Are you absolutely sure that you can file a mixed scheme return? What figure would you put in sales, the two months net and one month gross? I haven't come across this situation before.
Quite a few dentists have been advised wrongly to incorporate not realising that they could no longer pay into the NHSPS. At 12 x its a great scheme and I always tell my dentists to have a chat with their financial advisers before considering incorporation. Usually they decide to remain sole trade. Interesting idea to try and split out private work I would be interested to know if that is possible!
At the risk of stating the obvious, be careful using this approach if the client has a few employees using up the ER allowance because the savings will be less depending on the allowance used up by their ER's.
Thanks for your replies. Yes they all have proper jobs and as their individual incomes will be less than £2500 I thought they may be able to advise HMRC of the extra income and have their tax codes adjusted rather than all complete SA's. I've not come across this situation before.
Are there penalties? Obviously I need to suggest that the client fills out a SA now but how forceful should i be? I presume that either the P46 wasn't correctly filled out or the employer just set it up wrong.
My answers
Mixed scheme return
Hi Claudia,
Many thanks for your reply.
Are you absolutely sure that you can file a mixed scheme return? What figure would you put in sales, the two months net and one month gross? I haven't come across this situation before.
I guess so. What would you put under the accounting basis note then?
Sorry
My answer was only relevant for associate dentists. I must learn to read the question!
Don't incorporate
Quite a few dentists have been advised wrongly to incorporate not realising that they could no longer pay into the NHSPS. At 12 x its a great scheme and I always tell my dentists to have a chat with their financial advisers before considering incorporation. Usually they decide to remain sole trade. Interesting idea to try and split out private work I would be interested to know if that is possible!
Watch out for other employees
At the risk of stating the obvious, be careful using this approach if the client has a few employees using up the ER allowance because the savings will be less depending on the allowance used up by their ER's.
TY
Thanks for your replies. Yes they all have proper jobs and as their individual incomes will be less than £2500 I thought they may be able to advise HMRC of the extra income and have their tax codes adjusted rather than all complete SA's. I've not come across this situation before.
Yeah already checked box 5 and no 'y' in there. Hence my conclusion that PAYE wasn't set up correctly in first place.
Many thanks! All the best for the festive season!
Graduated June 12
Started work Sep 12 till Aug 13 40k
Sole trade Sep 13
So first payments actually due 31/1/15 then?
Penalties
Are there penalties? Obviously I need to suggest that the client fills out a SA now but how forceful should i be? I presume that either the P46 wasn't correctly filled out or the employer just set it up wrong.
VT
I was just about to switch to 365, however I didn't realise VT did not work. Does anyone know if VT have plans to resolve this? surely they must.