Author Archive: Muhammad Zia

Can you avoid the P11D process?

Every year employers across the UK submit an end-of-year report to HM Revenue & Customs (HMRC) outlining the benefits provided to each employee and director, which were not included in their wages.

This report is sent using the P11D form, which must be submitted by 6 July following the end of the tax year. At the same time, you must also provide employees with a copy of the P11D and tell HMRC the total amount of Class 1A National Insurance you owe using form P11D(b).

This can be quite an onerous task and lead to penalties if it isn’t completed on time or correctly. You will also be charged additional penalties and interest if you’re late paying HMRC.

Do I have to complete a P11D each year? 

Unbeknownst to many employers, you can now payroll benefits you provide to your employees so that you do not have to produce a P11D each year.

You can do this as long as you register with HMRC before the start of the tax year to let them know that you intend to payroll staff benefits. You can do this online here.

By choosing to payroll your benefits, the cash equivalent of the employees’ benefits is added to their taxable pay, which is charged to them through the real-time payroll process.

This system is much easier for employers as they do not have to produce P11Ds each year, but they must continue to calculate the Class 1A National Insurance contributions and complete form P11D(b) by the 6 July following the end of the tax year.

If you miss the registration deadline, you can ask HMRC to informally payroll benefits by writing to the Complex Caseworker Team at HMRC’s National Insurance Contributions and Employer Office.

If you choose to use this option, you must still complete form P11D at the end of the tax year and mark each report as ‘payrolled’.

HMRC should then stop collecting tax that has already been deducted from your employees.

The benefit of this system, beyond the need to produce detailed reports, is that employee tax will be collected in real-time, rather than being collected using an adjusted tax code in the following tax year.

This approach may be unsuitable for some businesses, so professional advice should be sought from a trusted accountant.

How can accountants help with probate?

Dealing with probate during the difficult period after losing a loved one can be quite overwhelming but having the right experts for assistance can ease the stress.

Probate is the process of handling someone’s estate after they have died. Their estate includes property, money and possessions.

Whilst some may think that only solicitors can help with this process, accountants can also be valuable assets during the probate process.

Despite this, only a small number of accountancy practices are licensed to offer probate services, and Rotherham Taylor Chartered Accountants is one of them.

Accountants can also assist with applying for a probate grant and distributing assets in line with the wishes outlined in the Will (if there is one).

Additionally, when dealing with tax related matters, an accountant’s expertise would be beneficial.

For instance, if the deceased was a taxpayer, any outstanding Personal Tax Returns will need to be submitted. For this it may be useful to have a tax expert on hand to help with the preparation as well as submission of tax returns.

Further probate services that we can assist with include:

  • Preparing estate tax returns and settling outstanding tax liabilities of the estate
  • Preparing the final estate accounts
  • Providing advice on tax planning opportunities for the estate and/or for beneficiaries
  • Providing ongoing inheritance tax and succession planning advice

If you require support with probate related matters, get in touch with our experts today.

Brexit Freedoms Bill to be brought forward

The Brexit Freedoms Bill will be brought forward to “cut red tape” and improve trading conditions for British businesses, it has been announced.

The new laws will make it easier to amend or repeal outdated “retained EU law” to support international growth.

Here’s everything we know about the Bill so far.

What is the Brexit Freedoms Bill?

Despite leaving the European Union (EU) in January last year, thousands of EU rules and regulations were retained to maintain the continuity of international trade – even if those rules are detrimental to British businesses.

The new Brexit Freedoms Bill aims to repeal, amend, or replace those laws so that they reflect the UK’s own priorities and objectives.

How will this impact British businesses?

According to research, the reforms could cut around £1 billion of red tape for UK businesses by easing the regulatory burden.

The impact will be far-reaching, from how farmers are funded to how data is shared, and public procurement contracts will be awarded.

The Bill is also expected to end the special status that EU law still has in our legal framework. Under current regulations, EU laws made before 1 January 2020 continue to have precedence in our system.

The General Data Protection Regulation (GDPR), meanwhile, is set to be replaced with a more proportionate and less burdensome data rights regime to accelerate the growth of the tech, digital and AI sectors.

It has also been suggested that the reforms will enable the Government to establish a new domestic subsidy control regime, which will simplify unnecessary reporting burdens for small and medium-sized businesses.

