TAX ADVICE by Dean Flood

TAX & ACCOUNTANCY TIPS

In this issue, Dean provides details on a few topical matters that relate to KBB installers.

Auto Enrolment We are now seeing many more small and micro employers reaching their staging dates for compliance with the new Auto Enrolment legislation regarding pensions. Some of the smallest employers and recently established businesses will not have staging dates until 2017 but it is strongly recommended that you attend to matters in advance, where possible, and at least familiarise yourself with the detail of the legislation. Some incorporated businesses may only employ directors, and where those directors have no implied or written contract, the company may be able to claim exemption from auto enrolment on the basis that it has no ‘workers’. Certain procedures still need to be followed however and any businesses that do employ ‘workers’ cannot ignore this legislation. The Pensions Regulator (TPR) has warned that significant penalties will be levied for noncompliance.

Self-Assessment Tax Returns The deadline for filing hard copy tax returns to HMR&C for the 15-16 tax year will soon pass. Any tax returns filed after 31st October 2016 must be dealt with online and must be submitted by the 31st January 2017. Any remaining tax due will also need to be settled by that date. It is advisable to not leave matters until the last minute, if only so that you have some advanced warning as to tax liabilities that need to be settled.

Dean Flood Chartered Certified Accountant and Partner at Rowland Hall

www.rowlandhall.co.uk Tel: 01375 373 828 / 01268 696 878

Christmas Parties You may have already booked the Christmas Party and for some employees they may be fortunate to be wined and dined at the employer’s expense. In such cases, the employer will not need to declare the cost as a benefit in kind if certain conditions are met such as the amount falling below £150 per employee and all employees being invited to attend. The employer can also recover the input VAT and claim a tax deduction for the net cost. Be careful if events include attendance by customers as this may create some disallowance for tax purposes.

Bogus Emails and Telephone Calls With the increased digitalisation of the tax system, fraudsters are engaging in more complex practices to defraud taxpayers by way of email or telephone calls concerning their tax compliance. If you receive any unexpected calls or emails from HMR&C, do not immediately reply. The legitimacy of the communication can always be checked by speaking to your agent or contacting HMR&C through the contact numbers on their website.