Helping Climb Mountains


 

Kilimanjaro tee shirts
team facing the wall with Lucas

 

You may be wondering what we accountants have to do with Kilimanjaro the highest mountain in Africa. The answer is Lucas Martin. Lucas approached the practice with the intention of helping him with sponsorship and also to provide him with sponsorship tee shirts and a flag to carry with him to the top of the mountain.

Lucas who is an ex Runshaw College student went on to study Geography at Manchester University and he got involved with the RAG group who were highlighting various fundraising and volunteering activities. Lucas liked the idea of a trek planned by Childreach which wasn’t just an ordinary trek but one to scale Kilimanjaro at a height of 5895m. Lucas flies to Tanzania on 13th June 2016.

To explain why we supported Lucas is best done by understanding why Lucas chose to undertake this challenge. It was the nature of the cause that providing education for children less fortunate. Lucas said “I thought it was a good cause with regards to The support of children because education should be a basic right for all regardless of the economic standing”.

Lucas will spend three days in a local school working with the children and then in his challenge to climb Africa’s highest mountain. You can still show your support for Lucas by donating on my https://donate.BT.com/fundraisers/lucasmartin.

Please support Childreach through Lucas by donation or sharing this post.

David Richardson

 

Savings allowance


A new savings allowance is available to basic and higher rate taxpayers for 2016/17. The amount available depends on the individual’s circumstances:

  • If any of the individual’s income for the year is additional rate income then the individual’s savings allowance for the year will be nil.
  • If any of the individual’s income for the year is higher-rate income and none of the individual’s income for the year is additional rate income, the individual’s savings allowance for the year is £500.
  • If none of the individual’s income for the year is higher rate income, the individual’s savings allowance for the year is £1,000.

No tax will be payable on savings income until the new savings allowance has been used up.

In a further change, banks and building societies will no longer deduct tax at source from interest at 20%. This means that non-taxpayers will no longer need to fill out an R85 to receive bank and building society interest gross. However, companies will still need to account for 20% at source on payments of interest.

The 0% savings starting rate also remains available on the first £5,000 of taxable savings income for those with the correct split of income. This would apply where non savings income, broadly pay, trade profits and property income are no more than the personal allowance. This means that for some, the effect of the personal allowance (£11,000 for 2016/17), the £5,000 starting rate band and the new savings allowance (£1,000 for basic rate taxpayers for 2016/17) means that it may be possible to receive up to £17,000 savings income tax-free in 2016/17.

In light of the above changes please contact us if you would like to review your tax position on savings income.

Internet link: Gov.uk Publication

P11D deadline approaching


The forms P11D, and where appropriate P9D, which report details of expenses and benefits provided to employees and directors for the year ended 5 April 2016, are due for submission to HMRC by 6 July 2016. The process of gathering the necessary information can take some time, so it is important that this process is not left to the last minute.

Employees pay tax on benefits provided as shown on the P11D, either via a PAYE coding notice adjustment or through the self assessment system. In addition, the employer has to pay Class 1A National Insurance Contributions at 13.8% on the provision of most benefits. The calculation of this liability is detailed on the P11D(b) form. The deadline for payment of the Class 1A NIC is 19th July (22nd for cleared electronic payment).

HMRC produce an expenses and benefits toolkit. The toolkit consists of a checklist which may be used by advisers or employers to check they are completing the forms correctly.

If you would like any help with the completion of the forms or the calculation of the associated Class 1A NIC please get in touch.

Internet links: HMRC guidance Toolkit

HMRC urges claimants to renew tax credits online


HMRC are urging people to renew their tax credits claim well before the 31 July deadline.

HMRC have made improvements to the online renewal service and recommend claimants renew their claim online once they receive their renewal pack which is issued between April and June. The online service can now accommodate all changes in circumstances (working hours, childcare costs or income) which affect the amount of someone’s entitlement.

Nick Lodge, HMRC’s Director General, Benefits and Credits, said:

‘Our online service means that you can renew at any time of the day or night, and on any device, without having to call us. Online help can also answer most queries you may have and a web chat facility will be available to support people renewing online. We urge everyone who can to go online.

Our customers should check their details and renew early to ensure they get the right money. The sooner people renew their claim, the sooner we can check payments are correct, meaning we avoid paying too little money, or too much, which claimants then have to pay back.

This year, claimants renewing online will be able to access further information, including viewing their next payment, through their own online Personal Tax Account.

Internet link: Press release

HMRC update phishing scam advice


HMRC have updated their guidance to taxpayers on how to spot phishing scam emails.

Phishing is the fraudulent act of emailing a person in order to obtain their personal/financial information such as passwords and credit card or bank account details. These emails often include a link to a bogus website designed to encourage the unwary to enter their personal details.

The HMRC guidance is designed to help taxpayers to recognise genuine contact from HMRC, and how to tell when an email/text message is phishing/bogus.

Internet link: HMRC guidance

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