Jan 24, 2019

Important Payroll deadlines for Employers

  1. FPS: submit to HMRC on/before pay day

  2. EPS: if applicable, submit to HMRC by 19th of following month

  3. PAYE payments: to HMRC by 22nd of following month

  4. P60s: to employees by 31st May after end of tax year

  5. Reporting expenses and benefits to HMRC: by 6th July annually

  6. Pay any tax & NIC on expenses and benefits to HMRC: by 22nd July annually

  7. Payslips to employees: on/before pay day

  8. Year end employee tax updates: on 6th April annually

Jan 30, 2019

The identifying features of Fixed Assets

It's not always obvious to business owners whether expenditure is of a capital nature and should be recognised on the balance sheet as a Fixed Asset (aka Non current asset) or whether it is revenue expenditure and should be expensed to the Income statement (aka Profit and Loss).

 

These are some characteristics of Fixed assets to look out for when making this distinction:

1. a long useful economic life (UEL), i.e. several years

2. not purchased for resale (i.e. are not stock in trade)

3. are used by the business to operate

4. tend to be represented by more expensive, one off expenditure

5. are not typically liquid in nature (i.e. are not readily converted into cash)

6. can be both tangible or intangible

Jan 30, 2019

Donations eligible for the GASDS

Eligible charities are able to claim top-up payments on small cash or contactless donations under the GASDS scheme. There are limits to the total amount that can be claimed every tax year.

 

These are some of the criteria that apply to the scheme:

1. cash donations need to be £20 or less from a single donor

2. contactless card donations of £20 or less from a single donor are eligible if received after 6/4/17

3. donations from donors with a valid gift aid declaration

4. donations received in gift aid envelopes

5. cheque, text or online donations

6. donations received in return for a benefit (e.g. raffle tickets) are not eligible

7. reasonable steps need to be taken to check that donations collected are eligible, such as:

a) instructing collectors to set aside £50 notes to exclude from a claim;

b) instructing collectors to set aside donations of >£20 by a single donor

(e.g. a donation of two £20 notes by one donor is not allowable)*

c) donations known to be from non individuals

8. appropriate records need to be kept to support a claim and template forms can be created to support this purpose. An interpretation of record keeping requirements would include: separate sections to list eligible and non-eligible donations, the date & location of the collection, a breakdown of amounts collected by denomination and type (e.g. cash, cheque, contactless), the name of the collector(s), banking slip number and banking date and records of contactless donations from the contactless terminal

9. donations need to be banked in the UK before being used to pay for expenditure to be eligible

 

*most collections are anonymous but the charity should still apply reasonable safeguards, such as disregarding a donation of two £20 notes folded together (which can be reasonable assumed to constitute a single donation)