Tax E-News - June 2022

Welcome to our monthly blog. Please contact us if you would like to discuss any matters further.

Report Employee Benefits On Form P11D By 6 July

P11D forms for reporting expenses and benefits in kind provided to employees and directors in 2021/22 need to be submitted by 6 July 2022.

Remember that reimbursed expenses no longer need to be reported where they are incurred 'wholly, exclusively and necessarily' in the performance of the employee's duties. HMRC do however expect internal controls to be in place to ensure that the reimbursed expenses qualify under these terms.

Note also that non-cash 'trivial benefits' that cost no more than £50 do not usually need to be reported. This typically covers non-cash gifts to employees at Christmas and on their birthdays.

Is Your Business Entitled To The Employment Allowance?

The Employment Allowance (EA) is a £5,000 allowance set against employer National Insurance Contributions (NICs) and has to be claimed each tax year by qualifying employers. The EA was increased from £4,000 to £5,000 this tax year to help to soften the blow of the 1.25% increase in employer contributions, now calculated at 15.05%.

If two or more companies or charities are connected with one another, then only one of them may claim the EA.

Employers are not eligible to claim the EA where their employers' Class 1 National Insurance liabilities in the previous tax year exceeded £100,000.

Another important exclusion from the EA are single director companies where the director is the sole employee of the company.

“If you have claimed the Employment Allowance for 2022-23 you should have recently received a letter from HMRC confirming this. Note that if we prepare your payroll for you then we have already claimed the allowance for you on your behalf”.

Diary Of Main Tax Events - June / July 2022

Date

What's Due

01/06

Corporation tax for year to 31/8/21 (unless pay quarterly)

19/06

PAYE & NIC deductions, and CIS return and tax, for month to 5/6/22 (due 22/06 if you pay electronically)

01/07

Corporation tax for year to 30/9/21 (unless pay quarterly)

05/07

Last date for agreeing PAYE settlement agreements for 2021/22 employee benefits

05/07

Deadline for agents and tenants to submit returns of rent paid to non-resident landlords and tax deducted for 2021/22

06/07

Deadline for forms P11D and P11D(b) for 2021/22 tax year. Also, deadline for notifying HMRC of shares and options awarded to employees.

19/07

PAYE & NIC deductions, and CIS return and tax, for month to 5/7/22 (due 22/07 if you pay electronically)

31/07

50% payment on account of 2021/22 tax liability due.

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