standards Agency (DVSA) is warning that scammers are sending text messages about fake DVSA parking penalty charges. The text messages warn people that they have a ‘parking penalty charge’, and that if they do not pay on time, that they might:

be banned from driving
have to pay more
be taken to court

The text message reads "Dvsa notice for you: You have a parking penalty charge due on 2024/9/30. If you do not pay your fine on time, Your car may be banned from driving, you might have to pay more, or you could be taken to court. Please enter your license plate in the link after reading the information, Check and pay parking penalty charge. Thank you again for your co-operation. Dvsa."

The initial text message has been followed up with scam reminders:

DVSA Fixed Penalty Office:
Today is the last day to pay your ticket due to your long term delinquency, if you do not pay your ticket on time you may be required to pay more in the future, and we reserve the right to prosecute you. Please be patient and open the link below to process your ticket.
Thank you again for your co-operation.

Another scam reminder says:

DVSA Fixed Penalty Office last notification:
You have not paid your ticket within the stipulated time. Today is the last time to notify you to pay. We will ban your car from driving on the road starting tomorrow and transfer your parking ticket to the court. Please wait until you receive the information. Process your ticket as soon as possible in the link.

Another scam message says:

EWHC notice for you:
We are preparing to prosecute you for the materials handed over by DVSA. Because you have not paid your parking penalty charge for a long time. Today is the last day for payment.
If you do not pay within today, we will prosecute you. Please read the information and enter your license plate to check your parking ticket.

DVSA advises that it does not issue or deal with parking fines.

Source:Other| 29-09-2024

Setting up a Civil Partnership

30th September 2024 by fpdteam

Civil Partners enjoy the same tax and other advantages as married couples.

To set up a civil partnership in England or Wales, both partners must be eligible, meaning they are over 18, not already married or in a civil partnership and not closely related. The rules may be different in Scotland, Northern Ireland and outside the UK.

You and your partner will need to give notice of your intention to form a civil partnership at your local register office. You must have lived in that registration district for the past 7 days. You and your partner will need to give notice separately if you live in different registration districts. You do not have to do this on the same day.

You'll need to provide various original documents proving your identity, address, and if applicable, evidence of the dissolution of any previous marriage or civil partnership.

The ceremony can take place at a register office or an approved venue. Unlike a wedding, no legal vows are required, but you will sign a civil partnership document in front of witnesses, making it legally binding. After the ceremony, you will receive a civil partnership certificate.

Forming a civil partnership grants rights similar to marriage, particularly regarding inheritance, pensions, and tax responsibilities.

For more detailed information, you can visit the UK government’s official site on civil partnerships: GOV.UK – Civil Partnerships.

Source:Other| 29-09-2024

Redundancy pay and tax

26th September 2024 by fpdteam

There is a tax-free limit of £30,000 for redundancy pay regardless of whether it is your statutory redundancy payment or a higher payment from your employer.

If you have been employed for two years or more and are made redundant, you are usually entitled to redundancy pay. The legal minimum you can receive is known as "statutory redundancy pay." However, there are exceptions, such as if your employer offers to keep you on or provides suitable alternative work, which you then refuse without a valid reason.

The amount of statutory redundancy pay depends on your age and length of service and is calculated as follows:

Under 22: Half a week’s pay for each full year of service
Aged 22 to 40: One week’s pay for each full year of service
Over 41: One and a half weeks’ pay for each full year of service

Weekly pay is capped at £700, with a maximum of 20 years of service considered. The maximum statutory redundancy pay for 2024-25 is £21,000, with slightly higher limits in Northern Ireland.

Employers can choose to offer a higher redundancy payment, or you may be entitled to one based on the terms of your employment contract.

Source:HM Revenue & Customs| 23-09-2024