POWER IN NUMBERS - ISSUE #23
Making Tax Digital - update. Rothmans Business Leaders Lecture to give the South's businesses the competitive edge. HMRC calculation errors. Amendment to off-payroll working in the public sector rules. Tax-Free childcare and childcare options. Auto-Enrolment: Minimum contribution levels due to increase in April 2018 and April 2019. Minimum wage rises. Corporate criminal offence: Failure to prevent tax evasion. Person with significant control.
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The following news articles are in this issue:
Making Tax Digital - Update
The government has delayed rollout for Making Tax Digital until “at least” 2020, although quarterly reporting using the system will be mandatory from 2019. Deferral of the plans for digital tax reporting follows opposition from MPs, businesses, accountancy professionals and the Treasury Committee to the proposed rapid rollout timetable which required businesses with turnover of more than £10,000 to invest in new software and make quarterly uploads. The delay in implementation is welcome news for businesses as it gives them...
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HMRC calculation errors
It has been confirmed that, in six specific scenarios, HM Revenue & Customs have made errors within the 2016/17 tax calculations for individuals. The problem occurs in the main with the interaction of the Personal Allowance and the new nil rate bands for savings income and dividends. Whilst we are aware of theses issues, and our own software (or Staffour staff) can in most cases calculate the correct amounts of tax due, we are unable to submit those Returns online as they will be rejected by the HMRC Revenue & Customs portal. Unti...
Read article Amendment to off payroll working in the public sector rules
From 6 April 2017, new tax rules were introduced which potentially affect individuals who provide their personal services via their own companies (PSCs) to an organisation which has been classified as a 'public authority'. Amendments have now been made to the definition of a public authority. Where these rules apply: · the The public authority (or an agency paying the PSC) calculates a 'deemed payment' based on the fees the PSC has charged for the services of the individual ..
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Person with significant control
So what changed on 26th June? Companies House have has introduced new Persons of Significant Control forms. Prior to 26th June you would notify Companies House of any changes to PSC details via the Confirmation Statement. From the 26th June you must now notify Companies House via the appropriate PSC form and the Confirmation Statement will no longer be used for this purpose. The Confirmations Statement should now only be filed to notify Companies House that all the information on the public record is up-to-date, very much like...
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Minimum wage rises
Employers need to ensure they are paying their employees at least the appropriate National Minimum Wage (NMW) or National Living Wage (NLW) rate. The rates increased from 1 April 2017. From 1 October 2016 From 1 April 2017 NLW rate for workers aged 25 and over £7.20* £7.50 the main rate for workers aged 21-24 £6.95 £7.05 the 18-20 rate...
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Tax-free childcare and childcare options
Tax-Free Childcare, the new government scheme to help working parents with the cost of childcare, launched at the end of April and is being rolled out to parents, starting with those parents with the youngest children first. For every £8 a parent pays in, the government will pay in an extra £2. Parents can receive up to £2,000 per child, per year, towards their childcare costs making a total amount of £10,000. Higher limits of £4,000 and £20,000 apply for disabled children. To qualify for Tax-Free Child...
Read article Corporate criminal offence: Failure to prevent tax evasion
There is a new offence of corporate failure to prevent criminal facilitation of tax evasion coming into force from 30 September 2017. It applies to all companies, partnerships and LLPs. Individuals can be prosecuted under existing laws. It means management can be held liable for the actions of employees or agents who assist third parties to commit fraud or tax evasion. Tax evasion includes the offences of cheating the public revenue (which is a very widely drawn definition); or being knowingly concerned in, or taking steps with a view to, th...
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