Key dates for tax April 2014 April 2015

Transcription

1 Key dates for tax April 2014 April 2015 This document is an aide-memoire covering some of the recurring and one-off tax and National Insurance contributions dates and deadlines that you may need to consider.

2 Introduction This document covers some of the recurring tax and National Insurance contributions dates and deadlines that taxpayers may need to consider. It also highlights some one-off changes. The document is intended as an aide-memoire and is not intended to be an exhaustive list of deadlines. Abbreviations used in this document: HMRC NIC PAYE HM Revenue and Customs National Insurance contributions Pay As You Earn The taxpayer column details the type of taxpayer the deadline affects: individuals, unincorporated businesses or corporate entities Grant Thornton UK LLP. All rights reserved. 2

3 April April 2014 Corporate entities Main rate of corporation tax reduces from 23% to 21%. 1 April 2014 Corporate entities The one month grace period (by which employers can continue to use the old advisory fuel rates) ends on 31 March 2014 in respect of the rate update from 1 March From 1 April 2014, all employers must use the new rate. 1 April 2014 Corporate entities From 1 April 2014, percentage of profits arising from the exploitation of patented inventions that may be taken into account when claiming relief under the patent box regime is to increase from 60% to 70%. 1 April 2014 Corporate entities The revised scope of expenditure qualifying for Business Property Renovation Allowances as well as other changes will come into effect. The changes will have effect for income tax purposes from 6 April April 2014 Corporate entities Loss relief restrictions imposed where there is a change in ownership are to be relaxed for companies with an investment business. For example, the term 'significant increase in capital' will be redefined such that it will only apply where new capital exceeds existing capital by both 1m and 25%. 1 April 2014 Corporate entities The rate of research and development payable tax credits for loss-making small or medium enterprises will increase to 14.5% from 11% for qualifying expenditure incurred on or after 1 April April 2014 Corporate entities 5 April 2014 Individuals 6 April 2014 Corporate entities Annual investment allowance to increase from 250,000 to 500,000 for corporation tax purposes. The change will apply for income tax purposes from 6 April Potential tax planning opportunities should be considered before the start of the next tax year on 6 April These could include, but are not limited to utilising personal allowances, capital gains tax annual exemption and making additional pension contributions. HMRC will begin to levy in-year interest on any in-year payments not made by the due date in respect of Real Time Information Grant Thornton UK LLP. All rights reserved. 3

4 April 2014 (continued) 6 April 2014 Individuals The pension annual allowance will be reduced from 50,000 to 40,000. The pension lifetime allowance will be reduced to 1,250,000 from 1,500, April 2014 Individuals Corporate entities The threshold for the cash equivalent of taxable cheap loans to be treated as earnings of the employment is to increase from 5,000 to 10,000. The official rate of interest on taxable cheap loans will fall from 4% per annum to 3.25% per annum. 6 April 2014 Individuals The final period for which relief can be given where the property is not the person s only or main residence is to be reduced from 36 months to 18 months for property disposals on or after 6 April However, the 36 month exemption will remain for individuals who are disabled or in a care home and with no other property on which they can claim private residence relief. 6 April 2014 Individuals Capital gains may be deferred where an amount equal to the gain is invested in qualifying social investments. The gains will be deferred until such time the qualifying social investments are subsequently disposed of. Providing a minimum holding period is met, any gain arising on the disposal of the qualifying social investment itself will be exempt from capital gains tax. Income tax relief will also be available at the rate of 30% of the amount invested in qualifying social investments. 6 April 2014 Corporate entities HMRC will cease to provide formal 'approval' for any new share scheme arrangements. All new and existing arrangements will be required to register online, and 'self-certify' that they meet the necessary requirements. 6 April 2014 Corporate entities Individuals 6 April 2014 Corporate entities Individuals Legislation to be introduced to strengthen obligations to ensure the correct income tax and NIC are paid by onshore and offshore employment intermediaries. Legislation will apply to restrict individuals' entitlement to Venture Capital Trust (VCT) income tax relief and to ensure that, notwithstanding the general time limits for making assessments to recover tax, HMRC can withdraw tax relief in all cases if VCT shares are disposed of within five years of acquisition. Legislation will also apply to prevent VCTs returning capital subscribed by investors within three years of the end of the accounting period in which the shares were issued Grant Thornton UK LLP. All rights reserved. 4

