Jul 2014
Tax Calendar
Auto-enrolment and workplace pensions Over the next four years all UK employers will have to automatically enroll their qualifying UK employees into a workplace pension scheme. Employees qualify for autoenrolment if they are aged between 22 and state pension age, earn more than the minimum earnings threshold (approximately £192 per week), and are not currently in a qualifying pension scheme. All employers with at least 'one worker', regardless of their age and earnings, must register online with The Pensions Regulator, who may impose a combination of fixed fines, daily fines and inducement fines for non-compliant employers. Under the workplace pension provisions both employer and employee contribute to the employee’s pension via the employer’s scheme. The precise contribution level depends on the date on which the employer is required to commence the scheme. Employers must set up their own company pension scheme or use the National Employment Savings Trust (NEST), a low-cost, governmentbacked scheme designed specifically for automatic enrolment. The starting date for auto-enrolment is set according to when the business commenced and the number of employees. It’s important to act now. Please contact us in order to discuss these new measures.
Capital Gains Tax (CGT) private residence relief – all change From 6 April, 2014, the period in which a home-owner can be absent from their home but deemed to have lived there for the purposes of CGT private residence relief (PRR) is to be reduced from the last 36 months of ownership to just 18 months. As owners have two years following the purchase of any new property in which to make an election to treat it as a private residence, the change means that multiple property owners should be reviewing their elections annually.
The government is currently consulting on removing the ability for taxpayers to make PRR elections in order to clamp down on the practice of ‘house flipping’ for CGT. This is part of wider measures that look to remove PRR relief for non-UK-residents from 6 April, 2015. If you are likely to be affected by any of these measures please contact us in order to review your situation and make plans ahead of any changes.
www.mcmillanaccountants.com
Issue 4, 2014
NEWSLETTER July 2014 5
End of tax quarter and last date for agreeing PAYE Settlement Agreement (if any) for tax year ended 5 April 2014.
6
Deadline for expenses and benefits annual return forms P9D, P11D and P11D(b) to reach HMRC. Deadline for employers to give copies of forms P9D and P11D to employees. Deadline for submission of Form 42 (transactions in shares and securities). Deadline for submission of EMI40 (EMI Annual Return). Deadline for entering into a PAYE Settlement Agreement for 2013/14.
19/22
Monthly PAYE/Class 1 NICs/student loan and CIS payments due. 19th for non-electronic payments, 22nd for online payments
31
Final day for second Self Assessment payment on account for tax year ending 5 April 2014.
31
Second payment due date for 2013/14 Class 2 NICs.
August 2014 1
Surcharge of 5% due on unpaid income tax for year end 5 April, 2013.
2
Submission date of P46 (Car) for quarter to 5 July.
19/22
Monthly PAYE/Class 1 NICs/student loan and CIS payments due. 19th for non-electronic payments, 22nd for online payments
31
Annual adjustment for VAT partial exemption calculations (May VAT year end).
September 2014 19/22
Monthly PAYE/Class 1 NICs/student loan and CIS payments due. 19th for non-electronic payments, 22nd for online payments
October 2014 1
Annual increase in national minimum wage.
19/22
Monthly PAYE/Class 1 NICs/student loan and CIS payments due. 19th for non-electronic payments, 22nd for online payments
This newsletter is written for the general interest of our clients and is not a substitute for professional advice. Please contact McMillan & Co LLP for specific advice before taking any action.
Issue 4, 2014 Page 2
NEWSLETTER Employers: benefits and expenses update HM Revenue & Customs (HMRC) is consulting on new measures for simplifying the reporting of benefits in kind (BIKs) for employers. These are as follows: 1.
Abolishing the threshold for the taxation of BIKs for employees who earn less than £8,500 a year (‘lower-paid’ employees). If this measure is adopted, benefits such as medical insurance will be taxable for both employer and lower-paid employee.
2.
