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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/eq_5GH33

💸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

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.

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

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

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

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

As a business owner, it's essential to know about tax changes in the new financial year. This is true for accountants and accounts departments too. Big shifts in tax and law have happened including: 🔵 Cut in National Insurance contributions 🔵 Reduction in tax-free allowance for dividends 🔵 VAT Threshold rises to 90K 🔵 Minimum Wage Increases The article below offers an easy-to-grasp summary. This way, you'll be ready for these changes and the year ahead. #NewFinancialYear #TaxChanges #NationalLivingWage #VATThreshold

Have got only PAYE Income. Do I need to file Self Assessment (SA) Return? The income threshold above which taxpayers with PAYE income only are required to file self assessment (SA) returns increased from £100,000 to £150,000 from 6 April 2023. This means that some clients will no longer need to file SA returns. However, there are certain instances when an individual may be required to continue in SA. These include if they: receive child benefit and their or their partner’s adjusted net income was over £50,000 (this figure will increase to £60,000 from 6 April 2024 for the 2024/25 tax year) are self-employed with income over £1,000 are a partner in a business partnership receive any untaxed income such as dividends above the annual allowance. Some taxpayers prefer to continue filing SA returns, even though they are not strictly obliged to, in order to ensure they pay the correct amount of tax. HMRC will automatically cancel an individual’s SA registration if the criteria are no longer met. Where a client wishes to continue filing SA returns, agents will need to manually re-enrol them each year.