Anna’s Accountancy Alerts – Week 31 (2nd – 8th November 2020)

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Starter Checklist – Student And Postgraduate Loan

To help you establish what Student and/or Postgraduate Loan your new employee may have, ask them to complete the Student and Postgraduate Loan section of the starter checklist.

Once completed the checklist should then tell you which loan and or plan type to use; if your employee does not know their loan and/or plan type, they can check on https://www.gov.uk/repaying-your-student-loan

This will allow you to start taking the correct loan deductions immediately. Operating the incorrect Plan or Loan Type could result in your employee having deductions taken which aren’t due.

Employment Allowance

Changes to the employment allowance and how it interacts with the Coronavirus Job Retention Scheme have caused HMRC’s system to incorrectly show underpayments of PAYE and NI. HMRC is working on a solution but until then don’t pay any incorrect demands. As long as you can show that your calculations of PAYE tax and NI are correct it will not pursue payment of the demands.

New Local Lockdown Payments And Tax

If your premises has a rateable value of £51,000 or more, you are entitled to £1,500 for each property you occupy for each three-week period you’re required to close. Businesses with properties with a lower rateable value are entitled to £1,000.

A new grant, payable by local authorities, of up to £1,500 per three weeks can be claimed by businesses forced to close or financially affected by a local lockdown. The grant counts as income for direct tax purposes.

Electronic Payment Deadline Falls On A Weekend

In November the electronic payment deadline of the 22nd falls on a Sunday.

So, to make sure your payment arrives on time, you need to have cleared funds in HMRC’s account by the 20th unless you are able to arrange a Faster Payment.

Stay Up-To-Date With Coronavirus & Brexit News

Coronavirus has affected us all. Whether you’re a sole trader, employer or employee. Stay up to date with the latest news – including government support, tax implications, and more.