HMRC Form P45

P45 information for employee leaving work.

Understanding the HMRC Form P45: A Guide for UK Business Owners and Employers As a UK business owner or employer, it is essential to understand the HM Revenue and Customs (HMRC) Form P45, a crucial document in the realm of employment and taxation. This guide aims to provide you with comprehensive insights into what Form…

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PAYE (Pay As You Earn) – Glossary of Terms

Understanding PAYE: A Glossary of Terms.

PAYE Glossary for UK Business Owners and Employers Welcome to Mercian Accountants’ PAYE (Pay As You Earn) Glossary, your essential guide to understanding payroll and taxation terms that are vital for UK business owners and employers. This resource is designed to clarify key concepts and ensure compliance with HM Revenue and Customs (HMRC) regulations. A.…

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A Comprehensive Guide to P60s: Understanding Your End-of-Year Certificate

A desk with a calculator and a cup of coffee, alongside an End-of-Year Certificate.

Understanding P60s At Mercian Accountants, we understand that navigating the complexities of financial documents can be daunting. That’s why we’re here to help. As part of our commitment to providing clear, accessible accounting guidance, we’re pleased to present our comprehensive guide to understanding P60s. This article will delve into the essentials of the P60, an…

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What are PAYE Tax Codes?

A colorful alphabet on a blue background displaying the letters 'P' and 'T'.

PAYE (Pay As You Earn) tax codes are used by employers and pension providers in the UK to calculate the amount of income tax to be deducted from an employee’s or pensioner’s pay or pension. The tax code is issued by HM Revenue and Customs (HMRC) and is usually composed of numbers and letters. It…

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Pedal Your Way to Tax Savings: The Cycle to Work Scheme for Limited Companies

A group of cyclists pedaling down a road while taking advantage of the Cycle to Work Scheme for tax savings.

The ‘Cycle to Work’ scheme is an annual tax exemption allowing businesses to loan employees bicycles and cycle safety equipment as a tax-free benefit. The scheme has positively impacted workplace health and motivation and encouraged people to engage in physical activity. But is this scheme suitable for limited companies? Directors The ‘Cycle to Work’ tax…

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Changes to Termination Payment Taxation for Employers

A sign that indicates termination payment for employers.

Mercian Accountants wants to remind UK employers of several changes to the tax treatment of termination payments. Over the past five years, the rules for income tax and National Insurance contributions (NIC) have been aligned, foreign service relief on termination payments to UK resident individuals has been removed, and clarification has been made that the…

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Digital Submission of P11Ds Mandatory from 6 April 2023

Simplify the process of tax return filing with our digital submission service for IRS tax return form 2013. No more cumbersome paperwork or manual calculations required. Stay compliant with mandatory P11Ds

In a significant move towards modernising the UK tax administration system, the HMRC’s February 2023 Employer Bulletin announced that the submission of P11Ds and P11D(b)s would be mandatory through digital channels from 6 April 2023. As a result, paper submissions will no longer be accepted. This transition reflects the government’s aim to establish a fully…

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Employee Gifts and Trivial Benefits

A pink gift box with gold confetti, perfect for Employee Gifts.

Employers can provide benefits to staff without incurring tax, provided the benefits meet the conditions. HMRC deem some small benefits trivial and, therefore, exempt from tax and reporting obligations. Conditions You don’t have to pay tax on a benefit for your employee if all of the following apply: This is known as a trivial benefit.…

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Christmas Parties: HMRC and Tax

A Christmas table setting with a Christmas tree in the background, perfect for festive parties.

You’re organising your event; you’ve booked the DJ and the catering, but will you have to keep some budget back for a nasty tax bill, or can you order more vol au vents? When employers provide benefits to their employees, there are usually tax and National Insurance consequences. But provided your staff party meets all…

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