World Cup Results and Tables

Here is a summary of the results of the 2010 FIFA World Cup.

http://www.c-todd.com/ard/merge_doc.asp?AID=495&MergeFile=worldcup_2010.htm

Penalty Guidance on Late Payment of PAYE

HMRC have been warning employers for some time that they may have to pay a penalty if they do not pay their PAYE deductions on time.

They have now issued more detailed guidance on the way in which the penalties will work. The penalties will apply to PAYE deductions due for a period starting on or after 6 April 2010 include PAYE, Student Loan deductions, Construction Industry Scheme payments, Class 1 NICs, annual payments of employers’ Class 1A NICs and annual PAYE Settlement Agreements payments.

Deductions of PAYE, NICs, Student Loan deductions and Construction Industry Scheme payments are generally due by 19 of each month (or 22 if paid by electronic means and cleared into HMRC’s bank account). Small employers are able to pay quarterly.

HMRC are advising employers to let HMRC know if they are likely to have difficulty making a payment on time, so that arrangements can be made and penalties can be avoided. Their guidance states that where employers enter into ‘time to pay’ arrangements, before the liability becomes due, no penalty will be charged.

Penalties for late payment start at 1% increasing to 4% depending on the number of late payments in the year. Extra penalties will be added where liabilities are outstanding for a further six and then 12 months.

Internet link: HMRC guidance on late payment

P11D Deadline Looming

The forms P11D, and where appropriate P9D, which report employees’ and directors’ benefits and expenses for the year ended 5 April 2010, are due for submission to HMRC by 6 July 2010.

The process of gathering the necessary information can take some time, so it is important that this process is not left to the last minute.

Employees pay tax on benefits provided as shown on the P11D, either via a PAYE coding notice adjustment or through the self assessment system. In addition, the employer has to pay Class 1A National Insurance Contributions at 12.8% on the provision of most benefits. The calculation of this liability is detailed on the P11D(b) form.

If you would like any help with the completion of forms P11D or the calculation of the Class 1A liability please get in touch.

Employers may wish to complete the forms electronically and submit them online.

Employee Holiday Entitlement

With signs that spring is finally here many employees will be planning or longing for their summer holidays.

Holiday entitlement is one of the complex areas which can cause employee dissatisfaction if not handled correctly, especially for those with part time or irregular hours.

Since 1 April 2009 the minimum statutory holiday entitlement has been 5.6 weeks inclusive of Bank Holidays, the equivalent of 28 days for those employees working a five day week.

Employers may of course offer more holiday if they wish.

To check either your own, or your employees minimum holiday entitlement visit the link below.

Internet link: Business link website

Is VAT Set to be Increased?

The British Chamber of Commerce are predicting that we should expect an increase in VAT to help deal with the country’s budget deficit.

David Frost Director General of the British Chambers of Commerce (BCC) said:

“…… the employer National Insurance rise, planned for 2011, should be abolished in full. Most businesses expect VAT to increase after an election to help plug the hole in our public finances. Considering companies have already said that VAT would be less damaging to their operation than a hike in NICs, it seems obvious that the tax on jobs should be scrapped and replaced by a less harmful tax on consumption.”

Child Trust Fund to be Cut

The Government has outlined plans to make changes to the Child Trust Fund as part of plans to cut £6 billion in expenditure.

The Government intends to introduce secondary legislation to scale back government payments due to Child Trust Funds from 1 August 2010.

From that date, payments at birth will be reduced from £250 to £50 for better off families, and £500 to £100 for lower income families; and payments at age 7 stopped.

The Government intends to introduce primary legislation to stop all payments from 1 January 2011. Additional contributions for disabled children will be paid this year.

From 2011/12 the money used for these additional contributions will be redirected to respite care for disabled children.

2010 Emergency Budget Date Announced

The new coalition Government is settling into office and a date has been announced for the emergency Budget.

Chancellor of the Exchequer George Osborne will present the emergency Budget on Tuesday 22 June 2010.

We will keep you informed of announcements.