News and events from TaxCalc
Possible issue with HMRC calculations for Self-Employed National Insurance Contributions (NIC)
If your clients receive a revised assessment of tax due for 2018/19, which includes an adjustment for reducing or eliminating class 2 and/or class 4 National Insurance contributions, it may be incorrect.
If the individual in question is not set up on HMRC’s self-employed database, this could occur because the system will not expect to collect class 2/4 NIC.
HMRC Update on off-payroll (IR35) rules
Whilst a review of the IR35 implementation plans continues in the House of Lords until the end of this month, HMRC have announced changes to the draft legislation.
HMRC has confirmed that the new rules for contractors, working for medium and large-sized companies, will affect services provided after 6 April 2020 and will not be applied retrospectively regardless of payments made after this date. Where the services are performed by the contractor before 6 April 2020 it will continue to be the responsibility of the contractor and their personal service company (PSC) to decide if the work falls within IR35 and pay the right amount of tax to HMRC.Read more
Leaving the EU
The UK is leaving the European Union on 31 January 2020.
Following the General Election on 12 December 2019, the UK Government is implementing the Prime Minister’s Withdrawal Agreement meaning the UK can leave the European Union on 31 January 2020.
Our ‘No Deal’ provisions, including changes to Companies House forms and EC Sales list filing will not be implemented on 31 January 2020; however, they may at a later stage, once government have finalised details. In the meantime, we will continue to monitor the Government's negotiations with the EU and consider potential impacts at the end of the implementation period.Read more
Upcoming legislation: Ultra Low Emission Vehicles
From 6 April 2020 the car and car fuel benefit calculation is changing with the introduction of 11 new bands for ultra low emission vehicles (ULEVs) including a separate zero emissions band. This is to support the Government’s commitment to improving air quality in towns and cities. If your client’s company car has a CO2 emission figure of 1-50g/km, they will need to provide the cars zero emission mileage. This is the distance that the car can travel in miles on a single electric charge.
Treasury has confirmed that company car drivers who choose an emissions-free electric fleet model will pay no benefit-in-kind (BIK) tax for the year
Great news for employees. The Treasury has confirmed that company car drivers who choose an emissions-free electric fleet model will pay no benefit-in-kind (BIK) tax for the year as part of new efforts to encourage motorists to switch to green vehicles.
As you approach the new Tax Year, claiming tax repayments with the R40 will be pretty much top of your To Do list.
This used to be the quickest way of getting a tax repayment. However HMRC has now issued an updated R40 repayment claim form for 2017/18 which changes the way repayments are sent.
As our practitioner customers will be aware, in the latter half of 2017, we released our implementation of HMRC’s new Application Programming Interfaces (or APIs). This is data that HMRC has already received from different sources which can then be fed into the tax return. This facility has proven to be extremely useful, saving our customers a great deal of time and effort.Read more
HMRC have provided information confirming they are waiving late filing penalties or interest where the 31 January deadline is missed or payment of the correct tax is less than it should be due to the continuing errors in HMRC’s 2016/17 tax calculation. Read more for the full statement from HMRC...