Author: Glenn

If you have lost or forgotten your National Insurance number, there are several ways to retrieve it.

You can find your National Insurance number:

• On a document you already possess, such as a P60, payslip, or letters regarding benefits.
• In your personal tax account.
• In the HMRC app.
• In your Apple or Google Wallet (if you have previously saved it there).

You can also download a letter showing your National Insurance number through your personal tax account or the HMRC app.

If you are still unable to find your National Insurance number, you can request it online, submit a written request to HMRC using form CA5403 or contact HMRC by phone. Teenagers will usually receive a letter with their National Insurance number just before turning 16.

If you have never been issued a National Insurance number, you can apply for one, provided you meet the eligibility criteria.

The letters in your tax code indicate whether you are entitled to the annual tax-free personal allowance. These codes are updated each year and help employers calculate how much tax should be deducted from your salary.

For the current and upcoming tax year, the basic personal allowance is £12,570. The tax code corresponding to this amount is 1257L, which is the most common tax code used for those with a single job, no untaxed income, and no unpaid tax or taxable benefits (such as a company car).

Your tax code might include various other letters and numbers. For instance, letters like "M" indicate that an employee is claiming the marriage allowance, or "S" shows that Scottish income tax rates apply. If your tax code numbers change, it often means your personal allowance has been reduced.

There are also emergency tax codes (W1 or M1), which are used when a new employee does not have a P45. These codes calculate tax based on the current pay period.

If your tax code starts with a 'K', this means deductions for company benefits, state pension, or previous tax owed, exceed your personal allowance. However, the tax deduction for any pay period cannot exceed half of your pre-tax salary or pension.

It is essential to verify your tax code to ensure the correct information is being applied. If you have any questions, we are here to help.

The VAT Flat Rate Scheme allows businesses to pay VAT as a fixed percentage of their total turnover, which includes VAT. The applicable percentage varies based on the business type. This scheme is designed to simplify VAT accounting, thereby reducing the administrative burden associated with VAT compliance.

The scheme is open to businesses that expect their annual taxable turnover in the next 12 months to be no more than £150,000 (excluding VAT). This annual taxable turnover includes all sales—standard, reduced, zero rate, and other supplies—but excludes the actual VAT charged, VAT-exempt sales, and sales of capital assets.

Since April 2017, a 'limited cost trader' test has been in place. Businesses that meet the conditions as limited cost traders must use a fixed rate of 16.5% under this scheme. For these types of businesses, it is usually beneficial to opt out of the VAT Flat Rate Scheme and use traditional VAT accounting.

Once enrolled, businesses can remain in the scheme as long as their total income does not exceed £230,000 in any 12-month period, with special provisions for temporary increases in turnover. Additionally, there is a 1% discount available for businesses in their first year of VAT registration.

1 January 2025 – Due date for Corporation Tax due for the year ended 31 March 2024

19 January 2025 – PAYE and NIC deductions due for month ended 5 January 2025. (If you pay your tax electronically the due date is 22 January 2025).

19 January 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 January 2025.

19 January 2025 – CIS tax deducted for the month ended 5 January 2025 is payable by today.

31 January 2025 – Last day to file 2023-24 self-assessment tax returns online.

31 January 2025 – Balance of self-assessment tax owing for 2023-24 due to be settled on or before today unless you have elected to extend this deadline by formal agreement with HMRC. Also due is any first payment on account for 2024-25.

1 February 2025 – Due date for Corporation Tax payable for the year ended 30 April 2024.

19 February 2025 – PAYE and NIC deductions due for month ended 5 February 2025. (If you pay your tax electronically the due date is 22 February 2025)

19 February 2025 – Filing deadline for the CIS300 monthly return for the month ended 5 February 2025.

19 February 2025 – CIS tax deducted for the month ended 5 February 2025 is payable by today.

A tribunal recently ruled on the failure of a private limited company, El Recruitment Ltd., to submit its Re-DOC before the statutory deadline as required under the 'Employer Duties' of the Pensions Act 2008. The Pensions Regulator had sent two prior letters, although the company failed to do so and received a compliance notice addressed to the registered office address which was considered properly served.

The regulator unsuccessfully attempted to call the appellant using the number held within its records. El Recruitment did not complete the Re-DOC by the extended deadline and so the Pensions Regulator issued a £400 fixed penalty per Section 144A of the Act.

The director argued that they had moved out of the registered office and forgot to update the registered office address, although they could not be reached by telephone. However, the Tribunal was unmoved and unconvinced by this argument, as one of the reminders had been sent before the move and was still ignored.

While the Pensions Regulator is not obliged to send reminder communications it usually does so as a courtesy and the Company’s appeal over its £400 fine was unsuccessful. This case highlights the importance of filing promptly and allowing sufficient time for delivery.  Re-enrolment must take place every three years at a date of your choosing. To do so today visit https://declaration.ae.tpr.gov.uk/