Accountants Northamptonshire

Michael Paul Accountants Northamptonshire – PAYE / National Insurance Interest & Penalties

paul — Wed, 22 Feb 2012 15:24:33 +0000

In a series of articles Paul from Michael Paul Accountants Northamptonshire looks at PAYE & National Insurances payments and deadlines including interest charged on late payments, notifying HMRC if no payments are due and what to do if you have any problems or queries. This articles explains interest and penalty charges for late payments.

Interest

Interest on late payments of PAYE & NIC is charged by HMRC daily by calculating the number of days by which a payment is late and applying the relevant HMRC interest rate.

Penalties

HMRC may charge late payment penalties if the PAYE/NIC due each month, or quarter is not paid on time and in full. The late payment penalties apply to all employers not just the large ones.

The first time in the tax year HMRC think that your PAYE payment is late they may send you a warning letter which will be issued about two weeks after the payment date.

The letter is only to let you know that HMRC think you have made a PAYE payment late and that a penalty could be charged. It is not a penalty notice in itself.

The letter will also:

explains how to avoid a penalty in the future
reminds you to pay – if you have not already paid by the time you receive the letter

Importantly, it does not mean a penalty will definitely be charged, and you may get a penalty even if you do not get a letter.

At Michael Paul Accountants Kettering, Corby, Northampton and Market Harborough are conveniently located near to our premises in Lamport although we have clients from all over the UK. We are a firm of Chartered Certified Accountants ensuring you receive a professional and competent service at all times. We specialise in small businesses, medium sized businesses, sole traders, partnerships and individuals who have to file a tax return.

If you need any advice regarding PAYE or any other accounting or taxation matters please don’t hesitate to contact us.

Company Formation

mike — Mon, 20 Feb 2012 09:21:27 +0000

At Michael Paul Accountants Limited we can assist you with the formation of a new company. For anyone not using an accountant, solicitor or formation agent there is the option to do it yourself through the Business Link website or by applying directly to Companies House through completion of their paper forms. The latter two options may offer a cheap alternative but care should be taken as companies set up by this route often adopt the new model articles of association( the company’s rulebook) which can lead to problems further down the life of a company which the directors may not be fully aware of when they set up the company.

For instance, the model articles do no contain Pre-emption rights which prevents the company’s shares being sold or transferred without the existing shareholders knowledge. This may not be a problem in small family companies (although this is not always the case!) but can be an issue in companies where there are outside shareholders or where no shareholders’ agreement is in place.

The model articles also do not contain provision for multiple share classes which may become a consideration as a company grows.

The articles we put in place for new companies contain full provision for these two areas and much more.

If you are thinking of forming a new company and are not sure of the options available to you please contact us for a free, no-obligation discussion.

Michael Paul Accountants – Quarterly and Annually PAYE / NIC Payments

paul — Wed, 15 Feb 2012 15:36:27 +0000

The common method for paying PAYE and NIC to HMRC is on a monthly basis. However there are circumstances as described below when payments can be made quarterly or even annually.

Quarterly payment option for small employers

If you estimate that your total payment will be on average less that £1,500 per month, you can choose to make quarterly rather than monthly payments.

Annual payment option for employers

If all payments, on which tax and NICs are due, are paid to your employee(s) in a single tax month you can choose to become an annual payer. This means that you pay HMRC once a year on the due date and you don’t have to complete the monthly nil payment notification.

If you need any advice regarding PAYE or any other accounting or taxation matters please don’t hesitate to contact us.

Michael Paul Accountants Northamptonshire – PAYE / National Insurance Payments & Deadlines

paul — Wed, 08 Feb 2012 15:05:15 +0000

Electronic payments

If paying PAYE and Class 1 NIC payments electronically the cleared funds must reach HMRC by the 22nd of the month following the end of the tax month or quarter to which it relates. However if the 22nd falls on a non banking day (weekend or bank holiday), HMRC must have cleared funds by the last bank working day before the 22nd.

For example: 2011-2012 PAYE month 6 for period ended 5 October 2011.

The due date of 22 October 2011 falls on Saturday so if you are paying electronically your PAYE payment must clear HMRC’s bank account by Friday 21 October 2011.

HMRC can now accept payments using the Faster Payment Service. This was introduced by the banking industry to allow payments by internet or telephone banking to be received on the same or next day.

Cheque Payments

If paying by cheque the cheque must reach HMRC by the 19th of the month following the end of the tax month or quarter to which it relates.

If you need any advice regarding PAYE or any other accounting or taxation matters please don’t hesitate to contact us.

Michael Paul Accountants – HMRC Strike

paul — Tue, 31 Jan 2012 09:43:06 +0000

Paul from Michael Paul Accountants Northamptonshire looks at the HMRC strike and how this affects the submission of self-assessment tax returns.

Today – 31 January, is the official deadline for submitting self-assessment tax returns online. However, also today members of the Public and Commercial Services Union many of which are HMRC employees will carry out ‘lightning walk-outs’ . HMRC states that around 15% of taxpayers who file their tax return on 31 January will need to speak to a HMRC advisor which due to the strike action may prove difficult. HMRC has therefore put the filing deadline back by 2 days so no fines will be charged for returns submitted on 1 or 2 February.

It is possible that taxpayers who file their returns on 1 or 2 February may still receive fines and will have to appeal against them. If you do receive a fine you must appeal in writing within 30 days of the date on which HMRC advises you of their decision or sends you a penalty notice. You should explain the situation pointing out that you believe your inability to contact an advisor falls within HMRC’s definition of ‘reasonable excuse’.

If you need any advice regarding self-assessment or any other accounting or taxation matters please don’t hesitate to contact us.