Tax Events are due on 19th January 2018

The following Tax Events are due on 19th January 2018:

Business Tax Events

PAYE quarterly payments are due for small employers for the pay periods 6th October 2017 to 5th January 2018

This deadline is relevant to small employers and contractors only. As a small employer with income tax, national insurance and student loan deductions of less than £1,500 a month you are required to make payment to HMRC of the income tax, national insurance and student loan deductions on a quarterly basis.

Where the payment is made electronically the deadline for receipt of cleared payment is 22nd January 2018. In year interest will be charged if payment is made late. Penalties also apply.

PAYE, Student loan and CIS deductions are due for the month to 5th January 2018.

This deadline is relevant to employers who have made PAYE deductions from their employees’ salaries and to contractors who have paid subcontractors under the CIS.

Employers are required to make payment to HMRC of the income tax, national insurance and student loan deductions. Contractors are required to make payment to HMRC of the tax deductions made from subcontractors under the CIS.  

Where the payment is made electronically the deadline for receipt of cleared payment is 22nd January 2018. In year interest will be charged if payment is made late. Penalties also apply.

Why do I need to keep my bookkeeping up to date?

Happy New Year! This is the 1st post of the year & hopefully it will help you to start thinking about how to organise your business over the next 12 months. 

As we are all aware, Making Tax Digital is fast approaching meaning you need to have bookkeeping software in place for your business that you like! 

It may take quite some time to find bookkeeping software that you get along with and understand. There are many out there including: Xero, Sage One and Iris Kashflow.

Keeping your bookkeeping up to date can be good for many reasons:

  • You can have an up to date profit and loss account to see how your business is doing and compare it to other periods
  • Review your VAT return to look at liabilities
  • You can make your own sales invoices on most bookkeeping software which can save a lot of time
  • You can also keep track of your creditors and debtors which will lead to better cash control and more reliable forecasting

In my experience the bookkeeping software that I have personally found best, and clients who have no bookkeeping experience have seemed to like the most, is Xero. This is for many reasons, some of them being the following:

  • Bank feeds – We all know that typing up your bank can be very time consuming and then you come to reconcile it you’re 1p out! This is why I love bank feeds. Everything is pulled through from your online banking, meaning you do not need to worry about that 1p; all you have to do is match the bank receipts against sales invoices and payments to purchase invoices. Xero also has the function of ‘rules’ meaning if you have a standing order set up for example £25.00 to Vodafone every month, you can create a rule to routinely post this bank payment to telephone expenses with the specified VAT treatment.

 

  • Submitting your VAT return online. Once you are happy with your VAT return on Xero you can ‘File it now’ meaning you just need to put your government gateway login information on to Xero and it will be submitted for you – unfortunately you still have to make the payment to HMRC!

 

  • Paperless record keeping – How many of us have an office full of the past 6 years of records? Everyone I’m hoping! This is a really handy feature with Xero, especially if you like a tidy office.  With Xero you can attach a pdf copy of the invoice online meaning there will always be a copy of that invoice and you will not have to keep a paper version of it.

 

If you are looking into starting your bookkeeping with online software and would like some advice on which one is best for your specific  needs, or would like some training, please get in touch with us on 0116 242 3400.

Georginda Hare, Bookkeeper 

VAT: Overseas sales

VAT: Overseas sales

Below are some very basic rules of how to deal with VAT on overseas sales. If you ever come across these, please contact us as there are a lot more details which should be reviewed before anything is submitted to HMRC.

The following are basic questions that need to be answered before being able to decide whether VAT should be charged or not:

Are you supplying goods or services?

Are you supplying to a business or a consumer?

Where are they located?

Are they VAT registered?

Goods

EU:

VAT Registered Business-

If the VAT number has been provided by the Business and there is a VAT number on the invoice as well as documentary proof of export, VAT can be charged at 0%.

Non-VAT Registered Business or Consumer-

If the customer is not VAT registered you will have to charge VAT at 20%. However this is only true until the distance selling threshold is exceeded, which depends on the country concerned.

 Outside the EU:

If the Customer resides outside the EU, VAT can be charged at 0%.

 Services

EU:

All VAT and Non-VAT Registered Businesses-

VAT can be charged at 0%, if the service is for business purposes.

Consumer-

VAT must be charged at 20%.

