FASTER PAYMENT SERVICE
HMRC have announced that UK tax and NI payments can now be made via the Faster Payment Service so that electronic payments should clear HMRC’s account the same day. Previously, payments made electronically did not clear for 3 working days giving rise to potential penalties and interest.
Taxpayers are advised to contact their own bank or building society before making a payment to confirm that their own bank can process Faster Payments, whether there are any daily limits and the cut off time to make a payment to clear that day. It is also important to ensure that the correct bank account details and PAYE collection reference are used. In most cases the bank account details will be Account 12001020, sort code 08-32-10.
PAYE PENALTIES
Since 6th April 2011 all forms P45 and P46 must be filed electronically with HMRC and should not under any circumstances be sent to the tax office. Up until 5th January 2012, no penalties were issued, but warning letters have been sent to employers who have not filed forms online. Penalties range from £100 upwards where 2 or more paper forms have been filed. We would therefore urge all employers to ensure that their nannies do not send the P46 when they are given it to sign but return it to Taxing Nannies for electronic submission.
NEW PAYE CODING NOTICES
New PAYE coding notices are in the process of being sent to employees informing them of new tax codes for 2012/13. The tax codes should include all allowances and relief's that your nanny is entitled to and in most cases should be the single person’s allowance which will be 810L from 6th April 2012 where it is the nanny’s sole employment. Where there is a nanny share then the code should have been adjusted so that the total allowance for her combined employments totals 810L. Please send all tax code notices to us for checking so that we can ensure that the correct nanny tax is deducted.
If the tax code is not for the full single person’s allowance it may be that there are adjustments for underpayments of tax for a previous year which may not be relevant to your employment and this could have a bearing on the nanny PAYE and National Insurance you pay where your nanny receives a net salary.
0T TAX CODE
New regulations were introduced in 2011 which changed the tax code that applies to payments of income to an employee after cessation of employment which have not been included in form P45. The 0T tax code deducts income tax at the basic and higher rates without giving any personal allowance. Therefore it is essential to ensure that all nanny wage payments made on cessation of employment are notified in time so that the normal PAYE tax code can be applied. Cessation payments such as redundancy and ex-gratia payments will normally be exempt from PAYE and National Insurance if less than £30,000.
REMOVAL OF SIMPLIFIED/DOMESTIC PAYE SCHEMES
In the past, employers registering for PAYE schemes themselves could often apply for a simplified PAYE scheme with the result that no penalties were payable for late submission of forms P35. However, from April 2012, these schemes will no longer be available and is therefore even more important that employers contact us as soon as their nannies commence work to ensure that the end of year return can be filed on time.
Taxing Nannies a link agency guides you through link and Nanny Payee Laws on what to take care on hiring a Nanny.
HMRC have announced that UK tax and NI payments can now be made via the Faster Payment Service so that electronic payments should clear HMRC’s account the same day. Previously, payments made electronically did not clear for 3 working days giving rise to potential penalties and interest.
Taxpayers are advised to contact their own bank or building society before making a payment to confirm that their own bank can process Faster Payments, whether there are any daily limits and the cut off time to make a payment to clear that day. It is also important to ensure that the correct bank account details and PAYE collection reference are used. In most cases the bank account details will be Account 12001020, sort code 08-32-10.
PAYE PENALTIES
Since 6th April 2011 all forms P45 and P46 must be filed electronically with HMRC and should not under any circumstances be sent to the tax office. Up until 5th January 2012, no penalties were issued, but warning letters have been sent to employers who have not filed forms online. Penalties range from £100 upwards where 2 or more paper forms have been filed. We would therefore urge all employers to ensure that their nannies do not send the P46 when they are given it to sign but return it to Taxing Nannies for electronic submission.
NEW PAYE CODING NOTICES
New PAYE coding notices are in the process of being sent to employees informing them of new tax codes for 2012/13. The tax codes should include all allowances and relief's that your nanny is entitled to and in most cases should be the single person’s allowance which will be 810L from 6th April 2012 where it is the nanny’s sole employment. Where there is a nanny share then the code should have been adjusted so that the total allowance for her combined employments totals 810L. Please send all tax code notices to us for checking so that we can ensure that the correct nanny tax is deducted.
If the tax code is not for the full single person’s allowance it may be that there are adjustments for underpayments of tax for a previous year which may not be relevant to your employment and this could have a bearing on the nanny PAYE and National Insurance you pay where your nanny receives a net salary.
0T TAX CODE
New regulations were introduced in 2011 which changed the tax code that applies to payments of income to an employee after cessation of employment which have not been included in form P45. The 0T tax code deducts income tax at the basic and higher rates without giving any personal allowance. Therefore it is essential to ensure that all nanny wage payments made on cessation of employment are notified in time so that the normal PAYE tax code can be applied. Cessation payments such as redundancy and ex-gratia payments will normally be exempt from PAYE and National Insurance if less than £30,000.
REMOVAL OF SIMPLIFIED/DOMESTIC PAYE SCHEMES
In the past, employers registering for PAYE schemes themselves could often apply for a simplified PAYE scheme with the result that no penalties were payable for late submission of forms P35. However, from April 2012, these schemes will no longer be available and is therefore even more important that employers contact us as soon as their nannies commence work to ensure that the end of year return can be filed on time.
Taxing Nannies a link agency guides you through link and Nanny Payee Laws on what to take care on hiring a Nanny.
Personal loans
“Canadians should be mindful of their spending and savings habits and make use of high-interest savings vehicles to boost their savings funds,” said Christine Canning, Senior Manager Everyday Banking, BMO Bank of Montreal. “Starting early, even with small, regular amounts, can greatly contribute to your savings in the long run.”
For instance, based on an annual household income of $70,000, transferring 10 per cent of each pay cheque into a higher interest savings account could add up to total savings of $7,000 + interest each year.
Ms. Canning added that BMO offers the BMO Smart Saver Account, a high-interest savings account that allows for unlimited deposits and transfers into the account, one free self-serve debit transfer each month via online, ABM or phone, and free access to BMO MoneyLogic - an online personal financial management tool to help track everyday expenses.
For instance, based on an annual household income of $70,000, transferring 10 per cent of each pay cheque into a higher interest savings account could add up to total savings of $7,000 + interest each year.
Ms. Canning added that BMO offers the BMO Smart Saver Account, a high-interest savings account that allows for unlimited deposits and transfers into the account, one free self-serve debit transfer each month via online, ABM or phone, and free access to BMO MoneyLogic - an online personal financial management tool to help track everyday expenses.
