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May 2015

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To May’s Tax Tips & MYOB News.

Need to improve your bookkeeping or have a new member of staff to train? Interested in the MYOB upgrade – Acclivity AccountEdge? Well have a look at the Training Courses 
on offer this month – and book yourself a place! 

If you need further assistance just let us know or you can send us a question for our Question and Answer Section.

Please contact us for advice on your own specific circumstances. We’re here to help!
May 2015
· Pensions Auto-enrolment
· MYOB and AccountEdge Training – May ’15
· Company Cars
· Forms P11D and P9D
· May Question and Answer Section
· May Key Tax Dates
Pensions Auto-enrolment
You will recall the article we wrote in the January 2015 Newsletter.

To remind you ‘Auto-enrolment’ is the term for the law that requires all employers to register their employees into a qualifying workplace pension scheme. This requirement is being rolled-out to the largest employers first and will apply to the smallest employers from June 2015 onwards.

A large number of small companies will be completely exempt from auto-enrolment, if they don’t technically have any “workers” at their staging date. A company director is not a “worker” if he or she does not have a contract of employment with the company.

Also for those companies that do have to register there are let-outs; auto-enrolment only applies to employees working in the UK who are aged 22 to state pension age, and who earn more than £10,000. After being enrolled in to a pension scheme, each employee has an opt-out period of one month whereby they can receive a full refund of any contributions already made. Another opt-out opportunity must be offered every three years.

Once the workplace pension scheme is running both the employee and the employer must make contributions, which will start at 1% of qualifying earnings rising to a total of 8%. Qualifying earnings consist of pensionable pay in the range £5,772 to £41,865 (for 2014/15). The employee’s employment contract will define what “pensionable pay” is.

We will help our clients work out what auto-enrolment may cost you, and which employees will be covered.

You may have received a letter from The Pension Regulator (TPR) telling you to “ACT NOW” to prepare for auto-enrolment.  The letter gives you just a few weeks to nominate a contact to receive communications about auto-enrolment, with the threat of fines or prosecution if you don’t take action. This is sadly typical of the abusive way the state treats tax payers. 

The “staging date” for your business was stated in the letter we sent to our Business Companion clients on 25th February . Call us if you want another copy.  This is the date by which you must have a pension scheme ready for your employees to join. We shall help you with a recommendation for the scheme and provide a service to control the scheme centrally. We may need to charge extra for this support from January 2016. In the meantime we would like to hold from replying to the ‘ACT NOW’ letter while we consider if we can take control of this responsibility for you.  So DO NOT Reply to their letter! 
MYOB & Acclivity Training – May ’15.
Company Cars
We would like to invite you to our MYOB and Acclivity AccountEdge Training Courses – London and West Yorkshire.
  • Our trainer is UK MYOB/ Acclivity AccountEdge expert, Mark Hill.
  • You can choose topics you would like covered in advance.
  • You will be in a small group of delegates, each using a laptop provided.
  • The courses will help you to improve your bookkeeping systems.
  • You will be able to learn about new features in the Acclivity upgrade version of MYOB.
  • You will be able to network with other MYOB Users.
  • Their will be plenty of hands-on experience and opportunities to ask questions. 
  • The full day course will include a presentation about preparing for a future business sale.
De Vere Venues Denham Grove
Wednesday 27th or Thursday 28th May 2015 (one full day). £90 (+ VAT)* including a three-course buffet lunch.
Tilehouse Lane, Denham,
Bucks, UB9 5DG.  Near intersection of M40 and M25. 30 mins train from London Marylebone (we will collect from station).

Hebden Bridge Town Hall
Thursday 21st May 2015 (half-day). 
£30 (+ VAT)* for half a day.
Saint George’s Street, Hebden Bridge, West Yorkshire, HX7 7BY.  Near Station.

*A free place is available to each of our Business Companion clients.

Please or ring us if you would like to join us on either day.

Read More

Does your company still own or lease the car you use for private journeys? You may need to rethink that arrangement in light of the tax charges due to apply in the years ahead.

