Week 53 payments may result in an underpayment or overpayment of tax for the year. This is due to HMRC guidelines specifying that a Week 53 payroll must be calculated on a Week1/Month1 basis. Thus giving an additional personal allowance to protect the level of take home pay the employee receives.
The yearly tax allowance is calculated on a 52 week year. i.e. The Tax Code 1150L gives the employee a tax allowance of £11,505 for the 2017/18 tax year spread over 52 weeks, giving a free pay of £221.34 per week. For a week 53 calculation, the employee is given an additional free pay allowance of £221.34, therefore increasing the yearly allowance to £11,731.02. The difference is what HMRC will be requesting.
An overpayment will occur if within the 52 week year, an employee has not reached the £11,505.
Please remember the HMRC servers are changing on the 14th February. If you still haven’t run the update please do. After the 14th you need the new server address to upload your HMRC returns (PAYE,VAT,CIS)
Remember that from the 6th April 2018 the minimum contributions of both Employees and Employers will change.
- Employer minimum contribution is changing from 1% to 2%
- Employee minimum contribution is changing from 1% to 3%
Next year (6th April 2019) they are changing again
- Employer minimum contribution will change to 3%
- Employee minimum contribution will change to 5%
If you have any questions please contact us.
We will be shut from midday on Friday the 22nd of December until Tuesday 2nd January 2017
We would like to thank all of our customers and wish you all a Merry Christmas and Happy New Year
I have just spoken to a long standing customer who rang about a general enquiry, one thing mentioned in the conversation led me to explain our Credit Control Menu item which is going to be a big help. For the rest of you who are unaware: Under the Sale Menu there is an option “Credit Control” this allows you to choose a customer and then shows all outstanding invoices or applications. You can then select one and add notes ie “14/11/17 Spoke to Mike, said cheque is in the post”. When you then run the Invoices/Applications due report and click the option to include credit control notes you get the history of the notes. It has been on the software for years but not everyone is aware of it.
The HMRC has announced updated plans for their “Making tax digital” run out.
For now VAT registered companies will only have to submit their VAT returns digitally by 2019. Businesses will not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020.
For more information on the HMRC statement see https://www.gov.uk/government/news/next-steps-on-the-finance-bill-and-making-tax-digital
CLiP IT Solutions are pleased to announce the release of its new document management module. Pull up images of invoices form anywhere in the system, or use it to help file anything from contacts, variation notices, sub contractor insurance documents etc.
Please contact us for more information.
The number of new homes being built in England is at its highest level for ten years since the start of the financial crisis in 2007/08. According to the Department of Communities and Local Government (DCLG), 162,880 homes were started in 2016/17, and 147,960 were completed. However, housing charity Shelter said the numbers were still about 100,000 short of what was needed to ease the burden of the housing crisis.
Read more at http://www.bbc.com/news/business-40044864
With the tax year end update completed we are looking for ideas you would like incorporated into the next release. As you know, we are constantly updating our Construction Industry Accounts and Job Costing software based on customer feedback. If you have a wish list of improvements then make sure we know about it. Email firstname.lastname@example.org with any ideas.
The tax year end update and guidance notes will be released over the last week of February and first week of March. Please ensure @clipitsolutions.co.uk is in your safe senders list within your email settings.