However, if it is an ‘e-service’ you would have to charge VAT at that country’s own rate.

Outside the EU:

All VAT and Non-VAT Registered Businesses-

VAT can be charged at 0%.

Consumer-

VAT can be charged at 0% for the following services:

Electronically supplied services

Advertising

Legal

Accountancy

Consultancy

Supply of staff

Hire of goods

Telecoms and broadcasting

 

VAT must be charged at 20% on all other services.

If you have any queries, or require any further information on this, please do not hesitate to contact us 0116 2423400

Jess Cooper, Accounts & Tax 

Charity law changes

Since 2 January 2013 new charities have been able to register as a Charitable Incorporated Organisation (CIO).

Prior to that date the only way to be an incorporated charity was to form a limited company, registered at Companies House, and then apply for charity registration with the Charity Commission.  This approach meaning that there were two sets of laws to comply with and two separate annual filings.

The CIO is registered solely with the Charity Commission and subject to charity law only.

This was a long-awaited and very welcome change to the law.

There was however one sticking point and that was for a charity that had already registered as a limited company and now wanted to benefit from the updated legislation.  The only way forward was to set up a new CIO and transfer the old charity over.

New legislation was published on 23 November allowing charitable companies, in England and Wales, to convert to CIOs.  There will be a phased implementation: Charities with income below £12,500 will be able to apply from 1 January 2018 and those with income greater than £500,000 from 1 August 2018.  There are four other income bands that fit in to the intervening period.

It has been stated in official releases that the process should be “simple and straightforward in most cases”.  The charity will need to adopt a new CIO constitution and pass a Special resolution to convert.

It appears that procedures have been put in place for the Charity Commission and Companies House to liaise with each other so that the date of conversion is consistent between both regulators.

If you wish to discuss this further then please get in touch on 0116 2423400

Neil Ford, Technical Manager

Important changes to HMRC payment methods.

Important changes to HMRC payment methods:

HMRC are making the following changes to the way you pay tax.

 Paying at the Post Office

HMRC are withdrawing this service from 15 December 2017.

 Paying by Personal Credit Card

HMRC will no longer accept payments of tax by personal credit card from 13 January 2018.

Please note that payments by company credit cards are still accepted.

The following methods of payment will continue to be accepted;

  • Direct Debit
  • Online or telephone banking, which includes Faster Payments, Bacs and CHAPS
  • Debit card online or by telephone

For further details please see;

https://www.gov.uk/pay-self-assessment-tax-bill

https://www.gov.uk/pay-corporation-tax

https://www.gov.uk/pay-paye-tax

Don’t overlook your December employer PAYE/NI payment

The December payment deadline is a little way off but will soon be upon us. Any electronic payment for the tax period ended 5 December 2017 must clear into the HMRC account by Friday 22 December 2017.

If you pay by cheque in the post, payment must reach the Accounts Office by 19 December.

If you shut down early for Christmas we want to remind you to pay on time or make arrangements to ensure your payment will be made on time.

If you pay the right amount at the right time and use your 13 character Accounts Office reference you won’t incur interest and Late Payment Penalties.

If you would like to discuss any of the above please contact us on 0116 2423400

Autumn Budget 2017

Yesterday saw a budget that focused, as expected, on housing and a stormy economic forecast. Our full summary is available on our website, but the key tax developments are summarised below.

Personal Tax Rates and Allowances

The personal allowance is currently £11,500 and will increase to £11,850 in April 2018. The higher rate threshold similarly increases from £45,000 to £46,350. Phillip Hammond reaffirmed his commitment to raise these thresholds to £12,500 and £50,000 respectively by 2020.

 National Insurance for the self-employed

 After the embarrassment of Mr Hammond’s U-turn earlier this year after attempting to abolish Class 2 National Insurance and increase Class 4, it was announced that in order to give sufficient time for a more popular proposal to be devised, there will be a delay of one year before any reform.

Capital Gains Tax

 After unfavourable consultation, the proposal for a 30-day window between Capital Gains arising and the tax being due has been deferred until April 2020.

 Research and Development

 Large companies claiming relief for research and development under the RDEC scheme will see their credit increase from 11% to 12% as part of plans to help the economy grow after Brexit.

