Value Added Tax returns for the quarter ended 31 March 2019 should be submitted by 7 May 2019, and any payment which is due should be made electronically by the same date.
Every employee should receive a P60 every year giving details of their total pay and tax deducted for the income tax year ended 5 April this month. The deadline for issuing P60s is the 31 May, but it would make for good relations with employees to issue them much earlier than that. The earliest date would be 6 April, but employers are expected to have done all their returns to the Revenue by 19 April, which is today. Once your payroll is finalised, there is no reason why you should not issue the P60s at once. Employees may need them to complete a tax return, for a student loan application for a child, for a mortgage application or for some other purpose which is important to them.
Sensible employees will keep both the P60 and their last payslip before 5 April. Payslips where we act as as the payroll bureau have running totals to check to the P60, and also summaries of auto-enrollment pension contributions. If an employee wants to track down a pension pot, then the information is all on our pay slip, but not necessarily on the P60.
Employers must make Fourth Quarter payments of PAYE and NICs by Friday 19 April 2019 if settled by cheque. If you pay electronically, then you have until Monday 22 April to make the payment. Tax retained under the Construction Industry Scheme must also be paid by the same date.
Construction Industry Scheme returns for the month from 6 March to 5 April 2019 should be submitted online by Friday 19 April. This includes NIL returns.
It is only too easy to get caught out by the need to submit a NIL return when no payments to subcontractors have been made. If you engage a local accountant to do your CIS returns, then this will be taken care of. In our case we keep a diary and do a batch of work at about the same time each month. We aim to be the Carlisle accountants that businesses will turn to for a range of advice and services. Our payroll files are bright yellow so they are hard to overlook, and CIS files also have a green line around them so they are easy to pick out.
The threshold to register for Value Added Tax remains unchanged at £85,000, with £83,000 being the threshold to deregister.
The income tax year ends today, which is Lady Day (The Annunciation) in the Julian calendar which was in use prior to 1750 and is still in use in some parts of the world and by the Orthodox Church.
The new tax year starts tomorrow. If you wish to claim a tax refund, then get your records together and let us have them.
If your tax bill at the end of July is larger than you think it should be, then again get your records together, give them to us, and we will get your tax return submitted before July so the payment can be reduced.
From 1st April 2019, businesses which submit VAT returns will be expected to keep digital records. At the moment, all our VAT clients can be said to keep digital records since we were very early enthusiasts for MTD anyway. However, there will be an additional requirement to be able to turn these records into a standard format readable by the Revenue which needs to be considered.
In practice, MTD will hit us round about 1st June as VAT returns need to be actually submitted, and we have made an inventory of our clients to ascertain cutoff between the old system and the new.
Frankly, the Revenue’s general MTD efforts are just a joke. I cannot go onto the Revenue’s website and look up a client’s P60 or their CIS deduction history. I could do that in the “backward” Irish Republic where CIS is known as Relevant Contract Tax. What’s going on?
Value Added Tax returns for the quarter ended 28 February 2019 should be submitted by 7 April 2019, and any payment which is due should be made electronically by the same date.
If you expect that you will claim a tax refund based upon your tax return for the year ended 5 April 2019, then you could plan to get your accounts prepared and your tax return submitted as soon as possible after April 6th. Start collecting your records together now.
Being registered under the Construction Industry Scheme may lead to a claim for a tax refund. Make sure that you have all Statements of Payment and Deduction. These Statements are valuable documents in themselves, and it would be a good idea to make photocopies of them.
You might also want to submit a tax return fairly quickly after April 6th in order to reduce the instalment of tax payable on July 31st.
Auto-enrolment pension contribution rates will increase after 6 April 2019. The new rates are 5% from employees and 3% from employers, making a total of 8%.
Make all the pension contributions that you wish to make by the April 5th deadline. This will be the lower of £40,000 and your earnings for the tax year, but subject to a lifetime allowance of £1,030,000. These rules are over-complicated if the Government actually wants people to save for a pension and not throw themselves upon the State in retirement.
Put up to £20,000 in an Individual Savings Account (ISA) by April 5th. Use it or lose it.
If you own a portfolio of shares, you might deliberately sell a few in order to crystallise a gain which is below the Annual Exemption of £11,700. There are rules to anticipate you buying them back the next day. Your accountant can advise you here.