There are three principle tax and NIC consequences:

• Your company may have to make a corporation tax payment based on the overdrawn balance.
• Unless you pay an HMRC agreed rate of interest on your loan you may suffer a benefit in kind charge.
• If a benefit in kind charge does apply, your company will also need to pay Class 1a National Insurance contributions.

There are ways to mitigate, or eliminate, these various charges as long as you comply with the relevant regulations. For instance:

Recent updates to the hugely popular Sage Payroll software have included the ability to send employee payslips electronically via email and we’ve decided that now is the time to jump on board.

By implementing this feature we can provide a greener and speedier alternative to using the traditional printed forms. As an extra security measure and for piece of mind each payslip can be password protected upon opening.

In addition, Payslips can be customised with the clients own logos, text and images.

The standard payroll reports will then be emailed to the client, including:

- Payment Summary Part 1, 2 and 3
- BACS List
- Copies of Payslips
- P32
- Holiday Schedule

Sage Payroll software is accredited by HM Revenue & Customs (HMRC) and is one of the UK’s favourite ways to pay staff. It’s packed with all the essentials for running an effective and compliant payroll, offering greater control of both client’s payroll processes and their employee information.

To find out more about our payroll services and what we may be able to offer your company call us today on 01483 230620.

Payroll Services in Guildford Surrey from JWP Solutions Ltd

If you are paying HM Revenue & Customs (HMRC) electronically payment must reach their account by Monday 7th November 2011.

HMRC recommends that you make all of your VAT payments electronically. If you submit your VAT Return online then you must make payment electronically. Paying electronically:

• is safe and secure
• gives you better control over your money
• provides certainty about when your payment will reach HMRC
• avoids postal costs and delays
• lets you pay at a convenient time if you use Direct Debit, internet/telephone banking or debit or credit card over the internet
• in most cases gives you up to seven extra calendar days in which to pay – or at least ten calendar days if paying by Direct Debit online

Bookkeeping and Payroll Services in Guildford Surrey from JWP Solutions Ltd

The first return affected by the changes to late-filing penalties is the return for the month ending 5 November 2011.

The following penalties will apply to that return and to all subsequent months’ returns that are not filed, or are filed late, for as long as the return is outstanding.

- Immediately the return is late – a fixed penalty of £100

- Two months after the filing date – a second, fixed penalty of £200

- Six months after the filing date – a tax-geared penalty which is the greater of £300 or 5% of the amount of deductions shown on the return

- Twelve months after the filing date – a second tax-geared penalty which is the greater of £300 or 5% of the amount of deductions shown on the return. If we believe that information has been deliberately withheld, greater penalties may apply.

A limit will apply to the penalties for new contractors so that the £100 and the £200 penalties do not exceed a maximum of £3,000. During this period no tax-geared penalty will be issued. However, once returns are received penalties will be adjusted to include 5% of the amount of deductions shown, if appropriate.

Interest is charged on any penalty paid late.

When the new penalties begin, no more automatic penalties will be issued for outstanding returns up to and including the one for the month ending 5 October 2011. Those penalties already charged are still due for payment unless successfully appealed against and payment of these should be made immediately. H M Revenue & Customs (HMRC) will continue to raise amendments to penalties already issued where necessary and further penalties can be issued manually for earlier returns, if appropriate.

Bookkeeping and Payroll Services in Guildford from JWP Solutions Ltd

Basic Calculation

For a basic calculation of your leave allowance multiply the number of days you work a week by 5.6. For example, if you work a five day week you would be entitled to 28 days’ annual leave a year:

5 days x 5.6 weeks = 28 days

Regardless of your working pattern, the minimum leave entitlement is capped at 28 days. So if you work a six day week, the statutory entitlement of 5.6 weeks will still be 28 days.

Part-time Workers

If you are a part-time worker, you are still entitled to 5.6 weeks’ holiday – 5.6 of your normal working week. For example, if you work two days a week you would be entitled to 11.2 days’ annual leave a year:

2 days x 5.6 weeks = 11.2 days

You should be treated no less favourably if you are a part-time worker than an equivalent full-time worker. This means that if your employer gives extra days off to full-timers they may have to give extra time off to part-time workers as well.

