VAT portal to close
All VAT registered businesses are now required to file VAT returns using MTD-compatible software and keep VAT records in a digital format. This applies from the start of the first VAT period for newly registered businesses.
Paying your income tax bill
Many self-employed people will find January 2023 a tough month as it is predicted that domestic fuel bills will increase again and income tax payments will be due.
Loans to employees
Many employers will advance modest loans to employees to meet upfront costs which they necessarily incur to enable them to work. The loan needs to be properly documented with clear repayment terms but there is no obligation on the employer to charge interest on the outstanding capital.
Beware of early RTI returns
Employers must send their PAYE reports to HMRC on or before the day they pay their employees.
Paying PAYE
As an employer you can pay PAYE to HMRC using a direct debit (DD) but each DD authority only applies for a single payment, so the effort is hardly worth it.
Working at home deductions
There are now almost 10 million people who work from home and can benefit from the tax-free allowance of £6 per week (£26 per month) which their employer may choose to pay.