Where an employee regularly works from home under specific arrangements with the employer and thereby incurs additional costs, it is usually necessary for the employee to keep accurate records of these additional costs in order for these to be reimbursed by the employer on a tax and National Insurance free basis.
NI Contributions Go Missing
Each year up to two million people who have paid National Insurance contributions do not get these credited against their account for future state benefits. Over the years this has accumulated to around 118 million contributions, which cannot be correctly allocated to individual contributors.
PAYE/CIS Deductions – Late Payment Penalties
With effect from April 2010, penalties for late payment of PAYE/CIS deductions will be imposed, which can take effect from the first payment due for the tax year in May 2010.
National Minimum Wage Rates
From October 2010, National Minimum Wage rates will increase from
- £5.80 to £5.93 an hour for workers aged 21 and over
- £4.83 to £4.92 an hour for workers aged 18 to 20
- £3.57 to £3.64 an hour for workers aged 16 to 17.
Furnished Holiday Letting Reprieve
Getting the Finance Bill 2010 passed between when it was published on 1 April 2010 and the dissolution of Parliament on 12 April was always set to be a heavy load in spite of the fact that there were only 73 clauses and supporting schedules.
HMRC Offer Advice on Fraud Emails
HMRC are reminding taxpayers to be vigilant as there have been several reports of scam emails.
P11D Deadline Looming
The forms P11D, and where appropriate P9D, which report employees and directors benefits and expenses for the year ended 5 April 2010, are due for submission to HMRC by 6 July 2010. The process of gathering the necessary information can take some time, so it is important that this process is not left to the last minute.
VAT and Royal Mail Postage
Some types of postal services offered by the Royal Mail will be subject to VAT from 31 January 2011.
Online Submission of Employers Forms
The employer’s annual returns P35 and P14 (P60) are due for submission to HMRC by 19 May 2010. Broadly all employers must submit their forms online this year. Previously those employers with less than 50 employees could file paper forms.
Budget date set for 22 June
The Chancellor, George Osborne, will present his budget speech on Tuesday, 22 June, the government has announced.