Monthly Archives: March 2014

PAYE Penalties

HMRC are to introduce further interest and penalties for the late submission of PAYE RTI returns and for late payment of PAYE liabilities. The penalties will be introduced as follows:

  • April 2014 – in-year interest on any in-year payments not made by the due date
  • October 2014 – automatic in-year late filing penalties
  • April 2015 – automatic in-year late payment penalties

If you would like any help with PAYE matters please do get in touch.

Internet link: Press release

Advisory fuel rates for company cars

New company car advisory fuel rates have been published to take effect from 1 March 2014. HMRC’s website states:

‘These rates apply to all journeys on or after 1 March 2014 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.’

The advisory fuel rates for journeys undertaken on or after 1 March 2014 are:

 

Engine size Petrol Diesel
1400cc or less 14p 12p
1401cc – 2000cc 16p 14p
Over 2000cc 24p 17p

 

Engine size LPG
1600cc or less 9p
1601cc – 2000cc 11p
Over 2000cc 17p

 

Please note that not all of the rates have been amended, so care must be taken to apply the correct rate.

Other points to be aware of about the advisory fuel rates:

  • Employers do not need a dispensation to use these rates.
  • Employees driving employer provided cars are not entitled to use these rates to claim tax relief if employers reimburse them at lower rates. Such claims should be based on the actual costs incurred.
  • The advisory rates are not binding where an employer can demonstrate that the cost of business travel in employer provided cars is higher than the guideline mileage rates. The higher cost would need to be agreed with HMRC under a dispensation.

If you would like to discuss your car policy, please contact us.

Internet link: HMRC advisory fuel rates

Research and Development (R&D) relief

R&D relief gives additional tax relief to companies for expenditure incurred on R&D projects that seek to achieve an advance in science or technology. For an SME company which incurs losses when conducting R&D activity, a tax credit can be claimed by way of a cash sum paid by HMRC.

From 1 April 2014 the rate of the R&D payable tax credit will be increased from 11% to 14.5%.

Internet link: Gov.uk Budget