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Brian Redford explains how listening to HMRC’s first ‘Super Podcast’ can help businesses prepare for big changes to the way they file and pay their taxes.

Super Podcast

At HM Revenue & Customs (HMRC) we have launched our first ever ‘Super Podcast’, to alert businesses to major changes in the way they file and pay PAYE, corporation tax and VAT.

We’ve called it a ‘Super Podcast’ because it provides an overview of four key changes which affect the way that VAT-registered traders, employers, limited companies and other organisations file and pay their tax.

The free audio podcast, featuring HMRC experts Stephen Banyard and Don Macarthur, covers:

• important VAT changes coming in on 1 April 2010,
• the need for all employers to file their Employer's Annual Returns online from this spring;
• new penalties for late payment of PAYE being introduced in May; and
• key changes to corporation tax filing and payment coming in next year.

VAT Returns

The changes to VAT, which come into force on 1 April 2010, mean that VAT-registered traders with annual turnovers of £100,000 or more (excluding VAT) will have to file their VAT returns online and pay their VAT electronically. Similarly, all businesses registering for VAT from April will have to file their returns online and pay electronically. This applies to VAT returns for accounting periods beginning on or after 1 April 2010.  In the podcast, Stephen Banyard discusses the changes in detail, and addresses questions that businesses are likely to have about them.

Employer's Annual Return

The podcast also features Don Macarthur discussing the need for employers to file their Employer's Annual Returns online from this spring. These forms – P35s and P14s – set out the tax and National Insurance that employers have deducted from their employees’ salaries under PAYE. Previously, it was only employers with 50 or more employees that had to file online, but from this year it’s everyone.

New PAYE Penalties

Don Macarthur also talks about new penalties that HMRC is introducing from May this year for late payment of PAYE. This includes the tax and National Insurance that employers deduct from their employees’ salaries, as well as Employers’ National Insurance Contributions, student loan deductions and Construction Industry Scheme deductions. This means that employers and contractors who don’t pay their PAYE on time, and in full, may be liable to a penalty.

Corporation Tax

The final subject that the podcast tackles is changes to corporation tax filing and payment. Stephen Banyard explains that the changes will affect limited companies and other organisations that pay corporation tax including clubs, societies, associations, co-operatives, charities and other unincorporated bodies.

Stephen explains that for accounting periods ending after March this year, where the return is submitted on or after 1 April 2011, returns will have to be filed online, and payment made electronically.
 
He goes on to say that in almost all cases, the computation and, for companies, the accounts also, will have to be filed in a data format called iXBRL. This means that  customers need to start thinking now about preparing for the change.

However, Stephen is at pains to emphasise that companies should find it easy to comply with the new rules. He explains that companies with less complex tax affairs can use HMRC’s free filing software, while those companies that use commercial software will find their software does the iXBRL job for them.

Our Super Podcast is available now and can be downloaded for free from HMRC’s podcast pages at www.hmrc.gov.uk/podcasts. Whether you are a VAT-registered trader, an employer or a limited company, we’d urge you to take 15 minutes to download and listen to it, to ensure you are prepared for the changes.