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Revenue Collection Unit to Pursue Late Payment and How Taxing Nannies Can Help You.

December 2nd, 2011 admin
Income tax 1630366c 300x187 Revenue Collection Unit to Pursue Late Payment and How Taxing Nannies Can Help You.

How Taxing Nannies can help you avoid late payments to HRMC

From 6 April 2012, HMRC have greater powers to help ensure that employers pay their PAYE tax deductions or Class 1 National Insurance contributions (NICs). The new powers will allow HMRC to obtain a security from employers where there is a serious revenue risk as a result of non-payment of employees’ income tax and NICs.

The new powers are drafted to target employers who deliberately try to defraud the national purse but the changes will also target businesses that build up large debts to HMRC as well as those who do not respond to HMRC’s attempts to contact them in reasonable time.

The required security will, according to HMRC, usually be a cash deposit from the business or director – held by HMRC or paid into a joint HMRC/taxpayer bank account – or a bond from an approved financial institution which is payable on demand. The amount of security required will be calculated on a case by case basis. Businesses required to pay a security deposit will have the option to appeal any decision by HMRC.

In a separate announcement, the head of debt management and enforcement for HMRC has warned that anyone making late payments to HM Revenue & Customs will be pursued until the Revenue receives its share.

Dr Abani told a delegation of accountants that people making late PAYE payments will receive letters from HMRC with penalty notices attached. ‘If you have been making late payments on PAYE there will be envelopes landing with penalties,’ he said. He reiterated the message that those who fail to inform HMRC of problems would not be afforded leniency: ‘If you have not spoken to us in time we will not remove late payment surcharges… It is very important to tell HMRC what has gone wrong’, he said.

Businesses that hare having genuine financial difficulties should contact HMRC at the earliest opportunity to discuss the options available to them.

Taxing Nannies assist our clients so that they do not end up with arrears, as follows:

1. We advise all our clients at the outset as to the likely costs of nanny tax and national insurance and how much the employer should reserve on a weekly or monthly basis in addition to the net salary paid. This is particularly important where the employer agrees a net salary with the nanny, but does not realise the additional costs of nanny PAYE, employees and employers national insurance. Even where an employer agrees a gross salary with the nanny, Taxing Nannies will advise of the additional employers national insurance which is payable.

2. Where we are advised of a change in salary, we inform our clients of the revised liabilities to tax and national insurance.

3. Where our clients enter into nanny share arrangements, Taxing Nannies assists its clients with splitting tax codes so that payment of nanny taxes by both employers is equitable. Where there is a change of arrangement Taxing Nannies will recalculate the liabilities and advise our clients accordingly.

4. Once a quarter we write to all our clients advising them of the exact amount of their nanny taxes with details of all the different payment methods and due date for payment. We give ample notice and remind our clients of payment dates for PAYE and national insurance.

5. If our clients receive demands for tax, penalties or underpayment notices from HMRC, Taxing Nannies will check the validity of those notices and advise our clients accordingly. Nat all notices sent by HRMC are correct! If a client is unsure as to what nanny taxes have been made, Taxing Nannies have the facility to check details of payments made with HMRC.

6. Where our clients express difficulty in paying HMRC, we will advise them as to their best cause of action.

For more help and assistance with all you nanny tax and nanny PAYE needs, contact us and we will be happy to help. info@taxingnannies.co.uk

An Interview With Sara Graff of Taxing Nannies

November 29th, 2011 admin
72097 1445557859459 1248514725 31146541 3323344 n An Interview With Sara Graff of Taxing Nannies

Sara Graff of Taxing Nannies

Sara Graff runs a successful nanny tax and nanny PAYE company in North East London as well as running Sara Graff and Co, an accountancy company offering tax advice and services to businesses across the UK.