5 April 2014 (continued) 6 April 2014 Individuals Legislation will apply to prevent high earning non-domiciled individuals from avoiding tax by artificially dividing the duties of a single employment between a UK and an overseas contract. Subject to various exceptions, the remittance basis of taxation will not be available for overseas employment income where tax is not payable on the overseas contract at a rate broadly comparable to UK tax rates. 6 April 2014 Corporate entities Individuals 6 April 2014 Individuals 6 April 2014 Individuals Corporate entities 19 April 2014 Corporate entities The Share Incentive Plan (SIP) and Save As You Earn (SAYE) limits will be increased. For SIP the maximum value of free shares that can be awarded will increase from 3,000 to 3,600 per tax year, and the maximum value of SIP partnership shares that can be purchased will increase from 1,500 to 1,800 per tax year (subject to this being no more than 10% of an employee s salary for the year). For SAYE the maximum monthly amount that an employee can contribute to SAYE savings arrangements will increase from 250 to 500. Legislation will apply, subject to certain conditions being satisfied, which will result in salaried members of limited liability partnerships, as well as other members who work for the LLP on terms that are tantamount to employment, being treated as employees for income tax and NIC purposes. Legislation will apply to counter the manipulation of profit/loss allocations by partnerships, including those with corporate members, to secure tax advantages. All outstanding cheque payments for the year ended 5 April 2014 in respect of PAYE, Class 1 NIC and Construction Industry Scheme deductions should have reached HMRC Accounts Office by this date. For electronic payments, funds must have cleared by 22 April. 30 April 2014 Individuals Under self-assessment a further penalty may be due in respect of paper tax returns for 2012/13 which are filed with HMRC after this date as they are six months late. Additional penalties may be due in respect of 2012/13 self-assessment tax returns which were due to be filed online on 31 January 2014, but have not yet been filed. Such returns will now be three months late. 30 April 2014 Corporate entities Annual tax on enveloped dwellings payments and returns due for year ended 31 March Grant Thornton UK LLP. All rights reserved. 5

6 May May 2014 Corporate entities 31 May 2014 Corporate entities Deadline for submitting P46(car) for employees who have received a new car or fuel benefit, or had one withdrawn during the quarter to 5 April It may also be used to provide replacement car information but must be submitted online to be effective for these purposes. 2013/14 P60s should have been provided to employees by today. Things to think about before your summer holiday Over the summer period consultation documents are often released by HMRC and HM Treasury. These consultation documents usually cover issues highlighted by the Chancellor in the Budget earlier in the year. If you have a particular interest in any of the issues consulted on please do get in touch; Grant Thornton regularly responds to the consultations Be prepared for a number of important PAYE deadlines in July see the next page to find out more This may also be a good time to consider general tax planning, especially as the latest Finance Bill should receive Royal Assent in July, meaning that draft legislation will become final, and you should consider whether you, or your company, are affected by any of the changes 2014 Grant Thornton UK LLP. All rights reserved. 6

7 July July 2014 Individuals From 1 July 2014, the annual limit for a New Individuals Savings Account (NISA) will be 15,000, an increase of 3,480 from the 2013/14 limit. The NISA will also offer the option to save the whole NISA allowance of 15,000 in cash, stocks and shares, or any combination of the two. 5 July 2014 Corporate entities Deadline for agreeing the contents of PAYE Settlement Agreements for 2013/14. 5 July 2014 Individuals Deadline for making returns of rent paid by agents to non-resident landlords in the year ended 31 March 2014, and of tax deducted by tenants from rents paid directly to non-resident landlords. 6 July 2014 Corporate entities Submission deadline for forms P11D, P11D(b) and P9D for 2013/14 Employees should have been provided with a copy of their P11D/P9D for 2013/14 Submission deadline for return of termination packages exceeding 30,000 which include benefits in kind Deadline for submitting form EMI40 (the annual EMI form), form 35 (annual Company Share Option Scheme form) and form 34 (annual SAYE form) Details of unapproved share related benefits (form 42 share schemes reportable events to be returned to HMRC in respect of shares and securities awarded in the year to 5 April 2014 or in respect of chargeable events on shares and securities acquired in earlier years). From 6 July 2015, all annual information returns in relation to employment related securities must be filed online 6 July 2014 Corporate entities Deadline for a close company to elect that all beneficial loans to a director be treated, for the purposes of calculating the benefit in kind charge for 2013/14, as a single loan. 19 July 2014 Corporate entities Cheque payments of 2013/14 Class 1A NIC as shown on form P11D(b) is due by this date (extended to 22 July, for cleared funds, if paid electronically) Grant Thornton UK LLP. All rights reserved. 7

