Welcome to our June Newsletter – a round up of What’s New and changes in tax and payroll.
First – A reminder!
There are only 2 more weeks left to complete and submit your P11D Expenses and Benefits forms. These need to be submitted to HMRC by 6th July 2019 and Class 1A National Insurance Contributions must reach HMRC by 22 July (or 19th July if you are paying by cheque).
When paying online ensure that you use the correct payment reference – it will be your 13 character Accounts Office reference followed by 1913.
Why 1913? The ’19’ lets HMRC know that the payment is for the tax year ended 5 April 2019 and ’13’ lets them know the payment is for Class 1A NIC.
If you would like us to complete and submit your P11Ds – drop us an email or call us on 01908 227055.
Auto Enrolment – Workplace Pension
A lot of companies will be coming to a stage where they need to ‘re-enrol’ their employees for Auto Enrolment.
Re-enrolment should be carried out every 3 years from your staging date (i.e. if your staging date was 1 October 2016, you should re-enrol by 1 October 2019, 1 October 2022 etc).
What does this involve?
- Staff who opted out of the workplace pension must be put back in. They then need to decide whether they wish to opt out again.
- Employers must complete and submit an online ‘re-declaration of compliance’ form. This informs the Pension Regulator that you have met your responsibility.
GDPR – Do you need to pay the Data Protection Charge?
All businesses (including sole traders and partnerships) that process personal data are required to pay an annual data protection charge to the ICO (Information Commissioner’s Office).
How much you pay depends on the size of your business:
- £40 – Micro organisations & sole traders
- £60 – Small and medium organisations
- £2,900 – Large organisations
You can find out if you should be paying the charge by using the ICO’s self-assessment tool and, if you are required to pay the charge, you can find out how much you should be paying on the ICO’s charge-assessment tool.
Do you operate CIS? A new VAT reverse charge comes into effect on 1 October 2019
The reverse charge, which comes in effect on 1 October 2019, will apply to standard and reduced-rated supplies of buildings and construction services made to VAT registered businesses, who also make onward supplies of those building and construction services. This does not include the supply of staff or workers by employment businesses.
You can find more details in HMRC’s guidance notes. HMRC will be publishing more information on the reverse charge in the coming months, watch this space – we will keep you up-to-date.
UPDATE 25 September 2019: The reverse charge has been put back until 1 October 2020.
Making School Holidays easier with Tax-Free Childcare
Did you know that Tax-Free Childcare is not just there for everyday childcare costs such as childminders, nurseries & nannies?
You can also use it to pay towards the cost of after school clubs, play schemes, holiday clubs & summer camps.
Tax-Free Childcare is available to working parents with children aged 0 – 11 years. You can get up to £2,000 per child per year to spend on qualifying childcare.
You can apply online here.
Do you employ EU citizens?
If they want to continue living and working in the UK after we leave the EU, they will need to apply for the EU Settlement Scheme.
They can apply online via HMRC’s website.
High Income Child Benefit Charge – could you be better off claiming Child Benefit?
Individuals who receive Child Benefit may have to pay a tax charge known as the High Income Child Benefit Charge. However, you could still be better off by claiming Child Benefit!
The tax increases gradually by 1% for every £100 of income over £50,000 and, at £60,000, the charge is equal to 100% of the Child Benefit entitlement.
If you would like us to look at your Child Benefit position, please give us a call on 01908 227055 or drop us an email.
Tax Credit Renewal Deadline 31 July 2019
The deadline for renewing tax credits is fast approaching. You need to report to HMRC:
- Your net profit from self-employment for the tax year 2018/19.
- Investment income
- Net profit from property/rent
You can manage your tax credits via HMRC website.
Stay safe online!
The National Cyber Security Centre have developed Cyber Essentials to help you protect your organisation against the most common cyber-attacks.
Making Tax digital – Are you ready to submit?
More than 325,000 businesses have signed up for MTD since it came into force on 1 April 2019. If you have a turnover above the £85,000 VAT threshold, have you registered? and are you ready to submit your VAT return on time?
If you would like us to complete your VAT return or help with Making Tax Digital, please give us a call on 01908 227055 or email us.