Moore Accountancy Update

MEET THE TEAM

Last month we began (re)introducing our core team to you.

This month is Susie Maclean.

Susie is our Office Administrator and focuses on the following areas:

New Client set up
Sending out annual invoices and letters of engagement
Reminder emails to clients for year end work and other related items
Database and client information control

Her office hours are Tuesday and Wednesday 9.00-14.00.

Out of work Susie enjoys skiing, practising Pilates, travelling as much as she possibly can (with and without the children!) and spending time with family and friends.

PERSONAL SERVICE COMPANY CHANGES FROM APRIL 2020

In the Autumn Budget it was announced that the "off payroll" workers rules that currently apply in the public sector would be rolled out to the private sector in 2020. The government have now issued a consultation paper that sets out proposed tax and national insurance changes that will impact on those supplying their services through personal service companies (PSCs).

End users will be required to determine whether the rules apply to the services provided by the worker via their PSC. This will be a significant additional administrative burden on the large and medium-sized businesses who will be required to operate the new rules. The current CEST (Check Employment Status for Tax) online tool would be improved before the proposed start date.

“Small” businesses will be outside of the new obligations and services supplied to such organisations will continue to be dealt with under the current IR35 rules with the worker and their PSC effectively self-assessing whether the rules apply to that particular engagement.

The definition of “small” has been widely awaited and the Government have confirmed that it intends to use the existing Companies Act 2006 definition. That is where the business satisfies 2 or more of the following features:
•   Annual turnover of £10.2 million or less
•   Balance Sheet total of £5.1 million or less
•   50 employees or less

The new obligations to determine whether the rules apply, deduct tax and national insurance, and report payments under RTI will apply to the agency or intermediary making payments to the PSC where the end user is large or medium-sized. There will be an obligation to pass details of the status determination up and down the labour supply chain.

The liability for tax and national insurance will be the responsibility of the entity paying the PSC, however if HMRC are unable to collect the tax from that entity the liability will pass up the labour supply chain thus encouraging those entities further up the supply chain to carry out due diligence to police compliance.

These changes could cause havoc to the contractor market, so clients should start making themselves aware of the IR35 rules and consider whether any new contracts could be affected.

HIGH INCOME CHILD BENEFIT CHARGE

If you have total income of over £50,000 and your or your partner get Child Benefit, then you should be paying a tax charge, known as the ‘High Income Child Benefit Charge’.

If this is the case, then you will need to
• notify HMRC and register for Self-Assessment by 5 October
• complete a Self Assessment tax return by 31 January and pay what you owe

Child Benefit remains a universal benefit. It is important for parents to fill in the Child Benefit claim form, so they do not miss out on National Insurance credits,
which help to protect their State Pension.

You can opt out of receiving Child Benefit payments so you won’t have to pay the charge but will still receive the National Insurance credits.

For more information see stop child benefit guidance.

OFFICIAL RATE OF INTEREST

The Official Rate of Interest (ORI) is used to calculate the tax charge on beneficial loans and the taxable benefit of some employer-provided items.

If you provide beneficial loans to a director or employee there will be no change in the way that the benefit is calculated but you should be aware that the average Interest Rate for 2018 to 2019 was 2.50%.

KEY DATES

06/04/19 - Start of the 2019/20 tax year

06/04/19 - New workplace pension limits apply, 5% from the worker and 3% from the employer, an overall minimum of 8% of earnings

19/04/19 - PAYE & NIC deductions for month ended 05/04/19 (March payroll) and Final RTIs and submissions for the tax year

30/04/19 - Corporation tax payment for year to 31/07/18

19/05/19 - PAYE & NIC deductions for month ended 05/05/19 (April payroll)

31/05/19 - Corporation tax payment for year to 31/08/18

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Moore Accountancy · 1 Northway · Altrincham · Cheshire, WA14 1NN · United Kingdom