Posts Tagged ‘PAYE’

HMRC – Business Tax Dashboard errors

Posted on: January 23rd, 2014 by Sarah Curzon No Comments
Sarah Curzon, Tax Director, MHA Broomfield Alexander

Sarah Curzon, Tax Director, MHA Broomfield Alexander

HM Revenue & Customs have recently apologised on their website for errors on their Business Tax Dashboard.

The Business Tax Dashboard is not showing the correct payment position for tax month 8 for some PAYE schemes. This means that some PAYE records are not showing payments made on some employer’s records between 21 November 2013 and 16 January 2014.

HM Revenue & Customs have states that they are currently investigating which records are affected by this error and will be correcting data for affected schemes over the next few weeks.

Please come and talk to us if you are affected by this issue.

RTI – relaxation of reporting arrangements for small businesses

Posted on: March 22nd, 2013 by Mark Jones No Comments

HMRC has recently published details of transitional arrangements to allow a relaxation of reporting arrangements for small businesses (those with fewer than 50 employees) until 5 October 2013

HM Revenue & Customs (HMRC) recognise that some small employers who pay employees weekly, or more frequently, but only process their payroll monthly may need longer to adapt to reporting PAYE information in real time. HMRC have therefore agreed a relaxation of reporting arrangements for small businesses.

Until 5 October 2013, employers with fewer than 50 employees, who find it difficult to report every payment to employees at the time of payment, may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th).

HMRC will continue to work with employer representatives during the summer to assess and understand the impact of RTI on the smallest businesses and consider whether they can make improvements to real time reporting which will address their concerns without compromising the benefits of RTI or the success of the Department for Work & Pension’s Universal Credit.

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State pensions subject to PAYE?

Posted on: May 10th, 2012 by Leighton Reed No Comments
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

Apparently, 60% of pensioners are unaware that their State Pension is taxable income. Historically this assumption is probably based on the way in which their pension is paid without deduction of tax.

This may be about to change!

The Office of Tax Simplification has come up with an idea to streamline the taxation of pensioners. They are seriously considering bringing the State Pension into the pay-as-you-earn system.

If this happened HMRC would issue a code number to the Department of Works and Pensions who would calculate any tax due and deduct it before making the net of tax payment to a pensioner’s bank account.

If you have no other income apart from your State Pension you are unlikely to be affected. However, if your personal allowances are already used against other income (including other pensions) you would likely suffer a tax deduction. No change is proposed before April 2013.

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Improving PAYE – is it time for a spring clean?

Posted on: January 10th, 2012 by MarkJones No Comments

A move that will radically change the way that employers and HMRC handle payslips will come into effect from April 2013. From this date all employers must use the new system which will see all payslip deductions transmitted to HRMC when employees are paid, rather than once a year.

Real Time Information (RTI) will enable employers and pension providers to tell HMRC about tax, NICs and other deductions when or before the payments are made.

It is hoped that the changes will drastically simplify the 1940s PAYE model, by removing P45s and other such complicated forms.

Instead of submitting PAYE information annually after the end of the tax year, all employers will have to submit payroll data online every time that payroll is run. The details of employees pay will be passed to the Department for Work & Pensions to allow ‘real time’ monthly adjustments to be made to the amount of Universal Credits (which will replace Tax Credits from October 2013).

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UK taxpayers’ PAYE records

Posted on: August 4th, 2011 by LeightonReed No Comments
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

Last month HMRC started an automated reconciliation of UK taxpayers’ PAYE records.

Tax overpayments 2010-11

Initially HMRC will be looking for taxpayers who have overpaid tax. By the end of September 2011 HMRC should have submitted forms P800s and refunded any tax overpaid. It is estimated that up to 3.5m taxpayers will be repaid an average of £340 each.

Tax underpayments 2010-11

In the following quarter, to the end of December 2011, HMRC will be sending out P800s to taxpayers who have underpaid tax for 2010-11. It is estimated that 1.2m people will owe an average of £550 each. In most cases the tax will be recovered by reducing code numbers for 2012-13.

It is worth noting that for 2010-11 the amount below which underpayments are written off is reduced from £300 to £50. Also the maximum liability that can be recovered by a reduction in a code number will increase from £2000 to £3000 for 2012-13.

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