The deadline for submitting your 2022/23 self assessment tax return is 31 January 2024 for online returns.
If you submit your tax return after the self-assessment deadline, you will be fined £100. The penalty for late submission rises sharply after three months, and continues to climb for prolonged delays totalling up to £1,600 for an entire year, that is before calculating interest on the penalties too!
18 days to go.
Planning to treat your staff this Christmas?
Here’s all the need to knows about tax
There is a £150 limit per member of staff which is tax deductible.
This £150 limit is an exemption and not an allowance, which means if the overall cost of the party amounts to £151 per head, the whole amount will be taxable as a benefit in kind (not simply the £1 excess)
The limit applies to the entire tax year, not to individual events. Therefore, employers need to ensure the combined cost of all events is less than £150 per head
The function or party must be open to all employees.
The exemption is only available for annual events, such as a Christmas party
The £150 limit can also include a spouse or partner, so if a business wants to be even more generous, then the overall limit is effectively doubled
Huge Congratulations to Natalie
here at Dalton Pardoe on passing her latest AAT Level 4 exam - Personal Tax. Keep up the hard work!
Dalton Pardoe Christmas Outing 2023. Lovely food with lovely people.
HMRC has recently announced that access to self assessment tax helplines will be dramatically curtailed from the 11th December – 31st January.
This will cause concern for many taxpayers and finance professionals who are due to file tax returns during the busiest time of year.
The move has been criticised by leading global finance professional body ACCA, highlighting that this is a further example of HMRC’s ‘unacceptably poor service’.
AUTUMN BUDGET - KEY TALKING POINTS
Class 1 National Insurance cut from January from 12pc - 10pc
Full expensing for businesses made permanent
Jobless who refuse to seek work to eventually lose their benefits
Benefits to rise in line with September’s inflation levels
Class 2 National Insurance abolished
Class 4 National Insurance reduced
Business rates discount extended
National Living Wage increased by more than £1 an hour
Triple lock extended
Fit Note process to be reformed
Alcohol duty frozen until August 2024
CLAIMING HIGHER RATE TAX RELIEF ON WORKPLACE PENSION CONTRIBUTIONS
Working out whether you can claim higher rate tax relief (through Self Assessment) on workplace pension contributions
1. A Net pay arrangement is when your employer deducts your contributions from your pay before they calculate the tax due from your pay. - Correct amount of tax relief claimed.
DON’T CLAIM VIA SELF ASSESSMENT.
2. Your employer takes your contribution from your net pay (after tax has been deducted but before they pay you) and pays this to your pension provider on your behalf.
If you’re a higher rate taxpayer, you can claim further tax relief (at your higher rate, less the basic rate already claimed on your behalf) from HMRC.
- YES CLAIM VIA SELF ASSESSMENT.
3. If you're paying pension contributions through a ‘salary sacrifice’ arrangement agreed with your employer, this is treated as an employer contribution, with the same effect for you as receiving tax relief but also with a saving on NI contributions.
- DON’T CLAIM VIA SELF ASSESSMENT.
The marriage tax allowance allows you to transfer some of your personal allowance to your spouse or civil partner if they earn more than you.
If your claim is successful, it will lower the higher earner's tax bill for the tax year, but you can also backdate your claim if eligible.
One of you needs to earn less than the £12,570 personal allowance between 6 April 2023 and 5 April 2024. To get the full benefit, the non-taxpayer actually needs to earn £11,310 or less.
The other partner needs to be a basic 20% rate taxpayer. This means you'd normally need to earn less than £50,270.
Small companies in the future will have to file a profit and loss account with Companies House in future.
Plans for tighter rules over how companies report information to Companies House were given the green light last week, enabling the government to press ahead with the requirement for small companies (including micro-entities) to file a profit and loss account.
While the Bill had been waiting in the wings for several months, currently there is no timetable for the new rules to be rolled out.