Paying Class 2 NIC Is Changing

www.greenandco.comIn an attempt to simplify the administration of Class 2 NIC, HMRC have announced changes in the way contributions will be paid from 6 April 2015 onwards.

Class 2 NIC (otherwise known as self-employed stamp) is payable by anyone who is self-employed, either as a sole trader or in a partnership. Contributions made count towards certain social security benefits, including pensions, and up until now have been collected separately from income tax, usually by monthly or quarterly direct debit.

In a step on from the announcement last year that arrears of Class 2 would be collected through PAYE codes, HMRC have decided that liability will now be calculated and paid alongside self-assessment tax and Class 4 NIC. As a result, contributions due for 2015/2016 will not become due until 31 January 2017.

The criteria for thresholds and exemptions remains the same, for example, those with small earnings or are of pensionable age are not liable, but everyone will be given the opportunity of making voluntary contributions at the end of the tax year, if they so wish.

From 6 April 2015, the Class 2 NIC rate will rise to £2.80 per week and self-employed individuals should already have received notification of the Revenue’s intention to change how they collect the contributions.

Direct debits and direct billing will cease on 10 July 2015, but more information on the transitional period and how the changes are to be implemented is expected to be released at the start of the new tax year 2015/2016.

For more information contact us.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

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Prize Draw Winner – February 2015

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The winner of the feedback prize draw for February 2015 is R W Construction & Plant Hire Limited. A box of chocolates is on its way to them.

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Accounting Vacancy!

Job VacancyTrainee Accountant

Green and Co are a forward thinking and proactive, Chartered Certified Accountancy Practice, with a diverse range of successful clients and an excellent team environment and having recently been awarded and Investors In People Gold Award. We are now seeking a Trainee to join our accounting team

The successful applicant will be provided with full funding for their studies along with expenses for any books and material required.

This is an excellent opportunity for anyone wanting a career in accountancy, as the business has an excellent reputation for training and development of all their staff, in a friendly and warm environment.

You will be working alongside the Accounts Manager and 7 other trainee and qualified accounts staff. The duties will be varied and will include:

  • Bank reconciliations from books of prime entry
  • Working on the Purchase & Sales Ledger
  • Supplier Statement reconciliations
  • Using Sage, full training will be given
  • Using Excel on a daily basis to update spread sheets and databases
  • Answering queries from clients, verbally and written, on a daily basis

The successful candidate will be able to demonstrate:

  • Having achieved an A level standard of education
  • Having achieved or be studying towards an AAT Level 2 qualification
  • A committed attitude to a career in accountancy and a desire to continue studying to achieve ACCA accreditation
  • Willingness to learn new skills and systems
  • Excellent communication skills
  • Flexible attitude to your work

This is a an opportunity to work within a business that offers a friendly and professional environment, whilst having full study support.

Click here to apply.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

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Big Question – How Important Is Branding?

Nick Park answers this week’s Big Question in the South Wales Argus:

“Making sure your customers stick with your business is an important step on the road to success and that is why getting your brand right is crucial…”

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Free SAGE Seminar: Useful Hints & Tips and Sage Drive

We are pleased to invite you to our next Sage seminar, to be held on Wednesday 25 March 2015 at the Parkway Hotel, Cwmbran.

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Seminar Agenda:

9:00 – 9:30am Registration, coffee and biscuits

9:30 – 9:45 am Introduction and welcome

9:45 – 10:45 am Presentation by June Horne of Sage

10:45 – 11:00 am Q&A session

11:00 am Finish

Come along and discover how to get the most out of your Sage package. Reserve your place on this free seminar by phoning 01633 871122, or email katie@greenandco.com

For further information relating to the workshop, contact Jane Wootton on 01633 833507, or email jane@greenandco.com

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Changes To Principal Private Residence Elections

www.greenandco.comCapital gains tax exemption can only be claimed on one of your private residences. Currently, if you own more than one property and occupy both as private residences (e.g. a holiday home which you use at weekends and another property which is occupied during the week), you can make an election, within two years of purchasing the second property, to nominate one of the properties as your principal private residence to which the capital gains tax exemption applies. Where no election is made, HMRC determines which property will be exempt based on the facts. This election used to provide tax planning opportunities in order to minimise any future capital gains tax.

However, this election is being removed with effect from 6 April 2015. At present we do not know what will happen with regard to elections already in force at this date as this is still to be announced. For all properties after this date where at least there is no election the case will be decided on the facts.

So what facts will HMRC consider when deciding which property will be exempt from capital gains tax? There have been a handful of cases which have gone through the courts which provide us with some insight to this.

If you are in this position, you should have in mind which property you would like HMRC to treat as exempt and then consider the following points:

  • Where do you have your post sent to?
  • How much gas and electricity is used on each property?
  • Which address is on your bank accounts etc?
  • Which address do you register to vote?
  • Which address is your car registered at?

While none of the above will determine the exempt residence in its own right, each one will help to form the overall picture.

For more information please contact Green & Co.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

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Higher Rate Machine Games Duty Is Drawing Closer

www.greenandco.comAs outlined in the 2014 budget, there is a higher rate Machine Games Duty (MGD) due from the 1st March 2015. This new higher rate will apply to gaming machines where the charge payable for playing can exceed £5, and is expected to have the greatest impact on bookmakers and casinos.

The measure is said to increase the fairness of the current tax system, by making the more profitable high street gaming machines pay a higher rate of MGD.

There are currently two rates of MGD:

  • a reduced rate of 5% which applies to machines where you pay no more than 20p, but with a maximum prize pot of no more than £10; and
  • the standard rate of 20% which applies to any other machines.

The Treasury says that the higher rate will affect around 400 businesses which provide gaming machines where the charge for playing can exceed £5. Although they also admitted that there is likely to be negligible one-off costs as people become familiar with the new tax rate, and there will be an added administrative burden for some businesses as they will need to collect and report their data in a more fragmented way.

For more information on Machine Games Duty, contact Green & Co.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

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