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HM Revenue & Customs
Advisory Fuel Rates
HMRC routinely reviews the published Advisory Fuel Rates every three months. The current rates, effective from 01 June 2012, are added to the table below. Employers may choose to implement the new rates immediately, or use the old rate for up to one further month, and make, or require employees to make supplementary payments, if [...]
HMRC Tax Relief Cap Consultation
Budget 2012 announced that the Government was going to cap certain tax reliefs which were, currently, unlimited. For anyone seeking to claim more than £50,000 in tax reliefs, the cap will be 25% of income, or the £50,000, whichever is the greater. Of course, this announcement is best remembered for the bad publicity that the [...]
RTI and Penalties Consultation
The existing late filing and late payment penalties are set out in section 98A of the Taxes Management Act 1970, and Schedules 55 & 56 of Finance Act 2009. However, the advent of Real Time Information (RTI), currently being piloted, will necessitate changes to the current penalty regime. In this regard, last week, HMRC published [...]
What are the deadlines for P11D processing?
Simply, The Income Tax (Pay As You Earn) Regulations 2003 (Regulation 85) require that the employer is required to submit all relevant and completed P11D and P9D returns to HMRC by 07 July each year. In practice, this means that they must be received at HMRC on or before 06 July. Regulation 94 requires the [...]
I am starting to prepare my P11Ds. What do you recommend as essential reading / literature?
There are a few manuals and guides that are invaluable for all payrollers: Booklet CWG5 – information about Class 1A NICs on benefits in kind Booklet CA33 – specifically for Class 1A NICs on car and fuel benefit Booklet 480 – the ‘bible’ of the P11D containing HMRC’s guidance on the applicable legislation Booklet 490 [...]
We payroll our benefits so that the tax liability is accounted for each pay period. Do we still have to file the P9Ds / P11Ds?
Despite HMRC consideration of formal procedures for replacing P11D reporting with payrolling of benefits and expenses, existing legislation requires employers to submit P11Ds or equivalent lists, even if they have local agreements to process the tax liabilities for benefits and expenses through the payroll. HMRC can impose penalties for failure to file P11Ds. The following [...]
What is a S336 Claim? Should this be completed by the employee or the employer?
This acronym refers to Section 336 of the Income Tax (Earnings and Pensions) Act 2003. Broadly, if an employer makes a declaration on the P11D, which the employee and HMRC agree can be counted as tax deductible, this is referred to as a S336 Claim. This would, generally, be an expense that has been declared [...]
P35 Interim Penalty Letters / P35 Reminder (4)
True to their announcement in March 2012, HMRC are starting to send out their P35 Interim Penalty Letters to employers who, according to their computer systems, have not filed their P35 for 2011/12. This is advising employers that they have already incurred a penalty and provides information on what they should do to prevent this [...]
HMRC and Tax Transparency
There have been several moves within the last few months aimed at increasing taxpayers’ awareness of the tax system, how much we pay etc. November 2011 HMRC launched a consultation ‘Modernising the administration of the personal tax system: tax transparency for individuals’. The purpose of this was to understand taxpayers’ understanding of how much tax [...]
Tax and NICs Integration
In the Budget 2012 Report, HM Treasury announced that its ‘simplification’ process would continue, as they looked at integrating tax and National Insurance. This would build on the announcement at Budget 2011, plus work that had already been undertaken by its stakeholders. The Report promised that a consultation would be issued in April 2012, however, [...]
HMRC’s Bereavement Service
Consultations with tax agents and the voluntary sector identified that the way HMRC handled the affairs of a deceased taxpayer left room for improvement. As a result, HMRC have launched a dedicated bereavement team to handle the PAYE and Self-Assessment issues that arise when a taxpayers dies. This can be accessed in the following ways: [...]
HMRC’s Business Tax Dashboard
The Budget 2012 report spoke about the new online ‘Business Tax Dashboard’. This has recently been released by HMRC, primarily aimed at Small and Medium Sized Enterprises (SMEs). This service brings together data from other HMRC online services, creating an overall picture for an organisation. Once an employer logs onto the Government Gateway, the SME [...]
Are you a Scottish Taxpayer?
The Scotland Act 2012 will allow the transfer of some powers from Westminster to Holyrood. Amongst other things, the Act gives the Scottish Parliament the power to vary the rates of income tax. Although Holyrood only have the power to set one Scottish Rate each year, for payrollers, we will be impacted by the potential [...]
Real Time Information (RTI) and Personal Details
In a written question last week, Ian Liddell-Grainger, MP for Bridgewater and West Somerset, asked The Chancellor of the Exchequer whether HMRC would be extending its secure portal to allow taxpayers to view and update their personal details. This question was posed in view of the increased importance of correct data with the link between RTI [...]
HMRC Announcement
2011 saw an unfortunate year for HMRC in the First Tier Tax Tribunal, with a number of judges overturning Penalty Notices that had been served for the late filing of the P35. Judgments referred to HMRC acting in a ‘high handed’ and ‘disreputable’ manner by sending out Penalty Notices in September for the late filing of [...]
