Employer Deadline July 2014
Employer Deadlines Approaching July 2014
In addition to the normal monthly deadlines for Employers, July is the cut-off for some key forms and returns. Failure to meet deadline returns will generally result in penalties for late filing.
For thetax year to 5th April 2014:
| 5th | Last date for agreeing your PAYE Settlement Agreement (see below). |
| 6th | Deadline for submitting form 42 or other relevant forms to report share-related benefits provided to employees. |
| 6th | Deadline for filing forms P9D, P11D, P11D(b), or substitutes. Copies to be provided to employees. |
| 19th | Deadline for postal payment to reach HMRC Accounts Office for any outstanding Class 1A NICs. |
| 19th | Quarterly PAYE – PAYE/NICs first quarter payment due 2014/15. Electronic payments to be cleared in HMRC bank account. |
| 22nd | Final date for electronic payments to be cleared in HMRC bank account for any outstanding Class 1A NICs. |
| 31st | Deadline for second Self-Assessment payment on account for tax year ended 5 April 2014. |
This is a voluntary agreement between you and your HMRC office under which you agree to meet the tax payable on certain expenses and benefits in kind that you give to your employees. Once you have a signed agreement for a tax year, you do not have to:
- enter the items covered on form P9D or P11D;
- operate PAYE on them, or
- assess NICs liability for included items which are liable for Class 1 or Class1A NICs.
You pay Class 1B NICs on the items included in PSAs and on the total amount of tax payable, but you will still need to calculate and pay Class 1 NICs where the benefits were provided before the date the PSA agreement was signed or where the item has been included in the employee’s tax code for the year.
What kinds of expense payments and benefits in kind can be included in a PSA?
There are many kinds of expenses or benefits in kind which can be included: for example:
- minor items such as taxi fares you pay or reimburse, incidental travel costs, small gifts or use of a pool car where the items are taxable;
- items which are paid or made available on an irregular basis, such as a holiday given under an incentive award scheme or the occasional use of a company holiday flat;
- items it is impracticable to apply PAYE to, or identify precisely what should be included on form P9D or P11D. For example, Christmas parties and similar entertainment you provide which does not already qualify for relief.
Are there any things that are excluded from a PSA?
Among other things, HMRC will not include in PSAs:
- cash payments – for example, ordinary wages, salaries and bonuses including those paid to casual employees;
- round sum expenses payments – for example, a lump sum you give employees to cover all the expenses they incurred during the year;
- shares, due to the difficulty of valuation;
- major benefits in kind provided on a regular basis for the exclusive use of individual employees – for example, a car provided for someone’s sole use, fuel for that car, provided accommodation or a beneficial loan;
- Profits arising from various mileage payment schemes and other regular items arising in Employee Car Ownership Schemes.
Share Transactions for Employees and Directors
6th July immediately following the relevant tax year (to 5 April) is the deadline for all employee share related returns, as follows:
- Approved Profit Sharing Schemes
- Approved Company Share Option Plan
- Approved Save-As-You-Earn Scheme
- Approved Share Incentive Plan
- Enterprise Management Incentives
- All “Unapproved” Arrangements.
Unapproved arrangements – Form 42
This is the “catch-all” return for any employee share transactions not reported on any other form relating to approved share schemes. The return covers both share and share option transactions for UK resident employees and directors, even where the shares are outside the UK.
Please find an extract of Form 42 below to show the type of events that are reportable:
“Section 1 Securities options (including share options)
You must complete this section if employees were granted or exercised options (including consideration received for giving up the option)
- 1a Summary of grants of securities options
- 1b Acquisition of securities in connection with (including exercise of) securities options
- 1c Assignment and release of securities options
Section 2 Acquisition of securities (including shares)
You must complete this section if securities were acquired by employees
Section 3 Events occurring after the acquisition of securities
You must complete this section if taxable events occurred after the employee has acquired the securities
- 3a Restricted securities (including shares)
- 3b Variation of restrictions for shares acquired before 16 April 2003
- 3c Conversion of securities on or after 6 April 2010
- 3d Discharge of notional loans
- 3e Receipt of other benefits from securities
- 3f Securities sold for more than market value
- 3g Artificial enhancement of market value.”
If you are worried that you have been underpaying tax either deliberately or in error, you should speak with Harbour Key immediately. Penalties are charged for failure to report and late payment of tax. Penalties will generally be less severe for taxpayers who come forward voluntarily to put their affairs in order.
Should you require any further details on Employer Deadlines or tax advices in general, please do not hesitate to contactHarbour Key Limited.
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Harbour Key Limited
+44 (0) 1242 244115
+44 (0) 1242 241747