Monique Lester of London Digital PR asked Sara what makes her passionate about Taxing Nannies and why the service is so popular.
ML: What was your background before starting Taxing Nannies?
SG: I trained as a Chartered Accountant passing my examinations first time (at that time there was a 20% pass rate) and qualified at the age of 22 and passed the Institute of Taxation examinations a couple of years later.  My career was initially based in small to medium sized accountancy practices and I became audit manager and latterly PA to partner which gave me the opportunity to take on my own portfolio of clients.  It was at that point that I began to realise how essential it was to build relationships with clients and how communication is such an important part of being a Chartered Accountant.  I began to appreciate that being a good accountant is more about being a “people” person than being able to deal with the numbers.
ML: What made you start Taxing Nannies?
SG: I continued to work for a firm of accountants following the birth of my two sons, but when I returned from maternity leave after my younger son was born, the firm had changed and I was subsequently made redundant.  At the same time, I came across an article in the Daily Telegraph which discussed the impending penalty regime for the late filing of employers’ end of year returns and how this was going to affect small employers paying tax for their employees including those that employed nannies.  I already employed a nanny to look after my two small children and thought that there may be a niche to start a specialist payroll agency helping employers to deal with paying nanny taxes and with the help of my redundancy package I launched Taxing Nannies in 1995.
ML: Why are you different to the other companies offering payroll services, for nannies or otherwise?
SG: I was very fortunate that when I was employed, I always worked for very professional firms and I progressed through my early career appreciating how important it was to be highly professional, ethical and efficient but also valuing and understanding clients.  I believe that these values have been passed on to the team at Taxing Nannies and it is this ethos that sets our firm apart from other nanny payroll agencies.
We aim to deliver a highly personal service to our clients so that they feel free to contact us whenever they have a problem in dealing with their nanny taxes.  We believe that the service is more than just ensuring our clients pay the correct tax for their nanny – it is about delivering a first class, professional, all encompassing, welcoming service.  All our staff are approachable and they will always make time to discuss issues with our clients that are important to them, whether it is when they first take on a nanny, when their nanny becomes pregnant, gets sick or ultimately leaves.  We always “go that extra mile” to ensure our clients get the information they need and are put at ease.
Although we have continued to grow as a business, we have retained that personal element and it is important for us that our clients are seen as individuals and not just another name, particularly as we do not get to meet most of our clients face to face.
We also pride ourselves in being pro-active, providing regular newsletters to our clients and bringing matters such as the implications of a change in salary or tax code to an individual client’s attention, rather than just going through the motions of amending the payslip to reflect those changes.
We know that we are not the cheapest nanny payroll agency but we have made a conscious decision that we do not wish to sacrifice the quality of our service.  Our fees still only work out at 67p per day inclusive of VAT and have remained unchanged for six years.
ML: Who and where are your clients?
SG: A large proportion of our clients reside in London and the Home Counties but we act for employers of nannies nationwide including Scotland.  The majority of our clients are parents employing nannies and these cover a complete cross section of the public.  We also act for employers of housekeepers, butlers, gardeners and other domestic staff.
Our payroll arm also extends to businesses for which we carry out payroll services for directors and staff.
ML: Why are you so passionate about the service the company offers?
I have built up this business in the knowledge that we provide the very best service possible to our clients at a keen price.  It is so satisfying to the team when, as often happens, clients express their gratitude for the help that we have provided.  Most of our clients are busy people, many juggling a demanding career with a young family and busy home life.  It is our aim to ease their burden by removing one hassle from their hectic schedule and experience has shown that we really achieve that.
ML: Who are your team?
Denise Connick and Sally Beale are my valued team members who have worked with me for 14 years and 12 years respectively.  In addition, we have several additional administrative members of staff that form part of our busy team.  Denise previously worked as Assistant Staff Manager at Marks and Spencer and as Personnel Assistant at Taylor Walker and Sally worked for several years for the American military in Germany.  They have both worked hard to help me build up the business and to provide the high level of service for our clients.  All our current staff are female and mothers who have raised families whilst carrying on a career, and therefore have an empathy with our clients.
To contact Sara and her team about the services offered by Taxing Nannies or Sara Graff and Co, email post@taxingnannies or call them on 020 8882 6847.

