Yes, that is what I do. My assistant posts everything to P&L and I can then reverse some or all the charge to prepayments if needed.
I keep a spreadsheet listing all the prepayments and showing how they are released each month.
At the end of the year (or at any point in the year), the total of the spreadsheet should equal the total of the prepayments account.
I know someone who rents a property to family (their son and daughter-in-law and grandson). The son and daughter-in-law receive housing benefit.
The council sent the landlord a form with questions including what the landlord would do if the tenants stopped paying rent.
I don't think councils have a problem paying HB if the landlord is a relative now, as long as it is a bona fide landlord-tenant relationship. Most councils are under pressure to provide accommodation and I think that they are only too happy for people to be in private rentals even if the landlord is a relative.
If the council was ok about him renting from his brother, I don't know why you think they would object to him renting from trustees? It also means that they don't have to provide accommodation for his daughter which is another benefit for the council.
But from April 2021, if the UK company is medium or large, won't it be responsible for determining if IR 35 applies? And if it does, won't the UK company be responsible for employer's NI (even if PAYE and employee's NI is zero because the worker is abroad)?
He would have to have been a member of a registered pension scheme for these years in order to carry forward the annual allowances. He would also have had to have had relevant earnings of £40k in each of the years in order to carry forward the full £40k.
So are you saying that this is his first pension contribution in the last 4 years?
Has anyone else or an employer made any pension contributions on his behalf?
If it is his first contribution in the last 4 years and no-one else has made any pension contributions on his behalf then he should have 3 years of annual allowances (17/18, 18/19 and 19/20) available, so 3 x £40k = £120k. He will also have this year's annual allowance available of £40k.
On the 20/21 SA return, you need to put the gross amount of his pension contribution which is £42k /0.8 = £52.50k, if he gets relief at source. If he doesn't then the £42k will be the gross amount.
You also need to check that he hasn't accessed any of his pension schemes as the £40k annual allwance will be reduced.
Also, if he is a high earner, you need to ensure that he isn't affected by The Tapered Annual Allowance (TAA).
You also need to ensure that his relevant earnings in 20/21 are at least £52.5k if this is the gross amount.
The above is just a basic summary and doesn't cover everything you need to think about.
Export the batch file
CSV & open
Right click, show in folder
Right click, open with Notepad
Enter the commas between the sort code and account number
Save
Open the file in Excel and custom format the sort code as General 000000
Custom format the account number as General 00000000
Shorten the payee name if necessary
I hope this helps. If you need anything clarified, let me know and I will ask my assistant next week.
My answers
Yes, I have had several employees over the years asking this, as if they are the only ones to have ever thought of it.
I just say that if it was possible, everyone would be doing it as they wouldn't have to pay any tax or ni ever.
Yes, that is what I do. My assistant posts everything to P&L and I can then reverse some or all the charge to prepayments if needed.
I keep a spreadsheet listing all the prepayments and showing how they are released each month.
At the end of the year (or at any point in the year), the total of the spreadsheet should equal the total of the prepayments account.
I know someone who rents a property to family (their son and daughter-in-law and grandson). The son and daughter-in-law receive housing benefit.
The council sent the landlord a form with questions including what the landlord would do if the tenants stopped paying rent.
I don't think councils have a problem paying HB if the landlord is a relative now, as long as it is a bona fide landlord-tenant relationship. Most councils are under pressure to provide accommodation and I think that they are only too happy for people to be in private rentals even if the landlord is a relative.
If the council was ok about him renting from his brother, I don't know why you think they would object to him renting from trustees? It also means that they don't have to provide accommodation for his daughter which is another benefit for the council.
Moneysoft. Also, it is a UK company.
Thanks for this. The first one is on 23/4:
https://register.gotowebinar.com/registrationConfirmation?webinarKey=536...
But from April 2021, if the UK company is medium or large, won't it be responsible for determining if IR 35 applies? And if it does, won't the UK company be responsible for employer's NI (even if PAYE and employee's NI is zero because the worker is abroad)?
Thanks both.
The OP should take advice from the PAS as I previously stated.
Yes, thanks for pointing this out.
He would have to have been a member of a registered pension scheme for these years in order to carry forward the annual allowances. He would also have had to have had relevant earnings of £40k in each of the years in order to carry forward the full £40k.
There is a good summary here:
https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-...
But, as I said, you need to ring them with your personal circumstances.
So are you saying that this is his first pension contribution in the last 4 years?
Has anyone else or an employer made any pension contributions on his behalf?
If it is his first contribution in the last 4 years and no-one else has made any pension contributions on his behalf then he should have 3 years of annual allowances (17/18, 18/19 and 19/20) available, so 3 x £40k = £120k. He will also have this year's annual allowance available of £40k.
On the 20/21 SA return, you need to put the gross amount of his pension contribution which is £42k /0.8 = £52.50k, if he gets relief at source. If he doesn't then the £42k will be the gross amount.
You also need to check that he hasn't accessed any of his pension schemes as the £40k annual allwance will be reduced.
Also, if he is a high earner, you need to ensure that he isn't affected by The Tapered Annual Allowance (TAA).
You also need to ensure that his relevant earnings in 20/21 are at least £52.5k if this is the gross amount.
The above is just a basic summary and doesn't cover everything you need to think about.
You can get advice from the pension advisory service. https://www.pensionsadvisoryservice.org.uk
They should ring you back within a day.
So, this is what the notes say:
Export the batch file
CSV & open
Right click, show in folder
Right click, open with Notepad
Enter the commas between the sort code and account number
Save
Open the file in Excel and custom format the sort code as General 000000
Custom format the account number as General 00000000
Shorten the payee name if necessary
I hope this helps. If you need anything clarified, let me know and I will ask my assistant next week.