Casual or Irregular Working Patterns

If you work casually or irregular hours it may well be easiest to calculate the holiday entitlement that accrues (accumulates) as hours are worked. The holiday entitlement of 5.6 weeks is equivalent to 12.07 per cent of the hours you worked. The 12.07 per cent figure is:

5.6 weeks’ holiday, divided by 46.4 weeks (being 52 weeks – 5.6 weeks) multiplied by 100 = 12.07 per cent

The 5.6 weeks have to be excluded from the calculation as you would not be present during the 5.6 weeks in order to accrue annual leave. For example, if you had worked 10 hours, you would be entitled to 72.6 minutes’ paid holiday:

12.07 per cent x 10 hours = 1.21 hours = 72.6 minutes

The holiday entitlement is just over seven minutes for each hour worked.

Bookkeeping and Payroll Services in Guildford from JWP Solutions Ltd

Holiday Entitlements: The Basics

All workers have a right to at least 5.6 weeks’ paid annual leave, but your employer could offer you more than that. Your employer may control some things about your holiday, including when you should take it and whether they include bank holidays.

The basics of holiday rights…

The main things you should know about holiday rights are that:

And this activity is not necessarily restricted to eBay traders. What about car boot sales, sales via classified ads? Which raises an interesting question – when does a hobby become a trade, and more importantly, when do any surplus funds become subject to tax?

Generally speaking if you are selling your own private possessions you will not be trading. However you may be considered ‘in business’ if you habitually buy and sell goods on eBay and/or at car boot events.

The list that follows is the published ‘badges of trade’ that HMRC uses when considering this matter.

• An intention to make a profit supports trading.
• The number of transactions involved – systematic and repeated transactions support trade.
• The nature of the goods sold – are the goods only capable of being turned to advantage by being sold? Or do they yield income, or give enjoyment through pride of ownership?
• Existence of similar trading transactions – was this a one-off transaction or part of a pattern that suggests trading?
• Changes to the goods – were the goods repaired, modified or improved to sell them more easily?
• The way the sale was carried out – were the goods sold in a way that indicates trading, or to raise cash in an emergency?
• The source of finance – was money borrowed to buy the goods? Were any profits to be used to repay the loan?
• Interval of time between purchase and sale – goods being traded are usually bought then sold quickly.
• Method of acquisition of the goods – goods acquired by an inheritance, or as a gift, are less likely to be the subject of trade.

As you can see one or more of these cases could apply to most hobbies.

The current penalty regimen adopted by HMRC precludes sticking your head in the sand. Don’t wait for the brown envelope to appear. If you are uncertain about the tax status of your money making hobby get advice today.

All business websites and emails need to display:

• Registered Name – this does not have to be on every page but it needs to be displayed where it can be easily read
• Registered Number
• Country of Registration, including the part of the United Kingdom in which the company is registered (i.e. England and Wales, Wales, Scotland, or Northern Ireland)
• Registered Office Address

Further information can be found on the Companies House website (Chapter 10)

http://www.companieshouse.gov.uk/about/pdf/gp1.pdf

If you are paying HM Revenue & Customs (HMRC) electronically payment must reach their account by Friday 7th October2011.

HMRC recommends that you make all of your VAT payments electronically. If you submit your VAT Return online then you must make payment electronically. Paying electronically:

• is safe and secure
• gives you better control over your money
• provides certainty about when your payment will reach HMRC
• avoids postal costs and delays
• lets you pay at a convenient time if you use Direct Debit, internet/telephone banking or debit or credit card over the internet
• in most cases gives you up to seven extra calendar days in which to pay – or at least ten calendar days if paying by Direct Debit online

JWP Solutions submit all VAT returns online using Sage Line 50.

From 1 April 2012 it becomes compulsory for all VAT registered businesses to file their VAT returns online and pay electronically. HM Revenue & Customs will accept payments by BACS, CHAPS or by Bank Giro Credit transfer.

In addition from 1 August 2012 any business looking to either register or deregister will have to do so online.