Welcome to our July news where we have a brief round up of the top accounting news for you.
Simplifying corporation tax
The Office for Tax Simplification has published their recommendations on simplifying the corporation tax computation.
This report sets out some significant steps towards creating a 21st-century corporation tax system in the UK, responding to calls from businesses of all sizes to make the calculation of corporation tax simpler, with fewer changes and more time to plan. The report looks at four broad themes:
- simpler tax for smaller companies
- aligning the tax rules more closely with accounting rules where appropriate
- simplifying tax relief for capital investment
- a range of further issues affecting the largest companies.
We will keep you informed of developments in this area.
Link – GOV.UK review CT
Employment Related Securities return deadline
HMRC are advising that there have been technical issues with their Employment Related Securities (ERS) annual returns online service. Employers have to complete returns for any schemes that have been registered on the ERS online service, such as Enterprise Management Incentives (EMI), a non-tax advantaged scheme or award, Company Share Option Plan, Save As You Earn Scheme and Share Incentive Plan
HMRC apologise for the difficulties which had prevented some returns from being submitted online. They have confirmed that the service is now working and allowing users to upload the necessary templates and files as part of the return process.
The deadline for filing annual returns is generally 6 July following the end of the tax year, so for the tax year 2016/17 it would usually be 6 July 2017. However, in view of the recent problems HMRC have extended the deadline to 24 August 2017 for the tax year 2016/17.
Penalties for late returns
Due to the change in deadline this year HMRC are advising that:
‘Penalties are charged if you file your return late. If your return isn’t filed by the extended deadline of 24 August 2017 the first late filing penalty of £100 will be issued on 25 August 2017.
Additional automatic penalties of £300 will be charged if the return is still outstanding 3 months after the original deadline of 6 July, and a further £300 if it’s still outstanding 6 months after that date. If a return is still outstanding 9 months after the 6 July, daily penalties of £10 a day may be charged.’
If you would like any help or guidance on share incentives or how these should be reported to HMRC please contact us.
Link – GOV.UK bulletin
Land Transaction Tax
From April 2018, Land Transaction Tax (LTT) will replace Stamp Duty Land Tax (SDLT) in Wales. Land and Buildings Transaction Tax (LBTT) already applies in Scotland.
Like SDLT (and LBTT), LTT will generally be payable on the purchase or lease of a building or land. The new tax may therefore be relevant to house buyers and sellers and businesses including builders, property developers and agents involved in the transaction process (such as solicitors and conveyancers).
Rates of the new tax
The proposed tax rates and bands will be announced by October 2017.
Additional residential properties
Higher rates of SDLT and LBTT apply to purchases of additional residential properties, including second homes. The National Assembly for Wales has confirmed these increased rates will continue to apply in Wales under LTT.
More details can be found at National Assembly for Wales.
Now is the time of year when many of us turn our thoughts to holidays and it is important to get holiday entitlement and holiday pay right.
The June 2017 acas newsletter includes links to useful guidance on calculating holiday and holiday pay entitlements as well as guidance on hot weather working.
The GOV.UK website includes a useful calculator.
If you would like help with payroll matters please contact us.
Latest Guidance for Employers
HMRC have issued the latest version of the Employer Bulletin. This edition has articles on a number of issues including:
- P11D and P11D(b) filing and payment deadlines
- Paying the right amount of tax through PAYE
- Construction industry scheme repayment claims for limited companies
- The Apprenticeship Levy and funding of apprenticeship training
- Tax-free childcare rollout including guidance on dealing with employee opt outs of current childcare voucher schemes
- Student Loan employer prompts where deductions have not been made
- GCSEs in England – new grading system explained for employers
If you have any queries on payroll matters please contact us.
Link – GOV.UK Employer bulletin