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April 2014: Budget and PAYE advice

The 5th of April is the end of the tax year so this seemed an opportune moment to remind readers what has changed, as a result of the Budget announcements two weeks ago. We are also going to remind employers of a change to the way HMRC will charge interest on late paid PAYE from the 6th of April 2014 and finally, we will give you a few important dates for your diaries.

 

Some things that have changed that could be useful to you:

 

1) For anyone born after 5th April 1948 the personal tax allowance is currently £10,000. It was also announced that from the 6th of April 2015 this would increase to £10,500.

2) From April 2014 employers can now claim the new £2,000 Employment Allowance. This can be used against their employers’ secondary National Insurance Contributions.

3) Child care support has increased to 20% of costs capped at a maximum total cost per child of £10,000. All age groups will be brought into this scheme by autumn 2015.

4) From the 6th of April 2014 the Private Residence Relief final period exemption for Capital Gains Tax purposes is reduced to 18 months, previously it was three years.

 

Also employers need to know that HMRC are in the process of changing how interest will be charged on PAYE. HMRC will charge during the year, rather than annually on, all unpaid:

  • PAYE tax and Class 1 National Insurance, including specified charges (estimates HMRC makes in the absence of a PAYE submission).
  • · Construction Industry Scheme charges.

 

  • In-year late filing penalties, which start from October 2014 and In-year late payment penalties, which will be charged automatically from April 2015.

 

Some important dates in April and May:

 

April 5th: End of current tax year.

April 6th: Start of the new tax year

19th of April 2014 – PAYE and NIC deductions due for month ended 5th of April 2014. (If you pay your tax electronically the due date is 22 April 2014.)

19th of April 2014 – Filing deadline for the CIS300 monthly return for the month ended on the 5th of April 2014.

19th of April 2014 – CIS tax deducted for the month ended 5th of April 2014 is payable by today.

19th of May 2014 – PAYE and NIC deductions due for month ended 5th of May 2014. (If you pay your tax electronically the due date is 22nd of May 2014.)

19th of May 2014 – Filing deadline for the CIS300 monthly return for the month ended 5th of May 2014.

19th of May 2014 – CIS tax deducted for the month ended 5th of May 2014 is payable by today.

19th of May 2014 – The payroll forms P35 and P14s must be filed by this date – employers late in filing these forms may receive a penalty.

31st of May 2014 – Ensure all employees have been given their P60s for the 2013-14 tax year.

 

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