Friday, February 26, 2010

Using Your Own Car For Work



HMRC have updated their guidance on using your own vehicle for work. 


The guidance needs to be read in conjunction with the mileage rates which for those using their own car for work purposes are unchanged at 40 pence a mile for the first 10,000 miles dropping to 25 pence a mile thereafter.


C Todd & Co ~ Chartered Certified Accountant in Broomhill, Sheffield ~ www.c-todd.com

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Statutory Payment Rates 2010/11





The new Statutory Payment Rates for 2010/11 have been announced. 

The new rates are as follows:

The current Statutory Sick Pay (SSP) weekly rate of £79.15 is being retained for 2010/11.

The Statutory Maternity Pay (SMP) standard rate will be £124.88 for payment weeks beginning on or after 4 April 2010.  The current rate is £123.06.

The same weekly rate applies to Statutory Paternity and Statutory Adoption Pay.

If you would like any help with any of these statutory payments please do get in touch.




C Todd & Co ~ Chartered Certified Accountant in Broomhill, Sheffield ~ www.c-todd.com


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Further News on HMRC Incorrect PAYE Tax Codes





HMRC are advising employees that between January and March 2010 they will be issuing new PAYE coding for 2010/11. The tax codes should reflect the individual's personal circumstances and include the tax allowances and reliefs that individuals are entitled to.

HMRC are advising that this is the first time the annual coding process will take place using HMRC's new computer system for processing PAYE, known as the National Insurance and PAYE Service (NPS). HMRC are expecting more employees than usual, approximately 25 million, to receive coding notices because of the new system.

However, it appears that there may be a problem with the new coding notices, according to the Chartered Institute of Tax President Andrew Hubbard
 "Most people on PAYE are used to assuming that what the taxman sends them is correct. Many file away coding notices without even bothering to check them."


"But this year, many of them are being given wrong information, and unless they spot it and tell HMRC, their employer will receive the wrong information too, and they could get a nasty shock when they open their April pay packet and see it is as much as a hundred pounds lighter than they are expecting."

According to the CIOT website 
'Those affected are thought to include taxpayers who have left a job in the last few years. The HMRC database appears to have 'lost' the information it holds about people leaving jobs and as a result is combining taxpayers' current employment records with old data and concluding that they have two (or more) jobs and much higher earnings than they do.


Anyone with two jobs normally has their personal allowance (the portion of your income you do not have to pay tax on) counted against the job with the highest wage. As a result of the error many people will, in effect, have their personal allowance split between two jobs or allocated to a job they no longer have, meaning their current employer will be obliged to deduct too much income tax. 

The personal allowance will be £6,475 for most people under 65 in 2010/11. If the whole of that personal allowance is wrongly applied that would cut a basic rate taxpayer's pay packet by about £108 a month or £1,295 a year.'

If you receive a new tax code and are unsure whether or not it is correct please let us know so we can check it for you.



C Todd & Co ~ Chartered Certified Accountant in Broomhill, Sheffield ~ www.c-todd.com


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HMRC Are Issuing Incorrect PAYE Tax Codes



HMRC have updated their guidance on the issue of multiple or incorrect PAYE tax codes to some employees following the introduction of their new National Insurance and PAYE computer system.

HMRC have admitted that the changeover to the new system has brought to light some discrepancies in their records which have resulted in some incorrect coding notices being issued.

HMRC advise that three main situations may result in incorrect coding notices. Their updated guidance states that:
  • a previous employment stopped some time ago but HMRC's system has not picked this up and a Coding Notice has been sent for that employment
  • two notices have been sent for the same employment
  • the code BR (basic tax) or DO (higher rate tax) has been given for an employment or pension for the first time.
HMRC advise that they will try to correct as many of these discrepancies as possible well in advance of the new tax year.

Please do get in touch if you would like us to check your tax code.



C Todd & Co ~ Chartered Certified Accountant in Broomhill, Sheffield ~ www.c-todd.com


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Student Loan Repayments





HMRC have announced a new initiative to reduce student loan over repayments for those ex students who repay their loan through PAYE deductions.

Ex students have been in the position whereby it has been difficult for them to avoid over repaying their student loan as the loan term came to an end. This is due to the time delay between their employer making deductions from their salary each month and submitting an annual return showing the individual repayment amounts for each employee.

Ex students will now be able to opt out of PAYE repayments in the last 23 months of repayment and transfer to a Direct Debit arrangement. This should mean that the ex student will not over repay their loan.

This new initiative has been introduced by the Student Loans Company (SLC). The SLC will try to contact borrowers shortly before the last 23 months to offer and arrange this option. However if a borrower is aware that they are reaching this point they can contact the SLC direct and arrange to repay the balance of their loan in this way.

Employers will not have to change their procedures as their authority to stop making deductions comes from HMRC on a form SL2 Stop Notice and this authority will be issued in the normal way.




C Todd & Co ~ Chartered Certified Accountant in Broomhill, Sheffield ~ www.c-todd.com


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HMRC Managed Payment Plans



HMRC has announced that they will launch a new method of paying tax liabilities, known as Managed Payment Plans, in April 2011.

The plan could be entered into by any individual taxpayer making payments under Self Assessment (whether final payments or payments on account) and by companies, under corporation tax self assessment. Group companies and those already subject to quarterly instalment arrangements will be unable to apply.

In order to be able to take advantage of the scheme, which allows the tax to be paid in monthly instalments, taxpayers will have to meet certain conditions:
  • The taxpayer has made their self assessment for the year.
  • All previous tax must have been paid or time to pay arrangements must already be in place.
  • Payments must be made by direct debit.
Payments need to be made in equal monthly instalments on 15th of each month spread symmetrically either side of the payment date. In order to take advantage of a full twelve months to pay, taxpayers will need to make their self assessment and propose their plans by the following dates:
  • 31 October for SA taxpayers who are required to make payments on account on 31 January and 31 July;
  • 31 July for SA taxpayers who only have a final 31 January payment to make;
  • six months before the normal due date for payment for CTSA.
The deadlines for the submission of returns are tight. If you are interested in taking advantage of the payment option please do get in touch so we can look into the matter for you.



C Todd & Co ~ Chartered Certified Accountant in Broomhill, Sheffield ~ www.c-todd.com


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HMRC Offer Advice on Fraud E-mails


HMRC are warning taxpayers to be vigilant as there have been several reports of scam emails offering a tax repayment. Taxpayers should not respond to any email promising a tax repayment.




The email advises the recipient they are due a tax refund and directs them to an online form to provide bank or credit card details for the payment of the "rebate".

Where taxpayers believe they may have been the victim of an email scam they should report the matter to their bank/card issuer as soon as possible. 

HMRC are advising that those providing their details have had their accounts emptied and credit cards used to their limit. Victims are also at risk of having their personal details sold on to organised criminal gangs.  

HMRC are expecting an increase in this type of email as following the Self Assessment filing deadline, many taxpayers will be waiting to receive confirmation of their repayment.

HMRC said: "We only ever contact customers who are due a refund by post. We never use emails, telephone calls or external companies in these circumstances. We strongly urge anyone receiving such an email to send it to us for investigation before deleting it."

HMRC's further advice is to:




C Todd & Co ~ Chartered Certified Accountant in Broomhill, Sheffield ~ www.c-todd.com


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