Welcome to our Blog, please check back as we regularly update this area with important information
What is a P’60 &are you entitled to one?8th June 2023
In general, a P60 is a document provided by employers in the United Kingdom to their employees at the end of each tax year (April 6th to April 5th). It summarizes the employee's total earnings and the amount of tax deducted throughout the tax year. It is usually required for various purposes, such as filing a tax return, claiming tax refunds, or providing proof of income. Employers are required by law to issue P'60s to their employees by 31 May following the end of the tax year. This allows employees enough time to check their earnings and tax contributions for accuracy before submitting their tax return.
Hers is the law.
The Income Tax Regulations 2003
Information to employees about payments and tax deducted (Form P60)
67.—(1) Before 1st June following the end of the tax year, an employer must give a certificate (Form P60) to every employee—
(a)who was in the employer’s employment on the last day of the tax year, and
(b)from whose relevant payments the employer was required to deduct tax at any time during that tax year.
(2) The certificate must show—
(a)the tax year to which it relates,
(b)the employer’s PAYE reference,
(c)the employee’s name,
(d)the employee’s national insurance number, if known,
(e)any number used by the employer to identify the employee,
(f)the total amount of the relevant payments made by the employer to the employee during the tax year in respect of the employment in question,
(g)the total net tax deducted in relation to those payments, subject to regulation 64(7)(b) (trade disputes),
(h)the employee’s code,
(i)the employer’s name, and
(j)the employer’s address.
(3) In the case of an employee taken into employment after the beginning of the tax year, the certificate must also show—
(a)any amounts required by regulation 43(9), 52(11), 53(3) or 61(3) to be treated as relevant payments made by the employer to the employee during the tax year,
(b)any amounts treated as tax deducted by the employer at the end of the tax year by any of those regulations,
(c)the sum of the figures given under sub-paragraph (a) of this paragraph and paragraph (2)(f),
(d)the sum of the figures given under sub-paragraph (b) of this paragraph and paragraph (2)(g).
In conclusion, the P'60 is an essential document that provides valuable information about an employee's earnings, tax contributions and benefits received during a tax year. It is important for employees to check their P'60 carefully and keep it safe as it serves as proof of their income and tax contributions. Employers have a responsibility to issue accurate P'60s to their employees and rectify any errors promptly. Understanding the significance of the P'60 can help employees manage their finances better and plan for their future. Employees should also keep their P'60s safe and secure as they may need them for up to seven years after they are issued. If there are any errors, they should inform their employer immediately to avoid any issues with HMRC.
What is Class 2 NIC19th May 2023
HMRC Class 2 NIC refers to the National Insurance contributions (NICs) that self-employed individuals in the United Kingdom are required to pay to HM Revenue and Customs (HMRC). Class 2 NICs are a type of flat-rate contribution that qualifies an individual for certain state benefits, such as the State Pension and Maternity Allowance.
For the fiscal Tax Year 2021-22 tax year, the weekly Class 2 NIC rate was £3.05, which was payable if the individual's annual profits were £6,515 or more. If the individual's profits were below this threshold, they can choose to make voluntary Class 2 NIC contributions to ensure they maintain their NIC record and eligibility for state benefits.
As of the 2022-23 tax year, if your taxable profits are less than £6,725, or you made a loss, you can choose to pay Class 2 NICs, voluntarily to protect your entitlement to State Pension and certain benefits.
If your taxable profits are from £6,725 to £11,908, you will not need to pay Class 2 NICs. Your contributions are treated as having been paid to protect your entitlement to State Pension and certain benefits.
Payment of Class 2 NICs is typically done through self-assessment tax returns, and the contributions must be paid by January 31 following the tax year in question. Failure to pay Class 2 NICs could result in penalties and a loss of entitlement to state benefits.
The Vat predicament15th July 2020
One of the latest predicaments challenging some business owners will be whether to pass on the Vat savings they are about to attain or whether to use this new money to pay existing debts.
Starting from today there will be a reduction in Vat for those in the hospitality industry. Some will pass the reduction on to their customers in the hope that this might drive up sales and to show some sort of loyalty to their devoted customers and maybe entice some new customers but surely this will mean that they have to now sell more to pay for those static bills that they have and are not receiving any Vat relief on. Rent and wages instantly come to mind.
Some business managers will think to use the money to pay whatever debts COVID 19 has caused them to accumulate during lock down.
So, what would be the call of social consciousness. In an ideal world it would be to share the benefits reaped with all in your community, but by you reducing the price of certain items does not necessarily equate to me and other consumers purchasing more of that item.
I think that each business should look at what will affect them economically and revisit the business plan. The business plan that looks so much different than when first drawn up. Create spreadsheets to see the what extra sales you will now have to achieve to regain the drop your profit margins will take.
The social consciousness call is do what you need to do to be in business next year.
Your future is worth planning for24th February 2020
We are aware that some of our precious clients would like to have the benefit of some advice with regards to them planning their retirement, estate or general financial planning.
• Business Protection
• Income Protection
• Shareholder Protection
• Relevant life Policy
• Death in service
• Key Man Insurance
If these are of interest to you then let me know and I will introduce you to an expert in this field that can best assist you.
If you have never heard of these and wonder how they could benefit you, then you too need to call.
If you have a house and you want to pass it on to a member of your family and need to minimise Inheritance Tax (IHT) then this is something you need to start planning now.
We look forward to hearing from you.
0203 1500 5600
EORI - Ready for Brexit6th September 2019
Over the past three years this country has been contemplating BREXIT. It appears that we are now about to leave, and you and your business should be ready.
