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How to Set Up an HMRC Payment Plan for Self-Assessment Income Tax

As the deadline for 2022/23 self-assessment tax returns and payments draws closer, you must take pre-emptive action if you cannot pay your obligations on time. HMRC normally issues a reminder letter initially if your tax return or payment is not received by 31st January.However, if you haven't made a payment, set up an instalment schedule or contacted the tax office, you will start to accumulate late filing penalties and interest charges and potentially attract further investigation. In the wors...

January 26, 2024

Guide to Making Self-Assessment Income Tax Payments on Account

If you’re self-employed or work as a sole trader, you might have just received your HMRC income tax statement, showing a final payment due on 31st January for the 2022/23 tax year and your first payment on account, due on the same date, for 2023/24.Payments on account are often seen as confusing, and many newly self-employed taxpayers are unaware they are expected to make payments on account for the current trading period – even if they haven’t yet calculated their tax liability!The SAS te...

November 30, 2023

Self-Assessment Taxpayers Are Reminded to Submit 2022/2023 Paperwork and Records to SAS Accounting in Good Time

As we approach the winter period, many clients report increasingly busy trading environments as so many sectors gear up for the festive season and make preparations for holiday closures and heavy demand during the next few weeks.While there are often many priorities over the coming months, we would like to remind any taxpayer who submits a self-employment tax return (for any tax liabilities) that the filing – and tax payment – deadline of 31st January is right around the corner!Sharing your ...

November 2, 2023

Basis Period Reforms Explained: All You Need to Know About Changes to Accounting Periods for Tax Declarations

From the 2023/24 tax year, HMRC has introduced changes to the reporting period requirements for partnerships and self-employed taxpayers. Your 'basis period' is the 12 months over which you prepare your accounts and submit details of your income and taxable profits to the tax authority.The idea behind the reform is to standardise the system, ensuring all self-employed taxpayers declare their earnings for a period similar to the official tax year – running from the 6th of April to the following...

October 23, 2023

Comparing the Pros and Cons of Asset Financing to Spread the Cost of Business Purchases

The question of asset financing often comes up when it’s time for a business to invest in new equipment, software or vehicles – larger outgoings that can put a strain on cash flow.However, it can be tricky for managers and owners to determine whether they would be better off paying more in interest charges to spread their payments or covering the cost outright and juggling their cash flow around it.Let’s look at all the pros and cons, various financing methods, and how to make informed dec...

October 4, 2023

Recapping the Rules on Auto-Enrolment and Workplace Pensions

Auto-enrolment was first introduced back in 2012 as part of a government initiative to make it easier for more people to save towards retirement and place obligations on employers to offer accessible pension schemes.However, we often speak with clients unsure of the current regulations or who find the rules confusing when it comes to staff opting out, working part-time, or simply uninterested in being auto-enrolled.In this guide, we'll summarise how it all works, what you need to do to meet auto...

August 31, 2023

What to Do if You Receive a ‘Nudge’ Letter From HMRC

Nudge letters are issued where HMRC has reason to believe an individual has undeclared taxable income, often because of information-sharing agreements that may indicate a revenue or gain occurring in another jurisdiction that does not marry with the declarations made.The important aspect when receiving any communication from the tax office is to ensure you respond – even if you believe the letter has been issued in error or there is no further tax to pay or declare.If you do not respond or req...

August 17, 2023

Managing Employer Obligations When Hiring Students for Summer Work Roles

Hiring students during the summer break is a common strategy, helping businesses manage increased demand during this busy period and providing students with an income and work experience during their time away from school, college or university.Many business owners are confused about the legalities of hiring staff under 18, what they should pay in compliance with the minimum wage, and the rules around areas such as weekly hours, manual labour and the work a young person can be asked to do.We’v...

July 24, 2023

Understanding Benefits in Kind for Electric Company Cars

As more and more people and businesses switch to electric cars – not least due to the government ban on sales of new fuelled vehicles from 2030 – all parties must understand what this means for benefits in kind.Benefits in kind exist to levy a tax liability against benefits received by an employee in addition to their salary and other pay. Examples include company cars, mobile phones, gym memberships, health insurance and childcare vouchers.The non-cash benefit must be available for personal...

July 17, 2023

Incorporating Higher Corporation Tax Rates Into Business Budgeting

As noted in our earlier article covering the Tax Changes to Be Aware of From April 2023, the standard Corporation Tax rate increased from 1st April onward – although many companies will not feel the impact for several months.It is, however, important that all business owners understand how the tax rates will impact their liabilities and know the correct way to perform tax computations where their next reporting period covers a 12-month financial year that straddles 1st April.Today we recap wha...

July 3, 2023

How the Optimal Director’s Salary Has Changed in the 2023/24 Tax Year

Each year the SAS Accounting team publishes a new guide outlining how companies can make director’s pay packages as tax efficient as possible, balancing the split between dividends and PAYE salaries to consider varied tax treatments, allowances and National Insurance.With so many changes introduced in the 2023/24 tax year, it may be more important than ever for directors to revise their remuneration and ensure they aren't paying more taxes and exposing the business to higher obligations than n...

June 16, 2023

Increases to Plastic Packaging Tax and Other Eco-Friendly Tax Measures

From April 2023, the tax charged against businesses producing or importing plastic packaging with less than 30% recycled materials has risen from £200 to £210.82 per tonne, payable by all organisations that manufacture or import over ten tonnes a year.The Plastic Packaging Tax, first introduced in April 2022 as part of the Resources and Waste Strategy, is one of several reforms and new taxes designed to improve the sustainability and green credentials of UK businesses.In this guide, we summari...

