Claiming tax back if you stop work

Tax RebateYou can claim a tax refund if you’re not going to work for at least 4 weeks (for example, you’re retired, looking for a job, or returning to study) and you’re not claiming any of these benefits:

  • Jobseeker’s Allowance
  • taxable Incapacity Benefit
  • Employment and Support Allowance
  • Carer’s Allowance

You can either:

  • use the online service
  • fill in form on-screen, print and post to HMRC

To use the online service, you need a Government Gateway user ID and password. If you do not have a user ID you can create one when you use the service.

You can access the Government Gateway system here

You can access the postal form here

Claiming Employment Allowance for earlier tax years

Related imageYou can make a claim for the Employment Allowance up to 4 years after the end of the tax year in which the allowance applies. For example, if you want to make a claim for the allowance for the tax year 2015 to 2016 (that tax year ends on the 5 April 2016), you must make your claim by no later than the 5 April 2020.

You will need a separate Employment Payment Summary (EPS) for each year’s claim when claiming for any tax years that have now ended. You don’t need to send previously reported EPS figures, such as statutory payments.

If you send your claim one year after the tax year has ended, your claim will continue into the current tax year, unless you already have a claim for the Employment Allowance in place that year. If you have paid your PAYE up to date, HMRC will set any Employment Allowance award against your future or existing PAYE liabilities, unless you ask them to refund the amount.

Further information and details can be found here

Responsibilities of Trustees

Image result for duties of charity trustees ukYou and your co-trustees must make sure that everything your charity does helps (or is intended to help) to achieve the purposes for which it is set up, and no other purpose. This means you should:

  • ensure you understand the charity’s purposes as set out in its governing document
  • plan what your charity will do, and what you want it to achieve
  • be able to explain how all of the charity’s activities are intended to further or support its purposes
  • understand how the charity benefits the public by carrying out its purposes

Spending charity funds on the wrong purposes is a very serious matter; in some cases trustees may have to reimburse the charity personally.

More details can be found here

Qualifying for Statutory Maternity Pay

Image result for statutory maternity pay do i qualifyIf you need to check whether or not an employee qualifies for Statutory Maternity Pay, SMP, they need to have been earning on average at least £118 a week, before any deductions, in the qualifying weeks depending on when the baby is due.

You can use the government website calculator here

For example, if the baby is due on 30th September 2019

When does the employee want to start their leave?  14 July 2019

Did the employee have a contract with you covering 29 December 2018 to 16 June 2019?  Yes

What was the last normal payday on or before Saturday, 22 June 2019?  21 June 2019

What was the last normal payday before Saturday, 27 April 2019?  26 April 2019

How often do you pay the employee?  Weekly

What were the employee’s total earnings between Saturday, 27 April 2019 and Friday, 21 June 2019?  £944

How many weeks’ pay did the employee get between Saturday, 27 April 2019 and Friday, 21 June 2019?  8 payments or fewer

How do you want the Statutory Maternity Pay calculated?  weekly starting 14 July 2019

Based on these dates and pay figures, the entitlement would be £106.20 per week, beginning on Friday 20th July and ending on Friday 11th April 2020

If you need any further help, please contact us here

Charities and Insurance

insurance collageBy law, you have a duty of care to protect your charity’s assets and resources. Depending on what your charity does, you can buy insurance to protect its money, property and reputation. 

Examples of types of insurance that might be needed to cover a charity’s property against loss or damage are: 

  • buildings insurance
  • contents insurance
  • event insurance

Examples of types of insurance that might be needed to cover against a charity’s third party liabilities are:

  • professional indemnity insurance
  • public liability insurance

Charities that employ staff are required by law to buy employers’ liability insurance. Charities that own or operate motor vehicles are required by law to buy motor insurance.

For insurance purposes, charities are advised to treat volunteers in the same way as they do their employees and to ensure that they are covered by the usual types of insurance a charity might buy, such as employers’ liability or public liability cover.

More details can be found here, and here

 

Charity Trustees and Liability

Charity Trustee Liability InsuranceAbout corporate structures

Some charity structures are corporate bodies. If you choose a structure that forms a corporate body, the law considers your charity to be a person in the same way as an individual.

This gives your charity the legal capacity to do many things in its own name that a person can do, such as:

  • employing paid staff
  • delivering charitable services under contractual agreements
  • entering into commercial contracts in its own name
  • owning freehold or leasehold land or other property

If a charity structure is a corporate body, generally its trustees aren’t personally liable for what it does.

If your charity isn’t a corporate body (‘unincorporated’):

  • the trustees are personally liable for what it does
  • it won’t be able to enter into contracts or control some investments in its own name
  • two or more trustees, a corporate custodian trustee or the charities’ land holding service will have to ‘hold’ any land on your charity’s behalf

More information can be found here

Receipts and Payments Accounts

Image result for receipts and payment accountsReceipts and Payments Accounts is the simpler of the 2 methods of accounts preparation and may only be used where a non-company charity has a gross income of £250,000 or less during the financial year. Receipts and payments accounts contain a statement summarising all money received and paid out by the charity in the financial year, and a statement giving details of its assets and liabilities at the end of the year. Charitable companies are not allowed by company law to adopt this method.

Templates are available to help eligible non-company charities prepare their trustees’ annual report and receipts and payments accounts. When fully completed these meet the requirements of the law and can be used for submission to the Charity Commission.  The pro forma receipts and payments accounts can be used in one of two ways:

(i) where trustees do not wish to design their own annual accounts they may enter the relevant details and amounts from the cash book (and other) records of the charity on to the forms

(ii) trustees who want to produce their own form of receipts and payment accounts can use the forms as a checklist.

Very useful Receipts and Payment Accounts Introductory Notes can be found here

Templates for preparing Receipts and Payments Accounts can be found here