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Director NI Contributions How does it works?
Very frequently I am being asked question on NI deductions. Directors usually do not pay NI on first £5715 and NI deductions for them work differently than an employee of the company. Director of a company gets full NI allowance at the start of the year and therefore you start paying NI when your total wages goes beyond £5715 you start paying NI. To read full article on director NI please read more |
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Beware of New VAT penalty Regime
New VAT penalty regime is effective now, which is "more subjective" than it used to be. The brutality
of the new regime should not be underestimated; it could leave many, many more innocent
hard-working business owners open to penalty demands for VAT errors. It used to be very formula based approach where maximum VAT penalty used to be 15% but with new regime the VAT penalty can go upto 100%. Why not read full article on read more |
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Backdated VAT - An Excellent opportunity worth exploring
I think I am unable to come outside VAT this month. Hard to miss such opportunity where business can take advantage.A recent case in law has highlighted that there is a very good opportunity for businesses to claim back VAT on purchases made before VAT registration: if you register for VAT today, you can backdate up to four year's worth of receipts, but some rules do apply. To read rules and see if you can take advantage read more |
New Pension Legislation
Recent Government legislation aims to restrict the amount of tax relief that can be claimed for making pension contributions: from April 2011 the annual allowance for everyone, regardless, has been capped at £50,000 (from £255.000), and from April 2012, the lifetime allowance will be reduced from £1.8 million to £1.5 million.
In all fairness government has simplified very complicated system which is easy to manage. We continue to maintain that pension contribution is one of the best tax planning which can result in best returns in terms of tax savings and no risk. Moreover, this is risk free and you build on your personal retirement plan which is must. Continue reading more |
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Even small PAYE errors can be nasty so be watchful
A recent case about an employer that made an error in the amount of tax deducted from an employee raises the serious issue of payroll errors. The Tribunal ruled that the employer was negligent, and ordered the employer to pay the shortfall in Tax and NIC. Don't let that happen to you.
If you don't use the correct PAYE code, in law, HMRC are obliged to contact YOU, the employer, to collect the shortfall (under Regulation 72 of PAYE regulations).While it's difficult to eliminate human error entirely, adopting good habits will help you avoid mistakes, here are a few guidelines.
To read full article continue reading.
We can assure you that if you use DNS as your payroll provider you are in safe hands. |
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Types of Penalty
There are a number of penalties associated with tax - any of which can be imposed simultaneously -
and about which it pays to be aware. Never before have HMRC been so intent on grabbing back what is owed (and what might not be owed), so be aware of the penalties as a guideline. Remember, DNS aim to ensure that you are never late or inaccurate with any of the paperwork due to HMRC. If you want to read this article in detail please continue reading |
