18 Hyde Gardens Eastbourne BN21 4PT East Sussex 01323 431 200 email@example.com INSIDER NOV 2012Welcome to your NovemberInsider. This month we takea look at what you need to donow to prepare for the start of RealTime Information (RTI) in April nextyear. And as the temperature drops andthoughts turn to the festive period, we give www.plummer-parsons.co.uka brief overview of some of the tax reliefs thatare available for the Christmas season – have youplanned your staff party yet?Elsewhere, HMRC shines its spotlight onto ‘direct sellers’; in its new campaign targeting those who sell goods withoutthe need of a shop. Finally in Your Money, we explore the end to the default retirement age, and the option to continueworking into your later years.Real Time Information – are you ready?There are now less than matched to data held by HMRC, The way you record workingsix months until almost all so any discrepancies could be patterns The way you report newemployers and pension providers rejected.must report their payrollinformation to HMRC on or Align your data to HMRC’s starters and leavers The way you report companybefore every payday. Before you can start reporting inTo be able to comply with the real time you will need to send cars The way you report at thenew system there are a number HMRC information about everyof measures that you as a employee that’s worked for you year-end.business will need to take. These in the current tax year (even ifinclude: they have already left). Your Ensure you are using RTI information and software willEnsuring employee data is need to be up to date before you compatible softwarecorrect and complete can do this. If we do your payroll you will not have to worry about this, but ifIt is vital that the information Changing internal you are using payroll softwareyou hold on your employees is processes you will need to ensure it isaccurate and up to date for Real compatible with RTI.Time PAYE to function effectively. There will need to be a numberThe data held by you will be of changes, including: We can help you to prepare and get ready for RTI, please contact us to find out how.
Tax relief at ChristmasAs Christmas edges closer we take a look at the Gifts to employeesqualifying tax expenditure your business couldtake advantage of over the festive season: Small items such as a Christmas turkey or standard bottle of wine are considered to be trivial benefits, which can be given as tax-free gifts to yourChristmas parties employees. Other gifts to staff are tax allowable, but your employees could be taxed on the value of the gift as a benefit in kind, in which case youChristmas parties can be held with an would also have to pay Class 1A national insurance on the value of the gifts.exemption from tax and national insuranceprovided they meet certain conditions,including: For help and advice on tax relief at Christmas please contact us.Being open to all employeesCosting less than £150 per head. Direct sellers become latest HMRC targetsGifts to customers Direct sellers, defined as selling directly to customers without the need of aBusiness gifts are only allowable as a tax shop, are the latest group to be targeted by HMRC.deduction if: The campaign aims to get those who may not have paid the right amount ofThe total cost of gifts to any customer does tax to come forward. Those that do will be offered a more lenient penalty not exceed £50 per year and than those discovered by HMRC without responding to the initiative.The gift contains a clear advertisement for Most, although not all, direct sellers are self-employed, which means that the business and they are responsible for notifying HMRC of their earnings. Those who haveThe gift is not food, drink, tobacco or not can do so via this campaign provided they do so before 28 February 2013. exchangeable vouchers. If you are concerned about your tax affairs, pleaseSamples of a product are allowable even if they contact us to see how we can help.are food, drink or tobacco.YOUR MONEYEnd of the Default Retirement Age – what now for older workers?Last month marked the official end of To continue working – you may Become self-employed – somethe Default Retirement Age (DRA). The be able to continue working your may prefer to work on a self-DRA has gradually been phased out normal hours and put off claiming employed basis and choose thefrom the start of April last year, and as your State Pension. Deferring your amount and level of work they canof 5 October employers are no longer state pension may in fact earn you take on, but it isn’t for everyoneable to force employees to retire once an extra State Pension for later life, and will result in different taxthey reach the age of 65. or you could earn a one-off taxable obligations. lump sum payment.It comes in response to a nation thatis living and working longer than ever Early retirement on partial Please talk to us to discussbefore. The impact of the financial crisis pensions - you may take all or part your options on workingon people’s savings means many are re- of your pension while continuing to past the state pensionevaluating their plans for later life and work (known as partial retirement). age or if you’re reachingworking longer. There are now a record It is important to consider the retirement.number of employees working past the implications of doing so on yourage of 65, with around 870,000 over final pension pot. November’s Money Facts Work flexible hours – cutting65s in work in the final quarter of 2010,allowing workers greater financial,social and physical independence. down the amount of hours you Current bank rate 0.5% work can give flexibility to continueIf you are an older worker approaching to work and gradually get used to Quantitative Easing £375 billionthe state retirement age, your options retirement. Schememay include: Current inflation 2.2% www.plummer-parsons.co.uk