Student loans and off-payroll warning
Make sure that if you’re paying a worker under the off-payroll rules you have not selected the student/postgraduate loan indicator. Also, check that the off-payroll indicator has not been selected for normal employees.
Latest guidance on new VAT penalty rules
HMRC has updated its guidance on the new penalty regime, which will apply to VAT accounting periods commencing on or after 1 January 2023. It says that during the first year of the new rules it will waive the penalty that applies.
Summer staff party
Normally, business entertainment is not a tax-deductible expense. However, the cost of entertaining your employees (including directors), for example by having a staff party, is an exception to this rule.
The main conditions of the exemption are that:
the party or similar is an “annual” event
all employees are invited (but separate events can be held for different departments on different occasions)
the average costs (including transportation and other related expenses) of the event, or events if there’s more than one in a tax year, per head for all employees and guests attending does not exceed £150 including VAT.