Every week we take a look at what is trending in the accountancy and tax press and share items that we think will interest you. However, these are only outlines and where they relate to tax planning should not be acted upon without looking into them more completely as everyone’s circumstances are particular to them. You need to take specific advice appropriate to your own circumstances.
While every effort is made to deliver accurate, informative and balanced articles this content is general in nature and should not be used as the sole basis for making decisions.
Government Gateway Replacement
The gov.uk One Login service will eventually replace Government Gateway accounts as a single identity check and login system to access all central government services. HMRC is one of the first government departments to adopt the digital sign-in scheme.
The rollout for HMRC individual users is expected to be completed within a year. Businesses and other organisations will follow in a couple of years.
From May this year, taxpayers who do not have a Government Gateway account will be prompted to create a gov.uk One Login account.
Covid Loan Scheme – Accountant Banned
The firm received five times what it was entitled to under the Bounce Back Loan scheme.
The chartered accountant who ran a business has been banned as a director for 12 years.
The company fell into liquidation in December 2022. An investigation by the Insolvency Service into the director’s conduct found that in May 2020, the Borehamwood chartered accountant had applied for a £25,000 Bounce Back Loan on behalf of the firm.
He subsequently applied for a second Bounce Back Loan of £50,000 for the business– less than two weeks after he had received the first and a third one of £50,000 l in June 2020.
The company received five times what it was entitled to under the scheme.
The director now has a 12-year ban and has undertaken to pay tens of thousands of pounds in compensation.
HMRC Repayment Letters
Currently, HMRC sends anyone expecting a refund for overpayment of corporation tax or self-assessment a letter confirming that the payment has been issued.
These letters often arrive after the payment has been made causing some confusion. Stopping sending out these letters will save HMRC money on admin, postage and call centre follow-ups as taxpayers query what the letter means.
The move will affect taxpayers who receive refunds by BACS, and credit or debit cards. There is no change to the repayment process itself.
Changes to R&D tax relief
The existing R&D Expenditure Credit (RDEC) and the SME R&D schemes have been merged.
The first accounting periods to fall under the new scheme will be those ending on 31 March 2025.
The principal changes are:
- The merged scheme will operate at a headline rate of 20%
- Continued support for loss-making R&D intensive SMEs with the intensity threshold for eligibility being lowered from 40% to 30% i.e. R&D expenditure as a proportion of total business expenditure.
- Contracted R&D – the company making the decision to carry out the R&D will be the one eligible for the relief.
- Overseas R&D – restrictions on overseas R&D for accounting periods beginning on or after 1 April 2024.
53-week Payroll Year
The issue arises due to the incidence of a leap year, when employees can see themselves paid for an extra week of the year, bringing their total number of weeks to 53, but it only affects people paid on Thursday or Friday.
Employees who are paid on Thursday 4 or Friday 5 April may owe extra tax because of receiving an ‘extra’ paycheque in the 2023/24 tax year, warns the Low Incomes Tax Group (LITRG).
Week 53 will not affect anyone paid monthly or those paid on Saturday, Sunday, Monday, Tuesday or Wednesday.
Each week, normally you get a 1/52 proportion of your tax-free personal allowance (£242 a week). By the end of the tax year, this means that you would pay the right amount of tax.
There would be no allowances left for week 53. In these circumstances, HMRC allows employers to give them more of the tax-free personal allowance than they are entitled to so that their take home pay is not affected. However, this means that they will underpay tax. HMRC can adjust for this in an employee’s tax code.
The extra personal tax allowance is purely for payroll purposes and will be ‘removed when HMRC reviews someone’s overall tax position at the end of the year leading to an adjustment to their subsequent year’s tax code.
Flexible Working Requests – Changes
From 6 April 2024, flexible working will become a day one right.
The changes:
- employers will be required to consult with the employee when refusing a request;
- employees will be able to make two requests in any 12-month period;
- the response time to requests, including appeals, has been reduced to two months; and
- employees will not have to set out the effect their requested arrangement will have on the business.
Other changes to the law on flexible working are expected.
Useful Dates to Remember
1 April
Corporation tax due for accounting periods ended 30 June 2023.
