Pension Reforms – Employers’ Duties under the Pensions Reform Act 2008

Posted on December 15, 2011 by admin

We have started receiving a number of queries now from clients regarding the pensions reforms which for employers with between 1 and 49 employees will start between August 2014 and February 2016.

The link below shows the exact start dates for each employer by PAYE reference.

http://www.dwp.gov.uk/docs/staging-dates-by-employer.pdf

 

Employers’ minimum contributions that must then be made into a money purchase scheme (personal pension, Stakeholder or National Employment Savings Trust (NEST)) are:

1/11/15 to 30/9/16                Employer 1%            Employee 1%

1/10/16 to 30/9/17                Employer 2%            Employee 3%

1/10/17 onwards                     Employer 3%            Employee 5%

Percentages above are calculated on gross salaries on a band from £5,035 to £33,540 therefore the maximum contribution for an employee will be £855 from 1/10/17 or £684 after corporation tax relief. Employees will get basic rate tax relief on their own contributions and can opt out of the scheme.

We have been advised that each Employer will be advised in the coming months of when their own responsibilities under the Act will start.

 

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Party Time

Posted on December 1, 2011 by admin

As we are fast approaching the season of good cheer and all that, remember that the staff Christmas party is the one time that the taxman seems to raise a glass and allow a little seasonal tax relief.

The rule is that there is a limit of £150 per head per year and this includes current employees, retired employees and partners of both.

If the cost exceeds £150 per head, it is better to ask employees for a contribution of the excess otherwise the full amount becomes a taxable benefit.

In addition VAT can also be reclaimed.

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HMRC described as Plunderers

Posted on August 1, 2011 by admin

A journalist has today been scathing in his assessment of the current state of affairs at HMRC. He contends that the word “plunder” best describes the institutionalised extortion imposed by the Government on the public via the taxman. “HMRC mixes authoritarian bullying with serial ineptitude,” he says.

From our own experience in recent months we are finding this situation exactly as described. Our clients have been receiving increasingly threatening letters from HMRC for demands to pay and yet for those with tax repayments due to them, HMRC are dragging their heels taking months to cough up. Equality in the tax system? Absolutely none at the moment.

And as far as bullying techniques are concerned, yet again it is the small businesses and taxpayers who seem to be targeted especially those without accountants on the basis that they will pay up without fighting their cases. We will always stand up for our clients and never accept initial decisions made by HMRC on the basis that we feel HMRC have been instructed from above to send out standard claim refusal letters as standard practice.

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Tax Efficient Cars

Posted on July 6, 2011 by admin

DNA Accountants practice what they preach .......

For the last couple of years we have been advising clients to look at environmentally friendly cars with a CO2 emission of less than 110g as a viable Company Car Option with very low personal tax charges and 100% tax write offs in the year acquired.

In order to practice what we preach, we have recently acquired a new Fiesta for Tammy which is less than 110g – no road tax, cheap insurance, no congestion charge, 100% tax write off and a personal tax liability of £300 per year.

If you would like a list of these tax friendly cars, please send an email to Tammy (tammy@dna-accountants.co.uk) and she will send you a list by return. Or have a look at www.lingscars.com which is where we sourced Tammy’s car.

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New “HMRC” repayment email scam

Posted on May 25, 2011 by admin

After the spate of email scams last year,all rather badly worded and therefore easy to spot, it appears a new breed has been unleashed, this time much more cleverly worded. Be aware and do NOT click on the link!

The one we’ve seen is worded as follows:

From: “HM Revenue & Customs”
Date: 23 May 2011 04:49:39 BST
Subject: Submit Your Payment Refund
Reply-To:

Dear Applicant:

Following an upgrade of our computer systems and review of our records we have investigated your payments and latest tax returns over the last five years our calculations show that you have made over payments of GBP 277.25

Due to the high volume of refunds due you must complete the online application, the telephone help line is unable to assist with this application. In oder to process your refund you will need to complete the application form attached to this email.Your refund may take up to 3 weeks to process please make sure you complete the form correctly.

NOTE: If you’ve received an Income Tax ‘repayment’ it will either be following a claim you’ve made or because HM Revenue & Customs (HMRC) has received new information about your taxable income or entitlement to allowances. The refund may come through your tax code or as a payment and could relate to the current tax year or earlier years.

An Income Tax repayment is a refund of tax that you’ve overpaid. So, if you’ve paid too much tax for example through your job or pension this year or in previous years HMRC will send you a repayment. You’ll get the repayment by bank transfer directly to your credit or debit card.

HM Revenue & Customs
London , HA7 2LD
All rights reserved

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BUDGET 2011 – SOME GOOD NEWS

Posted on March 31, 2011 by admin

Having reviewed the Budget Press Releases and course notes in great detail it can be summarised by what is given in one hand is taken away by the other.

Yes, personal allowances are up – great. But then the basic rate band has decreased. So overall in 2011/12 you have to start paying higher rates of tax if total income exceeds £42,475 compared with £43,875 in 2010/11.

The one piece of good news (and incredibly long overdue) is that the approved mileage rate has increased to 45p per mile with effect from 6th April 2011 – note, though, that once 10,000 miles have been exceeded in the tax year, the lower rate is still 25p.

If you would like a detailed Budget Review and commentary, please email Tammy – tammy@dna-accountants.co.uk

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DNA Accountants have 100% success rate with ESC A19

Posted on March 4, 2011 by admin

We’re delighted to announce that we have had 100% success with HMRC agreeing to our applications for ESC A19 to apply.

What on earth does that mean I hear you all ask?

You may recall the furore in The Autumn last year when HMRC sent out demand notices of assessment to many taxpayers demanding sums of tax going back 3 years as a result of HMRC “cleaning up” their records.

Luckily none of our own clients were affected by this as we check that their tax is correct on a yearly basis.

But some of our clients’ friends/relatives received these demands and asked us to act for them in sorting this out.

We are happy to report that we have had 100% success in asking that an Extra Statutory Concession applies in order that none of this back tax is now payable. Obviously we have some very happy new clients!

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January celebrations – and a way to avoid a 5% penalty from HMRC in February

Posted on February 4, 2011 by admin

Another 31st January, another tax return season done and dusted.  The famous paper chain countdown in Gillian and Ian’s office is now stripped bare, we’ve been to see The Kings Speech (how utterly amazing are the actors?) and the long awaited DNA Christmas party has been booked for March!

Unfortunately, along with tax returns comes the payment of the tax. HMRC have a rather nasty penalty system in place which imposes an automatic 5% surcharge on top of the tax due if payment is not received by 28th February.

If you think that you won’t be able to make the full payment of the tax by this date, a way to avoid the surcharge is to contact HMRC as soon as possible to arrange a schedule of repayments on a monthly basis. That way, the penalty charge will be waived.

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Welcome to the world of DNA Accountants ……

Posted on October 14, 2010 by admin

Wow – a new website and a Blog!!! Big thanks to Lee at LW Design for the revamped website and the push into the wonderful world of Blogging

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