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.

The taxman at HMRC has announced further details of the new Tax Free childcare scheme which is to be introduced in 2017.
To be eligible, families will have to have all parents in work and each expecting to earn at least £115 per week and less than £100,000 a year and not be already receiving support through Tax Credits or Universal Credit.
The government will top up the account with 20% of childcare costs up to a total of £10,000 - the equivalent of up to £2,000 support per child per year (or £4,000 for disabled children).
HMRC are asking childcare providers to register for the scheme as soon as possible.
Tax-Free Childcare will be launched from early 2017.
The scheme will be rolled out gradually to families, with parents of the youngest children able to apply first.
Parents will be able to apply for all their children at the same time, when their youngest child becomes eligible.
All eligible parents will be able to join the scheme by the end of 2017.
The current system of employer supported childcare will continue to be available for current members if they wish to remain in it or they can switch to the new scheme.
Employer supported childcare will continue to be open to new joiners until April 2018.
The existing system of employer supported childcare provides an income tax and national insurance contributions (NIC) relief.
The maximum relief is an exemption from income tax and NIC on £55 a week.
This relief is per employee so if both parents are in employment the maximum exemption is £110 per week. In the new scheme the limit is per child.
Throughout the last few months of 2016, letters are being sent to regulated and approved childcare providers asking them to sign up online for Tax-Free Childcare.
Only childcare providers registered with a regulator (such as Ofsted) can receive Tax-Free Childcare payments.
The government will make more information available, including details of how parents can sign up, later this year.
In other news, some tax reminders -
PAYE quarterly payments are due for small employers for the pay periods 6th July 2016 to 5th October 2016
This deadline is relevant to small employers only.
As a small employer with income tax, national insurance and student loan deductions of less than £1,500 a month you are required to make payment to HMRC of the income tax, national insurance and student loan deductions on a quarterly basis.
Where the payment is made electronically the deadline for receipt of cleared payment is Friday 21st October 2016 unless you are able to arrange a 'Faster Payment' to clear on or by Saturday 22nd October.
In year interest will be charged if payment is made late. Penalties also apply.
PAYE, Student loan and CIS deductions are due for the month to 5th October 2016
This deadline is relevant to employers who have made PAYE deductions from their employees' salaries and to contractors who have paid subcontractors under the CIS.
Employers are required to make payment to HMRC of the income tax, national insurance and student loan deductions. Contractors are required to make payment to HMRC of the tax deductions made from subcontractors under the CIS.
Where the payment is made electronically the deadline for receipt of cleared payment is Friday 21st October 2016 unless you are able to arrange a 'Faster Payment' to clear on or by 22nd October 2016. In year interest will be charged if payment is made late. Penalties also apply.
Tax and NI is due under a 2015/16 PAYE Settlement Agreement.
This deadline is relevant for employers who have entered into a PAYE settlement agreement to pay tax and national insurance in respect of benefits in kind for their employees for the year ended 5th April 2016.
Where the payment is made electronically the deadline for cleared receipt of cleared payment is Friday 21st October 2016 unless you are able to arrange a 'Faster Payment' to clear on or by Saturday 22nd October 2016.

You can find out more about money matters on the Clay Shaw Butler website (under our news for business section) -
http://www.clayshawbutler.com/news/latest-news-for-business
We have a strong and experienced team with great local knowledge all geared-up to helping you get the very best from your finances – whether that is as an individual or as a business.
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