Archived News September, 2010

Tax Questions Carmarthen Journal 15th September 2010

I have received a letter this morning from HM Revenue & Customs saying that I have paid too little tax and that I owe them £1,154. Apparently, my ‘coding notice’ was incorrect and my employer has deducted the wrong amount of tax. What can I do?

PAYE notices are sent out to employers telling them how much tax to deduct. However, the new computer system generating these notices has inaccurate information and therefore the notices have been wrong.

Firstly you need to check that your coding notice is correct. Does it accurately reflect your situation i.e. are you receiving your full personal allowances, are there any benefits or expenses include. If they are correct and there is tax due then HMRC have said they will be deducted any amounts due over a 12 month period from April 2011. If you will suffer undue hardship because of this then you need to speak to HMRC and explain your situation. If you are still unsure of our position then you will need either contact HMRC or a professional adviser.

We run a small retail business, with many part time employees. Are there any changes to the minimum wage coming up?

Yes, every October the minimum wage increases and as from 1 October 2010 the rates per hour are as follows: 21 yrs and over - £5.93, 18-20 year olds - £4.92, 16-17 year olds - £3.64.

We are thinking of setting up a new business in the next few weeks and I have read that we do not have to pay National Insurance contributions (NIC) on any employees we take on. Is this correct?

From the 6 September 2010 to 5 September 2013, any new businesses outside London and the South East & East of England can benefit from a NIC holiday. The scheme allows up to £5,000 of NI to be saved on each of the first 10 employees taken on since the 22nd June 2010. There are strict criteria on what HMRC consider to be ‘new’ businesses though.

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