- Feb. 4, 2014
-- UK: effective starting April 2014, new rules will be introduced permitting HM Revenue and Customs (HMRC) to collect unpaid Class 2 National Insurance Contributions (NICs) by way of an individual’s Pay As You Earn (PAYE) tax code. HMRC’s recent request to the taxpayers clarifies that the debt will be collected either through PAYE codes from April 2014 or by a private debt collection agency.
Nair & Co. which provides international tax consulting (http://www.nair-
taxes.aspx) for companies expanding overseas recommends taxpayers take necessary action on the HMRC payment requests in order to avoid having Class 2 NICs outstanding payments included in their tax codes. If the request is found correct then the necessary payment should be made in time, otherwise a detailed explanation should be provided to HMRC. If taxpayers do not wish to have the outstanding payment applied in their tax code, then it is important that they agree and settle on the accurate amount due as soon as possible.
If taxpayers fail to comply with HMRC’s payment requests, it will signify that the taxpayer has agreed to use the PAYE tax code for collection of the class 2 NICs debt from April 2014.
Further, taxpayers are now receiving an Annual Coding Notice (P2) between January and March 2014. An Annual Coding Notice usually notifies the taxpayers about their tax code and ensures correct amount of tax and NIC deducted by employers.
For more information about doing business overseas (http://www.nair-co.com/expanding-business-overseas.aspx
) or to know more about ourInternational Tax team team please contact us (http://www.nair-co.com/global-offices.aspx
) to regular global tax compliance alerts from Nair & Co.
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About Nair & Co.
Nair & Co., the leader in international business expansion services, provides accounting, HR, legal, tax and compliance services for the set up and management of your international operations. Our model of a single-point-
of-contact, supported by internal teams of experienced advisors, helps clients expand business and manage risk so they can focus on their core business and sustain growth with minimal risk, stress and cost. We support nearly 250 clients in over 70 countries. Nair & Co. is headquartered in Bristol, UK, has 450 employees and offices in China, India, Japan, Singapore, and the US. Learn more at www.nair-co.com
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