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June 2024 Newsletter

There’s good news for millions of UK hospitality staff as the law is set to change this year for how employers handle customer tips. It’s time for those claiming tax credits to renew and declare any changes in circumstances - find out about the differences in red stripe and black stripe packs below. We’ve covered the basic rules around registering an overseas company with Companies House if they operate out of the UK - this doesn’t apply to all businesses so ask if you’re unsure. Companies House has made increases across many of its fees, some quite significantly higher - do check if these affect you. And finally, taking us up to mid July, we conclude with the usual deadlines and dates for your diary.

New law on tipping

Millions of UK workers will take home an estimated £200 million more of their hard-earned cash, as employers are banned from withholding tips under the Employment (Allocation of Tips) Act 2023. The act received Royal Assent 2 May 2023.

Many hospitality workers rely on tips to top up their pay and are often left powerless if businesses don’t pass on service charges from customers to their staff.

This Bill makes it unlawful for businesses to hold back service charges from their employees, ensuring staff receive the tips they have earned. The measures are expected to come into force in 2024, following a consultation and secondary legislation.

This overhaul of tipping practices is set to benefit more than 2 million UK workers across the hospitality, leisure and services sectors helping to ease cost of living pressures and give them peace of mind that they will keep their hard-earned money.

Time to renew tax credits

HMRC is currently sending the annual tax credit renewal packs to the 730,000 tax credit claimants and is encouraging recipients to renew their tax credits claim online. HMRC started writing to taxpayers on 2 May and expects all packs to be with recipients by the 19 June 2024. 

Renewal packs with a black stripe across the front page are automatically renewed. However, taxpayers must inform HMRC of any changes in circumstances that are not reported during the year, such as new working hours, different childcare costs or changes in pay.

A renewal is required if the pack has a red stripe across the first page and it says, 'reply now'. Families and individuals that receive tax credits should ensure that they renew their tax credit claims by 31 July 2024. Claimants who do not renew on-time may have their payments stopped. Around 10,000 taxpayers are expected to receive the packs with a red stripe and can renew their tax credits via GOV.UK or by using HMRC’s app.

Universal Credit is expected to fully replace tax credits and other legacy benefits (including Income-Related Employment and Support Allowance, Income-Based Jobseeker’s Allowance) by 5 April 2025. This means that claimants who receive tax credits will receive a letter from the Department for Work and Pensions (DWP) or the Department for Communities if they live in Northern Ireland telling them about the move to Universal Credit. This letter is called a Migration Notice and taxpayers are urged not to ignore it.

Register an overseas company

An overseas company must register with Companies House if they want to set up a place of business in the UK. This would mean that the overseas company has a physical presence in the UK through which it carries on business.

If an overseas company does not have a physical presence in the UK, they are not usually required to register with Companies House. For example, an independent agent who conducts business on behalf of an overseas company is not seen as the overseas company having a physical presence in the UK, neither is an occasional location such as a hotel where a director of an overseas company may conduct business during periodic visits to the UK.

If the overseas company is required to register, they must submit a completed OS IN01 form and pay a registration fee of £71 to Companies House. If the company is registering its first UK establishment, it must also send Companies House a certified copy of the company’s constitutional documents and a copy of the company’s latest set of accounts (with a certified translation in English if prepared in another language).

The overseas company can be registered using its corporate name (its name under the law of the country of incorporation), or an alternative name under which it proposes to carry on business in the UK.

Changes to Companies House fees

There have been a number of significant changes in Companies House fees. These changes took effect on 1 May 2024. The last significant change in fees occurred in April 2016. 

The new fees have been calculated on a ‘cost recovery’ basis meaning that the fees are calculated based on what it costs to provide the services in question. Companies House state that they do not make a profit on their fees. 

Companies House guidance entitled Companies House fees has been updated to reflect all the changes. Companies House have said that the new fees will help ensure adequate funding going forward to recover costs incurred as well as to help fund the cost of new powers introduced as part of The Economic Crime and Corporate Transparency (ECCT) Bill. 

Prices shown below are some of the main changes that took effect from 1 May 2024: 

Transaction

New fee

Old fee

Incorporation Digital

£50

£12

Incorporation (same day) Software

£78

£30

Incorporation Software

£50

£10

Incorporation Paper

£71

£40

Confirmation statement Digital

£34

£13

Confirmation statement Paper

£62

£40

Change of name Paper

£30

£10

Change of name (same day) Digital

£83

£30

Change of name Digital

£20

£8

Registration of a charge Paper

£24

£23

Registration of a charge Digital

£15

£15

Voluntary strike off Paper

£44

£10

Voluntary strike off Digital

£33

£8

Registration of an overseas entity Digital

£234

£100

The full list of changes can be found in the guidance mentioned above at https://www.gov.uk/government/publications/companies-house-fees/companies-house-fees

Tax Diary June/July 2024

1 June 2024 - Due date for corporation tax due for the year ended 31 August 2023.

19 June 2024 - PAYE and NIC deductions due for month ended 5 June 2024. (If you pay your tax electronically the due date is 22 June 2024).

19 June 2024 - Filing deadline for the CIS300 monthly return for the month ended 5 June 2024.

19 June 2024 - CIS tax deducted for the month ended 5 June 2024 is payable by today.

1 July 2024 - Due date for corporation tax due for the year ended 30 September 2023.

6 July 2024 - Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs.

19 July 2024 - Pay Class 1A NICs (by the 22 July 2024 if paid electronically).

19 July 2024 - PAYE and NIC deductions due for month ended 5 July 2024. (If you pay your tax electronically the due date is 22 July 2024).

19 July 2024 - Filing deadline for the CIS300 monthly return for the month ended 5 July 2024.

19 July 2024 - CIS tax deducted for the month ended 5 July 2024 is payable by today.




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