Tax Diary January/February 2020

1 January 2020 – Due date for Corporation Tax due for the year ended 31 March 2019.

19 January 2020 – PAYE and NIC deductions due for month ended 5 January 2020. (If you pay your tax electronically the due date is 22 January 2020)

19 January 2020 – Filing deadline for the CIS300 monthly return for the month ended 5 January 2020.

19 January 2020 – CIS tax deducted for the month ended 5 January 2020 is payable by today.

31 January 2020 – Last day to file 2018-19 self-assessment tax returns online.

31 January 2020 – Balance of self-assessment tax owing for 2018-19 due to be settled on or before today. Also due is any first payment on account for 2019-20.

1 February 2020 – Due date for Corporation Tax payable for the year ended 30 April 2019.

19 February 2020 – PAYE and NIC deductions due for month ended 5 February 2020. (If you pay your tax electronically the due date is 22 February 2020)

19 February 2020 – Filing deadline for the CIS300 monthly return for the month ended 5 February 2020.

19 February 2020 – CIS tax deducted for the month ended 5 February 2020 is payable by today.

Minimum wage rates increase from April 2020

Businesses that have a significant number of staff paid at Minimum Wage or National Living Wage rates should take note that from April 2020 the rates are increasing.

 

In more detail the changes announced 31 December 2019 are:

  • Annual pay rise of up to £930 for a full time worker.
  • National Living Wage (NLW) increasing from £8.21 to £8.72 per hour.
  • New NLW rate starts on 1 April 2020 and applies to over 25 years olds.

Nearly 3 million workers are set to benefit from the increases to the NLW and minimum wage rates for younger workers, according to estimates from the independent Low Pay Commission. The rise means Government is on track to meet its current target for the NLW to reach 60% of median earnings by 2020.

The new rate starts on 1 April 2020 and results in an increase of £930 over the year for a full-time worker on the National Living Wage. Younger workers who receive the National Minimum Wage will also see their pay boosted with increases of between 4.6% and 6.5%, dependant on their age, with 21-24 year olds seeing a 6.5% increase from £7.70 to £8.20 an hour.

It is worth pointing out that these are not advisory rates, they are compulsory if your staff qualify for either the National Minimum or National Living Wage rates.

Those who are not entitled to the minimum wage, according to the HMRC website, are:

  • self-employed people running their own business
  • company directors
  • volunteers or voluntary workers
  • workers on a government employment programme, such as the Work Programme
  • members of the armed forces
  • family members of the employer living in the employer’s home
  • non-family members living in the employer’s home who share in the work and leisure activities, are treated as one of the family and are not charged for meals or accommodation, for example au pairs
  • workers younger than school leaving age (usually 16)
  • higher and further education students on work experience or a work placement up to one year
  • people shadowing others at work
  • workers on government pre-apprenticeships schemes
  • people on the following European Union (EU) programmes: Leonardo da Vinci, Erasmus , Comenius
  • people working on a Jobcentre Plus Work trial for up to 6 weeks
  • share fishermen
  • prisoners
  • people living and working in a religious community

HMRC’s powers to enforce compliance in this area have teeth. Not only will you have to stump up for any arrears if you pay less than the statutory rates, HMRC can also levy penalties.

HMRC reflects on 2019 successes

Not all penalties levied by HMRC are civil, many cases are serious enough to warrant a criminal investigation. The first post in the “money” section of the gov.uk website in 2020 reflects on this. The title of the post is a give-a-way:

“Busted! HMRC reveals biggest criminal cases of year 2019”

In what could be seen as a propaganda exercise HMRC are clearly underlining the fact that tax evasion of the criminal kind has their full attention. In more detail the press release says:

This year’s top criminal cases include:

1. 2 wealthy professionals who attempted to steal more than £60 million through a fraudulent tax avoidance scheme which claimed to invest in HIV research and conservation and were jailed for a total of 14 and a half years.

2. A Berkshire-based gang that stole £34 million in VAT and laundered £87 million, the proceeds from selling illicit alcohol through bank accounts in Britain, Cyprus, Hong Kong, Dubai and other countries – were jailed for more than 46 years.

3. A fugitive £17 million tax fraudster who is finally behind bars after he was tracked down to his Prague hideaway and brought back to the UK to serve his 8-year sentence.

4. Five people, including the former owners of a Sussex petrol station, who were sentenced for distributing and selling an estimated 4.8 million litres of illicit fuel to unsuspecting motorists, including haulage companies across the South East.

5. The jailing of a former Top Gear mechanic who helped father and son tax cheats escape from the UK via ferry and Eurotunnel prior to sentencing for a £1 million VAT fraud.

6. Payback time for 5 wealthy tax fraudsters who were involved in one of the UK’s biggest tax frauds.

7. An apparently jobless Londoner who enjoyed a sociable lifestyle of golf and exotic holidays by dodging tax on smuggled tobacco has been jailed.

8. A charity treasurer who tried to steal more than £330,000 in a Gift Aid repayment fraud and spent the money on lavish cruise holidays.

9. Our work with Interpol to take apart a pan-European crime gang involved in cigarette trafficking, drug smuggling and money laundering.

 

All in all, not a bad haul. We can expect HMRC to expand the range of their anti-tax evasion activities in 2020. No doubt the forthcoming spring budget will have the usual sprinkling of fine print, adding more regulation to the tax code.

High Street funding announced

High Street rejuvenation funding announced

The first 101 places to benefit from up to £25 million each from the Future High Streets Fund were announced over summer. In the latest step of the £3.6 billion investment in towns and high streets, 20 pilot areas across England will lead the way in rejuvenating town centres with expert and tailored support from the High Streets Task Force. The government has announced the first 14 of these 20 pilot areas.

The High Streets Task Force will give high streets and town centres advice, training and information to adapt and thrive, piloting a range of products and services with 20 places before rolling out across the country next year. The first 14 of the 20 areas were announced 30 December 2019 and are listed below.

The Task Force brings together a range of expert groups on reinventing and restructuring places, including the Royal Town Planning Institute and The Design Council.

Today the government is also announcing an extra £1 million dedicated to providing further support to the 101 high streets announced over summer in planning for the £25 million of funding that is available to them, ensuring the vibrance of these high streets for years to come.

The first fourteen places that will take part in the pilot are:

1. Salford – Swinton Town centre

2. Croydon – Thornton Heath

3. Staffordshire Moorlands – Cheadle

4. Rushmoor – Aldershot Town Centre

5. Birmingham – Stirchley

6. Hyndburn – Accrington Town Centre

7. South Lakeland – Kendal

8. Preston – Friargate

9. Coventry – Coventry City Centre

10. Hartlepool – Hartlepool Town Centre

11. Cheshire West and Chester – Ellesmere Port Town Centre

12. Sandwell – West Bromwich Town Centre

13. Knowsley – Huyton Town Centre

14. Manchester – Withington District Centre