Corporation Tax

Indexation Allowance – a long standing relief for companies making capital gains will be frozen from 01 January 2018. This allowance protected companies from gains that arise as a result of inflation and as a result no relief will be available for inflation accruing after this date. This move is perhaps unsurprising, with property investors more often operating through a limited company as a result of this allowance and the increased taxation of landlords in recent budgets.

 Stamp Duty

 With the youth vote rocketing in the last election, the government has decided to act further on the concerns that first time buyers are struggling to get on to the property ladder. Stamp duty will be abolished immediately for first time buyers purchasing properties worth up to £300,000. Those buying their first houses in expensive areas such as London will pay no stamp duty on the first £300,000 of properties costing up to £500,000.

 Value Added Tax (VAT)

 The VAT registration threshold will remain at £85,000 p/a for two years from April 2018. This will come as a relief for many, as some predicted this could be lowered to nearer the EU average of £25,000.

Making Tax Digital (MTD)

 As announced in July, no business will be mandated to use MTD until April 2019, and then only for VAT obligations. The scope of MTD will not be widened until April 2020 at the earliest.

The above are only the areas that I feel will be relevant to the majority of our clients, other areas and greater detail can be found on our website, click here. 

Please contact us on 0116 242 3400 if you have a specific query.

Matt Smith.

Applying for a Mortgage? SA302’s are no more. A Tax overview is what you need.

HMRC’s form SA302 is a tax calculation produced when you have filed your Self-Assessment Tax Return online.

It is a calculation for a particular tax year showing your income, your tax allowances, the amount of tax you’ve already paid and what tax, if any, you still owe or which should be repaid to you.

If your Tax Return has to be amended and it affects the tax payable, HMRC will send you a revised SA302 showing the up to date position for that particular year.

If you are asked to provide evidence of your income, for example if you’re applying for a mortgage, and you have been paying through self-assessment, you are likely to be asked for an SA302 for one or more tax years.  Another document you may also be asked to produce is a tax year overview.  This is a simple summary or statement of the tax due and tax you’ve paid during the tax year.

If you have filed your own tax return online, you can access your HMRC account and print off both the SA302 and tax year overview as required.

HMRC have been encouraging taxpayers to obtain a copy of the ‘Tax overview’ and ‘Full Calculation’ from the online service for some time and, from 4 September 2017, they have confirmed that they will no longer send paper SA302s to agents on behalf of their clients.

There are a number of lenders that will accept the tax overview and printed calculation in place of a paper SA302 and HMRC are working on educating other lenders to increase acceptance so that, once the SA302’s are no more, mortgage advisors will be happy with these documents instead.

If you don’t know where to start getting your tax year overview or tax calculation, most accountants, including torrwaterfield, use commercial software to produce tax returns for their clients.  This automatically generates a tax calculation which is roughly equivalent to a form SA302.  The majority of mortgage providers have agreed with HMRC to accept this Tax Calculation and the Tax Year Overview which your accountant can print off for you.

For a complete list of mortgage providers and lenders who accept Tax Year over views please click here. 

If you would like any assistance on this, then please contact the office on 0116 242 3400.

James Yarnall, Accounts & Tax 

Tax Events are due on 19th October 2017

The following Tax Events are due on 19th October 2017:

Business Tax Events

PAYE quarterly payments are due for small employers for the pay periods 6th July 2017 to 5th October 2017.

This deadline is relevant to small employers only. As a small employer with income tax, national insurance and student loan deductions of less than £1,500 a month you are required to make payment to HMRC of the income tax, national insurance and student loan deductions on a quarterly basis.

Where the payment is made electronically the deadline for receipt of cleared payment is Friday 20th October 2017 unless you are able to arrange a ‘Faster Payment’ to clear on or by Sunday 22nd October. In year interest will be charged if payment is made late. Penalties also apply.

PAYE, Student loan and CIS deductions are due for the month to 5th October 2017.

This deadline is relevant to employers who have made PAYE deductions from their employees’ salaries and to contractors who have paid subcontractors under the CIS.

Employers are required to make payment to HMRC of the income tax, national insurance and student loan deductions. Contractors are required to make payment to HMRC of the tax deductions made from subcontractors under the CIS.  