8 July 2014 (continued) 31 July 2014 Individuals Second payment on account for 2013/14 income tax self-assessment is due. Where the individual is non UK domiciled, care should be taken as to the source of the funds (UK/non-UK) used to pay the tax and the remittance basis charge. 31 July 2014 Individuals Due date for payment of Class 2 NIC if it is paid every six months. From April 2016, legislation will be introduced so that Class 2 NIC will be collected alongside income tax and Class 4 NIC via self assessment. 31 July 2014 Individuals A penalty of 300 or 5% of the liability, whichever is the higher, may be due if the 2012/13 income tax self-assessment return is still outstanding. This penalty will accrue in addition to penalties that have already accrued before this date. Royal Assent of the Finance Bill The Finance Bill 2014 is expected to receive Royal Assent in mid-july, and some of its provisions will become enacted from that date Grant Thornton UK LLP. All rights reserved. 8

9 August August 2014 Individuals Additional 5% late payment penalty on any balance of 2012/13 income tax and Class 4 NIC due on 31 January 2014 and not yet paid. 2 August 2014 Corporate entities Deadline for submitting P46(car) for employees who have received a new car or fuel benefit, or had one withdrawn during the quarter to 5 July It may also be used to provide replacement car information but must be submitted online to be effective for these purposes Grant Thornton UK LLP. All rights reserved. 9

10 September September 2014 Individuals With regard to pension liberation, the changes relating to the fit and proper person test and regulatory interventions will have effect from 1 September The changes will affect pension scheme administrators and trustees of existing registered pension schemes and pension schemes. Individuals who seek to surrender their pension rights in favour of an employer will also be affected. Practical tax planning ideas It is always worth considering whether your tax affairs, or those of your company, are structured efficiently. Have you thought about: Suitable trading vehicles Capital gains tax entrepreneurs' relief Inheritance tax Acquisitions and reorganisations International tax opportunities Employee incentivisation, including share schemes Corporate tax planning 2014 Grant Thornton UK LLP. All rights reserved. 10

11 October October 2014 Corporate entities National minimum wage annual rates increase from this date. 5 October 2014 Individuals This is the date by which a taxpayer should have notified HMRC if they have not been issued with a tax return for 2013/14 and will have a tax liability that is not covered by deductions at source (for example a capital gain, rental income, etc). 6 October 2014 Corporate entities 19 October 2014 Corporate entities End of the relaxation of the Real Time Information requirements for small employers. From this date all employers will have to report PAYE information to HMRC in real time. HMRC will also begin applying automatic in-year late filing penalties. Tax and associated Class 1B NIC due on benefits in kind included in a PAYE Settlement Agreement for 2012/13 should be paid by this date. The deadline is extended to 22 October for cleared payments if made electronically. 31 October 2014 Individuals 2013/14 paper income tax self-assessment returns must be filed by 31 October (online returns must be filed by the following 31 January). Exceptions to 31 October paper return deadline: If taxpayers are sent a notice to complete a tax return after 31 July, they must send the completed paper tax return back by the later of 31 October or three months following the date of issue of the notice If there is no software available to file the tax return online, for example non-resident companies. (In this case the paper return must be filed by 31 January 2015, unless the non-resident company wishes HMRC to calculate the tax due in which case the paper return must be filed by 31 October 2014) 2014 Grant Thornton UK LLP. All rights reserved. 11

