to the regular monthly news round up from Simple Accounting Ltd.
You may already know that Lorraine Cybaniak, our ever patient Payroll Officer, has been ill over the past two months. We are pleased to be able to tell you that she has had an operation which has, thankfully, been successful.
Lorraine plans to come back to work here by the end of the month. In the meantime we all wish her the best and a speedy recovery. Get well, Lorraine!
|AccountEdge: latest versions
|The big news is that upgrade of AccountEdge for macOS Catalina and Big Sur that was promised last year is now available. Acclivity/Mamut were not able to upgrade the 30-year-old codebase to provide a native Mac version of AccountEdge for Catalina. However, the alternative single user version is available – no Parallels required. If you want to remain on AccountEdge, want to upgrade to Catalina and are a member of our Business Companion service…. then you can get the single-user version free from us. Two of our clients have already taken the plunge. No multi-user Mac version is available, although the PC multiuserversion is available
The latest version of Accountedge (AE) includes the following improvements
Faster items register screens
PC software now 64 bit – works better with MS Office for the PC.
To Do list for stock alerts now shows sortable stock / item numbers and names.
To Do list Accounts payable can now be used to create automatic payments.
Copy sales and purchases (same customer/supplier or different).
Setting default forms and email templates for each customer.
A list of recently used datafiles
New customer and supplier payment reports
We recommend that you have a look through the video and ask us if there are some features that you would like us to show to you. More details from https://www.youtube.com/watch?v=GevBdVBhCmo
Other video guidance is available on our website.
|Get your Personal Tax Return for 2020-21 in early
|Would you like your personal tax return for 2020-21 prepared & submitted early? This may be useful if you need a mortgage or other financial reference. Also, if your income has gone down compared to previous years this may allow you to reduce the July 2021 Payment On Account that HMRC are expecting.
We will already know about your main employment and any dividends. So to make a start we just need you to with details of other sources of income such as pensions, rental income and savings interest received (with statements).
Once your Personal Tax Return is submitted, any balancing payment will be due by 31 January 2022. Please don’t pay your tax too early (before December) as HMRC are slow to update accounts and may return it to you as a tax refund!
Not already a client? Have a look at our comprehensive Business Companion Service and !
The extension of the off-payroll working rules to medium-sized and large organisations finally took effect on 6 April. The responsibility for making an employment status determination for each engagement where the worker’s services are provided through an intermediary now rests with the client receiving the services, i.e. the engager/hirer for affected entities.
The portal for making a claim for the fourth coronavirus SEISS grant opened toward the end of April. Eligible businesses should have been contacted by HMRC to inform them of their personal claim date – if a business is not contacted by 30 April, they should contact HMRC using the SEISS helpline – 0800 024 1222.
The personal claim date is the earliest date the business can make a claim. These have been staggered to help reduce a bottleneck on the system. The portal will remain open until 1 June.
|Hundreds of thousands of tax payers are being forced to pay personal tax arrears by the HMRC manipulating their payroll tax code. HMRC provide no notice when they do this. You and your staff could be receiving an unusual tax bill, with no way of spotting it except by looking at your tax code.
Look at your payslip. There is a tax code given on the top right of your payslip.
Examples of tax codes or suffixes are as follows:
- 1257L – standard tax code = £12,570 of your annual wage will not be subject to tax (but may still be subject to NI if in excess of £7k pa))
- Lower figure eg: 257L – the HMRC are taking extra tax from this payroll, perhaps because they consider that a tax debt is arising. In this case they are aiming to collect £2,000 extra tax. The £2000 is raised on £10,000 (ie £12570 minus £2570) of your wages times 20%.
- BR – basic rate tax imposed on your entire wage, with no tax free allowance. This is usually used for the second of two salaries you get if you have two employments.
- D0 – from all income at the higher rate for a second job or pension
- D1 – from all income at the additional rate for a second job or pension
- K – this is the serious one. In addition to not receiving your personal allowance you are also going to be further penalised with extra tax payments from your
- W1M1 or X = this is usually related to a mid-year change of status and removes the right to past months of personal allowance that you may not have used up yet.
The effect of this manipulation can include:
Overpayment of tax,
Undermining of payment schedules,
Duplication of Self Assessment tax payments, and
Confusion about genuine debts due under ‘Time To Pay’
If you suspect your code is being manipulated then your first call is to HMRC income tax helpline on 0300 200 3300, unless you are one of our clients. If you are a Business Companion client please note we cannot represent employees of your firm directly. We can only enquire about tax codes if we have a signed 64-8 from you.
NI = National Insurance
A full list of the tax codes is available at: https://www.gov.uk/employee-tax-codes/letters
|May questions and answers
| Q. I am newly VAT-registered (voluntarily). I believe that I will usually need to pay VAT to HMRC each quarter, rather than receiving a refund. However, I have some concerns about running up arrears in case I experience cash flow problems. Can I ask to complete monthly returns and pay monthly instead? Answer
Q. I am looking to raise some funds by selling some personal possessions, some of which have appreciated in value quite considerably. I’ve heard there is a special exemption that might mean I don’t need to pay CGT on any gains. Is that correct? Answer
Q. I have recently granted a lease to a tenant in respect of a building out of my freehold interest. They have paid a large premium for this and will not be required to pay rent. However, an associate of mine has said that this might be charged as income. I thought it was a capital receipt? Answer
| 14 – Claim deadline for employers for furlough days in April.
19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/5/2021
31 – Deadline to issue P60s, either electronically or by paper, to employees
| 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.
| Simple Accounting Limited offers a cost effective Business Companion service to business owners who use MYOB, Acclivity, Mamut, Freeagent, Xero, Quickbooks or Clearbooks.
‘All clients using these software packages can benefit from our support. Visit our website http://www.simpleaccounting.co.uk for a look at the resource on offer.’
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