If you need a tax return filed, contact [email protected].

The post Self Assessment payment deadline today – July 31 appeared first on Baxterworld.

The post Tax Tips for Employees PT.2: Navigating the Cost of Living Crunch appeared first on Baxterworld.

The post Smart Money-Shifting: How Couples Can Slash Tax Bills appeared first on Baxterworld.

A new wider ranging Government run scheme called Tax-Free Childcare starts early 2017. This allows a staff member to open an online account into which the staff member pays for Childcare. For every 80p paid, the Government tops up with 20p, representing 20% of a maximum cost of £10,000 p.a.

To qualify, parents will have to be in work, and each earning around £115 a week and not more than £100,000 each per year.

This scheme will also apply to self-employed parents.

This scheme does not require the employer to be involved.

The post What are Childcare Vouchers appeared first on Baxterworld.

Entertainment – You can pay to entertain your staff up to £150 without causing them a tax liability.  This limit will include the Christmas party, the summer barbeque and any other similar functions. Once you spend over £150 per year per head, the whole amount becomes taxable, not just the amount over £150 so be careful. The £150 limit also applies to guests attending, which makes the limit £300 if a member of staff brings their partner! This limit is additional to the Trivial Gifts limit. 

Staff Uniforms – Providing your staff with a uniform has always been accepted as having no taxable benefit if used only during work. If used at outside work, it should include a permanent employer logo or badge otherwise it may become taxable. If you need to provide Doris with a jacket to meet health & safety requirements during work, then it is not a taxable benefit.childcare vouchers.

Lunchtime Meetings – If you provide food and drink to your staff over a lunchtime meeting, this may be taxable. For the lunch to be provided tax free, it must be available to all members of staff so make sure everyone receives a meeting invitation, or at the very least that the leftover food is shared by everyone else.

Gift Vouchers – Providing gift vouchers to your staff is unfortunately taxable one way or another. You can either declare the vouchers on each employee’s form P11D so that they pay the associated tax and national insurance or you can set up a ‘PAYE Settlement Agreement’ with HMRC which will arrange for the tax and national insurance bill to be sent to the employer.

Cycle to Work Scheme – Why not encourage your staff to cycle to work? Not only will it keep them fit and healthy but it is also good for the environment. Even HMRC think this is a good idea and subsequently allow employers to provide their staff with bicycles – tax free! After 12 months, employees can purchase the bicycle from their employer at the ‘market value’ which can be anything as low as 5% of the original cost. Employees therefore acquire bicycles at bargain prices, with the employer claiming full tax relief on the net cost to them.

Mobile Phones – You may provide each member of staff with a mobile phone tax free. This could be used to reduce their salary by the appropriate amount then provide the phone and therefore save the associated tax and national insurance.

Computers / Tablets – You could also provide your staff with a computer or Tablet. HMRC will not tax your staff providing that they are used mainly for business purposes with any private use being insignificant. This does not apply to mobile phones which can be provided tax free even when there is no business use.

Cash Bonuses – If you treat your staff to a cash bonus this must be put through the payroll and the appropriate tax and national insurance must be deducted

The post Gifts and benefits to staff at Christmas – What is taxable? appeared first on Baxterworld.

From an employer’s point of view their job was done when the P11D was completed, leaving HMRC to decide if it was allowable.  Now the employer must make that decision and be potentially penalised if they get it wrong.

Some expenses are easy. If an employee works from home and buys some stationery, that can be refunded free of tax and NI. Travel costs are more problematic. The overriding rule is the same as always, the inelegant “wholly, exclusively and necessarily in the performance of the duties.”

Don’t forget that for the 2015/16 tax year a P11D is still required and must be filed before 6 July 2016.

For more information on the new system see the HMRC guide: Booklet 490

The post New treatment of employee expenses in UK appeared first on Baxterworld.

The post Annual Investment Allowance appeared first on Baxterworld.

The post VAT refund rules changed appeared first on Baxterworld.

The post Minimum wage, Living wage and Employers Allowance appeared first on Baxterworld.

The new rates from 4 December 2014 are as follows:

The post New stamp duty rates for house purchases appeared first on Baxterworld.