Chartered Accountant

Nanny Tax > Nanny Payroll Newsletters > Nanny Payroll Newsletter 2005, September

NEWSLETTER SEPTEMBER 2005

NATIONAL MINIMUM WAGE

Please note that with effect from 1 October 2005 the national minimum wage is rising to £5.05 gross per hour (£5.35 from 1 October 2006) for anyone aged 22 and over and £4.25 (£4.45 from 1 October 2006) gross per hour for those aged 18 to 21. The minimum rate for 16-17 year olds is remaining for the time being at £3.00 per hour. Please contact Taxing Nannies if you require further information.

CHILDCARE VOUCHERS

We have been contacted by clients enquiring about childcare vouchers. These vouchers need to be provided by your employers and can be used as part of a salary sacrifice scheme or given as an addition to your salary. A childcare voucher scheme can be set up quite easily by a company but there are various criteria including the scheme being available to all employees.

If your employer gives you childcare vouchers, the first £50 per week per employee is exempt from tax and national insurance (and employer's national insurance) provided approved childcare is used. If both parents receive childcare vouchers they are each entitled to receive £50 per week free of tax and national insurance. For a basic rate tax payer the tax and national insurance savings on £50 per week amount to £16.50 per week and for a higher rate tax payer the relief amounts to £20.50 per week.

If you are a director of a limited company and would be interested in setting up a childcare voucher scheme Taxing Nannies would be happy to assist.

For more information on approved childcare please contact Taxing Nannies or visit www.childcareapprovalscheme.co.uk/carer/qualifications.asp.

INLAND REVENUE INCENTIVE PAYMENTS

We have filed all our clients' 2004/05 End of Year Returns online and therefore all our clients are eligible for the £250 incentive payment from the Inland Revenue. Where a tax liability in excess of £250 existed at 5th July 2005, we have offset the incentive payment against that liability resulting in a lower tax liability for that quarter.
However, where our clients have ceased to employ a nanny or only have small tax liabilities we have, to date, been unable to obtain a refund from the Inland Revenue. This is due to problems with the Inland Revenue's computer systems resulting in the majority of End of Year Returns not yet having been processed. Until this happens they will not authorise a refund. We apologise for any inconvenience this has caused.

WORKING TAX CREDIT

We have been advised by the Tax Credit Office that from 7 November 2005 all new claimants of Working Tax Credit will be paid direct from the Tax Credit Office and that employers will cease to pay all tax credits through the payroll by 31st March 2006.

If you pay your nanny Working Tax Credits through the payroll you need to write to your employee stating the following:

"Payment of Working Tax Credit through the pay packet is being phased out between 7 November 2005 ad 31 March 20006. Instead the money will be paid directly to Working Tax Credit claimants by HM Revenue and Customs (HMRC).

Sometime between 7 November 2005 and 31 March 2006 HMRC will tell me to stop paying Working Tax Credit with your pay. HMRC will also be writing to you to explain the change. HMRC will pay the Working Tax Credit to which you are entitled direct into the bank, building society, or Post Office card account you have told them about (either on your claim form or at a later date). If you have not given them your account details, they will tell you what to do. You will not lose money as a result of this change.

The money paid to you will usually appear on your bank, building society, or Post Office statements as "Working Tax Credit" or "Working & Child Tax Credit". If neither of these are shown, your payments may be shown as Direct Credit. If you have any questions please phone HMRC n 0845 300 3900."

ACCOUNTING SERVICES AND TAX RETURN SERVICE

Please note that Sara Graff is a qualified Chartered Accountant and Chartered Tax Advisor and provides accounting and tax services in addition to the general Taxing Nannies service. She would be happy to assist you in preparing your tax return or assist you with other accounting services and if you wish to avail yourselves or this service or would like some general advice please free to ring Sara on +44 (0)208 882 6847.

Nanny Tax Forms » Nanny Tax Forms » P11D » P35 » Nanny Tax Tables » Inland Revenue Forms	Parental Advice » Maternity Rights » Childcare Roles » Mother Back To Work » Nanny Share » Nanny Employment Issues » Positive Parenting Products	Childcare Advice » Childcare Publications » Childcare Vouchers » Childcare Websites » Nanny Agencies » Nanny Shares Agencies
Taxing Nannies offers efficient PAYE wage Payroll Services to a range of small employers in the UK which include; nanny agencies, nannies, child carers plus housekeepers, cleaners, gardeners, butlers, drivers, & other small companies. All Rights Reserved. © Taxing Nannies 2009 \| Sitemap

Maznet - Website Design Hertfordshire