Periodically, I will publish a selection of questions and answers about tax.
Our latest Question and Answers
Question: “I am in the process of producing P11Ds for my employees for the first time. Please could you remind me of the deadlines?”
Forms P11D, P9D and P11D(b) must reach HMRC by 6thJuly following the end of the tax year. You must also provide a copy of the P11D or P9D to the relevant employee by this date.
Your payment of the Class 1A NICs declared on form P11D(b) must reach HMRC by 22nd July, or by 19th July if you pay by cheque.
This doesn’t apply in your case, but if you had indicated that P11Ds were due on your final payroll submission, and then in the end they were not required, you must still take action. You should inform HMRC they are not due using the online form ‘No Return of Class 1A National Insurance contributions’. If you do nothing, HMRC may issue you with P11D late filing penalties.
If you would like any assistance in preparing your P11Ds, P9Ds or P11D(b), please contact us to be put in touch with your local TaxAssist Accountant who would be happy to help.
Question: I would like to encourage my customers with a discount. But which value do I calculate the VAT on- the amount before or after the discount?
The invoice in respect of a trade discount should show the discounted amount and therefore the VAT is also calculated on the discounted amount.
Invoices attracting a prompt payment discount should show the sales value before any prompt payment discount is applied; but the VAT calculated as if it was taken; irrespective of whether the customer eventually took the discount or not.
Unfortunately, the UK VAT legislation is misaligned with EU VAT legislation in respect of prompt payment discounts. Therefore, with effect from April 2015 VAT will need to be accounted for on the full consideration paid. Please note, it will apply from the earlier date of 1st May 2014 for supplies of telecommunications and broadcasting services where there is no obligation to provide a tax invoice.
If you would like any advice on invoicing or VAT, please feel free to contact us and we can put you in touch with your local TaxAssist Accountants office.
To view a wide range of our frequently asked questions visit our website here.