We provide our clients with regular updates on changes in taxation regulation, news from the world of accounting and, of course, information about the latest developments at Wilsons Accountants.
From 6th. April 2013 it has become a legal obligation for nearly all employers to operate PAYE in real time. This means every time an employer pays an employee the details of payment are submitted to HMRC online at time of payment.
Before starting to report PAYE in real time it is imperative to make sure that employee data is correct & complete. Certain details are essential such as:-
Date of birth
National Insurance number
You will need to be registered for PAYE online with HMRC.
There is new information which now must be submitted under RTI for example:-
Hours worked - approximate number of hours employee normally works in a week.
Payments to all staff no matter how much even those below Lower Earnings limit, irregular staff or casual employees.
These have now started and are aimed at smaller businesses - the ones unlikely to employ a professional bookkeeper. HMRC will initially be targeting over 50,000 small businesses in the so called "high risk" sectors including the Building Trade. According to HMRC over 2 million small businesses do not meet satisfactory bookkeeping standards. HMRC will send letters to the clients of accountancy practices informing them that the department will telephone on a certain date and time. The questions asked are relatively straightforward & aimed at finding out how well the client understands how his business operates.
Depending on the answers given HMRC will decide if a visit will be necessary!
With the potential threat of fines of £3000 it is imperative to make sure your bookkeeping is up to a satisfactory standard.
WE CAN LOOK AFTER ALL YOUR BOOKKEEPING REQUIREMENTS FROM AS LITTLE AS £30 per month!
HMRC has been planning a Trades campaign for the home improvement sector. This will follow up the previous campaigns aimed at PLUMBERS & ELECTRICIANS. Those intending to make a disclosure should contact HMRC on 0845 601 5041
INSPECTION POWERS BY HMRC - DO YOU LET THEM IN?
While HMRC have no right of entry even if an officer has an approval notice from a tribunal, there are penalties for obstructing the officer in his duties!
It would appear that most business owners are both unaware of their rights & also ill prepared for such a visit. Agreeing to a visit without prior preparation (including briefing staff) is generally unwise!
YOU HAVE BEEN WARNED!
From 6th. April 2013 small unincorporated businesses (turnover less than £79,000) can choose to use the cash basis when calculating taxable income. Key benefit is that taxable profit more closely relates to the cash position.
Additionally, all unincorporated businesses, regardless of whether utilising the cash basis system, will have the option to use certain flat rate expenses when calculating taxable income.