Member Since: 4th Apr 2010
18th Apr 2020
As I understand it, the whole principle of RTI is that you report the payment date of your employees wages.
If, as you say, the employer has made the RTI submissions then he must have reported a payment date for these wages. If he has no intention of paying the wages until the furlough funding is received, and he cannot yet know what date that will be, then he is not in a position to make a valid RTI submission.
Employers need to understand the the government is not paying their employees' wages. The employer is responsible for paying the wages. The furlough grant is simply funding that an employer can claim to help to keep their business afloat, albeit that it is a condition of claiming this grant that it must be used to finance the payment of the employees' wages and cannot be used for another purpose.
21st Mar 2020
That would certainly solve a problem and aid cash flow. Do you have any references to support this view ?
20th Mar 2020
The director's bonuses are calculated as a fixed pre-determined percentage of the annual net profit before tax and have been consistently accrued into the annual accounts each year once the net profit has been determined after the year end. Hence the reason for the bonuses being paid after the year end date.
Whether or not the directors care about deferred tax is not the question here. I am looking for guidance on how to correctly account for the material timing difference that will arise due to part of this year's bonuses being paid as pension contributions.
Am I correct in thinking the deferred tax asset balance is included in the 'other debtors' figure within the notes the accounts with no requirement to report this asset as a separate item within the Debtors note ?
10th Jan 2020
My sofware (Ftax) doesn't calculate the foreign tax credit so I have to do a manual calculation [Note to self : change software provider for 2019/20 !]
The simplest way to do the manual calculation is to run the software tax calculation (a) including the foreign dividend income and (b) excluding the foreign dividend income, and the difference between the two calculations is then the value of the UK tax payable on the foreign income (foreign tax credit claim is then the lower of this UK tax difference and the amount of foreign tax suffered) , but this approach to the calculation presumes that the dividend allowance is allocated to the UK dividends first.
10th Jan 2020
Yes, I understand that the foreign tax can only be claimed up to the value of the UK tax liability.
In advising that UK dividends can be allocated against the dividend allowance first, how do reach this opinion ?
5th Jan 2020
I had two instances of this, both relating to female clients who had been registered as self-employed and paying class 2 nic for years, but in the change over to class 2 being collected via the self-assessment system their NI No's were not mapped across onto their self assessment records due to some snag in the system caused by my client's self-assessment records being held in their maiden names whilst their DWP records were held under their married names.
The whole thing was a nightmare to resolve because HMRC's computer system somehow managed to create a second self-assessment record and UTR number for these clients. Because there are no direct lines of communication between DWP and HMRC's self-assessment department it took months to resolve these issues even after the cause of the problem was identified.
It was such a mess that HMRC didn't have a leg to stand on and had to cough up when I billed them for the hours I lost acting as the go-between relaying messages between the two departments to get the problem fixed.
3rd Jan 2020
Is this question for real ?
I'm struggling to decide whether the OP is arrogant or just plain stupid !
Hat's off to Penelope Pitstop for having the patience to pen a sensible reply to such a rediculous question.
19th Dec 2019
Thank you for your response.
I already know that the R&D tax credit adjustment is to be reported within the current year's accounts with no restatement of the prior year comparatives ( I appreciate that I didn't make this clear in my original question).
What I'm not sure about is whether I need to include a note in the accounts to explain the 'adjustment to prior year tax charge' included within the current year's tax charge as this will be a material figure within the context of the current year's accounts.
30th Oct 2019
I now see this is clearly spelled out in HMRC's Pensions Tax Manual at PTM043100
30th Oct 2019
It is my understanding that directors' bonuses can be accrued into the annual accounts and claimed as a tax deduction in the year of accrual as long as
the bonus is paid within 9 months of the year end date.
Is it then a condition of this tax allowance that such accrued bonuses must be paid by way of a 'payroll reportable' payment and cannot be paid by means of an additional employer's contribution to the directors' pension ?