Our January 2014 Newsletter

January 1, 2014

As the deadline for complying with the new Real Time Information (RTI) regime looms closer, HM Revenue & Customs has announced that the smallest businesses will be given additional time to comply with the new PAYE reporting requirements.

While the current relaxation of the RTI rules for small businesses will come to an end in April as planned, micro businesses will be offered up to two further years to prepare for the new regulations.

Meanwhile, following the recent Autumn Statement the Government has published legislation to implement the tax policies announced in the 2013 Budget and Autumn Statement, in the form of the draft Finance Bill 2014.

And finally, as the festive season approaches, a recent report has suggested that almost half of business owners are planning to spend time dealing with outstanding financial tasks during the holidays. Remember, we can help to reduce the burden by dealing with many of your financial needs on your behalf!

We would like to wish all of our clients Season’s Greetings and best wishes for the New Year.

Smallest businesses gain Real Time PAYE extension

Businesses with nine or fewer employees will be given additional time to comply with new Real Time Information (RTI) reporting requirements, HM Revenue and Customs (HMRC) has announced.

Under the new RTI regulations, businesses must report the payments they make to employees on or before the time of each payment.

HMRC has been phasing in the new system, and previously extended the compliance deadline to April 2014 for employers with fewer than 50 employees, who pay their staff weekly or more regularly.

While confirming that this temporary relaxation of the rules will come to an end in April, HMRC has now granted existing micro employers up to two additional years to adapt their processes, in order to ensure that they are ready to report payments in real time. As a result, micro businesses will be able to report their PAYE information on or before the last payday in the tax month until April 2016.

The time extension will not apply to businesses starting up during the period between April 2014 and April 2016.

Commenting on the news, Ruth Owen of HMRC said, ‘This package strikes a good balance by ensuring RTI improves PAYE processes while minimising the impact on micro businesses and their agents by giving them up to two years to adapt’.

However, in a recent survey commissioned by HMRC many businesses reported that the new regime has either been of no benefit to them, or has served to increase the regulatory burden.

Businesses are being advised to take steps now to ensure that their systems are RTI-ready. We can help with your PAYE needs, including dealing with the new RTI regime. Please contact us for further assistance.

Government publishes draft Finance Bill 2014

Following the recent Autumn Statement, the Government has published draft legislation which will implement the tax policies announced at the 2013 Budget and 2013 Autumn Statement, together with responses to a number of policy consultations which took place over the summer.

With the stated aim of providing support to working families, the Government has legislated to increase the income tax personal allowance to £10,000 from 2014/15. The basic rate limit will be £31,865 in 2014/15. From 2015/16, the personal allowance and income tax limits will increase by the Consumer Prices Index.

In addition, the draft Bill makes provision for the introduction of a new transferable tax allowance for married couples and civil partners. As announced in the Autumn Statement, from 2015/16 an individual will be entitled to transfer £1,000 of their personal allowance to their spouse or civil partner, where neither spouse or civil partner is a higher or additional rate taxpayer.

The draft Bill also confirms the introduction of tax incentives for new employee ownership trusts, providing a relief from capital gains tax on disposals of shares in a trading company to a trust operating for the benefit of all employees. An inheritance tax exemption will also apply to the transfer of shares and other assets to such a trust, subject to certain conditions. The legislation will apply from 6 April 2014.

The Finance Bill 2014 will also contain a number of measures aimed at improving UK competitiveness, including the introduction of a new onshore oil and gas tax relief, changes to film tax relief, and the abolition of stamp duty and stamp duty reserve tax on growth market shares.

David Gauke, Exchequer Secretary to the Treasury, commented, ‘The package of measures in the legislation published today delivers action that builds on our efforts to create a tax system that supports growth and fairness’.

The draft legislation has been published as part of the Government’s commitment to ‘a more transparent, efficient and simpler tax system’, and a consultation on the legislation will run until 4 February 2014.

The legislation can be accessed here: Finance Bill 2014.



1 January
Due date for payment of Corporation Tax for period ended 31 March 2013.

14 January
Due date for income tax for the CT61 quarter to 31 December 2013.

17/22 January
Quarter 3 2013/14 PAYE remittance due.

31 January
First self assessment payment on account for 2013/14.
Capital gains tax payment for 2012/13.
Balancing payment – 2012/13 income tax/Class 4 NICs.
Last day to renew 2013/14 tax credits.
First payment due date for 2013/14 Class 2 NICs.
Deadline for amending 2011/12 Tax Return.

And don’t forget… 
31 January is the last day to file the 2013 Tax Return online without incurring penalties. Please contact us if you require any assistance.


“There is no debacle on Universal Credit.”

Work and Pensions Secretary, Iain Duncan Smith, defending the new benefit system amid accusations of missed targets and IT failures



Campaign offering information, inspiration and advice for British businesses


2013 Autumn Statement
To view our summary of the Chancellor’s Autumn Statement, visit the Tax Information section of our website.

Managing your business 
And for essential tips and information on running a successful business, visit the Your Business section of our website.


Insisting that the economy can afford it, Chancellor George Osborne has proposed an above-inflation rise in the national minimum wage.
The current rate, which is set at £6.31 for people over the age of 21, has not increased commensurate to inflation since 2008 and has therefore fallen in real terms. Click here to read more

Following recent reports that the unemployment rate fell to 7.1% in November, there is growing speculation that the Bank of England may consider changes to current rates of interest.
The Bank’s Monetary Policy Committee (MPC) has previously said it would consider a base rate rise when unemployment reached 7%. Click here to read more

The research suggests that lending via the Funding for Lending scheme has fallen by £2.3bn since June 2012, stating that there is a lack of understanding of businesses’ funding needs.
Margaret Hodge, Chair of the Committee, also warned that there is a lack of coherence between Government departments, resulting in an ‘ad hoc’ approach to funding schemes. Click here to read more

Small businesses are being encouraged to take steps to protect themselves against cyber criminals, with the launch of the Government’s new ‘Cyber Streetwise’ campaign.
The campaign aims to provide SMEs and individuals with a range of online safety advice, and includes the launch of a new website together with online videos. Click here to read more


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