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Although the first late payment of PAYE in a tax year will not result in a fine, failing to make subsequent payments on time will result in financial penalties, with interest also being applied to the amount outstanding on a daily basis. Penalties are calculated as a percentage of what is owed, and increase depending on how many times you’ve paid late within a tax year. The current penalty rates are as follows.. https://lnkd.in/e56nQhUP

Although the first late payment of PAYE in a tax year will not result in a fine, failing to make subsequent payments on time will result in financial penalties, with interest also being applied to the amount outstanding on a daily basis. Penalties are calculated as a percentage of what is owed, and increase depending on how many times you’ve paid late within a tax year. The current penalty rates are as follows.. https://lnkd.in/e77DTWgd

💸Great coverage in MailOnline today - I earn £130k and lost all my personal allowance - is there any advantage in doing my tax return early?💸 I moved jobs and my salary went up from just over £100,000 to £130,000 in May 2023. This meant that I lost all of my personal allowance. I thought that my employer was deducting this from my pay, as all my earnings are PAYE, but it turned out that they weren't and I am now going to end up with a big bill when I do my tax return. Is there any benefit to me in not waiting until January and doing my tax return for 2023 to 2024 now? Lee Murphy, managing director of The Accountancy Partnership, says: The general rule for self assessment is the sooner you can submit your records to HMRC the better. You'll normally know exactly what you owe almost immediately, but submitting your self assessment before the deadline doesn't mean you need to pay before the deadline. Want to carry on reading? Click the link🔗: https://lnkd.in/ec8FdU6n #personalallowance #tax #taxreturn #accountants #accountancy #selfassessment #hmrc #paye #smallbusiness #employment #selfemployed #office #businessnews

Have you started a new job in the last 4 years? There is a good chance you could have been emergency taxed. Recently Minister for finance Michael McGrath stated that ‘’Since 1 January 2024, €203m has already been refunded to individuals’ bank accounts as a result of the 2023 returns filed by PAYE taxpayers to date, but Revenue records indicate that a further €480m may have been overpaid during the year.” Revenue will not contact you to let you know that you have a refund coming to you. There is a limit to how far back you can claim tax refunds under Pay As You Earn (PAYE) and Self-assessment. This limit is set to four years, meaning you can only request reviews or claim refunds from the last four years. For example, claims for 2020 must be made by 31 December 2024. Recently we processed two Form 12’s (completed by a person whose main source of income is from a PAYE employment). They were due substantial amounts dating back to 2020. Spread the word and let others know. You could make their bank holiday weekend 😊

Do you know your BT from your NT when it comes to Pay As You Earn (PAYE) codes? No? Well we have a rundown here on what these codes mean for your tax and income.

I ran the numbers from last weeks budget so that you don’t have to! How to extract £50,000 of profit (before salaries) from your limited company whilst paying just over £2,500 in personal tax next year, with last week’s budget updates to national insurance in mind. I’ve reviewed last week’s updates to national insurance, so that you don’t have to. First thing we are going to do is maximise your personal allowance, as long as you’re not earning on payroll anywhere else, we are going to process a payroll for you up to your tax free allowance which is 2025-26 is £12,570 per year Not only is this 0% tax for you personally, but it’s corporation tax deductible for the company, saving you up to £2,400 in corporation tax relief Labour made some big changes to employers national insurance last week and while taking this salary will result in employers national insurance contributions, this is still the most tax efficient salary for next year. Just get your accountant to process payroll and set up a direct debit to HMRC which will mean no admin for you and you’re saving thousands in tax. Once we’ve done that, the remainder of your personal income is going to be made up in dividends. If you’re in the basic rate tax band you can withdraw up to £50,270 and only pay dividend tax at 8.75% This means for 2025-26 tax year you can make £50,000 of profit and pay just over £2,500 in personal income taxes for the entire year.

Most Tax-efficient Director's Salary and Dividends for 2024-25 As a limited company director in the UK, the best way to pay you is by taking a low director's salary and adding regular dividend payments. This is because allowances and tax thresholds change at the start of every tax year. That's why checking your earnings yearly is beneficial to ensure you pay your taxes efficiently. This blog will elaborate on the best director's salary and dividend format for the tax year 2024-25, from 6 April 2024 to 5 April 2025. But first, let's clarify the national insurance (NI), income, and dividend tax you need to pay on your personal income based on your earnings in the year. Learn more 👇 https://lnkd.in/d3bHXs_y

From 31 May 2024, HMRC will no longer automatically issue cheques for PAYE overpayments. If you receive a P800 tax calculation letter and are owed a refund, you'll now need to claim it online. Common reasons for overpayments include: ◾Incorrect tax code ◾Switching jobs ◾Starting a workplace pension Don’t miss out on your refund! We can help you claim it online. To find out more read the full blog here ⬇️ https://lnkd.in/ewV56ghz #taxbriefing #HMRC #PAYE #overpayments #P800 #refund #online

There have been several recent cases where clients/PAYE employees were surprised by the amount of tax they paid after crossing the £100K threshold. Most of them didn't realise that in the "marginal zone," they were paying taxes at a rate of 60%. If they had known, they could have taken action, such as contributing more to their pension, to reduce their tax burden. So, if you earn over £100K or are approaching this threshold, we recommend that you take a moment to read through this blog. And, of course, don't hesitate to get in touch if you need any assistance. #uktax #taxplanning #higherearner #taxrates #payroll #paye https://lnkd.in/esb7EsNz

Most Tax-efficient Director's Salary and Dividends for 2024-25 As a limited company director in the UK, the best way to pay you is by taking a low director's salary and adding regular dividend payments. This is because allowances and tax thresholds change at the start of every tax year. That's why checking your earnings yearly is beneficial to ensure you pay your taxes efficiently. This blog will elaborate on the best director's salary and dividend format for the tax year 2024-25, from 6 April 2024 to 5 April 2025. But first, let's clarify the national insurance (NI), income, and dividend tax you need to pay on your personal income based on your earnings in the year. Learn more 👇 https://lnkd.in/d3bHXs_y