Frequently Asked Questions & Answers
In our FAQs section, NMJN Accountants have put together a selection of frequently asked questions along with answers that hopefully covers everything you’d like to know. If you’d like more information on any of the FAQs listed, or would like to talk about something specific, just ask.
You can pay your PAYE to HMRC using a number of methods. The main consideration is to make sure HMRC receive your payment on time. The cut-off date is the 22nd of the month or by the 19th of the month if paying by cheque or through the post.
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SAME DAY
Online or telephone banking – faster payments.
CHAPS
3 WORKING DAYS
Debit or Credit Card online.
Bacs
Bank or Building Society
DD – if you’ve set one up with HMRC before.
Cheque through the post.
5 WORKING DAYS
DD – if you haven’t set one up with HMRC before.
If Payment is made late you may receive a penalty and have interest charged on the amount owing.
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NMJN Accountants Limited will email you with the amount to be paid well in advance of your payment date. For further information and step by step guides for payment methods please visit:
www.gov.uk/pay-paye-tax/overview
You can pay your Self-Assessment Tax Bill using a number of methods. The main consideration is to make sure HMRC receive your payment on time. The deadlines for paying your tax bill are: 31 January – for any tax you owe for the previous tax year (known as a balancing payment) and your first payment on account. AND 31 July for your second payment on account.
If you prefer to pay regularly throughout the year, you can use a budget payment plan.
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SAME OR NEXT DAY
Online or telephone banking – faster payments.
CHAPS
Debit or Credit Card online.
Bank or Building Society
At the Post Office (You will need a paying in slip from HMRC to pay at a bank, building society or Post Office)
3 WORKING DAYS
Bacs
DD – if you’ve set one up with HMRC before.
Cheque through the post.
5 WORKING DAYS
DD – if you haven’t set one up with HMRC before.
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For further information and step by step guides for payment methods please visit:
www.gov.uk/pay-self-assessment-tax-bill
You can pay your Corporation Tax Bill using a number of methods. The main consideration is to make sure HMRC receive your payment on time. This will depend on your taxable profits.
Taxable profits of up to £1.5 million
You must pay your Corporation Tax 9 months and 1 day after the end of your accounting period. Your accounting period is usually your financial year, but you may have 2 accounting periods in the year you set up your company.
Taxable profits of more than £1.5 million
You must pay your Corporation Tax in instalments.
SAME OR NEXT DAY
Online or telephone banking – faster payments.
CHAPS
3 WORKING DAYS
Bacs
DD – if you’ve set one up with HMRC before.
Debit or Credit Card online.
Bank or Building Society
At the Post Office
5 WORKING DAYS
DD – if you haven’t set one up with HMRC before.
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You cannot pay your Corporation Tax by post.
Make sure you pay HMRC by the deadline. They may charge you interest if you don’t pay on time. They’ll pay you interest if you pay your tax early.
For further information and step by step guides for payment methods please visit:
www.gov.uk/pay-corporation-tax/overview
You can get £88.45 per week Statutory Sick Pay (SSP) if you’re too ill to work. It’s paid by your employer for up to 28 weeks.
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You need to qualify for SSP and have been off work sick for 4 or more days in a row (including non-working days).
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You can’t get less than the statutory amount. You can get more if your company has a sick pay scheme (or ‘occupational scheme’) – check your employment contract.
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For further information,
please visit: www.gov.uk/statutory-sick-pay/overview
Your employees may be eligible for Statutory Sick Pay (SSP), which is£88.45 a week for up to 28 weeks. You can offer more if you have a company sick pay scheme (you can’t offer less). Company schemes are also called ‘contractual’ or ‘occupational’ sick pay and must be included in an employment contract.
Holiday (or ‘annual leave’)
Statutory annual leave is accrued while the employee is off work sick (no matter how long they’re off) and can be taken during sick leave.
Entitlement
The weekly rate for Statutory Sick Pay (SSP) is £88.45 for up to 28 weeks. It is paid:
For the days an employee normally works – called ‘qualifying days’
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In the same way as wages, e.g. on the normal payday, deducting tax and National insurance.
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Use the SSP calculator to work out the actual amount, e.g. for a daily rate.
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Some employment types like agency workers, directors and educational workers have different rules for entitlement. You may still have to pay SSP even if you stop trading.
When to start paying SSP?
You start paying SSP from the fourth ‘qualifying day’ (day an employee is normally required to work). The first 3 qualifying days are called ‘waiting days’.
When to stop paying SSP?
Usually SSP stops when the employee comes back to work or no longer qualifies.
For further information, please visit:
www.gov.uk/employers-sick-pay/entitlement
You must register for VAT with HM Revenue and Customs (HMRC) if your business’ VAT taxable turnover is more than £82,000. You can register voluntarily if it’s below this, unless everything you sell is exempt. Most businesses can register online – including partnerships and a group of companies registering under one VAT number. By doing this you’ll register for VAT and create a VAT online account (sometimes known as a ‘Government Gateway account’). You need this to submit your VAT Returns to HM Revenue and Customs (HMRC).
Using an agent
You can appoint an accountant (or agent) to submit your VAT Returns and deal with HMRC on your behalf. When you receive your VAT number from HMRC, you can sign up for aVATonline account (select option ‘VAT submit returns’).
When you register, you’ll be sent a VAT registration certificate. This confirms:
Your VAT number.
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When to submit your first VAT Return and payment.
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Your ‘effective date of registration’ – this is the date you went over the threshold, or the date you asked to register if it was voluntary.
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For further information, including how to register online lease visit:
www.gov.uk/vat-registration/how-to-register
You’ll usually need to pay your VAT bill by the deadline shown on your VAT return. There are different deadlines if you use:
The Annual Accounting Scheme.
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Payments on account.
Make sure your payment will reach HM Revenue and Customs’ (HMRC) bank account by the deadline. You may have to pay a surcharge if you don’t pay on time. You can use the VAT payment deadline calculator to work out how much time to allow.
SAME OR NEXT DAY
Online or telephone banking – faster payments.
CHAPS
3 WORKING DAYS
DD.
Bacs.
Standing Order – only if using the Annual Accounting Scheme or Payments on Account.
Debit or Credit card online.
Bank or Building Society.
For further information and step by step guides for payment methods please visit:
www.gov.uk/pay-vat/overview
If you’re unable to find an answer to a question you have in the FAQs listed above, please don’t worry. You can submit your question through our contacts page and we’ll be in touch with you. We may even feature your question on our FAQs page if we feel it may be helpful to others.