Tax Tips

Country Money – Travel and Subsistence Allowance

Question.   I operate part of my NI construction business in in the Republic of Ireland where I employ and process southern payroll. As my employees need to travel to different construction sites, can I reimbursed their travel costs in any tax efficient manner? Answer.   An employer can pay tax-free mileage and subsistence in accordance with Civil Servants Rates published by the Revenue Commissioners to fixed based employees ...

PAYE Coding Notice

Question.   I have just started to work and have received a 2017/18 PAYE Coding notice from HM Revenue and Customs. What is this and what should I do with it?   Answer.   HM Revenue & Customs (“HMRC”) will issue a PAYE coding notice to an individual’s employer. The coding notice advises the employer of how much tax to take off the employee’s income.   The coding notice will start ...

Registering for Self Assessment

Question. I have received dividend Income in 2016-17 for shares that I had bought and the voucher advises this is information needed for completing your Tax Return. I have never completed a tax return before, why would I need to complete a tax return now and how would I register with HMRC to complete a tax return?   Answer.   There are a number of reasons why you would need ...

PAYE Late payment penalty notice

Question.   I have received late payment penalty notices from HM Revenue & Customs for late payment of PAYE for the last 2 months? I usually pay by cheque each month and the cheques were posted on or before the 19th following the month end. Why have I got a penalty and how much will I pay?   Answer.   PAYE payments paid by cheque must reach HM Revenue and Customs ...

Trade Losses & NIC

Question.   I have a small self-employment business which has made a loss for the past 2 tax years, as my only other source of income is investment income. Are my losses wasted?   Answer.   Provided your business is run on a commercial basis with an expectation of profits then your losses can be off set against other income as follows;   You can make a current year loss claim to ...

Changes to Tax Liability

Question.   I own a Company and extract a salary of £10,000 per annum and a dividend of £30,000. For 2015/16, I paid no tax on this income. I know there has been changes to how dividends are taxed. Can you explain what my tax liability will be in 2016/17 and what impact the recent budget will have on my income for the forthcoming tax year ...

Changes to Tax Liability

Question. I own a Company and extract a salary of £10,000 per annum and a dividend of £30,000. For 2015/16, I paid no tax on this income. I know there has been changes to how dividends are taxed. Can you explain what my tax liability will be in 2016/17 and what impact the recent budget will have on my income for the forthcoming tax year ...

Payroll Benefits

Question. I am an employer and have started to pay medical insurance for my employees. How do I report this to HM Revenue & Customs? Answer. As you have missed the registration deadline for online reporting for the tax year 2016/17 you will need to complete both Plld & Plld 9(b) for 2016/17, deadline for submission if these forms is 6th July 2017.   Form P11D should be prepared ...

Sales of goods to Irish Business

Question. I own a Vat registered business based in Newry. Should I charge Vat on the sale of goods to my Vat registered customers in the Republic of Ireland? Answer.   You can zero rate the supply of goods if the customer provides their Irish VAT registration number, business details and if you arrange for the product to be delivered to the business address in the Republic of ...

Gift Aid Payment

Question. I am considering donating a sum of money to a charity and have been asked to make a Gift Aid declaration. What is Gift Aid and are there any tax implications for me?   Answer. Gift Aid allows charities and community amateur sports clubs (CASC) registered with HMRC to claim the basic tax rate paid by qualifying donors. This, in effect, increases the value of the donation, while ...

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