Policy News Journal - 2014-15

 PAYE tax, Class 1 National Insurance and Student Loan deductions, including specified charges (estimates HMRC makes in the absence of a PAYE submission)  Construction Industry Scheme charges  In-year late filing penalties, which start from October 2014  In-year late payment penalties, which will be charged automatically from April 2015

HMRC will charge interest daily, from the date a payment is due and payable to the date it is paid in full.

Accruing Interest and the Business Tax Dashboard

Employers will be able to see an estimate of the interest building up on the Business Tax Dashboard.

Please note that:

 Accrued interest is only a guide to what may be due. HMRC will only seek payment of interest when the amount due is settled.  The Business Tax Dashboard will only show interest as accruing in the current month, regardless of when the payment was due.  It will show interest as accruing from the 19th of each month, regardless of how the employer pays. Employers who pay electronically should not worry if they see an accrued interest entry between 19th and 22nd of a month. Once the electronic payment is received, the calculation will correctly use the 22nd as the due date, and any interest charge generated between the 19th and 22nd will be cancelled. Currently, there is an HMRC systems error which results in the Business Tax Dashboard showing interest accruing despite the employer having submitted an EPS that clears the original charges. This error will be corrected shortly. In the meantime, HMRC will not pursue this charge and employers do not need to contact HMRC about this.

Further information

HMRC's At a glance: interest from 2014 to 2015 helpsheet has more detail on:

The due dates of payment

  

How in-year interest is calculated

Interest on overpayments

 How HMRC will calculate interest on a charge that employers didn't agree with  What an employer should do if they cannot pay

Office for Tax Simplification competitiveness review

23 May 2014

The Office for Tax Simplification (OTS) is currently looking for ways to improve the competitiveness of the UK tax administration, focussing particularly on the Small and Medium Enterprises (SME) sector. In order to do this the OTS wants to consider how the UK tax administration impacts on all sizes and types of business. As well as looking for ways of improving the system, they also want to hear what people think are the good features of our tax system. After all, they may provide lessons for improving other areas.

This project has been going for some weeks now and one immediate point to emerge is that they cannot consider the competitiveness of the UK’s tax administration solely in terms of

CIPP Policy News Journal

08/04/2015, Page 264 of 521

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