www.chambersand.co.uk

PAYE Changes -Payments and Penalties

Thu, 19 Aug 2010 15:47:13 +0100

HMRC have introduced a new penalty system for late payments and under payments which applies to all businesses. Penalties apply from 6 April 2010, but will not be charged until April 2011. You will not automatically be sent a warning letter before penalties are applied.

Penalties will depend on how late, and also, how many payments are late. Additional penalties of 5% will be applied for payments six months late, and a further 5% for payments twelve months late.

The only way to avoid PAYE penalties is to pay the full liability each month on time. As with the payment of other taxes, HMRC is recommending that businesses pay their PAYE electronically.

To pay electronically on time: Cleared funds must be with HMRC on a working day prior to the 22nd each month. So if the 22nd falls on a Sunday, cleared funds must be in HMRC's bank account by Friday 20th.

The bank relevant account details for HMRC are as follows:

Accounts Office
Cumbernauld: Sort code 08 32 10, Account number: 12001039, Account name: HMRC Cumbernauld

Shipley: Sort code: 08 32 10, Account number:12001020, Account name: HMRC Shipley

Please use the link below if you require further information:

http://www.hmrc.gov.uk/payinghmrc/paye.htm#1

Important VAT News

Tue, 23 Mar 2010 10:25:27 +0000

As we hope you are now aware, mandatory online filing of VAT for businesses with turnover of £100,000 or more applies from 1 April 2010. This means that any VAT period commencing on or after this date will fall within the online process.

Further, from 1 April the effective date of payment by cheque is changing. This will mean that if you continue to pay your VAT by cheque, HMRC will treat payment as being made when cleared funds are received by them. Your business may be liable to a surcharge for late payment if a cheque payment does not clear by the due date on your VAT return.

For example, if your next VAT quarter ends on 30 April 2010, you will not fall within online filing, so could still submit a paper return. However, as the return is due by the 31 May, the new cheque payment rules will now apply. The cheque would need to have cleared by 31 May to avoid surcharges. HMRC advise to allow 3 working days for post, and, a further 3 working days for the cheque to clear. As a result of these payment changes, we would strongly advise you to make electronic payment. Additionally, if you pay electronically, you get an additional 7 days after the standard due date for payment to reach HMRC.

If you require information on how to pay electronically, please use this link

New Telephone System

Tue, 16 Mar 2010 11:04:02 +0000

On Friday 12th March 2010 we installed a new telephone system. Please would you ensure that your own systems and mobiles use 01273 685978 as the default Chambers & Co number. The system is expected to be upgraded to digital lines within a fortnight and it is hoped that it will be an improvement.

VAT-rate and other changes

Tue, 22 Dec 2009 15:07:08 +0000

There are a number of changes to VAT from1 January 2010 and 1 April 2010.

1st January Changes

1) The VAT rate will increase back to 17.5% from 1 January 2010. If you are on the flat rate scheme, your rate will also change. Please note this will not necessarily just revert to the rate that applied until 1st December 2008.

If we prepare your VAT returns, we will adjust this accordingly. If you prepare your VAT returns and need some advice, please contact us. Or, please use the link below for further information.

http://www.hmrc.gov.uk/pbr2009/pbrn33.pdf

2) From this date the majority of sales of services to EC member state countries are reportable on an ESL (EC Sales List), VAT form 101.
If you believe that you or your business will be affected by this change, please contact Peter or Sara for more information. Or further information can be found using the link below.

http://www.hmrc.gov.uk/vat/place-supply-services.pdf

1st April Changes
The deadline for online VAT returns is approaching. Please follow the link under Mandatory Online VAT Returns.

If you have any questions on any of these matters or anything else, please contact us.

Mandatory Online VAT Returns

Sun, 20 Sep 2009 11:43:30 +0100

Online VAT filing will be mandatory for many businesses from 1 April 2010.

If your business falls into one of the following categories:

• All newly registering businesses regardless of turnover
• All VAT registered businesses with an annual turnover (exclusive of VAT) of £100,000 or more.

If we currently prepare your VAT returns, we will organise online registration for you and will discuss this with you when we prepare your next return.

If we do not currently prepare your VAT returns, and you would like some assistance with this, please contact Sara Nevett (sarar@chambersand.co.uk). We will however be talking to all clients about this matter before the implementation date.

Companies House filing deadline shortened by one month

Sun, 20 Sep 2009 11:11:28 +0100

Private companies now have nine months to file their accounts. The shortened deadline applies to accounting periods commencing on or after 6 April 2008. Accounts which are filed late will be liable to fines under the new late filing penalty regime. Fines rise steeply from £150 to £1500, depending on the delay in filing. Companies House also have the power to double fines, if accounts were also filed late in the previous year.

This change is part of the main and final implementation of the Companies Act 2006. Companies House has provided a colourful leaflet summarising key changes which come into effect from 1 October 2009.

How to pay the Revenue when you haven't got the cash

Wed, 27 May 2009 11:54:35 +0100

Cash is the lifeblood of any business and if it's not flowing there's trouble. VAT, corporation tax and Self-assessment are lumpy liabilities that can cause stress to anyone. Here's a list of practical tax administration ideas that can be used to ease cashflow problems:

1) Change your "VAT stagger" anyone with a VAT periods: Jan-Mar, April-June, July-Sept and Oct-Dec finds themselves facing VAT and Self-liabilities in January and July.

2) Pay VAT electronically -The VAT man allows you an additional 7 calendar days, if you pay electronically.

3) Phone the Revenue Business Support Service (0845 302 1435). If you can't pay all your tax on time, phone this service before the liability becomes due. Many clients have found them genuinely helpful in allowing delayed payment of liabilities. Interest is charged on late payments, but provided contact is made before the liability is due, a "time to pay" arrangement with the VAT man will not lead to a default surcharge. Similarly, Income Tax surcharges will not be applied provided a "time to pay" agreement is entered into before the relevant surcharge date AND the terms of the agreement are adhered to. Revenue staff have been instructed to be flexible in their approach, please make sure you do not set yourself an unrealistic payment plan, they will probably agree a much easier one.

How to pay the Revenue when you've got the cash

Wed, 27 May 2009 11:07:08 +0100

In the olden days, the Revenue sent out payslips together with a handy prepaid envelope just before the liability became due. The payslips are still being issued, but now you have to stick a stamp on the envelope. The Revenue really don't want you to pay by post anymore, they'd like you to set up a direct debit to allow them to help themselves. Not many have taken that option, but most find paying electronically more convenient that writing cheques. This link sets out them alternative electronic methods of payment: Paying HMRC. Please note that the Revenue changed their bank account on 6th April 2009 and have now opened accounts with Citi and RBS, so if you already pay self-assessment, corporation tax or PAYE electronically, you may need to change existing BACS details.