All posts in Tax

Form P87 Tax Relief for Expenses of Employment

Your employees may be able to claim tax relief if they have to use their own money, and you haven’t reimbursed them, for travel or things that they must buy for their job.  For example; – repairing or replacing small tools – cleaning, repairing or replacing specialist clothing, for example, a uniform or  safety boots – business mileage, where an employee uses their own vehicle or fuel costs, if using a company car – travel and overnight expenses – professional fees and subscriptions paid to some approved professional organisation   It’s free and easy to make a claim through HMRC….


Tax Free Benefits

Rewards for employees where the employer and the employee benefit from cost savings include; Childcare Support Workplace Nursery Employee Travel Workplace Parking Staff Recognition Awards Gym Membership Employee Cars Mobile Phones Well-persons Check Private Healthcare Carbon off-setting Luncheon Vouchers Christmas Parties Meals in Staff Canteen Hot Drinks & Water at Work Car Clubs Professional Subscriptions Trivial Benefits upto £50 (inc High Street Vouchers) Training Long Service Awards Read more here  


Tax Free Payments in Lieu of Notice (Pilons)

As a rule Payments in Lieu of Notice (Pilons) are taxable, unless there is no express Pilon clause in the contract of employment and an employer has not established a tradition of paying departing staff Payments in Lieu of Notice.  In this instance the payment is an advance payment of damages, aimed at compensating the employee for the employer’s breach of contract and avoiding a potential legal claim, and will be exempt upto £30,000. Employers that wish to make tax free Payments in Lieu of Notice should check what they are doing to avoid a tax liability, because if employers incorrectly decide…


Making the most of Trivial Benefits

Now its even easier to be a lovely employer and give your employees Trivial Benefits in the form of treats and perks without creating a liability for the employee to Income Tax for a Benefit in Kind (BiK). To qualify as a Trivial Benefit, conditions A-D must be met; A – the BiK must not be cash or a cash voucher B – the BiK must cost £50 or less C – the BiK must not be provided as part of a salary sacrifice or contractual arrangement D – the BiK must not be provided in recognition of service performed…


Why does the UK Tax Year start on 6th April?

New Years Day and the start of the Tax Year used to be on the 25th March.  But in 1582 Pope Gregory XIII ordered a change from the Julian 11-Month Calendar (named after Julius Caesar), to the Gregorian 12-Month Calendar (named after Pope Gregory), to align with the Solar Calendar (time taken for the earth to travel around the sun). Except the UK decided to ignore the Pope’s decree for some 170 years.  When they finally realised they would have to do it, they had to drop 11 days from the calendar.  So Sept 2nd 1972 was immediately followed by…


Transfer £1,060 of your personal allowance to your partner

From April 2015, if you are not liable to Income Tax, or not liable to Income Tax above the Basic Rate you can transfer £1,060 of your personal allowance to your spouse or civil partner, if the recipient is not liable to Income Tax above the Basic Rate (meaning, no sacrificing Basic Rate Tax to save Higher Rate Tax!) This will save upto £212 for couples where one partner is unable to use all their personal tax allowance.


Income Tax Rates & Allowances and NIC’s Rate for 2015-16 from today

Income Tax Rates 20% Basic Rate: £0 – £31,785 40% Higher Rate: £31,786 – £150,000 45% Additional Rate: £150,000+ Income Tax Allowances Personal Allowance for anyone born after 1938 £10,600, born before 1938 £10,660, (income limit for age related allowances is £27,700).  Blind Persons Additional Allowance £2,290. National Insurance Rates Class 1: Lower Earnings Limit (LEL) £112, Primary Earnings Threshold (PET) £155, Secondary Earnings Threshold (SET) £156, Upper Accrual Point (UAP) £770, Upper Earnings Limit (UEL) £815. Class 2: £2.80 per week, Small Earnings Exception £5,965 per annum, Special Rate for Share Fisherman £3.45 per week, Special Rate for Volunteer Development…


HMRC Basic Paye Tools for Employers doing their own Payroll

The software is downloaded onto your computer and helps you run the payroll for upto 9 employees, and report in real time to HMRC.  Find it here; payroll-system.htm The 100 page Employer Payroll Guide 2015 is also available to help you here; For those of you who don’t want to do it yourself, just give us a call on 0333 320 7032 and we’ll do it for you, while you get on with doing what you’re good at… earning the money!

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