Where the payment is made electronically the deadline for receipt of cleared payment is Friday 20th October 2017 unless you are able to arrange a ‘Faster Payment’ to clear on or by Sunday 22nd October. In year interest will be charged if payment is made late. Penalties also apply.

Tax and NI due under a 2016/17 PAYE Settlement Agreement.

This deadline is relevant for employers who have entered into a PAYE settlement agreement to pay tax and national insurance in respect of benefits in kind for their employees for the year ended 5th April 2017.

Where the payment is made electronically the deadline for receipt of cleared payment is Friday 20th October 2017 unless you are able to arrange a ‘Faster Payment’ to clear on or by Sunday 22nd October.

If you wish to discuss this further then please get in touch 0116 2423400

We did it ! 2017 Challenge – The Llyn Peninsula

This year’s challenge was a 46 mile, two day hike around the Llyn Peninsula in Wales.

Having walked similar distances in the past, we thought that we knew what we were letting ourselves in for …

However, we had not anticipated the many obstacles along the way, including:

Ankle deep boggy mud

Steep and slippery climbs and descents

No pubs on route

Wet feet from start to finish

High tide (meaning we had to wade waist deep into the sea)

Cows

Rain

This was probably our toughest challenge so far.  Our support team were unable to relax and had to come to our rescue twice on day one.

Eventually, most of us made it to the finish line (the pub) for a well-earned pint!

We would like to thank everybody that supported and sponsored us.  So far we have raised over £2,000 for our charity of the year, The Alzheimer’s Society.

If you would like to support us, please visit this link: https://www.justgiving.com/fundraising/torr-waterfield1

Some pictures from the walk:

Day 1 – Our team of 10 set off from Nefyn Golf Course:

We made our way along.jpg

We made our way along the coastline, through the mud:

2nd Pic sam k.png

3rd pic.jpg

Stu and the team.jpg

We got a bit wet:

matt.jpg

Look out for the blue signs:

sign.jpg

Seaweed fight:

Brook & Mat Seaweed.jpg

Day 2 – There were a few casualties on day one, our team is down to 5:

day 2.png

Still smiling in the rain:

MCW rain.jpg

Nice views, but still a long way to go:

Views

views 2.jpg

 

Feeding the wild horses: 

Wid horses.jpg

The end:

The End.jpg

If you would like to view some more photos and videos please visit our Facebook page https://www.facebook.com/Torrwaterfield/ 

Stuart Caney, Accounts & Tax 

 

 

Tax Calendar

The following Tax Events are due on 19th July 2017:

Business Tax Events

PAYE quarterly payments are due for small employers for the pay periods 6th April 2017 to 5th July 2017.

This deadline is relevant to small employers and contractors only. As a small employer with income tax, national insurance and student loan deductions of less than £1,500 a month you are required to make payment to HMRC of the income tax, national insurance and student loan deductions on a quarterly basis.

Where the payment is made electronically the deadline for receipt of cleared payment is Friday 21st July 2017 unless you are able to arrange a ‘Faster Payment’ to clear on or by Saturday 22nd July. In year interest will be charged if payment is made late. Penalties also apply.

PAYE Student loan and CIS deductions due for the month to 5th July 2017.

This deadline is relevant to employers who have made PAYE deductions from their employees’ salaries and to contractors who have paid subcontractors under the CIS.

Employers are required to make payment to HMRC of the income tax, national insurance and student loan deductions. Contractors are required to make payment to HMRC of the tax deductions made from subcontractors under the CIS.  

Where the payment is made electronically the deadline for receipt of cleared payment is Friday 21st July 2017 unless you are able to arrange a ‘Faster Payment’ to clear on or by Saturday 22nd July. In year interest will be charged if payment is made late. Penalties also apply.

Class 1A NIC due for 2016/17.

This deadline is relevant for employers who have provided their employees with benefits for 2016/17. These benefits should have been reported by the 6th July and the amount of the Class 1A employer only NI liability due calculated on the form P11D(b).

Where the payment is made electronically the deadline for receipt of cleared payment is Friday 21st July 2017 unless you are able to arrange a ‘Faster Payment’ to clear on or by Saturday 22nd July. Interest will be charged if payment is made late. Penalties may also apply. 

We have a Tax Calendar on our website so you never miss a deadline to see future deadlines please visit our calendar  https://www.torrwaterfield.co.uk/resources/tax-calendar