May 30, 2023

Our Expert Guide to Completing and Submitting a P11D

P11D forms are used to report benefits provided to employees outside of wages that constitute a benefit in kind – think a mobile phone for personal use, an interest-free loan, or health insurance.Employers are required to report any benefits paid during the tax year and calculate the taxable benefit, normally resulting in an adjustment to the employee's PAYE tax code and a Class 1A National Insurance liability paid by the business.You should complete a separate P11D for every employee or direc...

April 24, 2023

HMRC Reforms to VAT Return Late Submissions and Payments

All VAT-registered businesses need to be aware of how HMRC has changed how it deals with late returns and payments – in a move widely perceived as positive.Although late VAT returns and overdue payments related to periods before 1st January 2023 will still be handled according to the previous system, all subsequent returns will be addressed differently.Of course, the priority should always be to remain on time and compliant with all tax matters, and errors or corrections to returns the tax off...

March 28, 2023

Your Spring Statement 2023 Round-Up

The much-anticipated Spring Budget was delivered today, and as expected, it was based on economic growth without any major surprises.However, there was welcome news for taxpayers, businesses and savers, with changes to pension allowances, childcare support and an extension to the Energy Support Scheme, alongside upbeat announcements about the future of the UK economy.SAS Accounting has summarised the main areas of reform and the most important changes that might affect your plans, tax obligation...

March 15, 2023

HMRC Set to Challenge the Self-Employed Status of Associate Dentists

Over the last few months, we've reported several sectors falling under HMRC scrutiny. The next target looks to be associate dentists, causing potential disruption for practices and professional clinics.Conventionally, HMRC considers associate dentists self-employed, although this has been a somewhat informal arrangement. However, this system is based on a standard associate dentist agreement approved by bodies such as the Dental Practitioners Association and the British Dental Association.From t...

February 15, 2023

Tax Changes to Be Aware of From April 2023

Over the last few months there have been multiple changes related to various taxes, with reversals and revisions that have made it difficult for many businesses to understand how their tax obligations will change, and what that means for the new tax period from April.In this article, we run through each of the major reforms to ensure you have up to date information to help with budgeting, tax planning and decision-making....

February 2, 2023

Preparing for the 2023 Financial Year Ahead

As we settle back into our routines following the festive break, there are several key factors that businesses need to be aware of and prepared for in 2023.While we detailed the headline announcements from the Autumn budget back in November, there have been further announcements and changes in the interim, which we’ll summarise here as a checklist to ensure you are up to speed....

January 17, 2023

Key Responsibilities of Limited Company Directors

Incorporating your business as a limited company or being appointed as a director for the first time is an exciting opportunity – but there are various fiduciary responsibilities and legal requirements you need to adhere to. Much of the legislation is included within The Companies Act 2006, which sets out your duties around things such as: Participating in board meetingsEnsuring the company meets statutory obligationsManaging company affairs on behalf of the shareholders For many small busines...

December 15, 2022

HMRC Investigating Landlords Through Data Analysis from Tenancy Deposit Schemes

In our latest round-up of HMRC tax audits and investigations, landlords have been under the spotlight, with the tax office examining data to try and identify potential instances of under-declared income or capital gains. HMRC has been leveraging access to data and records over the last few months, aiming to recoup taxation income to address governmental targets and crack down on possible sources of untaxed income or profits. We reported recently that taxi drivers, particularly self-employed ride...

November 18, 2022

Autumn Budget Update

The delayed autumn budget has been the topic of much speculation over the past few weeks – and although we expected many of the announcements, we now have clarity over the changes being made and when they will take effect. Chancellor Jeremy Hunt worked through a series of statements affecting everything from payroll costs to public services and dividend income. In this guide we summarise all the major announcements and provide a brief overview of how these may impact your finances or business....

November 17, 2022

Recap on 2022-23 Statutory Pay Rates for Employers

With the recent campaigns to improve statutory parental leave, we thought it would be timely to publish a reminder about the current pay rates and mandatory contributions employers must make when their staff are unable to work. Today we'll look at the following: Statutory Maternity Pay (SMP)Shared Parental Leave (SPL)Statutory Paternity Pay (SPP)Statutory Sick Pay (SSP) If in any doubt, please get in touch with SAS Accounting Services as early as possible – our experienced payroll management t...

November 2, 2022

Latest News on UK Tax Cuts, U-Turns and Support for Businesses

While we were expecting to wait patiently for 31st October to hear more detail about the government's plans for changes to tax regimes and allowances, the political world entered a further period of turmoil - culminating in several U-turns. Reading the headlines and trying to determine which changes affect you and your business is challenging, so we have collated this article to clarify which amendments remain valid, which have been scrapped, and what we are still to receive clarity on. Our advi...

October 20, 2022

Limited Company Checklist for Hiring Your First Employee

Hiring a staff member for the first time is an exciting chapter in company progress, but it comes with several responsibilities and requirements. In this checklist, SAS Accounting runs through the steps one at a time, helping you ensure you are prepared for everything from running payroll to complying with employment laws....

September 29, 2022

HMRC Targets Taxi Drivers in Latest Tax Investigation

It's no secret that HMRC has been clamping down on income tax declarations and late payments to recoup the huge amounts of government spending over the last few years. We reported way back in December 2010 that HMRC was back in action, refocusing on recovering unpaid taxes and scrutinising potentially incorrect declarations. The latest group to catch the tax office's eye is taxi drivers, particularly where more and more drivers are becoming self-employed workers and declaring earnings made throu...

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