Further changes to the PSC register

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The People of Significant Control (PSC) register is changing again.

Since 26 June 2017, directors are required to update their PSC register at Companies House within 28 days of any change to keep their register ‘current’.

However, this information will no longer be included in the confirmation statement, and companies are required to keep their registers up to date using forms PSC01-09.

These changes are very important and any directors who fail to comply may face a fine or even a prison sentence of up to two years.

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

Welsh Landlords – Are You Registered Yet?

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Landlords of properties in Wales are being reminded that the deadline for registration with the Rent Smart scheme is fast approaching.

According to the administrators, Cardiff City Council, around 75% of landlords have so far failed to register.  Out of an estimated 100,000, only just over 25,000 applications have been received and any landlord not having done so by 23 November 2016 will be breaking the law.

The scheme aims to improve the quality of rental accommodation in the Principality, with registered landlords undergoing compulsory training in order to be licenced to let property. Failure to honour the regulations could result in fixed penalty fines, or even a criminal record.

Registration costs just £33.50 for on-line applications, irrespective of the number of properties being let, and the licence itself is valid for 5 years.  Although the application only takes a few minutes, it can take up to 8 weeks to process. Of those who have already completed the training, 96% say it was worthwhile and will make them a better landlord.

Those landlords using a letting agent need not register, provided the agency itself has done so.

Green & Co run a bi-monthly landlord forum to keep landlords up to date with changes like the Rent Smart Scheme. Our next forum is being held on 30 November and will cover the announcements made by Philip Hammond in the Autumn Statement. To register your interest, please email katie@greenandco.com.

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

Daily Penalties For 2014/15 Tax Returns Still Not Submitted

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For those whose 2014/15 self-assessment tax return was due at HMRC by 31 January 2016 but has still not been submitted, it’s now time to confront that pile of paperwork hidden away in the folder marked “To Do”.

For the majority of those in self-assessment the deadline was 31 January 2016, and if your tax return for the year ended 5 April 2015 was not submitted by that date, you should have already received a notification that you have been charged a late filing penalty of £100.

If the return was still not submitted by 30 April 2016, you will now be incurring daily penalties.  These are £10 per day up to a maximum of 90 days. Therefore, if the return remains outstanding at the end of July 2016 a further £900 is added to the £100 already levied.

If the return is six months late there is another penalty of 5% of the tax due or £300, whichever is greater, and at 12 months overdue the penalty is again, 5% of the tax due or £300, if greater. If the taxpayer is deliberately withholding information then higher, behaviour based penalties will be imposed.

And it gets worse. If the tax return is late there is a chance that any tax due is also late, so in addition to the late filing penalties, there will also be late payment penalties.

Not only are you falling short of your obligations by not meeting the self-assessment deadlines, but burying your head in the sand is a costly business.

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

Landlord Registration In Wales

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If you own a house that you do not live in, you may be regarded as a landlord for the purposes of the Housing (Wales) Act 2014.  In that case, you have until November 2016 to formally register as a landlord and depending on the management of that property, you may also need to become licensed as a landlord.

Learn more from Rent Smart Wales.

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

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

 

 

Don’t Put Off Until January What You Can Do In July…

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It’s February again, and many an accountant and tax advisor is heaving a sigh of relief that another self-assessment deadline has passed. The month of January often puts extra pressure on accounting professionals as they endeavour to submit eleventh-hour returns before the end of the month to help their clients avoid penalties and interest on tax paid late.

Of course, you don’t have to wait until the end of January to complete your accounts or file your self assessment return.  It can be done any time after the start of the new tax year and your accountant would undoubtedly prefer to receive your books sooner rather than later.

Most businesses should be in a position to provide the information to prepare accounts after 3-4 months following their year-end, and there are advantages to completing your accounts and self-assessment return early in the tax year:

  1. You can keep a closer eye on how your business is doing and take steps to rectify any issues which crop up. This could include chasing aged debtors, resolving disputes or even deciding when to purchase fixed assets to maximise tax allowances.
  2. If there are any queries on your books, you will have a better chance of answering them if transactions for that year are still fairly fresh in your mind.
  3. You will know how much your tax liability will be that much earlier. so that you can budget better for payment. If your profits are less than in the previous year, you can also make a claim to reduce your payments on account to a level which is more in line with your liability.
  4. HMRC have a time window during which they can question anything on your return. This window is twelve months following the date of submission – so the earlier you get your return filed the sooner the window is closed.

