Monthly Archives for August, 2012

Key Dates

August 20, 2012
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Key dates to mark in your diary

o - 19 August 2012

o - PAYE and NIC due for the month ended 5th August 2012.

o - CIS return must be submitted for the month ended 5th August 2012

o - 19 September 2012

o - PAYE and NIC due for the month ended 5th September 2012.

o - CIS return must be submitted for the month ended 5th September 2012

o - 5 October 2012

o - Deadline to notify HMRC that tax will be due for 2011/12 (for taxpayers who have not been sent a return).

o - 19 October 2012

o - PAYE and NIC due for the month ended 5th October 2012.

o - CIS return must be submitted for the month ended 5th October 2012

o - 31 October 2012

o - Deadline for paper submission of Self Assessment tax returns for tax year ended 5 April 2012

Electronic payment of PAYE & NIC extends the due date to the 22nd of the month.

Shadow Directors

August 20, 2012
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When a company fails to pay over the PAYE and NIC which should have been deducted from salaries paid to the employees and directors, HMRC can seek to recover the tax due from the directors and shadow directors of the company.

A shadow director is not registered as a director of the company with Companies House, but he or she will effectively control the company by giving instructions to the named directors, and to other staff who are accustomed to act on those instructions. Majority shareholders may be deemed to be shadow directors if they effectively run the company.

Liquidators can take action against shadow directors just as they can against the named directors for debts owing, including tax.

National Minimum Wage

August 20, 2012
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The National Minimum Wage is due to increase again from 1 October is 2012. This is a legal right which covers workers above compulsory school leaving age.

The new hourly rates are as follows:

o - Workers aged 21 and over will increase from £6.08 to £6.19

o - Workers between the age of 18-20 will remain at £4.98

o - Workers between the age of 16-17 will remain at £3.68

o - Apprentices up to the age of 19, or in their first year of apprenticeship, will increase from £2.60 to £2.65 (unless the rate is specified in the apprentice training contract).

Most workers in the UK over school leaving age are legally entitled to be paid at least the NMW and all employers have to pay it to you if you are entitled to it.

State Pension Age

August 20, 2012
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The age at which we can expect to receive our State Pension has been steadily increasing. Previously a man could claim his State Pension at the age of 65 and a woman at 60; however the date that you become entitled to your State Pension now depends on your date of birth.

From December 2018 onwards the State Pension age for both men and women will start to increase to reach 66 by October 2020, 67 by 2036 and 68 by 2046. However, the Government recently announced that it intends to bring forward the increase in this age to 67 by 2028, so we may see further changes to these.

You do not have to take your State Pension when you reach pension age. It may be beneficial to defer it for a period, especially if your income in the year of retirement is high. At the moment you need 30 full years of National Insurance Contributions to qualify for a full basic State Pension (currently £107.45 per week).