Sunday 19th May - Deadline for PAYE, Student Loan and CIS Deductions
This is the deadline for employers to make payment to HMRC for income tax, national insurance and student loan deductions for the month up to 5th May 2019.
Contractors should make payments to HMRC for tax deductions from subcontractors under CIS.
Electronic payments must be cleared by 22nd May 2019. Interest and penalties may apply for late payments.
Friday 31st May - Deadline for Employees to Receive 2018/2019 P60 forms
All employers need to issue their employees with P60 forms. The P60 is an End of Year Certificate that constitutes proof that an employee has paid tax.
Another Delay to Scottish Air Departure Tax Plans
Air Departure Tax (ADT) was due to replace the Scottish government’s Air Passenger Duty (APD), but the plans have been delayed, this time beyond 2020.
The change had been due to be made in April 2018, but issues regarding how the current exemption applies to airports in the Highlands and Islands have led to delays.
Kate Forbes MSP, Minister for Public Finance and Digital Economy has said: “The Scottish government has been clear that it cannot take on ADT until a solution to these issues has been found, because to do so would compromise the devolved powers and risk damage to the Highlands and Islands economy.
“While we work towards a resolution to the Highlands and Islands exemption, we continue to call on the UK government to reduce APD rates to support connectivity and economic growth in Scotland and across the UK.”
Article 50 'Flexible Extension'
EU leaders have granted the UK a six-month “flexible” extension to Article 50 and the British Chambers of Commerce (BCC) and the Confederation of British Industry (CBI) have been commenting on the delay to Brexit which has been pushed back to 31 October 2019.
BCC has stated: “Politicians must urgently agree on a way forward. It would be a disaster for business confidence and investment if a similar late-night drama is played out yet again in October.”
Meanwhile the CBI’s Director General, Carolyn Fairbairn, has said: “For the good of jobs and communities across the country, all political leaders must use the time well. Sincere cross-party collaboration must happen now to end this crisis.”
HMRC List of Businesses Failing Money Laundering Regulations
A list of businesses that have failed the Money Laundering Regulations has been published by HMRC whose duty, as supervisor of the regulations, it is to publish the details of those failing businesses.
Businesses are considered on a case by case basis by HMRC which decides whether to publish complete details, or anonymously. HMRC may choose to publish anonymous details if it concludes that the effects would be disproportionate.
VAT Fuel Scale Charges
The updated VAT fuel scale charges that apply from the beginning of the next prescribed VAT accounting period, on or after 1 May 2019, has been published by HMRC. The fuel scale charges are used by VAT registered businesses to account for VAT on road fuel bought and used privately.
Latest Employer Bulletin
The latest issue of the Employer Bulletin is available and its articles include discussions on:
● Cash Allowances, Salary Sacrifice, and Flexible Benefits Packages
● Student Loans
● Both Scottish and Welsh rates is income tax
● The National Minimum Wage and unpaid work trials
● Euro standard 6d Diesel Supplement Company Car Tax Changes
● Reminders for contractors and subcontractors under the Construction Industry Scheme
Young people of the UK have been warned by HMRC to maintain vigilance to avoid the “Springtime” tax refund scam which is often perpetrated by criminals upon young people, or the elderly, people who generally know less about the UK tax system.
April and May are the months that taxpayers are often bombarded with tax refund scams. Spring last year saw HMRC receive 250,000 reports of tax scams perpetrated via calls, voicemails and text messages. Taxpayers have been warned to be vigilant of potentially criminal attempts to get personal and financial information from them.
HMRC’s Head of Customer Services, Angela MacDonald, has said: “We are determined to protect honest people from these fraudsters who will stop at nothing to make their phishing scams appear legitimate.
“HMRC is currently shutting down hundreds of phishing sites a month. If you receive one of these emails or texts, don't respond and report it to HMRC so that more online criminals are stopped in their tracks.”
The government’s initiative to introduce a pensions dashboard will go ahead, allowing savers to view details from their range of pensions from a single place. It is said that the dashboard will “open up pensions to millions” with “an easy to access online view”.
Legislation will be brought forward by the Department for Work and Pensions (DWP) which will require consumers’ data to populate their dashboard. This will include State pension details.
Mike Cherry, National Chairman of the Federation of Small Businesses (FSB), said:
“The government's commitment to compel pension schemes to share data with platforms through primary legislation is particularly welcome. Some urgency is now required, and we question the three to four-year timeframe for schemes to prepare data for dashboards.”
Extending IR35 Rules
IR35, the off-payroll working rules, has had guidance on its extension published by HMRC, ahead of being introduced on 6 April 2020. HMRC has stated that the organisation receiving the individual’s service will be responsible for deciding whether the rules apply.
The guidance lays out a four-step process, a template for preparing for the changes. It begins with determining which individuals, if any, are providing services via PSCs.
The consultation requires responses on a range of issues, such as:
● scope of the reform
● Individual employment status disagreements
● how it will affect non-corporate engagers and information required for them
● Personal service companies (PSCs)
Closing on 28 May, the details of HMRC’s plans include providing education and support for the affected businesses.