NewsBusiness Advisors And Tax Specialists

Issue 13 Spring 2013

C

S

PAYROLL - RTI PENALTIES

Full story....... p2

LENTELLS RAISE MONEY FOR LOCAL CHARITY

Full story....... page3

HMRC TARGETS SECOND HOMES

Full story....... p4

CHANGES TO PENSIONS – BE PREPARED

Full story....... p2

National Insurance Payments CutIn a move aimed to help small businesses and boost job creation the Chancellor announced the introduction of the

about 450,000 small businesses, one third of all employers, will pay no employers’ NI at all. The Chancellor went on to say, “For the person who’s set up their own business

barrier will be removed”. The Employment Allowance will also apply to charities and sports clubs.

Further reduction in Corporation Tax

of corporation tax that businesses will have to pay from 21% to 20% from April 2015. The current main rate of

to 21% from April 2014.

Increase to Income Tax Personal Allowance

Pensions

previously anticipated.

ChildcareTax-free childcare vouchers will be introduced, worth up

Autumn 2015.

Social CareA cap on social care costs will be introduced in 2017

Motorists

in kind continue to increase. The Chancellor also announced

extend the 100 per cent allowance (FYA) for expenditure incurred on cars with low carbon dioxide emissions and

Review of PartnershipsThe Government announced plans to consult on major

which could force LLPs to pay national insurance for partners who are currently classed as self-employed but are technically employees. The consultation will also examine the misuse

2013 BUDGET – AN OVERVIEWAs George Osborne delivered his fourth Budget we identify some of the Chancellor’s key announcements.

2 Lentells News

From 1 April 2013, unincorporated small businesses will be able

to account for their income and expenditure on a cash basis.

Unincorporated businesses cover sole traders and partnerships. Limited companies are not included in the scheme.

need to account for income and expenses as they are incurred. This is known as accrual

small businesses.

The new system will allow small businesses to report income in the period it was

more complex businesses. The Government

quicker and easier for small businesses to account for their income and expenditure.

Small businesses that are unincorporated

now choose which system to use, it is not

scheme your income turnover can increase to

CASH ACCOUNTING INTRODUCED FOR SMALL BUSINESSES

PAYE REAL TIME INFORMATION – PENALTIESHMRC have published details of the penalties for late and inaccurate returns submitted via the new Real Time Information (RTI) system which comes into effect for the majority of employers in April 2013.

their employees’ PAYE payments online on or before each pay day, as opposed to after the end of each tax year as was previously the case.

2014. In the meantime the current penalty process will continue to apply at the end of the year, with a penalty issued if the relevant information is not up to

would normally have been liable to a penalty.

No penalties will be incurred for inaccurate in-year

FPS of the year.

is only a temporary stay of execution to allow for adjustment to the new system; as from April 2014 automated late payment penalties will be

current late payment penalties to ensure they can

will also be introduced.

will apply each month and will depend on returns

one un-penalised default each year, after which all subsequent defaults will attract a penalty. Penalties

If you have any queries about the imminent introduction of RTI and the implications it has for your company please contact Rose Richards,

payroll@lentells.co.uk

C

CHANGES TO PENSIONS – PLAN AHEAD FOR AUTO ENROLMENT

members of staff.

workplace pension and make a contribution to it.

reviewed every year)

The amount to be invested will be increased

1% in tax relief.

Last October saw the biggest pensions shake up in a generation with the introduction of Auto Enrolment.

Workforce Staging Date

50-249 employees

49 employees or less

New employers (established after April 2012)

way off for smaller companies it is essential to start

18 months away you should already have been

currently have.

may be that the scheme you currently have in place can be adapted for auto enrolment, or you may need to set up a new one.

You are required by law to write to all workers

Failure to comply

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Lsupport of the Taunton and Somerset Music,

year will witness an ambitious schedule of

CHARITY FOCUS

Lentells support local Arts Festival

and held at Taunton School in February.

Children’s Society.

Lentells raise money for local charities

Lentells News 3

P

CHANGES TO CHILD BENEFIT

who have an income of over £60,000, are being reminded to opt out of receiving payments before 28 March in order to avoid paying a new charge by self-assessment tax return.

Those who have already opted out do not need to take any further action, but those who

INCREASE IN ANNUAL INVESTMENT ALLOWANCE

The AIA allows businesses to claim an allowance on capital expenditure on most plant and

2014. AIA offers tax relief at 100 per cent on

The maximum you can deduct from your taxable

notes which say that this is a temporary increase

1 January 2015.The allowance is allocated based on the date of expenditure and the allowance for

It is important to check that any planned investment in capital equipment falls within

In his November 2012 Autumn Statement, the Chancellor announced a temporary ten-fold increase in the Annual Investment Allowance (AIA).

and cars.

Typical examples of plant or machinery include:

equipment

machinery

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Spring 2013

4 Lentells News

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Email: seaton@lentells.co.uk

Payroll DepartmentTelephone: 01460 68700

Email: payroll@lentells.co.uk

audit work in the UK and Ireland and

business activities by the Institute of

the Financial Services and Markets Act 2000 but we are able, in certain circumstances, to offer a limited

clients because we are members of the Institute of Chartered

services if they are an incidental part of the professional services we

S

REGISTER for FREE

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sessions;

All the workshops will last for ½ a day with a maximum

software-services

Glyn Rhodes on 01460 68700 or email courses@lentells.co.uk

Payroll Training and Support

support can be provided with review of your payroll

reports and, where appropriate, an in depth review of your employee data.

01460 68700 or email payroll@lentells.co.uk

LENTELLS EXPAND IT AND SOFTWARE SERVICESWe are expanding our existing training initiatives with the introduction of additional software training workshops for 2013 as well as offering one to one training with a range of support services.

HMRC TARGETS SECOND HOMES

Normally when an individual sells their main home,

additional properties, such as holiday homes or

(CGT) liability.

5 April 2012, and this has not been reported to

the late payment of tax. Failure to disclose such sales may lead to penalties in the future of up to 100% of the tax.

holiday property, may also lead to enquiries in other areas, such as the non-declaration of rental income.

There are complex rules to work out the capital

individual tax free allowance per person. Essentially,

for any tax relief and personal allowance available, tax is normally payable at 18% or 28%.

HMRC have launched yet another targeted campaign, this time on the sale of second homes. e launched vHMRC ha av

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