This month’s newsletter includes a few reminders: application of the National Minimum Wage, registration for Self Assessment if the High Income Child Benefit Charge applies, Charities and the online Gift Aid system, and finally, the need to register under the Machine Games Duty regulations.
Our next newsletter will be published Thursday 3 October 2013.
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Charities reminded to adopt online Gift Aid submissions
Machine Games Duty
High Income Child Benefit Charge (HICBC)
National Minimum Wage (NMW)
Tax Diary September/October 2013
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Recent articles include:
New safeguards for debt collection visits
Construction Industry Scheme – new guidance
Pensions auto-enrolment: understanding ‘postponement’
On being proved correct
Recognising assets: websites and software
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Finance Act 2013: in summary
Ten VAT notices have been updated
You can see all of last months articles here:
Charities reminded to adopt online Gift Aid submissions Business
HMRC are advising certain charities to sign up to its new online Gift Aid system. The last “old style” forms will not be accepted after 30 September 2013.
According to HMRC, more than 19,000 charities have already signed up to Charities Online. Since the online process was launched 22 April 2013 almost 50% of Gift Aid payments are now being processed online.
Charities with no access to the internet can still claim using a paper based system, but must use a new form, ChR1, that can be ordered from the Charities Helpline on 0845 302 0203.
Charities should allow 15 working days from the day they sign up, before making their first Gift Aid submission online.
Machine Games Duty Business
If you intend to make amusement machines available for play, you must register under the Machine Games Duty (MGD) regulations. MGD was introduced for existing operators from 1 February 2013. The published list of person’s who may be affected is anyone who:
holds, or is required to hold, a licence or permit which allows them to provide gaming machines for play on premises
owns, leases or rents premises on which machine games may be played
controls the operation of machines on which machine games may be played
controls admission to premises on which machine games may be played
has an interest in premises on which machine games may be located
is responsible for the management of premises on which machine games may be played
shares in the profits from machine game-play.
Penalties may be applied if you don’t register for MGD, don’t make your MGD returns on time, don’t pay the MGD that you owe, and if you make a mistake on your return.
If you had dutiable machines available for play at 1 February 2013, or since that date, and you have still not registered to make MGD returns, you should apply as soon as possible in order to minimise any penalties payable.
The rates of MGD depend on the type of machine. There are two for MGD purposes:
Type 1: all machines that do not qualify as Type 2 machines.
Type 2: to qualify as a Type 2 machine it must be demonstrated that:
(a) the cost to play each dutiable machine game on the machine once does not exceed 10p, and
(b) the maximum cash prize for each dutiable machine game on the machine does not exceed £8.
The standard rate of MGD (20%) applies to Type 1 machines, and the reduced rate of 5% to Type 2 machines.
High Income Child Benefit Charge (HICBC) Personal
The HICBC was introduced on 7 January 2013 and applies to couples where:
One partner has received Child Benefit payments after 7 January 2013, and
Either partner has income in excess of £50,000 a year. The person with the highest income, if both are over £50,000, will be liable to pay the charge.
It will not apply if the person entitled to receive Child Benefit stops their claim for a complete tax year (or for the period 7 January 2013 to 5 April 2013, for the tax year 2012-13).
In effect, the charge recovers the actual Child Benefit received using a graduated scale. 1% of benefit received will be recovered for every £100 the highest earner’s income exceeds £50,000. Accordingly, if the highest earner’s income exceeds £60,000, all of the Child Benefit received will be clawed back.
The partner with the highest income in excess of £50,000, and where either partner received any Child Benefit payments from 7 January 2013 to 5 April 2013, will need to declare the benefit received on their Self Assessment tax return for 2013.
If you are not registered for Self Assessment you must do so by 5 October 2013.
If you are concerned that you may be caught by the HICBC, and would like assistance with the registration or reporting process, please call.
National Minimum Wage (NMW) Payroll
There has been much press commentary recently regarding HMRC’s pursuit of football clubs who stand accused of paying certain “employees” below the NMW. This action is being taken due to complaints HMRC has received from ballboys and club mascots who receive no payment for their time.
All employers are required to pay their employees at least the NMW rates. However, there are a number of persons not entitled to the minimum wage. They are:
volunteers or voluntary workers
workers on a government employment programme, e.g. the Work Programme
family members of the employer living in the employer’s home
non-family members living in the employer’s home who share in the work and leisure activities, are treated as one of the family and aren’t charged for meals or accommodation (e.g. au pairs)
workers younger than school leaving age (usually 16)
higher and further education students on a work placement up to 1 year
workers on government pre-apprenticeships schemes
people on the following European Union programmes: Leonardo da Vinci, Youth in Action, Erasmus, Comenius
people working in a Jobcentre Plus Work trial for 6 weeks
members of the armed forces
people living and working in a religious community
HMRC took enforcement action against more than 700 employers last year who were each fined up to £5,000 for non-compliance with the NMW rules. HMRC also secured back pay for over 26,000 employees, to top up their wages to the appropriate NMW rate.
The NMW rates are changing from 1 October 2013:
the main adult rate (for workers 21 and over) will increase by 12p to £6.31 an hour
the rate for 18-20 year olds will increase by 5p to £5.03 an hour
the rate for 16-17 year olds will increase by 4p to £3.72 an hour
the rate for apprentices will increase by 3p to £2.68 an hour
Tax Diary September/October 2013 General
1 September 2013 – Due date for Corporation Tax due for the year ended 30 November 2012.
19 September 2013 – PAYE and NIC deductions due for month ended 5 September 2013. (If you pay your tax electronically the due date is 22 September 2013.)
19 September 2013 – Filing deadline for the CIS300 monthly return for the month ended 5 September 2013.
19 September 2013 – CIS tax deducted for the month ended 5 September 2013 is payable by today.
1 October 2013 – Due date for Corporation Tax due for the year ended 31 December 2012.
19 October 2013 – PAYE and NIC deductions due for month ended 5 October 2013. (If you pay your tax electronically the due date is 22 October 2013.)
19 October 2013 – Filing deadline for the CIS300 monthly return for the month ended 5 October 2013.
19 October 2013 – CIS tax deducted for the month ended 5 October 2013 is payable by today.
31 October 2013 – Latest date you can file a paper copy of your 2013 Self Assessment tax return.