Menu
29/03/2010
VAT And PAYE Changes On Way
HM Revenue & Customs (HMRC) is urging businesses to get ready for major changes to VAT and PAYE coming into effect on 1 April.
VAT-registered traders with annual turnovers of £100,000 or more (excluding VAT) will have to file their VAT returns online and pay their VAT electronically.
While all businesses registering for VAT from April will have to file their returns online and pay electronically.
All VAT cheque payments sent by post will be treated as being received by HMRC on the date when cleared funds reach HMRC’s bank account – not the date when it receives the cheque.
Businesses must allow enough time for their cheque to reach HMRC and to clear its account no later than the due date shown on their VAT return, or they may be liable to a surcharge for late payment. However, this change does not affect any cheque payments made by Bank Giro," said a HMRC spokesman.
Anyone issuing an invoice that includes VAT, when they are not entitled to charge it, will be subject to a new VAT wrongdoing penalty. The penalty charged will be a percentage of the amount charged as VAT on an unauthorised invoice.
From May, two other key PAYE changes come into effect.
All employers must file their Employer Annual Return (P35 and P14s) online by the 19 May deadline – there is no longer a paper filing option for small employers with fewer than 50 staff.
Filing your return on paper, even if it’s before 19 May, and you could receive a penalty.
HMRC is introducing new penalties for late payment of PAYE. Under these changes, employers and contractors may incur penalties if they don’t make payments of PAYE, National Insurance contributions, Construction Industry Scheme deductions and student loan deductions on time, and in full.
Penalties will be calculated as a percentage of the late amount and, for in-year payments, the percentage charged increases as the number of late payments in the year increases.
(PR/BMcC)
VAT-registered traders with annual turnovers of £100,000 or more (excluding VAT) will have to file their VAT returns online and pay their VAT electronically.
While all businesses registering for VAT from April will have to file their returns online and pay electronically.
All VAT cheque payments sent by post will be treated as being received by HMRC on the date when cleared funds reach HMRC’s bank account – not the date when it receives the cheque.
Businesses must allow enough time for their cheque to reach HMRC and to clear its account no later than the due date shown on their VAT return, or they may be liable to a surcharge for late payment. However, this change does not affect any cheque payments made by Bank Giro," said a HMRC spokesman.
Anyone issuing an invoice that includes VAT, when they are not entitled to charge it, will be subject to a new VAT wrongdoing penalty. The penalty charged will be a percentage of the amount charged as VAT on an unauthorised invoice.
From May, two other key PAYE changes come into effect.
All employers must file their Employer Annual Return (P35 and P14s) online by the 19 May deadline – there is no longer a paper filing option for small employers with fewer than 50 staff.
Filing your return on paper, even if it’s before 19 May, and you could receive a penalty.
HMRC is introducing new penalties for late payment of PAYE. Under these changes, employers and contractors may incur penalties if they don’t make payments of PAYE, National Insurance contributions, Construction Industry Scheme deductions and student loan deductions on time, and in full.
Penalties will be calculated as a percentage of the late amount and, for in-year payments, the percentage charged increases as the number of late payments in the year increases.
(PR/BMcC)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
04 January 2011
VAT Hike Criticised As 'Counterproductive'
Sinn Fein's Economic Spokesperson has slammed this week's increase in VAT as the wrong way to address the UK's deficit. Mitchel McLaughlin joined other critics and said that the increase will affect those who can least afford it, increase inflation and reduce overall growth.
VAT Hike Criticised As 'Counterproductive'
Sinn Fein's Economic Spokesperson has slammed this week's increase in VAT as the wrong way to address the UK's deficit. Mitchel McLaughlin joined other critics and said that the increase will affect those who can least afford it, increase inflation and reduce overall growth.
28 September 2001
Federation calls for Government action on VAT
The Federation of Master Builders (FMB) has criticised the Government’s failure to address the issue of VAT on domestic repair, maintenance and improvement (RMI) work.
Federation calls for Government action on VAT
The Federation of Master Builders (FMB) has criticised the Government’s failure to address the issue of VAT on domestic repair, maintenance and improvement (RMI) work.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
