ARE YOU AWARE OF THE NEW RATES AND PENALTIES FROM 5.4.15

Are you aware of the new rates and penalties from 5 April 2015
Standard Tax Code is 1060L
SMP/SAP/SPP weekly rate is £139.58
SSP weekly rate is £88.45

Penalties which are coming into effect from the 5th April 2015 for late or incorrect FPS submissions are as follows:-

1-9 employees         £100.00
10 - 49 employees   £200.00
50 - 249 employees £300.00
250 + employees     £400.00

The penalties are per late or incorrect submission.

An incorrect submission is looking to be classed as an amended FPS submitted after the pay date.

Clients need to be warned to ensure they provide us with information on time, check and authorise payroll carefully and on time, so we can send the submissions and make amendments, if necessary, before the pay date. Amendments after the pay date should be reflected on the following months payroll. 

National Insurance for the self-employed

National Insurance for the self-employed

If you are self-employed you will normally pay class 2 National Insurance and class 4 National Insurance.

If you are self-employed as an actor, special rules applied until 5 April 2014. Under these special rules,  actors paid  Class 1 National Insurance, rather than Class 2 and 4 National Insurance, on income from some contracts, even thought there were treated as self-employed for income tax purposes. From 6 April 2014, actors should simply pay class 2 and class 4 National Insurance, as other self-employed workers.

 

Class 2 National Insurance

Once you start self employment you become liable to pay Class 2 National Insurance. The way class 2 National Insurance is paid will change from 6 April 2015.

From the tax year 2015-16, most people will pay class 2 National Insurance along with class 4 National Insurance and income tax (in January self-assessment payments). This also means that rules for those with small earnings from self-employment will change. People with profits of less than the Small Profit Threshold (£5,965 for 2015-16), will not have to pay any class 2 National Insurance. They will not need to claim an exemption in advance.

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