Don’t worry – submitting your return earlier in the year doesn’t mean you also have to pay your tax earlier.  You still don’t have to settle your liability until 31st January following the end of the tax year.

So why not make a New Tax-Year resolution to get your bookwork done, your accounts prepared and your return filed as early as possible.  You will make your accountant so happy!

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

Employment Agencies Crackdown Countdown

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As a reminder, employment agencies have until 5th August 2015 to ensure that they are complying with new rules from HM Revenue & Customs.

Announced in April, the new legislation requires any employment agency who supply two or more workers without operating a PAYE scheme, to report details of the payments made, on a quarterly basis. This means that on 5th August, the information for the first quarter of 6th April to 5th July, needs to be submitted using HMRC’s online services.

More detailed guidance can be found on the GOV.UK website, to see if it applies to you and whether you need to send a quarterly return.

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

Image courtesy of Hywards at FreeDigitalPhotos.net

Prevent Late Payment Penalties With A Time To Pay Arrangement

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For those seasoned Self Assessors the 31 January deadline will be all too familiar. This is when your tax return is due, along with your balancing payment and the first payment on account for the current tax year (if applicable).

You may not be so aware, however, of the late payment penalties that are imposed should any tax remain unpaid at 30 days, 6 months and 12 months after the 31 January payment deadline. The penalty is 5% of the tax outstanding at that date. So, for example, if any of your 2013-14 tax payment remains unpaid at 28 February 2015, 31 July 2015 and 31 January 2016, penalties will be imposed at each of these dates, at 5% of the tax outstanding.

These penalties can be avoided if you contact HMRC prior to the date on which they are imposed, and agree a ‘time to pay arrangement’ with them. The time to pay arrangement must be agreed and in place in order for the penalties to be suspended. Late payment interest, however, cannot be prevented and will accrue until the tax bill has been settled.

So, if you find yourself unable to pay your tax, then a call to HMRC before the tax becomes due could save further self-assessment debt. The number for the HMRC Business Payment Support Service is 0300 200 3835.

For further 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.

Image courtesy of FreeDigitalPhotos.net

Deadline Dates – April 2015

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1 April 2015

  • Payment of corporation tax liabilities for SMEs account period ended 30 June 2014 where payment is not made by instalments.
  • Reduction in main rate of corporation tax to 20%. Small profits rate is abolished except for ring-fence profits.
  • Change to emission thresholds for business cars (zero rate ends).
  • Application to defer Class 2 or 4 NICs for 2014/15 or claim exception for 2015/16.
  • Multiple contractors to advise HMRC that they wish to be treated as a single contractor for 2015/16.

5 April 2015

  • 2014/15 tax year-end.
  • Ensure personal allowances, exemptions and tax bands are efficiently used.
  • Deadline to pay previously unpaid Class 3 NICs for 2008/09.

6 April 2015

  • Start of the 2015/16 tax year. Ensure payroll and other systems are updated.
  • Personal allowances increased to £10,600.

7 April 2015

  • Electronic filing and payment of VAT liability for quarter ended 28 February 2015.

14 April 2015

  • Forms CT61 for quarter ended 31 March 2015.
  • Quarterly CT instalment for large companies (depending on accounting year-end).
  • EC sales list deadline for monthly paper return.

19 April 2015

  • Payment of PAYE/CIS liabilities for month ended 5 April 2015 if not paying electronically.
  • Payment for PAYE liability for quarter ended 5 April 2015 if average monthly liability is less than £1,500.
  • File monthly CIS return.

21 April 2015

  • File online monthly EC sales list.
  • Submit supplementary intrastate declarations for March 2015.

22 April 2015

  • PAYE liabilities should have cleared HMRC’s bank account.

30 April 2015

  • Companies House should have received accounts of private companies with 31 July 2014 year-end and plcs with 31 October 2014 year-end.
  • HMRC should have received Corporation Tax Self A returns for companies with accounting periods ended 30 April 2014.

If you have any questions regarding these deadlines, please 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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