Plans to “unleash” the benefits of Brexit

Commenting on the announcement, Prime Minister Boris Johnson said: “The plans we have set out today will further unleash the benefits of Brexit and ensure that businesses can spend more of their money investing, innovating and creating jobs.”

The Attorney General, Suella Braverman, added: “Setting up a mechanism to deal with these legacy EU rules is essential. It underpins our ability to grasp important opportunities provided by Brexit. It means we can move away from outdated EU laws that were the result of unsatisfactory compromises within the EU, some of which the UK voted and lobbied against – but was required to adopt without question.”

Get advice today

For help and advice with related matters, please get in touch with our team today.

Brexit: UK launches “world-leading” data council to help seize global data sharing opportunities

The world’s biggest businesses – including Google, Mastercard, and Microsoft – came together for the first time last week to help Britain “seize the opportunities of better global data sharing” now that it has left the EU.

The announcement comes after the European Commission formally agreed to recognise Britain’s high levels of data protection standards – allowing personal data to flow freely from the EU and the European Economic Area (EEA) to the UK without the need for additional safeguards – last year.

Here’s what you need to know about data after Brexit.

What is the International Data Transfer Expert Council?

The new advisory board brings together 20 experts and academics from the world’s biggest firms and organisations, including Google, Microsoft, Mastercard, the World Economic Forum, IBM, and the Centre for Information Policy Leadership.

They met for the first time on Tuesday to officially launch the council with the aim of helping Britain to “seize the opportunities of better global data sharing”.

This includes unlocking the benefits of free and secure cross-border data flows now that the UK has left the single market.

For example, the council will provide independent advice on the development of new international data transfer tools and mechanisms and securing new data adequacy partnerships with other countries – including the United States, Australia, the Republic of Korea, Singapore, the Dubai International Finance Centre, and Colombia.

Who will this help?

New tools, mechanisms, and partnerships will help British firms that trade overseas – and particularly those in sectors such as GPS navigation, smart devices, healthcare, and banking – to provide international services more reliably, cheaply, and securely.

According to the latest figures, around £83 billion of annual service exports are underpinned by data sharing.

But billions of pounds of global trade go unrealised every year due to barriers associated with data transfers.

Am I currently allowed to share data with the EU?

Yes. The European Commission agreed to recognise Britain’s data protection standards – allowing personal data to flow freely from the EU and the European Economic Area (EEA) to the UK without the need for additional safeguards – in June last year.

The decision – which will remain in place for four years – means that personal data must be scrutinised under the EU General Data Protection Regulation (GDPR) and Law Enforcement Directive (LED).

Businesses must continue to comply with these rules to share data across the single market.

Data flows have “never been so important”

Commenting on the formation of the Council, Data Minister Julia Lopez said: “Realising the benefits of international data flows has never been more important.

“We want the UK to drive forward cutting-edge policies at home and overseas to ensure people, businesses and economies benefit from safe and secure data flows.

“Today we’re launching a new panel of global experts to help us achieve these aims and I will lead the first meeting so together we can deliver a world-leading and truly global data policy for the future.”

Get advice today

For help and advice with related matters, please get in touch with our team today.

New probate fixed rate fee to HMCTS

Probate fees to HM Courts & Tribunals Service (HMCTS) have risen to a fixed rate fee for all estates valued over £5,000, the Government has announced.

What is probate?

Probate is the legal right to deal with someone’s estate after they have passed away. This includes property, money and possessions.

If there is a Will then the people named as executors may apply for probate to carry out the wishes of the deceased. But if there is not then the next of kin can apply.

As this can be a very difficult time for bereaved individuals, there is the option to appoint a professional to assist with handling the probate process.

What has changed?

Before, there was a two-tier fee system in place for probate:

  • Applicants using a professional incur a fee of £155
  • Applicants applying themselves incur an additional personal application fee, meaning the total cost is £215
  • Estates valued at less than £5,000 do not incur a fee

Now, there is a flat fee of £273 to equalise the fee for all applicants.

This new fee amends the Non-Contentious Probate Fees Order 2004 (S.I. 2004/3120).

Despite this change, estates under £5,000 will continue to not incur a probate fee.

This increased rate has been met with some controversy as bereaved people will have to pay more to access their loved one’s estate.

Despite this, the Government have stated that the increase will address a £85 million deficit within the delivery of family jurisdiction services.

The introduction of the fixed fee also aims to raise an additional £20 million for HMCTS.

For help and advice relating to probate, please contact our expert team today.