People who have filed late tax returns have been let off paying a £100 fine for missing the deadline, HM Revenue and Customs has confirmed.
Lack of awareness of VAT rules
According to research 36% of the UK’s smallest businesses are unaware of the rules governing VAT thresholds.
A third of the UK’s smallest businesses are unaware of the rules governing VAT thresholds, recent research has revealed.
This lack of understanding could mean that approximately 780,000 businesses are at risk of being fined by HMRC.
Meanwhile, according to the research, 9%of small businesses intentionally limit their trading in order to avoid reaching the VAT threshold.
Under the current rules, where a taxable person (for example an individual, company or partnership) has VAT taxable turnover of more than the current registration threshold of £82,000 in a rolling 12 month period or where turnover is expected to exceed the registration threshold in the next 30 day period then they must register for VAT.
It is important to monitor turnover, as there is a penalty for late registration in addition to the tax payable.
Please contact us if you would like advice on VAT issues.
Shared Parental Leave and Pay are here – Are you ready?
Shared parental leave and pay is for working parents whose babies are due on or after 5 April 2015. It gives families greater choice and flexibility over how they care for their child in the first year. Payment and Recovery of ShPP for tax year beginning 6 April 2015
Parents will be able to share a 50-week pot of leave (as the mother is obliged to take the first two weeks of the entitlement) starting when the child is born or date of adoption.
Both parents can be off work at the same time or can take turns to take time off to look after the child.
The leave can also be taken in discontinuous blocks and each parent can submit three separate notices to book this; however, a request for discontinuous leave can be refused by an employer, whilst a request for continuous leave cannot, and the time-off must be agreed with the employer at least eight weeks before it begins.
Statutory shared parental pay is 90% of your average weekly earnings, or £139.58 a week, whichever is lower.
Women will still have access to 52 weeks of maternity leave and 39 weeks of pay if they want it, whilst two weeks of paid Paternity Leave will still be available but Additional Paternity Leave entitlement no longer exists.
To qualify for Statutory Shared Parental Pay one parent must be an employee and must pass the continuity of employment test (they must have worked for the same employer for at least 26 weeks at the end of the 15th week before the week in which the child arrives), whilst the other must meet the employment and earnings test (must have worked for at least 26 weeks in the 66 weeks leading up to the due date and have earned above the maternity allowance threshold of £30 week in 13 of those weeks).
HM Revenue and Customs has introduced penalties for employers who report their payroll information late from:
- 6 October 2014 for employers with 50 or more employees
- 6 March 2015 for employers with fewer than 50 employees
When penalties are charged
You can get a penalty if:
- your Full Payment Submission (FPS) was late
- you didn’t send the expected number of FPSs
- you didn’t send an Employer Payment Summary (EPS) when you didn’t pay any employees in a tax month
HMRC won’t charge a penalty if:
- your FPS is late but all reported payments on the FPS are within 3 days of your employees’ payday (this applies from 6 March 2015 to 5 April 2016)
- you’re a new employer and you sent your first FPS within 30 days of paying an employee
- it’s your first failure in the tax year to send a report on time (this doesn’t apply to employers who register with HMRC as an annual scheme or have fewer than 50 employees for the tax year 2014 to 2015)
Existing employers with fewer than 10 employees, who take advantage of the temporary reporting relaxation, must remember to use late reporting code ‘E’.
How much will you pay
How much you’re charged depends on how many employees you have.
Number of employees Monthly penalty
1 to 9 £100
10 to 49 £200
50 to 249 £300
250 or more £400
If you’re over 3 months late you can be charged an additional penalty of 5% of the tax and National Insurance that you should have reported.