Monthly Archives for November, 2012

Key Dates

November 9, 2012
Comments Off on Key Dates
Key up coming financial dates

Key Dates

19 November 2012

  • PAYE and NIC due for the month ended 5th November 2012.
  • CIS return must be submitted for the month ended 5th November 2012

19 December 2012

  • PAYE and NIC due for the month ended 5th December 2012.
  • CIS return must be submitted for the month ended 5th December 2012

19 January 2013

  • PAYE and NIC due for the month ended 5th January 2013.
  • CIS return must be submitted for the month ended 5th January 2013

31 January 2013

  • Deadline for electronic submission of Self Assessment tax returns for tax year ended 5 April 2012
  • Balancing payment of 2012 Tax Return due together with the 1st Payment on Account for the 2013 tax liability.

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

Paperwork Due Dates

November 9, 2012
Comments Off on Paperwork Due Dates
Due to the closure of the office over the festive period all VAT paperwork for the VAT quarter Sept – Nov 2012 should be submitted as soon as possible.All payroll information should be submitted for processing no later than Monday 17th December 2012.

Chid Benefit Changes

November 9, 2012
Comments Off on Chid Benefit Changes
From 7 January 2013, child benefit will be reduced for families where one partner earns between £50,000 and £60,000, and fully withdrawn from those who earn £60,000 or more. Earnings include salary, dividends, savings and rental income after deducting gift aid payments and pension contributions

The current rate of child benefit is £20.30 per week for the first child and £13.40 for each additional child.

Where one partner earns more than £50,000, child benefit will still be paid, but to compensate for the benefit the higher earner will pay more tax. The amount paid back will be 1% of the total child benefit received for every £100 of their income which exceeds £50,000. To account for this, the individual will have to submit a tax return.

The child benefit received is based on each individual’s earnings; therefore, if one partner earns over £60,000 and the other earns nothing, they will effectively receive no child benefit. However, if both partners earn just under £50,000 they will retain the full child benefit.

Real Time Information…

November 9, 2012
Comments Off on Real Time Information…
Real Time Information (RTI) is being introduced to improve the operation of PAYE. It will make the PAYE system easier for employers and HM Revenue & Customs (HMRC) to operate, and employees will receive information more quickly. Using RTI, employers and pension providers will tell HMRC about tax, National Insurance contributions (NICs) and other deductions when or before the payments are made, instead of waiting until after the end of the tax year.

Under RTI, employers and pension providers are required to complete a new style form P46 (short) for collating information on employees. This will be used to complete the starter information which will be sent to HMRC as part of the RTI payment submission, with details of the employee’s first payment, when the payroll is run. The P46 (short) form does not need to be sent to HMRC. Similarly, a P45 is no longer required to be sent to HMRC when an employee leaves, however, the employee will still receive a copy of their P45, part of which will go to their new employer

Using RTI will also mean that employers and pension providers will no longer need to complete an end of year return (P35 and P14) or P38A supplementary return, as they will tell HMRC about all payments made each time their payroll is run.

If we prepare your payroll, you will have been enrolled into the RTI pilot scheme, with the exception of employers with subcontractors, who will join in April 2013.

A key aspect of the process is the requirement to have up-to-date accurate information for each employee; this includes:

  • Full name
  • Date of Birth
  • National Insurance Number
  • Gender, and Address

The above information is vital for processing any new starters you employ. We will also need to be informed of the number of hours each employee works and the date on which they will be paid.

Under RTI, all employees (who are 16 or over) who receive payment from a company must be processed through the payroll. This includes casual workers and students which means there is no longer a need for P38A or P38S forms.