As we enter a new financial year Clarke Nicklin have published their April tax news and tips. Do the new pension laws mean more freedom or liberation? Do you know when your younger workers will reach their key birthdays of 18 and 21 and their national minimum wage entitlements change? Can you apply for the new marriage allowance?
National Minimum Wage:
Do you know when your younger workers will reach their key birthdays: 18 and 21? It is essential to know exactly when these dates fall, as reaching such a milestone will change the level of national minimum wage (NMW) which must be paid to that worker.
The current and proposed NMW hourly rates are here:
http://www.clarkenicklin.co.uk/news/tax_news/news.php?n=675
New Marriage Allowance:
If you are married or in a civil partnership, and born on or after 6 April 1935 you can now apply for the new marriage allowance. This is not an extra amount of tax free allowance, but a transfer of £1,060 of unused personal allowance from one spouse or civil partner to the other. It will save the couple tax of £212 for 2015/16. Read more here: http://www.clarkenicklin.co.uk/news/tax_news/news.php?n=676
Changes to Pension Laws:
Pension freedom is a GOOD thing. The change in law from 6 April 2015 means that members of defined contribution pension schemes who are aged 55 or more should be able to draw what they want from their pension schemes. But “pension liberation” is a BAD thing. This is when scammers use confidence tricks to separate taxpayers from their pension savings, and the taxpayer has to pay high charges and tax penalties. Can you tell the difference? Find out more here: http://www.clarkenicklin.co.uk/news/tax_news/news.php?n=674
Tax and Charities – gift aid?
If you help to run a charity you need to keep on top of the tax and audit regulations that apply to charities, and the gift aid scheme. A person with earnings or pension income of less than £10,600 and interest of up to £5,000 will pay no income tax in 2015/16. These individuals should not make gift aid declarations for donations made on or after 6 April 2015, as they do not pay the income tax which the charity reclaims in respect of that donation. Find out more: http://www.clarkenicklin.co.uk/news/tax_news/news.php?n=677
April Q&A: http://www.clarkenicklin.co.uk/news/tax_news/news.php?n=678
April’s Key Tax dates:
14th – Return and payment of CT61 tax due for quarter to 31 March 2015
19th – Deadline for Employers’ 2014/15 end of year PAYE Returns (P35, P14, P38 & P38A). Penalties for non-submission
19th – PAYE/NIC, student loan and CIS deductions due for month to 5/4/2015 or quarter 4 of 2014/15 for small employers. Interest will run on any unpaid PAYE/NIC for the tax year 2014/15
30th – Additional daily penalties of £10 per day up to a maximum of £900 for failing to file self-assessment tax return due on 31 January 2015