From 6 April 2015 all company cars generate a tax charge for the driver and the employer, even electric cars will be taxed on 5% of their list price. The taxable benefit for other low emission vehicles (51-75g/kg) will leap up from 5% to 9% of the vehicle’s list price. The taxable benefit for all other cars will also increase by two percentage points. The taxable benefit for high emission cars (over 210g/km), will increase from 35% to 37% of the list price.

In 2016/17 all company car drivers will suffer another 2% hike in taxable benefit, except for those which are already taxed at the maximum of 37% of the car’s list price. From 2017/18 the tax shoots up again, as for each extra 5g of CO2 emissions the taxable benefit increases by two percentage points of the list price. “Classic” cars with no recorded CO2 emissions will also be hit with increased taxable benefit charges.

Say you were provided with a new Lexus NX 300 H Sport on 5 April 2014. Its list price is £40,000, and it has a CO2 emissions rating of 121g/kg. If you keep the car for four years you will be taxed 86% of its initial value:

Tax year: Taxable benefit:

2014/15    £6,800

2015/16    £7,600
2016/17    £8,400

2017/18  £11,600

total         £34,400

Forms P11D and P9D top
May Question and Answer Section top
The forms P11D and P9D need to be submitted to HMRC by 6 July 2015 where expenses or benefits were provided to your employees in 2014/15, which are not covered by a dispensation, or are not otherwise exempt from tax. If the forms are not submitted on time, HMRC will issue penalties.

But how does HMRC know whether a P11D or P9D is due to be filed? In pre-RTI years when you completed the end of year form P35 you had to say whether a P11D was due. Those P35 questions were carried over to the “final” RTI report for each tax year, which is normally a full payment submission (FPS) report or employer payment summary (EPS). However, from 6 March 2015 there has been no legal requirement to complete those end of year questions, but most payroll software continued to include them in the final submission for the year.

If you didn’t complete the “Is a P11D due?” question on the final FPS for 2014/15, HMRC may assume a P11D is needed anyway. To avoid any nastiness with automatic penalties you can tell the HMRC computer that no P11D/ P9D is needed and no Class 1A NIC is due by completing an online declaration.

The latest Employer Bulletin (no. 53) contains lots of tips for getting the P11Ds right first time, and it is well worth a read. You may find you don’t have to submit a P9D for every low paid worker. Where an employee is provided with a medical benefit such as health insurance, and that employee earns less than £8,500 per year, you don’t have to complete a P9D for the employee. We can help take the strain of your P11D task.

Have you received a letter from The Pension Regulator (TPR) telling you to “ACT NOW” to prepare for auto-enrolment? The letter gives you just a few weeks to nominate a contact to receive communications about auto-enrolment, with the threat of fines or prosecution if you don’t take action.

Q. I live in France and I am about to sell my former home in the UK, which has been let out since I emigrated in August 2001. Do I have to pay tax in the UK on the gain? Answer

Q. I am the sole director of my own company and will take a salary of £10,600 this tax year. How much dividend can I extract from the company this year without paying higher rate tax? Answer

Q. My Dad is nearly 90 years old and has an income of £26,000. My Mum who is 85, has an income of less than £10,000. Can my Mum transfer some of her unused personal allowance to my Dad in 2015/16? Answer
May Key Tax Dates top
19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/5/2015

21 – Training Course in Hebden Bridge

27/28 – Traiining Course at Denham Grove

31 – Deadline for copies of P60 to be issued to employees for 2014/15
Need Help? top
New Clients Welcome top
Please contact us if we can help you with these or any other tax or accounts matters.

In addition, if there’s anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list.
If you are not already a client and are interested in becoming one, we would love to discuss how we can help and provide you with a competitive quote for our services.

See details of our Business Companion Service.
About Us top
Simple Accounting Limited offers a cost effective Business Companion service to business owners who use MYOB, Acclivity, Mamut, Solar Accounts, Quickbooks or Clearbooks.

‘All clients using these software packages can benefit from our support. Visit our website for a look at the resource on offer.’

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