Q: Can you summarise what the changes to company car and van benefits are from 6 April 2013 please?
A: From the 6th April 2013:
Company cars
- The car fuel benefit charge multiplier will increase from £20,200 to £21,100
- The lower threshold will be reduced from 120g/km to 115g/km
- The lowest appropriate percentages are still 0 per cent and 5 per cent
- The 10 per cent charge will now apply to cars with CO2 emissions of 76g/km to 94g/km
- The appropriate percentage will increase by 1 per cent for all vehicles with CO2 emissions between 95g/km and 215g/km, to a maximum of 35 per cent
- The van fuel benefit charge multiplier will increase from £550 to £564
- The van benefit is frozen at £3,000
Category: PAYE, NIC & Benefits In Kind
Leasing a car
Q: I’m thinking of leasing a car in the name of my personal company. Do you have any recommendations to keep the tax burden down?
A: Firstly, if the car triggers a benefit in kind, then you will always be better off looking for a vehicle with low CO2 emissions, as this will result in a lower car benefit percentage and therefore a lower personal tax liability for you.
Furthermore, you should also be aware that if the car has emissions over 130g/km, it is likely that 15% of the lease payments will be disallowed for corporation tax purposes. If the emissions are below this level, the entire lease payments should be tax deductible.
Category: General Business
Do I have to give a P60?
Q: I have some part-time staff and one of them has asked me for a P60. I don’t manage a payroll because I don’t pay any of them enough. Do I have to supply my employee with a P60? I’ve never done one before.
A: You are only obliged to provide your employee with a P60 if you were obliged to operate a P11 and register as an employer. Based on what you have said, it sounds as if this does not apply to you and therefore, you are not obliged to supply them with a P60.
However, they have obviously asked you for the form for a reason (perhaps they are completing their Tax Credits forms), so out of goodwill, you could complete one for them voluntarily from your records. But needless to say, a corresponding P14 does not need to be sent to HMRC.
Category: Payroll
VAT return due date
Q: I have a VAT return to submit for the period ended 28th February 2013. When do I need to submit it to HMRC?
A: Normally, you have one month and seven days to submit your VAT return if you file it electronically. As your VAT return is dated 28th February 2013, you have until 7th April 2013 to file it with HMRC.
However, HMRC's VAT online service will be unavailable between 6.00am 4th April and 6.00am 6th April 2013. So I would encourage you to submit your VAT return early by 4th April 2013.
Remember, late VAT returns may be subject to surcharges.
Category: Value Added Tax (VAT)
RTI and small employers
Q: I have two staff that I pay weekly, but I only run my payroll at the month end. I am aware that of the changes under RTI, but will I really be expected to operate my payroll every week from now on?
A: HMRC have announced that until 5th October 2013, employers with fewer than 50 employees may send information to HMRC by the date of their regular payroll run but no later than the end of the tax month (5th).
Little detail has been released surrounding this announcement, but it sounds as if adoption of the concession is optional; not the default.
But this should be of great benefit to employers such as you that pay their staff weekly but only run the payroll once a month. It should mean that you payroll process will be fairly unchanged under RTI until 5th October 2013.
Category: Payroll
Emailing P60s
Q: I try to keep my office paperless and I was wondering if I can email my employees their P60; rather than printing them all off.
A: Since 2010/11, form P60 can be provided on paper or electronically.
But you should confirm with all of your employees that they are happy to receive their P60 electronically before proceeding to email them. Your staff will need to ensure that they have access to secure facilities to view and print a copy.
If your employees prefer not to receive their P60 electronically, then you will have to provide them with a hard copy as normal.
Category: Payroll
Disclaimer – advice shared in this column is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this column, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
