The latest Clay Shaw Butler Money Matters column from the Carmarthenshire Herald
The latest Clay Shaw Butler Money Matters column from the Carmarthenshire Herald.
By Mark Jones, director of Carmarthen-based Clay Shaw Butler chartered accountants and business consultants.
“What gets scheduled gets done,” is a quote from the business and investment guru Michael Hyatt.
It’s worth bearing in mind, as we all lead busy lives.
Having a decent (and regularly updated) calendar and diary will help you get the job done.
For example, businesses, employers and employees need regular reminders of financial events and deadlines and tax events.
Here are a couple of tax events on the horizon this week -
Deadline for reaching a PAYE Settlement Agreement for 2015/16:
This deadline is relevant for employers who wish to pay the tax and NI (National Insurance) on benefits provided to their employees.
Agreement must be reached with the taxman at HMRC of the benefits and related liabilities which are not to be shown on the forms P11D by this date.
Please be aware that if your accountant deals with the PAYE Settlement Agreement on your behalf they will ensure this matter is dealt with on a timely basis.
Deadline for employers to report share incentives (Form 42) for 2015/16:
This deadline is relevant for companies who have either received a notice to complete a form 42 or who have reportable events for the tax year 2015/16.
Deadline for forms P11D, P9D and P11D(b) for 2015/16 to be submitted to HMRC and copies to be issued to employees concerned:
This deadline is relevant to employers.
Details of benefits and expenses provided to employees must be reported to HMRC on the relevant forms P11D.
The P11D(b) form is used to calculate the Class 1A NI liability.
As above, if the matter is left in the hands of a firm like Clay Shaw Butler the P11D forms will be dealt with on your behalf on a timely basis.
In other news, a new savings allowance is available to basic and higher rate taxpayers for 2016/17. The amount available depends on the individual's circumstances:
If any of the individual's income for the year is additional rate income then the individual's savings allowance for the year will be nil.
If any of the individual's income for the year is higher-rate income and none of the individual's income for the year is additional rate income, the individual's savings allowance for the year is £500.
If none of the individual's income for the year is higher rate income, the individual's savings allowance for the year is £1,000.
No tax will be payable on savings income until the new savings allowance has been used up.
In a further change, banks and building societies will no longer deduct tax at source from interest at 20%.
This means that non-taxpayers will no longer need to fill out an R85 to receive bank and building society interest gross.
However, companies will still need to account for 20% at source on payments of interest.
The 0% savings starting rate also remains available on the first £5,000 of taxable savings income for those with the correct split of income.
This would apply where non savings income, broadly pay, trade profits and property income are no more than the personal allowance.
This means that for some, the effect of the personal allowance (£11,000 for 2016/17), the £5,000 starting rate band and the new savings allowance (£1,000 for basic rate taxpayers for 2016/17) means that it may be possible to receive up to £17,000 savings income tax-free in 2016/17.
In the light of the above changes, please contact us at Clay Shaw Butler if you would like to review your tax position on savings income.
You can find out more about money matters on the Clay Shaw Butler website (under our news for business section) -
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