Introducing a statutory exemption for trivial benefits up to a set sum of around £75 but perhaps lower. There is already an exemption for trivial benefits, so the proposal appears to create extra calculations and reporting requirements for employers.
3.
Introducing a system of voluntary payrolling for BIKs. This is supposed to save employers from completing P11Ds, but accounting for BIKs via the payroll may be just as time consuming for employers, and it may be difficult to correct reporting errors.
4.
Replacing the expenses dispensation regime with an exemption for paid and reimbursed expenses. This seems a sensible measure as many expenses are already treated in this way for tax.
Please contact us to discuss the practical implications of these measures: they will affect next year’s PAYE reporting and we need to ensure that systems are in place to cope with the changes from 6 April, 2015.
Agency workers & PAYE: new rules on control and supervision New rules will apply to the treatment of workers supplied through agencies or other intermediaries who have in the past been provided through an agency to the end client on a self-employed basis. From 6 April, 2014 workers who are supplied through an agency and are subject to (or to a right of) supervision, direction or control by the end client, will be treated as employees. This means that workers’ earnings will be subject to PAYE and Class 1 employers and employees National Insurance Contributions (NIC). The worker will also be subject to the National Minimum Wage — however many agencies will use zero hours contracts.
such as an agency, and as a result of that contract the services of the worker are provided, or the client pays for the services to be provided. Application of the new rules will not be affected by any substitution clause within the contract, and it will not matter whether or not the worker is registered under the CIS scheme. UK agencies may additionally be affected by new rules for offshore workers. If a worker is supplied via one or more intermediaries in a chain, the intermediary nearest the end client must deduct PAYE. The existing rules for employment status for other employers remain unchanged by these measures.
The new rules will apply where there is a contract between the end client or a connected party and any third party,
If you have any queries in relation to any of the topics covered in this newsletter then please do not hesitate to contact us. 28 Eaton Avenue Matrix Office Park Buckshaw Village Chorley Lancashire, PR7 7NA 01772 299888 [email protected]
McMillan & Co LLP is registered to carry on audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales
Auto-enrolment and workplace pensions Over the next four years all UK employers will have to automatically enroll their qualifying UK employees into a workplace pension scheme. Employees qualify for autoenrolment if they are aged between 22 and state pension age, earn more than the minimum earnings threshold (approximately £192 per week), and are not currently in a qualifying pension scheme. All employers with at least 'one worker', regardless of their age and earnings, must register online with The Pensions Regulator, who may impose a combination of fixed fines, daily fines and inducement fines for non-compliant employers. Under the workplace pension provisions both employer and employee contribute to the employee’s pension via the employer’s scheme. The precise contribution level depends on the date on which the employer is required to commence the scheme. Employers must set up their own company pension scheme or use the National Employment Savings Trust (NEST), a low-cost, governmentbacked scheme designed specifically for automatic enrolment. The starting date for auto-enrolment is set according to when the business commenced and the number of employees. It’s important to act now. Please contact us in order to discuss these new measures.
Capital Gains Tax (CGT) private residence relief – all change From 6 April, 2014, the period in which a home-owner can be absent from their home but deemed to have lived there for the purposes of CGT private residence relief (PRR) is to be reduced from the last 36 months of ownership to just 18 months. As owners have two years following the purchase of any new property in which to make an election to treat it as a private residence, the change means that multiple property owners should be reviewing their elections annually.
The government is currently consulting on removing the ability for taxpayers to make PRR elections in order to clamp down on the practice of ‘house flipping’ for CGT. This is part of wider measures that look to remove PRR relief for non-UK-residents from 6 April, 2015. If you are likely to be affected by any of these measures please contact us in order to review your situation and make plans ahead of any changes.
www.mcmillanaccountants.com
Issue 4, 2014
NEWSLETTER July 2014 5
End of tax quarter and last date for agreeing PAYE Settlement Agreement (if any) for tax year ended 5 April 2014.