When Your Nanny is Redundant and What an Employer’s Responsibilities Are

November 26th, 2011 admin
slideshow 3 300x210 When Your Nanny is Redundant and What an Employer’s Responsibilities Are

What you need to know about nanny redundancy from Taxing Nannies

By their very nature, nannies will normally have a finite life with a family.  Sometimes parents give up work to look after the children, the family may move to another area or children are enrolled into a nursery or start full time school. Inevitably children grow up and there will always come a time when a nanny will no longer be required.

Employers do not always realise that when a family no longer require a nanny, for whatever reason, and the nanny does not give notice of her own accord, then this is a redundancy situation.  Also where the employer wishes to significantly vary the terms and conditions of employment of a nanny, for example from full time to term time, from live out to live in and visa versa, and the nanny does not wish to accept, then this may also be deemed to be redundancy.

When such as situation occurs the employer should always consult with the nanny. This will normally involve:

  • speaking to the nanny directly about why you wish to make her redundant
  • looking at any alternatives to redundancy (if any other positions exist such as housekeeper.)  Positions must be suitable employment.

If this doesn’t happen, the dismissal may be deemed unfair.  Decisions to make a nanny redundant should always be confirmed in writing.

If there is an alternative job, the nanny has a right to try out the job for a trial period of 4 weeks before deciding whether or not to take it.  The trial period will start immediately after the previous job ends.  If the nanny decides the new job is not suitable, she can give notice during the trial period without affecting any right to redundancy pay. If she does not given notice by the end of the trial period, her right to redundancy pay ends.

When an employee is made redundant and has been employed for two years or more at the date the notice period ends then they are entitled to statutory redundancy pay as follows:

0.5 week’s salary for every year worked aged 18-21

One week’s salary for every year worked aged 22-40

One and a half week’s salary for every year worked from aged 41

From 1st February 2011 the statutory redundancy cap (ie the maximum weekly pay that is required to be made) £400 gross.  Redundancy pay is tax free for payments of less than £30,000.  An employer can pay more than the statutory redundancy cap if they so wish, provided that it is reasonable within the context of the salary and job performed.

An employee must be given:

  • one week’s notice if the nanny has been employed for at least one month but less than two years
  • if the nanny has been employed for at least two years, one week for each complete year of employment, up to a maximum of twelve weeks.

The contract of employment may give more notice than this but it cannot give less. The employer should check the contract to see how much notice they are required to give.

If the nanny has been given notice of redundancy, they have the right to paid time off to look for a new job provided that, by the time the notice period ends, they have worked for the employer for at least two years.

The employer only has to pay up to two-fifths of a week’s pay for time taken off to look for another job during the whole of the notice period. This means for a normal five-day week, the nanny will only be entitled to be paid for two days, however many days she actually takes off.

A nanny can be made redundant when she is pregnant, although the employer will need to be able to demonstrate that the redundancy is nothing to do with the pregnancy.  Depending on when the redundancy occurs, the employer may still be required to administer statutory maternity pay even after the employment has been terminated.

Taxing Nannies regularly calculates redundancy payments and assists employers to ensure they comply with their statutory requirements. Contact us for all your nanny tax, nanny PAYE and nanny payroll advice: info@taxingnannies.co.uk or +44 (0)208 888 6847.

Beware Fraudulent Emails from HMRC

November 17th, 2011 admin
fraud investment firm 300x199 Beware Fraudulent Emails from HMRC

Beware Fraudulent Emails from HMRC

Please be aware of fraudulent emails purporting to be from HMRC. The fraudulent emails usually inform recipients that they are due a tax rebate and provide a click-through link to a replica of the HMRC website.

These are not genuine HMRC messages and should be disregarded. It is part of a ‘phishing’ exercise that uses bogus e-mails and websites to trick taxpayers into supplying confidential or personal information. The ‘phishing’ emails are being sent from inside the UK and around the world. The emails often start with phrases which alert taxpayers to the fact that they are due a refund of tax.

