has started writing to employers who only employ one or two people to tell them about Automatic Enrolment. The letter obviously got the address from HM Revenue & Customs PAYE Department, but it fails to explain this. This is discourteous in any normal perception. No doubt there is some law which entitles the Pensions Regulator to get hold of this information, but ordinary good manners warrant disclosure of how a name and address was obtained regardless.
Archives for July 2015
One way for a business to go looking for sales is simply to write to every prospective customer and tell them what’s on offer. The cost of a second class stamp is 54p, so notionally we would be spending about that much per prospective customer in order to advertise. Although this may look expensive, it is money which we can spend as we go, or stop spending if we get a rush of orders. A little bit of “direct mailing”, at least, is something for every business to consider.
Value Added Tax returns for the quarter ended 30 June 2015 are due to be submitted by 7 August, and any payment which is due should be made electronically by the same date.
A Japanese electronics company has admitted to overstating its profit for six years in a row. It is intriguing to know how this was done. If you make a profit, then ultimately there is more money in the kitty, and the laws of arithmetic are just the same for large businesses as for small businesses. If you overstate profit for six years, then we would expect to find a lot more money in the kitty. This phantom kitty on the balance sheet is surely going to be asked about as it grows ever larger. Large British businesses have auditors, who are professional accountants, who would check that this kitty really exists. Sooner or later, it will be noticed in Japan as well.
The rate of corporation tax looks set to drift downwards to 19% and then to 18% over the next couple of years, making incorporation look increasingly attractive for many small businesses. Apart from the saving on tax, there is also a substantial saving on Class 4 National Insurance. Against this, a new tax on dividends is being proposed, perhaps to “compensate” the State for the loss of Class 4 NIC. It is a little early to judge where this is heading, but we will remind you about dividends.
If you claim tax credits, then you should have received your Renewal Pack at the end of June. The deadline for renewing a claim for tax credits is 31 July 2015. Read what your Renewal Pack has to say.
Small private companies with a year end of 31 October 2014 and into their second or later year of existence should file their accounts at Companies House by 31 July 2015 in order to avoid incurring a Late Filing Penalty.
Sole traders and partnerships may need to pay a second installment of income tax for the year ended 5 April 2015 by 31 July 2015, which is the end of this month. You should have received a payslip and envelope through the post by now.
Employers should be aware that if the form P11D indicates that Class 1A National Insurance Contributions are due, then these should be paid by 19 July 2015 if settled by cheque, or by 22 July if settled electronically.
Sometimes when you are an employer, you might have happened to have made no wage or salary payments at all for the PAYE month. If you have not made any payments from 6 June to 5 July, then you must submit electronically an Employer Payment Summary as a NIL return by July 19th. This is too easy to overlook.