If you are a VAT registered business that buys and sells in the EEC, European Economic Community then you should ensure that your business possess its EORI.
The full name for this is Economic Operators Registration and Identification. This number is required to trade internationally. All businesses and individuals based in the EU needs to have an EORI number. If your business operates in multiple EU countries, you’ll need to have this number for each country.
It’s used by HMRC and other authorities to monitor and track shipments coming into and out of the EEC.
You need an EORI number to move goods into or out of the EU (including the UK).
You do not need an EORI number if your business only trades between Northern Ireland and Ireland.
If you’re trading with a European company, you need to include your EORI number on your business invoice. You should also ensure that your suppliers EORI is on invoices you receive.
EORI may prove costly for you and your business by you not having this. If you do not an EORI you may have increased costs and delays. For example, if HMRC cannot clear your goods you may have to pay storage fees.
You may have to wait 48 hours to use your EORI number for customs declarations in the Customs Handling of Import and Export Freight (CHIEF) system.
Your 2019 Tax Rebate27th August 2019
Have you been told that because you are employed you should not receive a Tax Rebate?
To some extent this statement is true. Your tax coding should enable you to pay the correct tax during the year so that at the end of the fiscal year there should be no reason for you to be overtaxed.
Being overtaxed is the premise for receiving a Tax Rebate or is it?
In most cases this is the truth, but occasional individuals are not aware that they could claim certain expenses whilst being employed. Claiming these expenses at the end of the tax year will result in these individuals receiving a Tax Rebate.
So, the question on your lips must be what are those expenses?
Working from home
If you now have questions that need answering please call us to discuss your queries.
NCA granted freezing orders on eight bank accounts containing £100m20th August 2019
The following article was written by LEWIS CATCHPOLE for Accountancy Today
The National Crime Agency (NCA) has been granted freezing orders on eight bank accounts containing a total of more than £100m, which is suspected to have derived from bribery and corruption in an overseas nation.
The Account Freezing Orders (AFOs) were obtained at Westminster Magistrates Court on 12 August, and represent the largest amount of money frozen using AFOs since they were introduced under the Criminal Finances Act 2017.
The orders will allow the NCA to further investigate the funds. If found to be derived from – or intended for use in – unlawful conduct, the NCA will seek to recover the money.
Approximately £20m held by a linked individual was frozen following a hearing in December 2018.
Earlier this year, in unrelated cases, the NCA secured an account forfeiture order against more than £400,000 held in frozen bank accounts belonging to a Moldovan national. Another forfeiture order was granted on money held in an account belonging to the niece of Syrian ruler, Bashar al-Assad.
The NCA’s Ben Russell, deputy director of the National Economic Crime Centre (NECC), said: “The NECC leads UK law enforcement efforts to tackle illicit finance, bringing the capabilities of multiple agencies together against the threat.
“In the last year, the NCA has used new powers such as Unexplained Wealth Orders and Account Freezing Orders to target suspected illicit assets, and we are already seeing some far reaching impact of this activity.”
Time to abolish IR3517th July 2019
If you ever want to lose a popularity contest, then stick up for the Government and HMRC. Your friend s might start to you look at you in a different light.
So here I go.
Isn’t it about time the Government started to have an all Party debate about the use of IR35.
We should only have a three-tier system. Unemployed, Employed or Self-employed.
Having IR35 which is consider not one thing or another appears to be hurting the system.
Contractors complaining when they must file tax returns and complaining when they have to pay their taxes.
It is always patriotic to tell the next man or woman to pay their fair share whilst we are seeking measures and loopholes to avert paying our entitlements.
IR35 was set up to disguise the employment. Dose not the term alone already cast doubts in our minds about the credibility of this scheme and those that want to hide behind it.
If I am not an employee of a Company that is paying me, I must be a subcontractor, surely? Or is that too plain and simple. Why cannot I be a bit of both. Then have a tax scheme to clearly show that I am different.
MP’s are now being targeted on both side of the House to disrupt the April 2020 reforms that will affect IR35.
Let us abolish it all together and be like the rest of us.
Employed or Self-employed.
The Childcare Bill16th June 2015
Today is the second reading in the House of Lords for the Childcare Bill. The Lords and Noble persons will debate the provision about free childcare for young children of working parents.
When I have looked at this I see that if this law is passed there could be an entitlement of up to 30 hours of free child care for all qualifying parents. Is this another burden on those who do not have children or is it a moral duty of us all to look after our young.
What do you think?
Equal pay for women7th May 2015
It is reported in the UK that the male £1.00 in employment is equal to 81p in the female wage packet. In 2015 can this really be the case and if so how can this gap be closed or even shortened? Whose responsibility is it to narrow that gap?
As an employer working with an all-female group I look at each person’s ability and the value that they bring to the business. The attention to detail at work and their attention and ability to communicate with clients. This to me proves more than valuable and I cannot see that by employing a particular gender to do the same job would be more profitable for the business nor would it give me a greater return.
So what is it that some businesses see that I don't see?
My all female staff came about my chance and not by design. Every time we considered expanding a female would apply for the role and it was just a case of taking a chance with them. I am fortunate that this has so far proved successful and has worked positively in the company's favour. How could I think of employing a man just because he is the same gender as me?
I'm my case it would be nice to have a male in the office to talk about football and how great Messi and Renaldo are but what does that do for my bottom line? Nothing.
So again I probe for the right reason to employ just because of gender.
We all want equality and I believe employers should always look at the skills of a potential employee and not their colour or gender. This will go far in assisting equality.
A cynical view can be that 19p will be saved for very £ paid. Fortunately my conscious and morality is worth much more than that.