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Adding new employees to the payroll

06 Apr, 2017

Employers that take on a new employee need to work out which tax code and starter declaration to use in their payroll software. Incorrect tax codes can lead to the new employee paying more tax than is due.

The necessary information can be collected by asking the new employee to complete HMRC's new starter checklist and / or from the employee’s P45. This information must be held in the employer's payroll records for the current year and the 3 following tax years. Once the information has been collated, HMRC’s online tool can be used to work out the employee’s tax code.

Non-domiciles living in the UK

30 Mar, 2017

In July 2015, George Osborne announced measures to reduce the availability of non-domicile status to those living a substantial amount of time in the UK. These measures are effective from April 2017, and will affect any person who has been resident in the UK for more than 15 of the previous 20 years - they will be deemed to be domiciled in the UK for tax purposes.

New Investment Bond

30 Mar, 2017

It was announced as part of the last autumn statement that a new National Savings and Investments (NS&I) product called the NS&I Investment Bond will be launched. It has now been confirmed that the product will be available for 12 months from April 2017 for a 3-year fixed term. The new Investment Bond offers a reasonable rate for savers who have been hard hit by low savings rates for a number of years.

New £1 coin in use from 28 March 2017

30 Mar, 2017

The new £1 coin entered circulation on 28 March 2017 and is now legal tender. The new £1 coin is 12-sided and will replace the round shaped £1 coin that has been in use for 30 years. The new coin has being introduced to help combat the use of counterfeit coins and will, according to the Royal Mint, be the most secure coin in the world.

Second incomes campaign

30 Mar, 2017

The second incomes campaign offers individuals the opportunity to inform HMRC that they have undeclared income from a supplementary income stream. The campaign targets individuals in employment who have an additional untaxed source of income.

The HMRC guidance lists the following possible examples:

Money Laundering Regulations

30 Mar, 2017

The Money Laundering Regulations (MLR) are designed to protect the UK financial system and put in place certain controls to prevent businesses being used for money laundering by criminals and terrorists.

Many businesses are monitored by the Financial Services Authority or certain professional bodies. However, businesses that HMRC is responsible for supervising should be aware of the requirement to register with HMRC and the penalties for not doing so.

HMRC is responsible for supervising the following five business types:

Launch of the Tax-Free Childcare Scheme

30 Mar, 2017

It has been confirmed that the new Tax-Free Childcare Scheme (TFCS) will be launched on 28 April for parents of young children. All eligible parents will be able to join the scheme by the end of 2017.

The TFCS will support working families with their childcare costs. The new scheme will eventually replace the current salary sacrifice scheme and will be open to all qualifying parents including the self-employed. The scheme will also be available to parents on paid sick leave and paid and unpaid statutory maternity, paternity and adoption leave.

Employment law changes

28 Mar, 2017

The following key changes to employment law will come into force in April 2017:

Forthcoming changes to the Immigration Rules

28 Mar, 2017

The government has published a new statement of changes in the Immigration Rules, setting out various changes that will come into effect from 6 April 2017. They key changes are:

Tax Diary April/May 2017

24 Mar, 2017

1 April 2017 - Due date for Corporation Tax due for the year ended 30 June 2016.

19 April 2017 - PAYE and NIC deductions due for month ended 5 April 2017. (If you pay your tax electronically the due date is 22 April 2017)

19 April 2017 - Filing deadline for the CIS300 monthly return for the month ended 5 April 2017.

19 April 2017 - CIS tax deducted for the month ended 5 April 2017 is payable by today.

VAT fuel scale charges

23 Mar, 2017

The new VAT road fuel scale charges have been published. The changes amend the VAT scale charges for taxing private use of road fuel to reflect changes in fuel prices.

The new fuel scale charges must be used by companies from the start of their next prescribed accounting period beginning on or after 1 May 2017. The fuel scale rates continue to encourage the use of cars with low CO2 emissions.

The revalorisation of fuel scale charges is no longer part of the Budget process and the tables are published by HMRC annually.

Employer arranged pensions tax-free allowance

23 Mar, 2017

A new annual £500 tax-free allowance for any adult that receives advice for employer arranged pensions comes into effect from 6 April 2017. The advice provided can relate directly to the pension as well as to the general financial and tax issues relating to pensions. New draft guidance explaining these changes in more detail has recently been published by HMRC.

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