Important changes in the near future

BY the time you read this the January tax return deadline will have passed, we will hopefully have submitted all clients’ returns on time, and I will have had my customary double scotch in celebration!
However, nothing stands still and so it is time to examine a couple of important changes that have occurred or which will be occurring in the near future.
Something that could affect everyone is the transferable allowance for married couples and civil partners that is being introduced in April. From that date, allowances of £1,050 can be transferred between partners provided that neither is a higher rate taxpayer. It is also not available if either partner was born before 6 April 1935 and they are eligible to receive the Married Couples Allowance.
This will benefit those couples where one partner either does not work or only earns an amount below the personal allowance. The lower earner can make the transfer, meaning that the main wage earner will save tax of £210. The relief will not be given automatically, but will need to be claimed online.
Employers will be affected as new tax codes will be introduced. The partner making the transfer will be given a code ending in “N” and the receiving partner will be given a code ending in “M”. This is instead of the normal “L” code.
Another change for some employers is more imminent. Late filing penalties under RTI (Real Time Information) began in October for all those businesses with 50 or more employees. Affected businesses will incur a monthly penalty of up to £400, depending upon the number of employees. Those businesses will receive a written notice in February 2015 for any penalties incurred in the quarter to 5th January 2015.
One further change that is happening in April affects employment intermediaries that supply workers without operating PAYE. These intermediaries will be required to make a quarterly return detailing all workers and payments on which PAYE was not operated. This is a complex area and if you think you may be affected then you should seek advice.
WatkinsonBlack are pleased to advise on these as well as other matters, including providing a very cost-effective payroll bureau service. If you want to arrange a no-obligation initial meeting on any taxation or accounting matter then please contact us.
Please note that these ideas are intended to inform rather than advise and you should always obtain professional advice before taking any action.