Farrell & Farrell Chartered Accountants’ Post

Changes in the Claiming Process for PAYE Employment Expenses💡 HMRC is altering the process for employees to claim PAYE employment expenses. Beginning from the 14th of October 2024, claims will need to be made via paper submissions through the post. The move is part of a broader initiative to mitigate fraudulent claims. Find out how to use the new process here https://lnkd.in/eDDSMuAq #Tax #accounting #finance #smallbusiness #business #accounts #accountingandaccountants #financialservices

EMP501 RECONCILIATION 📃 This serves as a reminder that your bi-annual Employer Reconciliation Declaration (EMP501 Reconciliation) is due for submission to SARS by no later than 31 May 2024. Late submissions will impose penalties (equal to 1% of the year's PAYE, for each month the return is outstanding, up to 10% of the year's PAYE).   It is important to submit accurate reconciliations – a SARS rejection can create an additional administrative burden for your company. Should you require our assistance in this regard, please contact our Tax Department or contact your contact Partner at MGI Bass Gordon. #taxmatters #taxdeadline #employer #taxadvice #sars #mgi #TEAMBASS #tax #audit #accounting #cloudaccounting #capetown #sme #corporatefinance

💡 Industry Insight 💡 🔊 The government have set out plans for the “tackling of noncompliance within the umbrella company market”. 🔊 Meaning agencies or the end client ( in cases where there is no agency ) will bear the legal obligation for ensuring that accurate PAYE ( income tax and National Insurance contributions ) are made to HMRC. This means that agencies must ensure that correct deductions are made on all candidate payments, even if the candidate engages an umbrella company for processing their payroll . 📞 Get in touch today if you have a contractor operating through a non compliant umbrella company and need to discuss how this may affect YOU as an agency / client. ✉️ lucia.deaville@umbrella.co.uk ☎️ 07917794778

Interesting part of yesterday's announcement regarding contractors, umbrella companies and agencies. This is the brief from HMRC today: "Umbrella Companies  To tackle the significant levels of tax avoidance and fraud in the umbrella company market, the government will make recruitment agencies responsible for accounting for PAYE payments made to workers that are supplied via umbrella companies. Where there is no agency, this responsibility will fall to the end client business. This will take effect from 6 April 2026." Based on my experience, the worries of clients and the worries of HMRC are not aligned. Clients use Umbrella companies to de-risk their contractor recruitment in terms of IR35. But HMRC are of the opinion that Umbrella companies are a significant risk in terms of not making PAYE payments. If HMRC are shifting the risk back to the agency and the client, then does that not spell the end of the use of Umbrella companies and return to the common-sense approach of letting contractor's own companies' accountants do it themselves properly? I hope so. #IR35 #UmbrellaCompanies #HMRC #RecruitmentAgencies #Contractors #Budget

🚨 Attention Recruitment Sector: Wake Up and Smell the Coffee! 🚨 https://lnkd.in/e9nB-Mkb Your reputation and brand are at risk! HMRC is cracking down on dodgy payroll providers, and they know who you are. Don't wait until April 2026 to make changes - act now or expect a shock and a knock on your door. Non-compliant umbrella companies are shutting shop or being shut down every day. The risks are real: • Tax compliance checks • Liability for contractors' unpaid taxes • Penalties for enabling tax avoidance schemes • Reputational damage and loss of business Protect yourself: Regularly check HMRC's blacklist of tax avoidance schemes https://lnkd.in/eZTs4Bbk Verify PAYE compliance with sample payslips Include indemnity clauses in contracts Educate your contractors about tax avoidance risks The clock is ticking. Don't be caught off guard. Are you encouraging or committing fraud! Ensure compliance now and safeguard your business for the future. #RecruitmentCompliance #PayrollSafety #HMRCWarning

Is your business facing an HMRC employer compliance review? Find out what to expect when HMRC checks if you're meeting your PAYE and NI obligations. Don't get caught off guard—read our latest blog to prepare! https://buff.ly/3Ne5LYT #BusinessTips #HMRC #EmployerCompliance #PAYE #NI #TaxTips

💼 Claiming employment expenses? HMRC has updated guidance on the evidence needed for PAYE and P87 claims. ✅ Keep receipts, invoices, and proof of payments ❌ Claims without evidence may be delayed or rejected. 🔗 Read the full guidance here https://ow.ly/VnK550Uwuig #TaxTips #HMRC #EmploymentExpenses

Had some encouraging conversations with #HMRC in relation to the #CarAllowance NIC reclaims over the past week. #Knowledge shares below 👇 Important reading for those looking at ways of mitigating the NIC increases heading our way from April 2025 💡 historic claims can be made outside of #RTI - providing a reason as to why this route is being taken is important. This route also enables an explicit review to take place to give better piece of mind. 🎯 With outside RTI claims, HMRC will contact and pay affected workers directly. We have been helping clients inform their workers of what will happen so that the HMRC correspondence doesn’t come as a shock. HMRC will pay the #employer for their employer NIC reclaim directly once reviewed. 👷♀️ We have been working with HMRC to agree a format and method to send the relevant information to review across to make it comprehensive and efficient to assess. 🎸 To embed the #NIC disregard into the #payroll process, it will be important to have two Car Allowance payments, one subject to tax/NIC and one subject to tax only. We are helping organisations get a robust, compliant and effective process in place and also discussed this with HMRC. Any questions, please do let me or any of my colleagues know! Nabeel Thakur Jack Rooney Jennifer Brown Jack Darwin Ian Prescott Emily Seabeck Jim Boylan Shaun Mullins

FINAL reminder for all those employers out there, don't forget that your monthly PAYE payment to HMRC is due on 22nd (of every month) - that's TODAY! #accountancy #PAYE #HMRC #accountantswithadifference

FINAL reminder for all those employers out there, don't forget that your monthly PAYE payment to HMRC is due on 22nd (of every month) - that's TODAY! #accountancy #PAYE #HMRC #accountantswithadifference