April 2024 | DSK Partners LLP

Online check how to import or export goods

Posted on April 4, 2024 by

HMRC has a useful online tool to help UK business owners check how to import or export goods. This online tool can be used by businesses, the self-employed and agents acting on behalf of a business.

Using the online tool you can obtain information on:

the commodity codes (reference numbers) you need to classify goods for import and export declarations;
paying the right VAT and duties for your goods;
which licences and certificates you will need for your goods; and
how to move goods into a specific country.

There are many special procedures to be aware of when importing or exporting goods to / from the UK. Following the end of the Brexit transition period, the process for importing / exporting goods to / from the EU effectively mirrors the process for all other international destinations. There are different rules if you are moving goods in or out of Northern Ireland under what is known as the Windsor framework.

The online check can be a useful tool for smaller businesses and the self-employed to familiarise themselves with the necessary requirements and work accordingly. Businesses can make customs declarations themselves or hire a third party such as a courier, freight forwarder or customs agent to do the paperwork.

Source: HM Revenue & Customs Tue, 02 Apr 2024 00:00:00 +0100

Restarting a dormant or non-trading company

Posted on April 4, 2024 by

HMRC must be informed when a non-trading or dormant company starts trading and becomes active for Corporation Tax purposes. Companies can use HMRC Online Services to supply the relevant information.

When a company has previously traded and then stops it would normally be considered as dormant. A company can stay dormant indefinitely, however, there are costs associated with doing this and certain filings must still be made to Companies House. The costs of restarting a dormant company are typically less than starting from scratch again.

The following steps are required:

Tell HMRC that your business has restarted trading by registering for Corporation Tax again.
Send accounts to Companies House within 9 months of your company’s year end.
Pay any Corporation Tax due within 9 months and 1 day of your company’s year end.
Send a Company Tax Return – including full statutory accounts – to HMRC within 12 months of your company’s year end.

Whilst reporting dates for annual returns and accounts should remain the same. The Corporation Tax accounting period is different and is set by reference to the date when the company restarts business activities.

Source: Companies House Tue, 02 Apr 2024 00:00:00 +0100

Claim tax relief if working from home

Posted on April 4, 2024 by

If you are an employee who is working from home, you may be able to claim tax relief for part of your household bills that are related to your work. If your expenses or allowances are not paid by your employer, you can claim tax relief directly from HMRC.

You can claim tax relief if you have to work from home, for example because:

your job requires you to live far away from your office; and/or
your employer does not have an office.

Tax relief is not usually available if you choose to work from home. This includes if your employment contract lets you work from home some or all of the time or if your employer's office is unable to accommodate you.

Employees can claim tax relief of £6 per week (or £26 a month for employees paid monthly) to cover additional costs if they have to work from home. Employees do not need to keep any specific records if they receive this fixed amount.

Employees will receive tax relief based on their highest tax rate. For example, if you pay the 20% basic rate of tax and claim tax relief on £6 a week, you will receive £1.20 per week in tax relief (20% of £6). Alternatively, employees can claim the exact amount of extra costs they have incurred but will need to provide evidence to HMRC. HMRC will accept backdated claims for up to 4 previous tax years.

Employees may also be able to claim tax relief for using their own vehicle, be it a car, van, motorcycle or bike. As a general rule, there is no tax relief for ordinary commuting to and from your regular place of work. The rules are different for temporary workplaces where the expense is usually allowable or if an employee uses their own vehicle to do other business-related mileage. Employees may also be able to claim tax relief on equipment they have bought, such as a laptop, chair or mobile phone.

Source: HM Revenue & Customs Tue, 02 Apr 2024 00:00:00 +0100

Claim tax relief on pension contributions

Posted on April 4, 2024 by

You can usually claim tax relief on private pension contributions worth up to 100% of your annual earnings, subject to the overriding limits. Tax relief is paid on pension contributions at the highest rate of income tax paid.

This means that if you are:

A basic rate taxpayer, you get 20% pension tax relief.
A higher rate taxpayer, you can claim 40% pension tax relief.
An additional rate taxpayer, you can claim 45% pension tax relief.

The first 20% of tax relief is usually automatically applied by your employer with no further action required if you are a basic-rate taxpayer. If you are a higher rate or additional rate taxpayer, you can claim back any further reliefs on your self-assessment tax return.

The above applies for claiming tax relief in England, Wales or Northern Ireland. There are some regional differences if you are based in Scotland.

There is an annual allowance for tax relief on pensions of £60,000. This limit remains unchanged in the new 2024-25 tax year. There is also a rule that allows you to carry forward any unused amount of your annual allowance for three tax years.

The lifetime limit for tax relief on pension contributions was removed with effect from 6 April 2023 and has now been abolished.

Source: HM Revenue & Customs Tue, 02 Apr 2024 00:00:00 +0100

More about emergency tax codes

Posted on April 4, 2024 by

The letters in an employee’s tax code signify their entitlement (or not) to the annual tax free personal allowance. The tax codes are updated annually and help employer’s work out how much tax to deduct from an employee’s pay packet.

The basic personal allowance for the tax year starting 6 April 2024 is £12,570 and the tax code for an employee entitled to the standard tax-free Personal Allowance is 1257L. This is the most common tax code and is used for most people with one job and no untaxed income, unpaid tax or taxable benefits (for example a company car).

Emergency tax codes can be used if HMRC does not receive a taxpayer’s income details in time after a change in circumstances such as:

a new job
working for an employer after being self-employed
receiving company benefits or the State Pension

Employees on an emergency tax code will see one of the following codes on their payslip:

1257L W1
1257L M1
1257L X

These codes mean that an employee’s tax calculation is based only on what they are paid in the current pay period. The emergency tax codes are temporary and will usually be updated once the necessary details about previous income or pension payments are sent to HMRC. Taxpayers will remain on an emergency tax code until they have paid the correct tax for the year.

Source: HM Revenue & Customs Tue, 02 Apr 2024 00:00:00 +0100

Month: April 2024

Online check how to import or export goods

Restarting a dormant or non-trading company

Claim tax relief if working from home

Claim tax relief on pension contributions

More about emergency tax codes

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