HMRC are set to close all open periods of contracting out on taxpayers’ National Insurance (NI) records. The move will be to supply individuals with details of their occupational pension rights when contracting out ends in April 2016.
HMRC have announced new fuel rates for company cars, to apply to all journeys on or after 1 March 2014 until further notice. Employers may use either the previous or new rates for one month from the date of change, and therefore make or require supplementary payments, but are under no obligation to do either. Petrol hybrid cars are treated as petrol cars for this purpose. The amounts can be used for VAT, but employers will need to retain receipts.
Forde and McHugh Ltd v CRC, Supreme Court
A client made payments into a seed enterprise investment scheme and an enterprise investment scheme in 2012/13 and 2013/14. No certificates were received in time for submission of the 2012/13 tax return
Small enterprises such as hairdressers, window cleaners and cab drivers are being urged by HMRC to take advantage of the simpler system of recording income and expenses over the tax year.
Firms with an annual income of £79,000 or less can use the cash basis of accounting for money as it goes in and out of the business, rather than employing traditional method centred on accruals.
Redhill Islamic Centre Trust (TC3196)
P Donovan and P McLaren (TC3188)
A new annual flat rate expense allowance for laundering armed forces uniforms has been agreed between HMRC and the Ministry of Defence (MoD), with the figures set as:
The allowance will be backdated to 6 April 2008, and claimants will receive the full amount due for each year of service, regardless of whether or not service started or ended part way through a year.
Step-by-step guide to setting up an enterprise management incentive plan
Leeds Design Innovation Centre Ltd, R Noble, R Watkiss and P Connolly (TC3150)
Share incentive plans (SIPs) and save-as-you-earn (SAYEs) schemes will see higher limits from 6 April.
The maximum value of free shares that can be awarded in a SIP will rise from £3,000 to £3,600 a tax year, while partnership shares will be capped at £1,800 (from £1,500), subject to the figure being no more than 10% of an employee’s annual salary.
The maximum monthly amount an employee will be able to contribute to SAYE savings arrangements will go up from £250 to £500.
The penalties regime of the real-time information (RTI) reporting of PAYE will not begin October, HMRC have announced, signalling a six-month postponement.
Automatic fines for late filing and overdue payments were due to begin on 6 April, but the Revenue has introduced a delay after finding it needed time to improve RTI systems and guidance.
The new timetable will be: