From 6 April 2012, HMRC have greater powers to help ensure that employers pay their PAYE tax deductions or Class 1 National Insurance contributions (NICs). The new powers will allow HMRC to obtain a security from employers where there is a serious revenue risk as a result of non-payment of employees’ income tax and NICs.
The new powers are drafted to target employers who deliberately try to defraud the national purse but the changes will also target businesses that build up large debts to HMRC as well as those who do not respond to HMRC’s attempts to contact them in reasonable time.
The required security will, according to HMRC, usually be a cash deposit from the business or director – held by HMRC or paid into a joint HMRC/taxpayer bank account – or a bond from an approved financial institution which is payable on demand. The amount of security required will be calculated on a case by case basis. Businesses required to pay a security deposit will have the option to appeal any decision by HMRC.
In a separate announcement, the head of debt management and enforcement for HMRC has warned that anyone making late payments to HM Revenue & Customs will be pursued until the Revenue receives its share.
Dr Abani told a delegation of accountants that people making late PAYE payments will receive letters from HMRC with penalty notices attached. ‘If you have been making late payments on PAYE there will be envelopes landing with penalties,’ he said. He reiterated the message that those who fail to inform HMRC of problems would not be afforded leniency: ‘If you have not spoken to us in time we will not remove late payment surcharges… It is very important to tell HMRC what has gone wrong’, he said.
Businesses that hare having genuine financial difficulties should contact HMRC at the earliest opportunity to discuss the options available to them.
Taxing Nannies assist our clients so that they do not end up with arrears, as follows:
1.We advise all our clients at the outset as to the likely costs of nanny tax and national insurance and how much the employer should reserve on a weekly or monthly basis in addition to the net salary paid. This is particularly important where the employer agrees a net salary with the nanny, but does not realise the additional costs of nanny PAYE, employees and employers national insurance. Even where an employer agrees a gross salary with the nanny, Taxing Nannies will advise of the additional employers national insurance which is payable.
2.Where we are advised of a change in salary, we inform our clients of the revised liabilities to tax uk and national insurance.
3.Where our clients enter into nanny share arrangements, Taxing Nannies assists its clients with splitting tax codes so that payment of nanny taxes by both employers is equitable. Where there is a change of arrangement Taxing Nannies will recalculate the liabilities and advise our clients accordingly.
4.Once a quarter we write to all our clients advising them of the exact amount of their nanny taxes with details of all the different payment methods and due date for payment. We give ample notice and remind our clients of payment dates for PAYE and national insurance.
5.If our clients receive demands for tax, penalties or underpayment notices from HMRC, Taxing Nannies will check the validity of those notices and advise our clients accordingly. Nat all notices sent by HRMC are correct! If a client is unsure as to what nanny taxes have been made, Taxing Nannies have the facility to check details of payments made with HMRC.
6.Where our clients express difficulty in paying HMRC, we will advise them as to their best cause of action.
For more help and assistance with all you nanny tax and nanny PAYE needs, contact us and we will be happy to help. [email protected]
Contact Information:
Taxing Nannies,
28 Minchenden Cresent,
London
N14 7EL
Telephone: 020 8882 6847
Website : http://www.taxingnannies.co.uk/
Email: [email protected]
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