12 November November 2014 Corporate entities Deadline for submitting P46(car) for employees who have received a new car or fuel benefit, or had one withdrawn during the quarter to 5 October It may also be used to provide replacement car information but must be submitted online to be effective for these purposes. Look out for the Chancellor's Autumn Statement, usually in November or December. This is where the Chancellor updates MPs and the public on the Government's plans, based on the latest forecasts for the UK economy from the Office for Budget Responsibility. The Chancellor may also make announcements on the Government's future plans in respect of tax policy Grant Thornton UK LLP. All rights reserved. 12

13 December December 2014 Individuals Taxpayers within the self assessment system can have additional tax liabilities, totalling less than 3,000, collected through PAYE by a coding adjustment, rather than by direct payment. Returns must be submitted early enough to ensure sufficient time for the coding adjustment to be made. If a return is submitted electronically before 30 December following the end of the tax year, HMRC will consider whether any underpayment can be coded out. With Christmas and New Year celebrations to consider, are you aware of the tax treatment of seasonal gifts and benefits to staff? Social functions for employees there is a tax exemption for employee entertaining, but terms and conditions apply. The relief only applies to 'annual parties' available to all staff and is set at 150 per head. This figure is inclusive of VAT. If the cost of qualifying parties goes over 150 per head then the whole costs (not just those above 150 per head) are taxable as a benefit in kind. It is important to note that the cost of the party is the whole cost of the event, from the start to the end. Taxis home and any overnight accommodation have to be included in the calculation. If the limit is exceeded the benefit must be reported on each employee s P11D, or alternatively, the grossed up tax can be paid by the employer through a PAYE Settlement Agreement. This could mean that a total cost per head of 160 could lead to an additional tax and NIC bill of a further 171 per person. It's important to note that the amount of 150 per head applies to all those attending the function not just employees. This will be relevant if employees are allowed to bring guests. Tax on business profits generally, client entertaining isn't allowable for corporation tax purposes. However, the cost of employee entertaining which is not incidental to the entertainment of others is allowable. If you invite clients and customers to your staff party, it is important to consider how to apportion the costs for corporation tax purposes. Gifts to employees Christmas presents paid in cash to employees will always be taxable along with other earnings. The same treatment also extends to vouchers that can be spent in either one or a number of different shops of the employee's choice. The employee has to pay tax on the cost to the employer of the voucher. If employees are given a seasonal present, such as a turkey, an 'ordinary' bottle of wine or a box of chocolates, as long as the cost is reasonable, HMRC won't seek to tax it. Unfortunately, HMRC will not confirm what monetary limit it considers to be reasonable, but in our experience, less than 50 a head is usually acceptable. If the value of the gift is more than this, it will be taxable and should be included on the employee's P11D, or in a PAYE Settlement Agreement, as above. 'Small' gifts from third parties gifts can also often be received by your employees from third parties due to contact they may have had throughout the year as a result of their employment. As long as such gifts do not exceed 250 in cost, it won't be taxable for the employee Grant Thornton UK LLP. All rights reserved. 13

14 January January 2015 Corporate entities Effective date for the transition from UK GAAP to FRS 102, FRS 101 or full IFRS for accounting periods beginning on or after 1 January January 2015 Corporate entities From 1 January 2015, the place of supply of business to customer supplies of telecommunications, broadcasting and other electronically supplied services will become the country where the customer is established, usually resides or has a permanent address. 31 January 2015 Individuals 2013/14 online self-assessment tax returns must be filed by 31 January Automatic 100 penalties will be issued for all failures to file on time, regardless of the amount of tax due. For paper returns which are an exception to the 31 October deadline (as taxpayers are not able to file online due to the fact that HMRC has not yet developed facilities for their circumstances) the taxpayer has until 31 January 2015 to file a paper return. There may also be some taxpayers who are able to claim a reasonable excuse for not filing a paper return by the October deadline Any balancing payment of tax for 2013/14 is due to be paid by 31 January 2015 In addition to the balancing payment for 2013/14, the first payment on account for 2014/15, comprising of 50% of the outstanding income tax liability for 2013/14, is also due to be paid on this date This is also the deadline for filing any amendments to the 2012/13 self-assessment tax return 31 January 2015 Individuals The deadline for opting out of the pre-owned asset regime (and so into a charge to inheritance tax under the gift with reservation rules) where the pre-owned asset charge would otherwise first arise for 2013/14 is 31 January Tax-efficient executive pay There are various methods for rewarding key staff who are responsible for growing the company. The most efficient method of making such awards, whether through share-based remuneration, cash payments or another mechanism, will depend on the circumstances of the individual and the company In respect of share-based remuneration there are a number of share schemes available. Each scheme is slightly different, with different conditions to be met, different tax consequences and different reporting requirements If you have any questions about tax-efficient executive pay please do contact us 2014 Grant Thornton UK LLP. All rights reserved. 14

