PH Accountancy

The Taxman has recently announced he is now able to accept payments using the Faster Payments Service (FPS). This ensures payments from your account made one day will reach the Taxman’s the next.

HMRC’s press release suggests that you check with your bank whether it operates FPS, otherwise payments will take the normal three to four working days. The new FPS has set a limit of £99,999.99 and some smaller banks are allowed to set their limits below this. For payments greater than the limit, same or following day payments can be made using CHAPS.

To avoid paying late you must make sure HM Revenue & Customs have cleared funds by due date.

If you pay electronically the due date is the 22^nd month following the end of the tax month or quarter to which it relates.

For example for PAYE Month 9 – period end 5 January 2012, the due date is Sunday 22 Jan 2012, if paid electronically.

Only electronic payments sent using the faster payment service are able to clear into HM Revenue Account on a Non Banking day – a Saturday, Sunday and most Bank Holidays.

During the months of January, February or March HMRC will be sending out PAYE coding Notices informing people of what their new tax code is for the tax year 2012-13.

This code will be used by your employer or pension provider to make sure you pay the correct tax across.

If you have more than one job or a job and a pension you may receive a code for each.

If you use an agent (i.e. us) to act on your behalf, you will need to let them know as they will not receive a copy.

Please note though that not everyone will get one, so do not worry if you don’t – your employer or pension provider can still update your code.

Remember that if you are 65 between the 6^th April 2012 and 5^th April 2013 you will be entitled to age related allowances. HMRC will send you a review form prior to your 65^th birthday to help work out your new code.

We know how tempting it can be, when receiving documents from your accountants, to put it to one side and deal with it at a later date, but we must stress the importance of dealing with your paperwork, as soon as possible, due to deadlines that are imposed by Companies House and HM Revenue & Customs.

Tax Returns

If you receive notification from the Inland Revenue that you have to file a tax return, please make sure that you forward this to your accountant, as sometimes, this is the only way of knowing that a tax return needs to completed on your behalf.  

Companies House Annual Returns for Limited Companies

An annual return is a snapshot of general information about the company’s directors, secretary (where one has been appointed), registered office address, shareholders and share capital.

They should be filed at least once every 12 months, and the deadline for filing the Return must be within 28 days after the anniversary of incorporation or of the made up date of the last Annual Return. It is a criminal offence not to deliver the Annual Return within 28 days or not at all, for which the company secretary or director can be prosecuted. If you are convicted you could end up with a criminal record and a fine of up to £5,000.

Limited Company Accounts

When you receive your accounts, please ensure that you check these carefully and sign on the correct pages. Your accounts have to be filed at Companies House nine months after your year end, and failure to do so, will result in the following fines:-

            Late by no more than one month                            £150

            More than one month but not more

            than three months                                                     £375

            More than three months but not more

            than six months                                                         £750

            More than six months                                               £1500