DON'T DO A THING
- Nannytax clients automatically receive £250 tax rebate
If you employ a nanny during this tax year (which ends in April 2005) and you pay tax or NI on her behalf you will automatically qualify for the £250 rebate offered by the Inland Revenue. Many of our clients still feel unsure and contact us to ask if they have to do anything in order to get the incentive payments. The answer is that you don't have to do anything at all; Nannytax takes care of it all for you.
The Inland Revenue introduced the incentive payments in order to encourage small employers (with fewer than 50 employees) to file their PAYE returns electronically. Nannytax is the only payroll company to have already filed our clients' year-end returns this way.
The incentive payments are worth £825 in total and will be made available as follows:
- £250 in the summer of 2005 (relating to the current tax year)
- £250 in the summer of 2006 (relating to the 2005/2006 tax year)
- £150 in the summer of 2007 (relating to the 2006/2007 tax year)
- £100 in the summer of 2008 (relating to the 2007/2008 tax year)
- £75 in the summer of 2009 (relating to the 2008/2009 tax year)
In order to qualify for the incentive payments you must employ and pay tax or NI at some point during the tax year in question. Even if your nanny leaves halfway through the tax year and you choose not to employ again, you will still benefit from the incentive payment for that tax year.
Some Nannytax clients have gone online to register. We urge them not to do this, as it creates a lot of trouble for us. By registering online all Nannytax' settings with the Inland Revenue are automatically cancelled. This creates a secure Government electronic mailbox for you, which Nannytax cannot access. All correspondence from the Inland Revenue is sent directly to this personal secure mailbox, not your normal personal email address.
Government has yet to confirm exactly how the incentive payments are to be made. Nannytax expects that it will be credited against your first quarterly liability, payable in July 2005, but with an option to receive a cheque if preferred. If you move during the course of the year please make sure that you inform either Nannytax or the Inland Revenue so that you receive the payment.
If you want to read more about the Inland Revenue incentive payments, please click here.