15 February February 2015 Corporate entities Deadline for submitting P46(car) for employees who have received a new car or fuel benefit, or had one withdrawn during the quarter to 5 January It may also be used to provide replacement car information but must be submitted online to be effective for these purposes. 2 February 2015 Individuals A penalty of 300 or 5% of the liability, whichever is the higher, may be due if the 2012/13 income tax self-assessment return is still outstanding. This penalty will accrue in addition to penalties that have already accrued before this date. 14 February 2015 Individuals Employees with more than one employment who wish to make an application for deferment of some of their Class 1 NIC where their combined earnings exceed the upper earnings limit must make an application by 14 February in the tax year using form CA72A. If an application is not made, a refund can be claimed following the end of the tax year Grant Thornton UK LLP. All rights reserved. 15

16 March March 2015 Individuals In respect of income tax self-assessment tax returns for 2013/14, if any balancing payment remains outstanding at this date a 5% late payment penalty will be incurred. This is in addition to any interest which may be accruing. End of tax year planning points The end of the financial year on 31 March and the tax year on 5 April focuses the mind on the various ways in which tax liabilities can be minimised. Although planning can usually be implemented at any time during the year, the financial and tax year end is an ideal opportunity to consider your tax position. Are you: Remember to look out for the Chancellor's Budget statement, usually in March Maximising your entitlement to capital allowances? Maximising the use of your available personal allowances? Maximising your pension contributions in the year? Utilising your capital gains tax exemptions for the year? Using your ISA allowance for the tax year? Claiming higher rate relief on any charitable donations made? Taking advantage of any tax-efficient investments? Considering the most beneficial methods of profit extraction/salary payments from your business? 2014 Grant Thornton UK LLP. All rights reserved. 16

17 April April 2015 Corporate entities Main rate of corporation tax to reduce from 21% to 20%. 1 April 2015 Corporate entities With regard to the annual tax of enveloped dwellings provisions, from 1 April 2015 a new band will come into effect for properties with a value greater than 1 million but not more than 2 million with an annual charge of 7,000. There will be a transitional rule for the 1 million to 2 million band requiring returns to be filed on 1 October 2015 and payment by 31 October April 2015 Individuals Last day for individuals to use their ISA allowance for the 2014/15 tax year. 5 April 2015 Individuals Deadline for non-uk domiciled individuals who first claimed the remittance basis in 2010/11 to make a capital gains tax loss election. 5 April 2015 Individuals 6 April 2015 Corporate entities Potential tax planning opportunities should be considered before the start of the next tax year on 6 April These could include, but are not limited to: Utilising personal allowances Utilising the capital gains tax exemption Making additional pension contributions HMRC will begin applying automatic in-year late payment penalties in respect of Real Time Information. 6 April 2015 Individuals The starting income tax rate for savings income will reduce from 10% to 0% and the maximum amount of an individual s savings income that can qualify for this starting rate will increase from 2,880 in 2014/15 to 5,000 for 2015/16. 6 April 2015 Individuals From 6 April 2015 a spouse or civil partner will be able to apply to transfer 1,050 of their personal allowance to their spouse or civil partner. 30 April 2015 Individuals Under self-assessment a further penalty may be due in respect of paper tax returns for 2013/14 which are filed with HMRC after this date as they are six months late. Additional penalties may be due in respect of 2013/14 self-assessment tax returns which were due to be filed online on 31 January 2015, but have not yet been filed. Such returns will now be three months late. 30 April 2015 Corporate entities Annual tax on enveloped dwellings payment and return due for year ended 31 March Grant Thornton UK LLP. All rights reserved. 17

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