Here are the most frequently asked questions we've received from Limited company contractors in March 2022, with answers from the experts at Orange Genie Accountancy:
I have received a letter from HMRC telling me to sign up to MTD for VAT, what do I need to do?
You don’t need to do anything. We took the decision to put all VAT registered businesses onto MTD for VAT when it was introduced to businesses above the threshold back in 2017. Therefore, if your turnover is below the threshold and HMRC have contacted you by post to tell you to sign up before the 6th April, then don’t worry, we would have done this for you as part of our onboarding process.
What is a P11d?
Your P11D is the return used to report expenses and benefits paid to directors and employees, which have not been subject to tax at source. HMRC require your company to notify these expenses for each director and employee earning over £8,500 after the 5th of April each year.
How is my payslip changing in 2022/2023?
HMRC has asked for the following message to be included on payslips for 2022/2023 - “1.25% uplift in NICs funds NHS, health & social care”, this is not mandatory, and employers will not face sanctions for leaving the message off payslips. However, if you use FreeAgent for your bookkeeping software then this will be pushed through to all payslips universally.