Phishing is one way that cybercriminals can use your details to create false bank accounts, tax accounts, loans and credit card applications. This is a growing problem for anyone using online reporting facilities and we all need to be vigilant.

In a recent press release HMRC have stated that ‘We currently only ever contact customers who are due a tax refund in writing by post. We don’t use telephone calls, emails or external companies in these circumstances. If anyone receives an email claiming to be from HMRC, please send it to phishing@hmrc.gsi.gov.uk before deleting it permanently’.

If you are unsure as to the authenticity of any email purporting to be from HMRC you should avoid clicking on any links until satisfied that the email is legitimate.  You may always contact us at Taxing Nannies at if you are unsure as to the legitimacy of an email.

Contact us for more information at post@taxingnannies or call us on 020 8882 6847.

Underpayment/Overpayment and PAYE Notices – Help From Taxing Nannies

November 13th, 2011 admin
calculator 300x225 Underpayment/Overpayment and PAYE Notices – Help From Taxing Nannies

Underpayment/Overpayment and PAYE Notices – Help From Taxing Nannies

HMRC is currently sending out tax calculations to some taxpayers using the P800 form. The form shows HMRC’s tax calculations in respect of the tax year ending 5 April 2011. This form is sent to taxpayers after HMRC have received details of the salary, pension and tax paid for each individual from employers and pension providers. HMRC use this information to see if the correct amount of tax has been paid.

In most cases, taxpayers that pay tax through the PAYE system will have paid the correct amount of tax. However, if too much or too little tax has been paid taxpayers will be sent a P800 form. HMRC are currently sending out P800 forms to taxpayers due a refund for the last tax year i.e. those who have paid too much tax and HMRC will automatically send a cheque within 14 working days of the date on the P800 Tax Calculation.

HMRC will send P800 forms later in the year to taxpayers that have paid too little tax. HMRC will usually collect any underpayment of less than £3,000 in 12 monthly instalments beginning in April 2012. Taxpayers who receive a P800 form should ensure that the figures quoted are correct.

Taxing Nannies would be happy to assist with employers whose nannies receive underpayment notices and who are concerned that they may not be correct.

A recent tribunal hearing considered an appeal by a taxpayer who had sold his business back in July 2008. Upon the sale of his business the taxpayer paid his employees and issued them with P45 forms. As the business had ceased on 28 July 2008 an employer’s annual return should have been submitted to HMRC by 19 May 2009. The taxpayer was not aware of this fact and did not make any such return. In May 2010, almost two years after his business ceased HMRC issued a fixed penalty notice of £800 to the taxpayer for the failure to file an annual return.

The taxpayer appealed the penalty charge arguing that he had a reasonable excuse for the non-submission. The taxpayer explained to the tribunal that he had spoken to HMRC to inform them that he was no longer going to be in business and requested HMRC’s advice as to what actions he needed to take. The taxpayer was advised to write to HMRC, which he did, but was not informed of a requirement to file an annual return. HMRC were unable to prove to the tribunal that the filing notice had been sent to the taxpayer’s new address.

As has been frequently mentioned in recent tribunal cases, a reasonable excuse may involve an exceptional event but need not necessarily do so. The tribunal accepted that the taxpayer had a reasonable excuse that ‘was primarily caused by the appellant being given either misleading or incomplete information which led him reasonably to believe that he had done all that he was required to do upon closing or selling his business’. The taxpayer’s appeal was allowed.

Taxing Nannies have a good record of dealing with appeals. If you as an employer have received a penalty notice and are not sure whether it is due, Taxing Nannies will be pleased to assist you with any appeal required. Taxing Nannies would also be happy to assist with employers whose nannies receive underpayment notices and who are concerned that they may not be correct.

