Employment Allowance

If you are a employer then you could get £2,000 off your National Insurance Bill for the current tax year (6 April 2015 to 5 April 2016).

As an employer if you incur employers secondary class 1 national insurance each time you run your payroll you will be provided with an allowance up to the limit of £2,000 for the 2015/16 tax year. Once you have gone above the employment allowance you will start to pay employers secondary class 1 national insurance.

Eligibility

You can claim Employment Allowance if you’re a business or charity (including community amateur sports clubs) paying employers’ Class 1 National Insurance.

You can only claim Employment Allowance for one PAYE scheme.

If you’re part of a group, only one company or charity in the group can claim the allowance.

You can’t claim if:

  • you employ someone for personal, household or domestic work (eg a nanny, gardener or care and support worker) – but you will be able to claim the allowance for care and support workers from 6 April 2015
  • you’re a public body or business doing more than half your work in the public sector (eg local councils and NHS services) – unless you’re a charity
  • you’re a service company with only deemed payments of employment income under ‘IR35 rules

Do I need to complete a Tax Return?

What is a Tax Return?

A Self-Assessment Tax Return is a form completed by individuals who are required to declare all their income in a tax year if they meet certain requirements as set out by HM revenue & Customs. The requirements is detailed in the section below.

The individual’s tax return will then calculate how much tax they will have to pay or receive back from HM Revenue & Customs.

Who must send a tax return?

Individuals who receive the following income below must register and submit an annual Self-Assessment Return. They are as followed:

• A self-employed sole trader
• A partner in a business partnership
• A company director
• You receive property rental income
• Your earnings are above £100,000
• Your earnings are above £50,000 and receive child benefit
• You receive other income not taxed at source

Deadlines?

The deadline for submission is 31 October following the end of the tax year for paper submission and 31 January for online submission.

For example the deadlines for submitting a tax return for the tax year ending 5 April 2014 are as followed:

• Paper tax returns – midnight 31 October 2014
• Online tax returns – midnight 31 January 2015

Penalties?

If you forget to submit your tax return you will receive the following penalties.

• £100 for missing the 31 January deadline
• £10 per day after 3 months for a period of 90 days until submission
• £300 after 6 months
• £300 after 9 months

For example submitting your 2013/14 Tax Return on 1 December 2016 will incur the following penalties

• £100 for missing the 31 January 2015 deadline
• £900 for missing the deadline of 31 May 2015
• £300 for missing the deadline of 31 July 2015
• £300 for missing the deadline of 31 October 2015

Women win the battle of the taxes

Women are more likely than men to send in their tax return on time, an HM Revenue and Customs (HMRC) analysis has revealed. Women are more likely than men to send in their tax return on time, an HM Revenue and Customs (HMRC) analysis has revealed.

For every 10,000 tax returns received last year by HMRC from men, 394 were after the relevant deadline – 31 October for paper submissions and 31 January for online returns. This compares to 358 late returns for every 10,000 received from women.

As well as a gender gap, HMRC’s analysis showed a significant difference in filing behaviour between age ranges. People aged 18 to 20 were the worst offenders, with 1,085 in every 10,000 filing late. At the other end of the scale, those aged 65 or over were the most punctual, with only 155 out of every 10,000 missing the deadline. HMRC’s analysis found that the older you are, the more likely you are to send in your tax return on time.

In terms of differences between workers in different industries, those in the agriculture, fishing and forestry industry are the star performers, with just 109 in every 10,000 filing late returns. Lawyers and accountants came second (219 late filers per 10,000), with health and social workers (262 per 10,000) in third place. Workers in the information and communication industries fared the worst (390 per 10,000), with administrative and support services not far behind (388 per 10,000) and the construction industry the next worst performing sector (352 per 10,000).

Across the United Kingdom, taxpayers in Northern Ireland were the most punctual (301 per 10,000), followed by those in Wales (346 per 10,000), England (374 per 10,000) and Scotland (391 per 10,000). The figure for the United Kingdom as a whole was 372 late filers per 10,000.

Within the English regions, South West taxpayers were the least likely to miss the deadline (299 per 10,000), followed by the East Midlands (324 per 10,000), Yorkshire and the Humber (337 per 10,000) and the West Midlands (344 per 10,000). By some distance, the worst-performing region was London (512 per 10,000), followed by taxpayers in the North East (380 per 10,000), North West (369 per 10,000), South East (355 per 10,000) and the East of England (346 per 10,000).

HMRC Director General of Personal Tax, Ruth Owen, said:

Whatever your gender, age, occupation or location, if you haven’t sent in your 2013-14 tax return, you need to take action now.

HMRC offers a range of help and advice. But don’t leave it until the last minute to contact us. Do it now, and avoid a last-minute rush to beat the deadline.

You must file your 2013-14 tax return, and pay what you owe, by midnight on 31 January. If you haven’t yet registered for HMRC Online Services, you need to act now, as it involves HMRC posting you an Activation Code and this can take up to ten days to arrive.