VAT threshold increases from £85,000 to £90,000
VAT deregistration threshold up from £83,000 to £88,000
VAT acquisitions threshold for registration and deregistration increased to £90,000
5 April
Last date to register for payroll benefits in kind for 2024–25
6 April
Dividend allowance reduced from £1,000 to £500 for 2024-25 tax year
Class 1 Employer National Insurance contributions (NICs) cut by 2% to 8%
Class 2 NICs for self-employed abolished
Class 4 NICs rate reduced to 6% on profits between £12,570 and £50,270. The rate remains at 2% on profits over £50,270
Capital gains tax (CGT) rates for higher rate taxpayers for gains on residential property not eligible for private residence relief, cut to 24% from the standard 28% rate
CGT annual exempt amount (AEA) cut from £6,000 to £3,000 (trustees £1,500)
7 April
VAT returns and payments due for the month or quarter ended 28 February 2024
19 April
CIS returns due for the month ended 5 April 2024
EPS due for the month ended 5 April 2024
PAYE, NICs, student loan deductions and CIS deductions due for the month ended 5 April 2024 or quarter ended 5 April 2024 paid non-electronically
22 April
PAYE, NICs, student loan deductions and CIS deductions due for the month ended 5 April 2024 or for the quarter ended 5 April 2024 paid electronically
30 April
Corporation tax return due for accounting periods ended 30 April 2023
Deadline for amending corporation tax returns for accounting periods ended 30 April 2022
May
1 May
Corporation tax due for accounting periods ended 31 July 2023
New VAT fuel scale charge rate for VAT periods beginning on or after this date
3 May
P46 (car) forms due for the quarter ended 5 April (where benefits not payrolled)
5 May
VAT payments due for the month or quarter ended 31 March
17 May
PAYE, NICs, student loan deductions and CIS deductions due for the month ended 5 May were paid non-electronically
19 May
CIS returns due for the month ended 5 May
EPS due for month ended 5 May
22 May
PAYE, NICs, student loan deductions and CIS deductions due for the month ended 5 May paid electronically
31 May
Deadline for employers to give employees P60s for 2023–24
Deadline for employers to give relevant employees details of payrolled benefits for 2023–24
Corporation tax return due for accounting periods ended 31 May 2023
Deadline for amending corporation tax returns for accounting periods ended 31 May 2022
VAT returns and balancing payments due for those using VAT annual accounting with a VAT accounting period ending on 31 March
June
1 June
Corporation tax due for accounting periods ended 31 August 2023
7 June
VAT returns and payments due for the month or quarter ended 30 April 2024
19 June
CIS returns due for the month ended 5 June 2024
EPS due for the month ended 5 June 2024
PAYE, NICs, student loan deductions and CIS deductions due for the month ended 5 June 2024 were paid non-electronically
21 June
PAYE, NICs, student loan deductions and CIS deductions due for the month ended 5 June 2024 were paid electronically
30 June
Corporation tax return due for accounting periods ended 30 June 2023
Deadline for amending corporation tax returns for accounting periods ended 30 June 2022
VAT partial exemption annual adjustments for the year ended 31 March 2024 are to be included in this quarter’s returns (if not included in the return for the quarter ended 31 March 2024)
VAT returns and balancing payments due for those using VAT annual accounting with a VAT accounting period ending on 30 April 2024
July
1 July
Corporation tax due for accounting periods ended 30 September 2023.
6 July
P11Ds and P11D(b) for 2023–24 are due to be submitted to HMRC and copies of P11Ds are to be provided to employees
Latest date for making good non-payrolled benefits provided in 2023–24
Employment-related securities (ERS) return deadline for 2023–24
Deadline for reporting termination payments and benefits where a cash and benefits package exceeded £30,000 in 2023–24
7 July
VAT returns and payments due for the month or quarter ended 31 May 2024
19 July
CIS returns due for the month ended 5 July 2024
EPS due for the month ended 5 July 2024
PAYE, NICs, student loan deductions and CIS deductions due for the month ended 5 July 2024 were paid non-electronically
Class 1A NIC due for 2023–24 paid non-electronically
22 July
PAYE, NICs, student loan deductions and CIS deductions due for the quarter ended 5 July 2024 paid electronically
Class 1A NIC due for 2023–24 paid electronically
31 July
Second self-assessment payments on account due for 2023–24
Corporation tax return due for accounting periods ended 31 July 2023
Deadline for amending corporation tax returns for accounting periods ended 31 July 2022
VAT partial exemption annual adjustments for the year ended 30 April 2023 are to be included in this quarter’s returns (if not included in the return for the quarter ended 30 April 2024)
VAT returns and balancing payments due for those using VAT annual accounting with a VAT accounting period ending on 31 May 2024
Questions?
If you have any questions about any of these, you know where to find us. If you prefer, just give me a ring on 07770 738770 or email me at alan.long@thelongpartnership.co.uk.
