PAYE

June Questions and Answers

2017-06-22T14:24:36+00:00June 22nd, 2017|Categories: Questions & Answers|Tags: , , , |

Q. Before I became registered for VAT, I bought a capital item from a friend, which cost £1,000. As it was a private purchase, I did not pay any VAT. I have now joined the flat rate scheme (FRS) for VAT and have just sold the same item for £500. Should I have charged VAT on the sale and included the gross total in my calculation for flat-rate VAT? A. HMRCs VAT Notice 733 at paragraph 15.9 confirms that where input tax is reclaimed on capital expenditure goods then, when the goods are eventually sold out of the business, you [...]

Employment Allowance consultation launched

2016-12-14T21:58:46+00:00December 14th, 2016|Categories: PAYE|Tags: , , |

HMRC have launched a technical consultation on proposals to restrict the Employment Allowance (EA) from employers of 'illegal workers'. The consultation is open for comments until 3 January 2017. Budget 2016 announced that from April 2018, the EA would be removed for one year from those who receive civil penalties for employing illegal workers. Broadly, the allowance entitles the vast majority of businesses, charities, and community amateur sports clubs to a reduction of up to £3,000 per year on their employer National Insurance Contributions (NICs) bill. Whilst the allowance has very broad eligibility, the Government believes that those who break [...]

Real living wage increase takes effect

2016-12-08T22:04:13+00:00December 8th, 2016|Categories: PAYE|Tags: , , , |

The real living wage rate has increased by 20p per hour to £8.45 an hour (£9.75 in London), which is higher than the UK-wide official National Living Wage for those over 25, currently set at £7.20, while those under 25 must be paid the national minimum wage (NMW). The Living Wage is independently-calculated each year based on what employees and their families need to live. Employers can choose to pay the real Living Wage on a voluntary basis but it is currently paid by a third of FTSE 100 companies. The rates apply to all workers over 18 in recognition [...]

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