Call us now on 020 8882 6847 or email post@taxingnannies.com

National Minimum Wage Updates from Taxing Nannies

October 6th, 2011 admin
National Minimum Wage to rise 1 dnm large National Minimum Wage Updates from Taxing Nannies

National Minimum Wage Updates from Taxing Nannies

The national minimum wage rate increased from 1st October 2011 to £6.08 per hour for employees aged 21 and over (previously £5.93), £4.98 for employees aged 18-20 (previously £4.92) and £3.68 for workers aged 16-17 (previously £3.64). The daily accommodation offset rate will increase to £4.73 for each day worked (previously £4.61).

Although au pairs and domestic workers living with a family can be exempted from the minimum wage requirements this is only when they live as part of the family sharing in tasks and leisure activities on the same basis as the family. Therefore most live in nannies are not exempted from the national minimum wage requirements in which case the minimum employers need to pay are the rates stated above less the accommodation offset.

Nanny Payroll Advice from Taxing Nannies

January 26th, 2011 admin
TN logo 300x212 Nanny Payroll Advice from Taxing Nannies

Nanny Tax and Nanny PAYE are easy with Taxing Nannies

Employing a nanny brings with it the same obligations as any business taking on an employee. By law, therefore, an employer must account for Income Tax and National Insurance Contributions on the salary paid to a nanny or mothers help, whether they are full time, part time or temporary. A nanny’s salary is normally quoted net of deductions (i.e. the amount she wishes to receive in her hand), and it is therefore the employers responsibility to pay over to PAYE, Employees National Insurance and Employers National Insurance to HM Revenue & Customs in addition to the net salary paid to the nanny. Expenses paid in benefits provided on behalf of a nanny in addition to her salary may be liable to a separate charge to Tax and National Insurance.

Remember that avoiding the taxman is illegal. If HMRC catches up with an employer who has failed to declare their nanny for tax purposes or has tried to maintain that she is self-employed, then they will be liable to pay the correct Tax and National Insurance Contributions and interest and penalties. There is no legal right to seek repayment from the nanny. Nanny Tax and Payroll services like Taxing Nannies, can really make it easy for you. We help our clients by taking away the stress of calculating the tax payable on your nanny’s salary and providing payslips, as well as lots of tips and facts and we file your nanny tax return. This makes the whole process simple and leaves you free to manage your childcare arrangements, knowing your nanny is being paid correctly and so is your tax!

Our service is easy to subscribe to. Contact post@taxingnannies.com or visit our website for more information.

Employing a Nanny the Stress Free Way With Taxing Nannies

December 9th, 2010 admin
content img 300x165 Employing a Nanny the Stress Free Way With Taxing Nannies

Taxing Nannies makes nanny tax easy.

Taxing Nannies was established in 1995 as one of the original specialist payroll agencies for employers of nannies.  They have since helped thousands of parents through the nanny tax minefield.  No longer do you have to worry about issues such as calculating tax and national insurance, how to write a contract of employment or what to do about Statutory Sick Pay or Maternity Pay.  In fact, you need have hardly any contact with HM Revenue and Customs at all.  The nanny tax and nanny PAYE service handles the whole thing for you.

Taxing Nannies currently has an all female team which is led by Sara Graff, a Chartered Accountant and Chartered Tax Advisor for over 25 years.  Sara is a mother who has previously employed nannies and so understands the needs and concerns of her clients.

Sara Graff qualified as a Chartered Accountant in 1982 and has spent much of her career in private practice. For several years she worked as an Audit Manager for medium sized firms of Chartered Accountants and subsequently moved to a small firm where she acquired a portfolio of clients who were individuals and small businesses, and this became an area of expertise. Sara set up her own practice Sara Graff and Co in 2002 to run alongside Taxing Nannies, where she has continued her work as a small business specialist.

Sara offers a personal touch. Her approach to business is that she wants to make it as easy as possible to employ a nanny and not have to worry about the potential tax issues. Sara says, “Nanny tax can be a real nightmare for parents. It’s challenging enough working out all the other issues around successful childcare; we take the tax issues off of your hands”.

