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Busy Practitioner by Mark McLaughlin ATII TEP

Some important dates for employers and self-assessment taxpayers, as highlighted in 'Busy Practitioner' for June 2003 by Mark McLaughlin ATII ATT TEPThe summer holiday period includes some important dates for employers and Self- Assessment taxpayers, and these are outlined below.

19 July 2003

Employers may find this date significant for two reasons.

• Payment of Class 1A National Insurance contributions on benefits returned on a 2002/03 employer’s declaration of expenses and benefits (form P11D(b)) must reach Inland Revenue Accounts Office by 19 July 2003, in order to avoid late payment interest charges (Statutory Instrument 2001 No 1004, Regulations 71 and 76);

• Monthly or quarterly remittances of tax and NIC for the period ended 5 July 2003 must also reach the Accounts Office by that date.

The quarterly payment option is available to an employer (and/or a contractor in the construction industry) who reasonably estimates that average monthly deductions (i.e. pay as you earn tax, National Insurance contributions, deductions from sub-contractors and student loan deductions) amount to less than £1,500 (Statutory Instrument 1993 No 744, Regulation 41).

An employer can notify the Inland Revenue of an intention to change from monthly to quarterly remittances on form P31(2001).

31 July 2003

The 2002/03 second payment on account of income tax (and Class 4 National Insurance contributions, if appropriate) must reach the Collector of Taxes no later than 31 July 2003, if interest charges are to be avoided.

Most taxpayers who have not paid remaining tax and National Insurance liabilities for 2001/02 by this date face a further 5% surcharge, in addition to the 5% surcharge suffered on amounts outstanding at 28 February 2003. However, a taxpayer who requested a 2002 tax return from the Inland Revenue by 5 October 2002 and was issued with one after 31 October 2002 may be able to discharge those liabilities at a later date without surcharges. In such cases, the tax payment date is extended to three months from the issue date.

The first surcharge is based on amounts unpaid 28 days thereafter, and the second surcharge is based on amounts unpaid six months after the extended payment date (TMA 1970, ss 59B(3), 59C(3)).

1 August 2003

Taxpayers whose 2002 tax returns were due to be filed by 31 January 2003 but have not been filed before 1 August 2003 are liable to a further £100 fixed penalty, unless the Inland Revenue have already successfully applied to the General or Special Commissioners for an order imposing penalties of up to £60 per day (TMA 1970, s 93(4)).

In the case of 2003 tax returns issued to the taxpayer on or after 1 August 2003, the normal deadline of 30 September for the Inland Revenue to calculate tax is extended to two months from the date on which the return was issued (TMA 1970, s 9(2)).

2 August 2003

Employers who have employees that have changed their company cars and/or car fuel benefits in any quarter must submit a return (form P46(Car)) to the Inland Revenue.

Any returns for the quarter ended 5 July 2003 must be submitted in time to reach the Revenue within the 28 days following, i.e. no later than 2 August 2003 (Statutory Instrument 1993 No 744, Regulation 46A).