Key tax dates and deadlines for 2018/19
It is an inevitable reality that, for anyone earning a livin...
By Lynne Gowers on 23rd March 2018
Spring has officially sprung and the start of the 2018/19 tax year is just around the corner – bringing with it a new way for Boox clients to view and manage their payment breakdowns in the Boox app.
Don’t worry, the breakdown itself will still provide the same great, easy to follow information that it always has done but the way it is accessed and produced is changing a little.
These changes are designed to ensure that we are always utilising the most up to date information that you can provide us – especially in relation to the date that you are paying yourself up to.
We’ve created a helpful tutorial video to walk you through to pay yourself using payment breakdowns in the Boox app, or read on for further information on the changes.
1. Up front pay date selection
Up to now, the pay breakdown is produced for a specific date and you then tell us when you are paying yourself.
We are now asking you to confirm the date you are paying yourself up to at the start of the process, so that we can recalculate the data if necessary to take account of any new information that may affect the recommendations.
For example, if you choose a date that falls in a different pay period or tax year to the date the breakdown was originally produced for then we will update the recommended information to bring you up to date to the new period (once confirmed).
You are still able to choose the earlier date if that’s what you need to record, but you will need to bear in mind that there is a potential for late submission penalties by HMRC if any salary information is not reported on or before the salary pay date.
2. One breakdown at a time
Marking a pay breakdown as paid is critical to ensuring that we record accurate information in your accounts and make and necessary submissions to HMRC.
Therefore, you now need to mark the current breakdown as paid before you can receive a new one.
Once you choose a pay date and view a breakdown, if you go to move away without marking it as paid, you will get a warning as below.
As you can see, it’s not a good idea to leave a breakdown as unpaid. If you do want to come back to it later you can, but you must ensure that you haven’t paid out any of the amounts recommended, as these are only recorded in your accounts when the breakdown is paid and will therefore lead to discrepancies further on.
These changes to the pay breakdown in the Boox accounting app will take effect for any breakdowns with a pay date from 6th April 2018 onwards.
The pay date is the date the salary or dividends are posted to the current position and when NI / PAYE liabilities are calculated.
This may not necessarily be the same day that funds are transferred to your company bank account.
For example, it is possible to be paid for a period up to the end of the month and then not actually transfer the money until a few days later. In that case the date that will be reported to HMRC for salary purposes will be the end of the month and that is the date the payment breakdown should be generated against.
Don’t forget: The pay date is the date when the company pays salary and dividends are declared, not when invoice income is received from an agency or client or when the cash is actually transferred from the company account.
The Boox accounting app is an agile accounting tool built for contractors and freelancers.
All clients are offered a detailed walk-through of the app shortly after joining Boox. This can be done by phone or video call, whichever you prefer. Thereafter your dedicated accounting team will be there for any support you need.
Not a Boox client? Take a tour of the Boox app to see how it could help you manage your business finances from any device, anywhere, anytime.
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