HJP Chartered Accountants’ Post

Tax is rarely trivial! However, did you know that you can provide #trivialbenefits in the form of vouchers up to the value of £50.00 per employee without any tax or national insurance implications or the requirement to declare as a benefit in kind if: ✅it costs you £50 or less to provide ✅it isn’t cash or a cash voucher ✅it isn’t a reward for their work or performance ✅it isn’t in the terms of their contract (the above is lifted direct from the HMRC website and these rules must be followed exactly). https://lnkd.in/eZeakRjP This can be a wonderful way to recognise and thank your people anytime of the year, but especially around Christmas. 🎄 Also, if you are the director of a close company, (5 or fewer shareholders) you can benefit up to £300.00 in each tax year, (6 individual vouchers at £50.00 each, again the rules above apply). I just need to now find 6 reasons to thank myself this year 😀 #teamrewards #taxefficient #benefits

Highlights from the broader tax news for March, including: HMRC's framework for large businesses; new secondary legislation applying across a range of areas, including the off-payroll rules; maps of investment zones; and updated guidance on genuine HMRC contact. Read the full article in the link in the comments... #accountancyrecruitment #taxnews #pavilionrecruitment

Companies are required to report their share schemes (EMI, CSOP, SAYE and SIP) and any significant events related to employee securities to HMRC by 6 July each tax year. Rebecca Martin, senior manager in our Manchester office, provides further specifications on the requirements in our latest blog below. #ERS #tax #annualreporting #HMRC

Tax payer only has single W-2, but still he needs to file schedule C did you know the scenario? if you don't know go through the below line. first #Let's Understand the "worker Classifications" Because businesses are responsible for withholding and paying income, employment, and FUTA taxes, as well as reporting payments to independent contractors, they must accurately determine whether a person they pay is an independent contractor or an employee. A business is generally not required to withhold or pay taxes in connection with payments to independent contractors. However, it must understand the relationship that exists with each person it pays to perform services. A person performing services for a business may be: An independent contractor: 1099-NEC (Sch: C) An employee: - W-2 3 A statutory employee: W-2 (Sch: C) A statutory nonemployee: 1099-NEC (Sch:C) • STATUTORY EMPLOYEES. .. Statutory employees are unique, because they are issued Forms W-2 by their employers, but report their wages, income, and allowable expenses on Schedule C, just like self-employed taxpayers. ✔ Statutory employees are usually salespeople or other employees who work on commission. The difference is that statutory employees are not required to pay self-employment tax, because their employers must treat them as employees for Social Security tax purposes • Examples of statutory employees. • Full-time life insurance salespeople, • Traveling salespeople, • Certain commissioned truck drivers, • Certain home workers who perform work on materials or goods furnished by the employer. If a person is a statutory employee, the "statutory employee" in box 13 of Form W-2 should be checked. #IRS #EA#CPA#businesscompliance #scheduleC #statutoryemployee #individualtax #ustax #ustaxation #tax #statutoryemployee

If you are an employee in any UK company you must check if you have paid more PAYEE tax. If yes, HMRC won't send you a refund cheque automatically but you have to apply for it. After the end of the tax year, HMRC checks to see if an employee has paid the correct amount of tax under PAYE. The reconciliations for 2023/24 are in progress. The employee may have paid too much tax, perhaps because they have been put on the wrong tax code. In this case, HMRC will write to the employee and tell them that a repayment is due. Generally, letters are sent between June and November after the end of the tax year. Previously, HMRC sent a cheque to the employee if they had not claimed the repayment online after 21 days. However, since 31 May 2024, HMRC has not issued cheques automatically. Instead, the employee needs to claim their repayment.  The tax calculation letter includes instructions on claiming the repayment and the alternative process for those who cannot claim online. The employee can request a cheque through this process if required.  #TaxAccountants #UKTax #TaxAdvice #TaxPlanning #TaxConsultants #UKFinance #Accounting #UKAccountants #TaxPreparation #BusinessTax #PersonalTax #TaxCompliance #HMRC #TaxReturns #FinancialServices

💼 Understanding Your Tax Liability 💼 Day 2/30 Today, as part of our 30 days Understanding your tax liability series, we're focusing on Old Regime vs New Regime Tax declaration for salaried employee. Generally employees have an option to choose either old or new regime whichever is beneficial to him depends on his salary and Deductions. If an employee fails to make a declaration with the specific time, then by default the employer has to deduct TDS under the new regime. But again while filing ITR after FY ends the employee will have an option to change old to new or new to the old regime. One can change from Old Regime to New Regime or New Regime to Old Regime any number of times. However to change from New regime to Old Regime you must file ITR before Sec 139(1) due date i.e., 31st July Note: That person should not have PGBP income such as trading income, professional income, business income, F&O Income. Let’s make this tax season less daunting and more manageable together!#TaxTips #TaxSeason #FinancialPlanning #TaxLiability #StayInformed

After much anticipation, Revenue has finally released their updated Share Options Manual.  The manual provides some helpful guidance in relation to the changes which took effect from 1 January 2024 in respect of share option gains being processed through the PAYE system. Although even with this clarity, it is likely that some employers will still be scratching their heads on the practicalities of processing share option gains in line with this released guidance. If you have any queries or concerns as to how this might impact your business, please get in touch with your usual PwC employment tax contact. #ShareOptions #TaxCompliance #IrishRevenue #FinanceProfessionals https://lnkd.in/edug8TFj

62.8% Director tax burden, 71.5% Employee! I'm generally in favour of paying taxes, the more you pay the more you're earning. But as my company offers services, the tax burden seems a bit high, for example: £100 income for a service offered by the company assuming no costs and for it all to be profit: Director earnings from £100: 20% VAT, 25% Corporation tax, 38% Dividend Tax, HMRC = £62.80, Director earns £37.20. Employee earnings from £100: 20% VAT, 13.8% Employers NI, 8% Employees NI, 40% mid rate tax. HMRC = £71.45, Employee earns £28.55 And if that employee wants to spend it on petrol to get to work..!

Employment-related securities As the 2023/24 tax year has now drawn to a close, it is important for employers to consider their Employment Related Securities (ERS) reporting requirements. A reportable event is any event whereby an individual acquires shares /securities or exercises options in the company which employs them (or in another company, by reason of their employment). We have seen an increase in the number of employers which have ERS issues, therefore it is important to consider reporting responsibilities. The submission deadline for ERS returns for the tax year ended 5 April 2024 is 6 July 2024. Failure to submit on time can result in significant penalties, even if there is no tax liability due to HMRC. There are some administrative hurdles to overcome if this is the first year where a scheme is to be registered, so please get in touch as soon as possible to avoid any late rush or potential penalties! #tax #ERS #employmenttax