TaxPersonal TaxTaxman cuts red tape for 80,000 businsses

Taxman cuts red tape for 80,000 businsses

The Inland Revenue has increased the level below which small employers can pay PAYE, National Insurance contributions and other taxes quarterly rather than monthly.

For deductions made in periods beginning after 5 April 2000, employers can pay quarterly if their average monthly payments to the Revenue are less than £1,500. The previous limit was £1,000.

The move is expected to give an additional 80,000 small employers the opportunity to pay quarterly and should improve cash flow and reduce administration costs. The total number of employers who could benefit will rise to 800,000 – around 60% of all employers.

The change, which was announced by chancellor Gordon Brown in his Budget speech, has now been released in further detail and the necessary regulations have been laid.

The changes will also apply to payments by contractors in the construction industry.

www.inlandrevenue.gov.uk

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

3w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

5m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter