LEGISLATION UPDATE FOR CLIENTSVAT PENALTY CHANGES1. Who is affected?The changes will affect everyone submitting VAT Returns for accounting periods starting on or after 1 January 2023.Any nil or repayment VAT returns received late will also be subject to late submission penalty points and financial penalties.2. What happens if you submit your VAT return late?Late submission penalties will work on a points-based system. For each VAT Return you submit late you will receive one late submission penalty point.Once a penalty threshold is reached, you will receive a £200 penalty and a further £200 penalty for each subsequent late submission.The late submission penalty points threshold will vary according to your submission frequency. Most clients will be on quarterly submissions.Annually 2 penalty points within 24mQuarterly 4 penalty points within 12mMonthly 5 penalty points within 6mYou will be able to reset your points back to zero if you:i. Submit your returns on or before the due date for your period of compliance; this will be based on your submission frequency.ii. Make sure all outstanding returns due for the previous 24 months have been received by HMRC.3. What happens if you do not pay your VAT on time?For late payment penalties, the sooner you pay the lower the penalty rate will be.Up to 15 days overdue. You will not be charged a penalty if you pay the VAT you owe in full or agree a payment plan on or between days 1 and 15.Between 16 and 30 days overdueYou will receive a first penalty calculated at 2% on the VAT you owe at day 15 if you pay in full or agree a payment plan on or between days 16 and 30.31 days or more overdueYou will receive a first penalty calculated at 2% on the VAT you owe at day 15 plus 2% on the VAT you owe at day 30.You will receive a second penalty calculated at a daily rate of 4% per year for the duration of the outstanding balance. This is calculated when the outstanding balance is paid in full, or a payment plan is agreed.4. When will these changes come into place?To give you time to get used to the changes, HMRC will not be charging a first late payment penalty for the first year from 1 January 2023 until 31 December 2023, if you pay in full within 30 days of your payment due date.5. How will the late payment interest be charges?From 1 January 2023, HMRC will charge late payment interest from the day your payment is overdue to the day your payment is made in full.Late payment interest is calculated as the Bank of England base rate plus 2.5%.6. How will repayment interest work?The repayment supplement will be withdrawn from 1 January 2023.For accounting periods starting on or after 1 January 2023, HMRC will pay you repayment interest on any VAT that you are owed.This will be calculated from the day after the due date or the date of submission (whichever is later) and until the day HMRC pays you the repayment VAT amount due to you in full.Repayment interest will be calculated as the Bank of England base rate minus 1%. The minimum rate of repayment interest will always be 0.5% even if the repayment interest calculation results in a lower percentage. ... See MoreSee Less
MKS is hiring; looking for a junior office administrator:Job description*Acting as a point of contact for clients or suppliers via email, over the phone or in person*Welcoming visitors to the building and showing them to meetings*Booking meeting and arranging meeting schedules*Organising filing systems and updating office databases*Responding to questions and requests for information*Other general administration tasksSuccessful candidate will need to have:excellent communication skills; written & Verbal.Very good computer skills and ability to pick up new software.Job Types: Full-time or Mon-Fri 9am-3pm, PermanentPlease email CV's to firstname.lastname@example.org#joboffer#hiring#administrator #admin #accountant #financialaccountants #newjob #mks #mksaccountants#sidcup#bexley#bexleyheath #eltham#bromley... See MoreSee Less
Key measures the Chancellor announced yesterday:• an increase to the National Insurance Primary Threshold for Class 1 NICs and the Lower Profits Limit for Class 4 NICs from 6 July 2022, aligning it with the equivalent income tax personal allowance which is set at £12,570 per annum • from April 2022, self-employed individuals with profits between the Small Profits Threshold (SPT) and the Lower Profit Limit will not pay Class 2 NICs, while allowing individuals to be able to continue to build National Insurance credits • the Employment Allowance will be increased by £1,000 from 6 April 2022 to £5,000, which will benefit around 495,000 businesses • an immediate reduction in duty on diesel and petrol from 6pm on 23 March 2022, by 5 pence per litre, for 12 months. ... See MoreSee Less
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