Step-by-Step Guide for Non-PAYE Employers and Individuals

 


Navigating the Affordable Housing Levy 2024

 The Affordable Housing Act (AHA) 2024, effective from March 2024, introduces the Affordable Housing Levy (AHL), aimed at funding affordable housing initiatives across the nation. This levy applies to individuals and non-individuals at a rate of 1.5% on either gross salary or gross income received or accrued. At RWK & Associates, we are committed to helping you understand and comply with this new legislation. This newsletter outlines key provisions of the AHA 2024 and provides a stepby-step guide to managing your AHL obligations efficiently.

Understanding the Affordable Housing Levy

The AHL mandates a 1.5% levy on gross salary or gross income. Notably, employers who are already deducting and paying AHL from their employees' salaries are exempt from paying the levy on their gross income. This provision ensures that there is no double taxation, simplifying compliance for employers. The levy is due by the 9th working day after the end of the month in which the income was earned. Failure to comply results in a 3% monthly penalty on the unpaid amount, emphasizing the importance of timely payments.

Step-by-Step Guide for Non-PAYE Employers and Individuals

For employers without PAYE obligations and individuals receiving gross income, the payment process involves several straightforward steps. Begin by logging into your iTax profile and navigating to the payment registration section. Select 'Agency Revenue' under the 'Tax Head' and 'Housing Levy' under the 'Tax Sub Head.' Enter the relevant tax period and the amount payable, then add the payment details and generate a payment slip. This slip can be used to make payments through the preferred channels, ensuring compliance with the AHA 2024 requirements.

Conclusion

The Affordable Housing Levy represents a significant step towards funding affordable housing projects. At RWK & Associates, we are dedicated to ensuring that our clients understand and comply with these new requirements. By following the guidelines provided, you can manage your AHL obligations effectively and avoid penalties. Should you need any assistance or further clarification, please do not hesitate to contact us. We are here to support you through this transition and ensure your compliance with the Affordable Housing Act 2024.

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