Anna’s Accountancy Alerts – Week 39 (26th December 2022 – 01 January 2023)

Anna’s Accountancy Alerts - Week 39 (26th December 2022 - 01 January 2023)

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New starter checklist guidance

The new starter checklist is an alternative method, in the absence of a P45, of providing HMRC with new employer details. This makes sure that employers apply the most appropriate tax code so that the correct tax is deducted by HMRC.

If a new employee has a P45 but also a student loan, they would also be required to complete a new starter checklist so the correct amount of student loan deductions are made.

The online interactive guidance has been developed which allows a new employee to answer a series of questions and select the appropriate answers to their circumstances. This will produce a new starter declaration which can then be downloaded and emailed or posted to the employer.

For those customers that require a print and post service, the new starter checklist has been amended to reflect the interactive guidance and can be printed from GOV.UK.

HMRC app and pre-employment checks

The HMRC app has been updated and improved to include quick and easy ways for individuals to get their employment details.

Some employers require information on employment history as part of their pre-employment checks, and job applicants will be able to provide it instantly using the HMRC app.

You can get your employment history and income (going back 5 years), National Insurance number and tax codes all at a touch. You can also print and download this information.

HMRC have created a YouTube video:

 How to confirm your employment details using the HMRC app

Alternatively, individuals can also get their employment details using their personal tax account.

Change to VAT penalties and interest charges

For VAT periods starting on or after 1 January 2023, the default surcharge will be replaced by these new penalties. At the same time, there are also changes to how VAT interest is calculated.

If your business submits a nil or repayment VAT Return, you will need to make sure it’s submitted on time. Unlike the current default surcharge, under the new late submission penalties, if a nil or repayment return is submitted late penalty points and a £200 fine may apply.

More information about the upcoming changes to VAT penalties and VAT interest charges is available.

Keep up to date with all things Accounting and Finance with my bi-weekly Accountancy Alerts. 

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