January 29, 2010The PAYE code avalanche has started

HMRC expect to send out 25 million PAYE codes for 2010/11 over the next week/weeks, which is double the number of codes issued in 2009. And the media are reporting that many of the codes are wrong.

What’s the true position and why the massive increase in the number of codes being sent out?

HMRC say it is all down to the new national insurance and PAYE computer system (NPS), which merged data from 12 regional computer systems last summer. HMRC say there is NO glitch and that the system is doing all they want it to do. The combined data set should highlight situations where a person has more than one employment or pension. The personal allowance will then be automatically allocated over those income sources, which may not be how the taxpayer desires. In which case the taxpayer, or their agent, will have to contact HMRC to get a revised code.

Additional PAYE codes may be sent out where there has been a mismatch in the PAYE data, and two employment records have been set up for one employment. There have also been reports of some ceased employments being treated as live, leading to the personal allowance being split over two employments. In both cases HMRC should be informed of the incorrect codes.

January 25, 2010Tax and national insurance rates and thresholds

Tax allowances and thresholds will remain the same for 2010-11. Click here to access full information on rates and allowances for 2010-11.

If you’re an employer, employee or self employed, bear in mind that the following National Insurance rates will apply from April 2010:

All other National Insurance Contributions (NICs) rates and thresholds are unchanged for 2010-11. Click here for further information on NICs rates and thresholds.

Statutory payment rates

The table below offers a rundown of the figures for this year.

Cars and vans: Changes to fuel tax
Those affected will be employees who receive free private fuel from their employers for company cars or vans and employers who bear Class 1A NICs on the taxable benefit of provided fuel.

The measure sets the fuel benefit charge for company cars and vans from 2010-11 with company car fuel benefit charges increasing to £18,000 and company van fuel benefit charge increasing to £550. Click here for further information. 

Penalties for submission of in year forms to HMRC
Penalties for paper submissions kick in, in the final quarter of the tax year commencing January 2010 (this currently applies to PAYE schemes 50 employees or over).

January 18, 2010Neil Weston

DG Owens have looked after my company and personal tax affairs. It is a very personal service, they are very efficient and things get done on time and to a high level. If you are in business then you are likely to want someone who will cover the bases for you and this is certainly what DG Owens do.

N D Weston Limited

January 13, 2010Taxman increases use of terror laws

MPs have been told HM Revenue & Customs used controversial surveillance laws intended for dealing with terrorists in 5,600 investigations last year.

Under the Regulation of Investigatory Powers Act officials are permitted to follow and watch people or informants.

HMRC claims the powers are only used where there is a suspicion of smuggling drugs, arms or in major VAT cases such as carousel fraud.

The Mail says critics the taxman could use the laws to investigate minor tax cases.
Story from:
Accountancy Age