Employer PAYE New Recurring Direct Debit Functionality – Potential Time Saving
Did you know you can now set up a Direct Debit through your HM Revenue and Customs (HMRC) online account to either:
• pay your monthly PAYE bill automatically (you’ll only need to set the Direct Debit up once)
• make a single payment
Please also see: https://www.gov.uk/pay-paye-tax/direct-debit for more details. This could save you time and penalties.
Further information on company EV car charging
Employee charges their company car at home: their employer reimburses the electricity costs
HMRC has recently changed their guidance regarding the charging of company provided Electric Vehicles at home. This applies to EVs used for both business and private mileage. The exemption under s.239(2) ITEPA 2003 means there is no separate charge to tax under the benefits code where an employer reimburses an employee for the cost of electricity to charge their company car at home. For the National Insurance Contributions position, see NIM06440. Employers will need to ensure that the reimbursement for the cost of the electricity is solely for the company car.
Please see https://www.gov.uk/expenses-and-benefits-electric-company-cars for more.
Real Living Wage increase
It was announced on the 24th October that the Real Living Wage will increase to £12 per hour (£13.15 per hour in London).
Companies have 6 months until the 1 May 2024 to implement the changes.
The Real Living wage is voluntary and is based directly on the cost of living. The current statutory minimum wage rates are:
The National Minimum Wage applies to people above school leaving age but under 23. The current rates are:
- Age 21-22 – £10.18
- Age 18-20 – £7.49
- Under 18 – £5.28
- Apprentice – £5.28 *
*The minimum wage for apprentices is based on people aged under 19, or people aged 19 or over but in the first year of their apprenticeship. If apprentices are 19 or over and have finished the first year of their apprenticeship, they are entitled for the minimum wage of their age group.
The National Living Wage applies to everyone aged 23 and over. The current rate is £10.42 per hour.
VAT Inspections – How do HMRC choose which businesses to visit and what is “Connect”?
Many inspections now are based on intelligence obtained from many sources.
The main resource is a data system which HMRC call “Connect”. This system feeds from many bases and forms the basis of many decisions made by HMRC. Instead of HMRC relying on information provided by businesses on VAT returns, Connect draws on statistics from myriad government and corporate sources to create a profile of each VAT registered business. If this data varies from that submitted on returns it is more likely that that business will be inspected.
The Connect system can also examine public social media account information, such as; Twitter, Facebook and Instagram using sophisticated mechanisms along with being able to access individual’s digital information such as web browsing and emails.
It is understood that less than 10% of all inspections are now random.
Big Brother really is watching you…. And if you are on the receiving end of an inspection, there is a circa 90% chance that there is a reason for it!
Information supplied by Jane Deeks of Deeks VAT Consultancy
HMRC Scraps paper VAT registration
From 13 November HMRC will abolish the paper VAT registration form. How will new applications be made from that date?
In another bid to encourage taxpayers to go digital, HMRC will scrap Form VAT1, which is currently used to apply for VAT registration by post. From 13 November, new VAT registrations will need to be completed using the online VAT registration service. It is hoped that this will speed up the processing of VAT registration, although currently only 80% of online applications are processed within 40 working days
This month’s Clear Vision positive thought:
The pain you feel today, will be the strength you feel tomorrow.
We are extremely thrilled to be sharing the news that we are 2023 AVN Award Winners. We have recently won the Inspiring Accountants Award for Gearing (Customer Committed team). This award recognises the work we have done with our team during 2023 and how this follows through to the service we give our clients.
We would like to thank each and every one of our team for their dedication, hard work and continued support.
IMPORTANT DEADLINE – 2022/24 SELF ASSESSMENT TAX RETURNS
31st JANUARY 2024
If you have not provided us with all the information we require to complete your 2022/23 Self Assessment Tax Return by 30 November 2023, we will not be able to guarantee that the deadline of 31st January 2024 will be met.