6
Deadline for expenses and benefits annual return forms P9D, P11D and P11D(b) to reach HMRC. Deadline for employers to give copies of forms P9D and P11D to employees. Deadline for submission of Form 42 (transactions in shares and securities). Deadline for submission of EMI40 (EMI Annual Return). Deadline for entering into a PAYE Settlement Agreement for 2013/14.
19/22
Monthly PAYE/Class 1 NICs/student loan and CIS payments due. 19th for non-electronic payments, 22nd for online payments
31
Final day for second Self Assessment payment on account for tax year ending 5 April 2014.
31
Second payment due date for 2013/14 Class 2 NICs.
August 2014 1
Surcharge of 5% due on unpaid income tax for year end 5 April, 2013.
2
Submission date of P46 (Car) for quarter to 5 July.
19/22
Monthly PAYE/Class 1 NICs/student loan and CIS payments due. 19th for non-electronic payments, 22nd for online payments
31
Annual adjustment for VAT partial exemption calculations (May VAT year end).
September 2014 19/22
Monthly PAYE/Class 1 NICs/student loan and CIS payments due. 19th for non-electronic payments, 22nd for online payments
October 2014 1
Annual increase in national minimum wage.
19/22
Monthly PAYE/Class 1 NICs/student loan and CIS payments due. 19th for non-electronic payments, 22nd for online payments
This newsletter is written for the general interest of our clients and is not a substitute for professional advice. Please contact McMillan & Co LLP for specific advice before taking any action.
Issue 4, 2014 Page 2
NEWSLETTER Employers: benefits and expenses update HM Revenue & Customs (HMRC) is consulting on new measures for simplifying the reporting of benefits in kind (BIKs) for employers. These are as follows: 1.
Abolishing the threshold for the taxation of BIKs for employees who earn less than £8,500 a year (‘lower-paid’ employees). If this measure is adopted, benefits such as medical insurance will be taxable for both employer and lower-paid employee.
2.
Introducing a statutory exemption for trivial benefits up to a set sum of around £75 but perhaps lower. There is already an exemption for trivial benefits, so the proposal appears to create extra calculations and reporting requirements for employers.
3.
Introducing a system of voluntary payrolling for BIKs. This is supposed to save employers from completing P11Ds, but accounting for BIKs via the payroll may be just as time consuming for employers, and it may be difficult to correct reporting errors.
4.
Replacing the expenses dispensation regime with an exemption for paid and reimbursed expenses. This seems a sensible measure as many expenses are already treated in this way for tax.
Please contact us to discuss the practical implications of these measures: they will affect next year’s PAYE reporting and we need to ensure that systems are in place to cope with the changes from 6 April, 2015.
Agency workers & PAYE: new rules on control and supervision New rules will apply to the treatment of workers supplied through agencies or other intermediaries who have in the past been provided through an agency to the end client on a self-employed basis. From 6 April, 2014 workers who are supplied through an agency and are subject to (or to a right of) supervision, direction or control by the end client, will be treated as employees. This means that workers’ earnings will be subject to PAYE and Class 1 employers and employees National Insurance Contributions (NIC). The worker will also be subject to the National Minimum Wage — however many agencies will use zero hours contracts.
such as an agency, and as a result of that contract the services of the worker are provided, or the client pays for the services to be provided. Application of the new rules will not be affected by any substitution clause within the contract, and it will not matter whether or not the worker is registered under the CIS scheme. UK agencies may additionally be affected by new rules for offshore workers. If a worker is supplied via one or more intermediaries in a chain, the intermediary nearest the end client must deduct PAYE. The existing rules for employment status for other employers remain unchanged by these measures.
The new rules will apply where there is a contract between the end client or a connected party and any third party,
If you have any queries in relation to any of the topics covered in this newsletter then please do not hesitate to contact us. 28 Eaton Avenue Matrix Office Park Buckshaw Village Chorley Lancashire, PR7 7NA 01772 299888 [email protected]
McMillan & Co LLP is registered to carry on audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales
