It could be the title of the most boring news coverage or worst new reality TV show ever in fact reporting your employees’ salary to HMRC in real time is the new responsibility of UK businesses from 6th April 2013.
HMRC are providing guidance over on their website on Operating PAYE in real time (RTI)
Your limited business is now legally obligated to report all PAYE salary payments made through the business on or before the day that a payment is made. For those administering salary payments weekly this is going to need to be on the company’s weekly finance agenda! You’ll also need to discuss the process with your accountant to let them know how you are doing your reporting or if they are taking this on for you. Companies still need to complete PAYE returns annually by 19 May.
PAYE reporting in real time does not apply to sole traders or partnerships unless you also have employees.
Headline news from Osborne’s budget (if only his budget case was this pretty)
Corporation tax is reduced to 20% from April 2015
Fuel prices have been frozen so ok news for those who drive a lot with work
Personal tax allowance will rise in 2013-14 and will be up to £10,000 by 2015-16
New schemes being introduced to help small creative and tech businesses include the small business research initiative and the tax relief incentives for animation, high end TV and video game industries.
From 2014 Employer’s have a national insurance allowance of up to £2,000 to incentivise taking on new staff.
There’s a graphic version of the budget on yourmoney.com which could be handy for reference.
Money saving tips from across the web:
Also did you know that this week it has been 40 years since the government’s VAT levy was introduced? Watch this space for an article on MyCake and all things VAT coming soon. Let us know by email to firstname.lastname@example.org if there are any specific topics you want us to cover.