Sara remembers only too well the juggling and the planning around childcare. She set up the nanny tax and payroll service to take the stress out of the paperwork around employing a nanny, though the service works just as well for housekeepers, gardeners, butlers, drivers, cleaners and other domestic staff. Taxing Nannies already run payrolls for a range of nurseries and other small businesses.

The team prides themselves on providing a highly personal service for their clients and have earned a reputation for being an extremely responsive, efficient, professional organisation that still has the time and inclination to talk to and listen to our clients’ queries and concerns.  Be it end of year accounts for a business owner, or setting up a nanny payroll, Taxing Nannies’ staff are there to listen to their clients. The website has recently been updated and contains plenty of free tips and information for current and prospective clients.

Sara Graff and Co and Taxing Nannies work nationwide and client locations include Scotland, Wales, Bedfordshire, Berkshire, Buckinghamshire, Cambridgeshire, Cheshire, Cornwall, Derbyshire, Devon, Dorset, Essex, Gloucestershire, Hampshire, Herefordshire, Kent, Lancashire, Leicestershire, London, Middlesex, Norfolk, Northamptonshire, Northumberland, Nottinghamshire, Oxfordshire, Shropshire, Somerset, Suffolk, Surrey, Sussex, Wiltshire, Worcestershire, and Yorkshire.

Sara and her team are always happy to help and can be contacted at +44(0)20 8882 6847 or email info@taxingnannies.co.uk.

PANORAMA

November 9th, 2010 admin

I watched yesterday’s Panorama programme “Are you paying too much tax” and could not believe how lightweight and uninformative it was.  There has been much publicity over the past few weeks about the implementation of HMRC’s new PAYE system (NPS) and how as a result of bringing the Revenue’s affairs up to date, several million assessments have been issued to employees of multiple jobs or where they have pensions.  Panorama offered very little additional information other than explaining that HMRC were going to have to make budget and staff cuts.

The programme tracked various taxpayers, mainly elderly, who had received assessments ranging from a few hundred pounds to £11,000.  At the end of the programme we were told that the amounts in the cases shown had all been written off.  What was not clear was whether those assessments were inaccurate or whether HMRC had treated those particular taxpayers favourably as a result of the programme.

I do not believe that a viewer who had been issued with a tax assessment would have been any the wiser following the programme and there were certainly no suggestions as to how taxpayers might check that the assessments were correct.

If you are in receipt of such a tax assessment and would like a professional to review it, we would be very happy to help for a reasonable fee.  Please contact us on info@saragraff.co.uk or post@taxingnannies.co.uk or telephone 020 8882 6847.

PENALTIES FOR LATE PAYMENT OF PAYE

November 5th, 2010 admin

The new penalty regime means that you may now have to pay a late payment penalty if you do not pay the PAYE due ON TIME on time and IN FULL.  Late is even one day late!

If you pay electronically your cleared payment must reach HMRC’s bank account no later than the 22nd of the month following the end of the month or quarter to which it relates. Where the 22nd falls on a weekend or bank holiday, you must ensure that your payment arrives no later than the last bank working day before the 22nd.

If you pay by cheque it must reach HMRC by 19th of the month following the end of the period to which it relates.  Where the 19th falls on a weekend or bank holiday, you must ensure that your payment arrives no later than the last bank working day before the 19th.

The table below shows how the penalties will be calculated:

No of times payments are late in a tax year    Penalty percentage
1 *                                                                                     No penalty
2-4                                                                                           1%
5-7                                                                                           2%
8-10                                                                                         3%
11 or more                                                                             4%

* if one payment is late and it is late by more than six months you will still be liable to a penalty.

HMRC state they expect employers to pay on time. If you are having difficulties you should ring HMRC’s Business Payment “Support” Service on Tel 0845 302 1435 as soon as possible and before the payment deadline falls due. In certain circumstances HMRC may allow some extra time to pay.

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