Tax Newsletter June 2018

ur newsletter this month includes: government efforts to enforce minimum wage regulation and the abuse of UK business structures for nefarious purposes; employees’ holiday entitlements and what to do if you can’t pay your tax.

 

Our next newsletter will be published on Thursday, 5th July 2018.

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Newsletter June 2018


 

 

What to do if you can’t pay your tax

HMRC will consider extended options for settling your outstanding tax bill. The key is to contact HMRC, explain why you can’t pay on time, and discuss how you can settle any outstanding liabilities.

If you can’t pay before the deadline, call the Business Payment Support Service. Anyone can use this service, not just businesses.

Business Payment Support Service

Telephone: 0300 200 3835
Monday to Friday, 8am to 8pm
Saturday and Sunday, 8am to 4pm

Nominated partners in business partnerships can negotiate time to pay with HMRC on behalf of the partnership or individual partners.

If you’ve missed your payment date

If you’ve received a payment demand, like a tax bill or a letter threatening you with legal action, call the HMRC office that sent you the letter.

Call the Business Payment Support Service if you haven’t received a bill or letter about payment yet.

Self-assessment

Call the Self-assessment helpline if you’ve missed your payment date.

Telephone: 0300 200 3822
Monday to Friday, 8am to 8pm
Saturday, 8am to 4pm


 

 

Employees’ holiday entitlement

The following definitions should help to clarify employee and employer rights and responsibilities regarding entitlement to holiday pay.

Almost all workers are legally entitled to 5.6 weeks’ paid holiday per year (known as statutory leave entitlement or annual leave). An employer can include bank holidays as part of statutory annual leave.

Most workers who work a 5-day week must receive at least 28 days paid annual leave per year. This is the equivalent of 5.6 weeks of holiday.

Part-time workers are entitled to less paid holiday than full-time workers. They are entitled to at least 5.6 weeks of paid holiday but this amounts to fewer than 28 days because they work fewer hours per week.

Statutory paid holiday entitlement is limited to 28 days, and so staff working 6 days a week are still only entitled to 28 days’ paid holiday.

Bank holidays or public holidays do not have to be given as paid leave. An employer can choose to include bank holidays as part of a worker’s statutory annual leave. An employer can also choose to offer more leave than the legal minimum. They don’t have to apply all the rules that apply to statutory leave to the extra leave. For example, a worker might need to be employed for a certain amount of time before they become entitled to the additional entitlement.

Additionally, workers have the right to:

  • get paid for leave;
  • build up (‘accrue’) holiday entitlement during maternity, paternity and adoption leave;
  • build up holiday entitlement while off work sick;
  • request holiday at the same time as sick leave.

Paid annual leave is a legal right that an employer must provide. If a worker thinks their right to leave and pay are not being met there are a number of ways to resolve the dispute.


 

200,000 receive back pay

In a recent press release, HMRC urged underpaid workers to complain as figures show that the number of workers getting the money they're owed by employers has doubled after interventions by HMRC.

According to latest figures, in 2017-18, HMRC investigators identified £15.6 million in pay owed to more than a record 200,000 of the UK’s lowest paid workers.

HMRC launched its online complaints service in January 2017, and this has contributed to the 132% increase in the number of complaints received over the last year and the amount of money HMRC has been able to recoup for those unfairly underpaid.

The figures are published as the government launches its annual advertising campaign designed to encourage workers to act if they are not receiving the National Living Wage or the National Minimum Wage.

Industries most affected include restaurants, bars, hotels and hairdressing.

Further information:

  • People not receiving at least the minimum wage can fill in an online pay and work rights complaints form.
  • It is the responsibility of employers, no matter how big or small, to pay the correct wage to their staff, and failing to do so can result in fines of 200% of the arrears, public naming and, for the worst offences, criminal prosecution.

From 1 April 2018, the government’s National Living Wage rate increased by 33p to £7.83 per hour for those aged 25 and over.

The National Minimum Wage increased:

  • by 33p to £7.38 per hour for those aged 21 to 24;
  • by 30p to £5.90 per hour for those aged 18 to 20;
  • by 15p to £4.20 per hour for those aged 16 to 17;
  • by 20p to £3.70 per hour for apprentices.

 

Tax Diary June/July 2018

1 June 2018 - Due date for Corporation Tax due for the year ended 31 August 2017.

19 June 2018 - PAYE and NIC deductions due for month ended 5 June 2018. (If you pay your tax electronically the due date is 22 June 2018)

19 June 2018 - Filing deadline for the CIS300 monthly return for the month ended 5 June 2018.

19 June 2018 - CIS tax deducted for the month ended 5 June 2018 is payable by today.

1 July 2018 - Due date for Corporation Tax due for the year ended 30 September 2017.

6 July 2018 - Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs.

19 July 2018 - Pay Class 1A NICs (by the 22 July 2018 if paid electronically).

19 July 2018 - PAYE and NIC deductions due for month ended 5 July 2018. (If you pay your tax electronically the due date is 22 July 2018)

19 July 2018 - Filing deadline for the CIS300 monthly return for the month ended 5 July 2018.

19 July 2018 - CIS tax deducted for the month ended 5 July 2018 is payable by today.


DISCLAIMER - PLEASE NOTE: The ideas shared with you in this email are intended to inform rather than advise. Taxpayers circumstances do vary and if you feel that tax strategies we have outlined may be beneficial it is important that you contact us before implementation. If you do or do not take action as a result of reading this newsletter, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.