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New thresholds for 2018/2019 – Tax, NI & Statutory Payments

by Marquee Contracting | Feb 16, 2018 | News

Tax Year 2018/2019 rates & thresholds.

The PAYE rates and thresholds are changing from 6th April 2018. The rate changes are in relation to PAYE Tax, NI (Classes 1,2 & 4) and statutory payments will be as follows:

Personal Tax Allowance – will increase from £11,500 to £11,850, meaning workers will be better off by approximately £70 over the year (based on earnings up to the new higher tax rate threshold and basic rate tax deducted at 20%). The higher earnings threshold is also increasing by £1,000, up to £34,500, meaning further Tax savings if earnings are within this bracket.

The National Insurance thresholds have a slight increase as well, the overall increase in the National Insurances thresholds mean workers earnings can be slightly higher before deductions are calculated.

Class 1 (PAYE) – The Lower Earnings Limit (LEL) is up to £116 per week (from £113), Primary & Secondary Thresholds will be £162 (up from £157) and the Upper Earnings Limit (UEL) increases to £892 from £866.

Classes 2 & 4 (Self-employed) – Class 2 will increase to £2.95 a week (up from £2.85 2017/2018), Class 4 thresholds also have a slight increase; lower profits limit will be £8,424 (up from £8,164) and the higher limit £46,350 (up from £45,000). The percentage rates will remain the same as 2017/2018 – 9% charged betweem the lower profits limit and higher profits limit, and 2% for above upper profits limit.

National Minium & Living Wage hourly rate increases from 01/04/2018

Aged 25+ (National Living Wage) £7.83

Aged 21-24 £7.38

Aged 18-20 £5.90

Aged under 18 £4.20

Apprentices £3.70

Statutory payments

There are also increases across the board for statutory payments. Maternity, Paternity, Adoption and Shared Parental Pay will be £145.18 per week, Sick Pay £92.05 per week and Student Loan Recovery thresholds will be £18,330 per year (Plan 1) and £25,000 per year (Plan 2) – the percentage rate of 9% remains the same.

Overall, the threshold increases are beneficial to workers and employers for 2018/2019. At 2017/2018 Year End, Marquee will email all workers their relevant summary of account (P60 for PAYE, or CIS Statement for CIS). If you require any further help or advice regarding Year End or the up and coming changes, please call us 01992 663 219.

Self-Assessment 2016-2017 Filing Deadlines

by Marquee Contracting | Oct 11, 2017 | News

Self-Assessment 2016-2017 Filing Deadlines.

When working on a self-employed basis in the UK, you must register for self assessment and submit your returns by the strict deadlines. For Tax Year 6 April 2016 to 5 April 2017 HM Revenue and Customs (HMRC) must receive your tax return and any money you owe by the following deadlines:

Register for Self Assessment by 5th October 2017
Paper tax returns by 31st October 2017
Online tax returns by 31st January 2018
Pay the tax you owe by 31st January 2018

When engaging with Marquee Contracting our sub contractors receive weekly and yearly statements to help with the year end self assessments. However, if you have any questions or require copy statements please contact us!

The following link is provided to help with the submissions and contacting the HMRC Self-assessment tax return

False self-employment in the Construction Industry

by Marquee Contracting | Oct 10, 2017 | News

False self-employment in the Construction Industry

The employment status of individuals has important implications for the way they are taxed, both in relation to income tax and to National Insurance Contribution. Employees will pay income tax and primary Class 1 NICs on their earnings, deducted at source by their employer under PAYE. Their employer will be liable to pay secondary Class 1 NICs on the employee’s earnings. By contrast, self-employed persons in construction providing their services to a client company will receive any payments minus CIS tax (typically 20%), and be responsible for paying income tax and NICs on their annual profits. Profits from self-employment are liable to Class 2 and Class 4 NICs.

The Government believes that a large proportion of these subcontractors, who represent approximately one third of the active subcontractor population, and are operating as sole traders, will in fact be working under employment terms. Furthermore, HMRC compliance activity has shown that in practice these engagements will also display other features which are closer to employment. These include a large measure of supervision and control by the engager, a lack of financial risk, an obligation for personal service, and lengthy periods with the same engager. The Regulations dictate that a person (the worker) will be treated as being an “employed earner” for the purpose of NICs when they meet the conditions in the Regulations. When someone is an employed earner for NICs then employer NICs is payable by the employer (or deemed employer for NICs purposes i.e. the intermediary) and the worker has to pay Class 1 employee NICs rather than Class 2 and Class 4 NICs that apply to the self employed.

All forms of tax avoidance and tax evasion, false self employment are firmly on HMRC radar. By engaging with Marquee Contracting, the risks are completely irradiated.

For more information, or for a no obligation discussion contact us us at Marquee Contracting.

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HMRC are clamping down

by Marquee Contracting | Oct 10, 2017 | News

HMRC are clamping down

HM Revenue and Customs (HMRC) are clamping down and making examples of companies who are avoiding paying the correct liabilities. Whether a company is found to avoid the payments, submissions, incorrectly report or not at all, HMRC will be hot on their heels.

The following are examples published in the last few weeks of companies avoiding paying what is due and being caught. The risk is real and so are the punishments.

Anderson Group Tax Avoidance Scheme

Banned Demolition Bosses

Lorry Drivers Stung Over Tax Dodge

Roofer Jailed for Fraud