Month: June 2019

If you employ students to manage your staff needs over the summer break period, you will need to add them to your payroll and apply PAYE and NIC rules.

Students should be advised that they will pay tax and NIC if:

• they earn more than £1,042 a month on average, and
• pay NIC if they earn more than £166 a week.

Students can also apply for a possible tax refund if they work for part of a tax year.

Students who normally live and study in the UK but work abroad during the holidays will need to pay:

• UK tax on anything they earn above their Personal Allowance, currently £12,500, and
• National Insurance if they work for a UK employer.

If you work for a foreign employer you don’t need to pay National Insurance in the UK, but you might have to pay contributions in the country you’re working in.

1 June 2019 – Due date for Corporation Tax due for the year ended 31 August 2018.

19 June 2019 – PAYE and NIC deductions due for month ended 5 June 2019. (If you pay your tax electronically the due date is 22 June 2019)

19 June 2019 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2019.

19 June 2019 – CIS tax deducted for the month ended 5 June 2019 is payable by today.

1 July 2019 – Due date for Corporation Tax due for the year ended 30 September 2018.

6 July 2019 – Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs.

19 July 2019 – Pay Class 1A NICs (by the 22 July 2019 if paid electronically).

19 July 2019 – PAYE and NIC deductions due for month ended 5 July 2019. (If you pay your tax electronically the due date is 22 July 2019)

19 July 2019 – Filing deadline for the CIS300 monthly return for the month ended 5 July 2019.

19 July 2019 – CIS tax deducted for the month ended 5 July 2019 is payable by today.

If your employer asks you to use your own car or van to undertake a journey on their behalf, you may be entitled to a payment from your employer to cover your petrol and wear and tear costs.

Let’s say that your employer pays you 35p per mile. You may feel that this is an adequate sum to cover your costs, and indeed this may be so, however, HMRC would have a different opinion.

HMRC would allow you to receive up to 45p per mile tax-free for the first 10,000 business miles you drove in your own car on behalf of your employer, and thereafter at 25p per mile. The clock resets to zero at the beginning of each tax year (6 April).

Additionally, if you take a passenger (a co-worker) on a business trip, you can claim 5p per mile.

What happens if you are paid at different mileage rates?

If you are paid at rates per mile greater than HMRC’s 45p (25p) rates, then any excess over these rates will be taxed as a benefit.

If you are paid less than HMRC’s approved rates, you can claim the difference as an expense on your tax return. For example, if your employer pays you 35p per mile and you claimed for 8000 business miles in 2018-19, you will have received £2,800 (8,000 x 35p) in expenses. HMRC would allow you 8,000 miles at 45p, £3,600, and would allow you claim the difference £800 (£3,600-£2,800) on your tax return for 2018-19. If you don’t submit a tax return you should call HMRC with the details to register your claim.

What if I use my motorcycle or bicycle?

The same principles apply but the rates of mileage are different. They are currently:

In both cases the above rates apply whatever your annual mileage.