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Welcome... We are committed to ensuring all our clients don't pay a penny more in tax than is necessary. Please contact us for advice in your own specific circumstances. We're here to help! |
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| Closing Down Your Company | ||||||||
| If you are in the process of closing down your company,
or are thinking
of doing so, you need to know about the change in the tax law from 1
March
2012. If your company contains significant value, you will want to extract the cash and assets in the most tax efficient manner. Until now you could ask the Taxman to apply concession C16 to the payments made during an informal winding-up up of the company. Concession C16 allows the payments made to shareholders (known as distributions) to be taxed as capital gains. Shareholders who were also officers or employees of the company may be able to claim entrepreneurs' relief on those gains, which means the gain is taxed at just 10%. Concession C16 is generally granted when the company has paid all its creditors, including the Taxman, and the owners promise not to start-up the same business in a different company. Concession C16 will cease to apply from 1 March 2012, and will be replaced by a new law as follows: - Where the distributions are more than £25,000 in total, all those distributions will be subject to income tax (at rates of 25% or 36.11%), in the hands of the shareholders. - Where the total value of the distributions to the shareholders of the company is no more than £25,000, the entire amount will be taxed as capital gains (at 10% where entrepreneurs' relief applies, or at 18% or 28% otherwise). - Payments made as part of an informal winding-up on or after 1 March 2012, will be subject to the new law even if permission to use concession C16 was previously given. - It doesn't matter on what date the company is finally dissolved or struck-off, it is the date on which the distribution is made that counts. If your company holds significant value and you want to close it down, you can opt to use a formal liquidation. This will allow all the distributions to be treated as capital gains and for the lower tax rates to apply. However, a registered liquidator may charge a fee of £5000 or more to undertake the liquidation. |
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| Penalties for Late Payment of PAYE | ||||||||
| PAYE and other payroll deductions need to clear Taxman's
bank account by
19th of the month, if paid by cheque. Electronic payments can arrive by
22nd of
the month, or the last banking day before that date. If you use the faster payments service (FPS) to make your PAYE payment, the amount transferred will clear the Taxman's bank account on a Saturday, Sunday and on most bank holidays (not Christmas day or New Years day). However, there are limits on the amounts that can be transferred per day and per transaction using FPS, which vary from bank to bank. So check what limit your bank applies. Late payments of PAYE will result in an automatic penalty of up to 4% of the PAYE that was paid late. You are permitted to make one late payment of PAYE during the tax year, but two or more late payments will mean that a penalty will be charged after the end of the year. In addition, if you have still not paid after six months you may have to pay a further penalty of 5 per cent. A further penalty of 5 per cent may be charged if you have not paid after 12 months. These apply where only one payment in the tax year is late. The Taxman has already issued many penalties for late payment of PAYE in 2010/11, and some of these penalties have been calculated incorrectly. If you receive a penalty notice, please ask us to check it as soon as it arrives. Any appeal must be submitted with 30 days. |
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| Confessing to Tax Fraud | ||||||||
| The Taxman is currently writing to taxpayers who are
suspected of tax
fraud, asking them to make a full disclosure of their wrong-doing under
the contractual disclosure facility (CDF). If you receive a letter offering the CDF, it is a very serious matter. The Taxman has taken a view that he could launch a criminal investigation into your tax affairs, but has decided that a criminal case is not cost-effective. Instead he is offering you a binding agreement to come clean, with the promise of low penalties. You only have 60 days to decide whether to accept the CDF. If you don't reply in that period, the Taxman will start a formal investigation into your tax affairs, which could result in a criminal case. The CDF letter will also contain a denial letter, which you can sign and return if you believe you have no involvement in tax fraud. Before you make any response to a CDF offer, please discuss the matter with us in confidence. |
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| Reporting EU Sales to HMRC | ||||||||
| If your business is registered for VAT in the UK and you
sell to VAT
registered customers in other EU countries you are required to submit
an EC
sales list (known as ECSL or form VAT 101), to HMRC. If you move your
own goods
to a branch or subsidiary of your business in another EU country, you
may also
have to complete an ECSL for that period. The ECSL is generally submitted quarterly, but businesses that export goods totalling more than £35,000 (excluding VAT) per quarter must complete an ECSL every month. If your business only sells services to other EU countries you can continue to submit a quarterly ECSL, but you can opt to submit monthly ECSL forms. When you complete box 8 on your VAT return, the Tax Office will automatically send you an ECSL form to complete. The paper ECSL form must be submitted within 14 days of the end of the reporting period. You can complete the ECSL online, in which case you have 21 days from the end of the period to submit the form. Note that this deadline is well before the deadline for your regular quarterly VAT return. We can help you submit ECSL forms, either on paper or online. Talk to us about the work involved. |
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| February Question & Answer Section | ||||||||
| Q. What records do I need
to keep to claim travelling expenses? Do I also need to keep receipts
for
petrol? A. You should record the date, destination and distance of each business journey you drive in your own car. It is good practice to record the total on your car's milometer at the start and end of each journey. Your employer can pay you up to 45p per mile for each business related journey you drive. Business journeys do not include normal commuting between your home and your permanent workplace. If your employer is VAT registered it will be able to reclaim VAT on part of the mileage allowance you receive, if you provide VAT receipts to the value of the fuel used. The VAT receipts do not have to exactly match the dates of your journeys. When travelling by public transport keep the receipt for the ticket. Q. I've always calculated my business income for a full year to 30 April. On my tax return for 2010/11 I've recorded my business profits, income and expenses for the year to 30 April 2010. But when I rang the Tax Office with a query the adviser told me that my accounts should always be drawn up to 5 April. Have I been doing it wrong for 20 years? A. The adviser at the tax office is wrong. You can draw up your business accounts to any date you please. The year end of 30 April gives you a long delay between the end of your accounting year and the date on which you need to pay tax on the profits for that period. Q. A friend told me I'd pay less tax if I held my let properties through a company. Is that true? A. The answer depends on whether you need to get your hands on the proceeds from your lettings business and your current highest tax rate. Let's assume you need the cash and your highest tax rate is 40%. If the properties are in a company, the company will probably pay tax at 20% on the rental profits. But it's tax rate could be up to 27.5% if the annual profits exceed £300,000, or you control a number of companies. When you extract the profits from the company as dividends you will pay a further 25% income tax. So for rental profits of £100, you will end up with £60 in your hands. If you hold the properties personally, and pay tax at 40%, for every £100 of rental profits you will receive £60 in your hands. No different to holding the properties in a company. However, if you had not extracted the profits from the company until a later year when you are a basic rate tax payer you would then be paying less tax. It can also be beneficial to keep the profits in the company to re-invest in further properties. The company may pay tax of 20% on the gain it makes when it sells the let properties. If you sell the properties you will probably pay tax at 28%, but you will be able to set-off a tax-free allowance of £10,600 against the gain, which is not available to the company. You may have to also pay further tax when extracting the profits out of the company. |
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| February Key Tax Dates | ||||||||
| 2 - Last day for car change
notifications in the quarter to 5 January - Use P46 Car 19/22 - PAYE/NIC and CIS deductions due for month to 5/2/2012 29 - Talk to us about year end and pre-budget planning First 5% penalty surcharge on any 2010/11 outstanding tax due on 31 January 2012 still unpaid |
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| Need Help? | New Clients Welcome | |||||||
| Please contact us if we can help you with these or any
other tax or
accounts matters. In addition, if there's anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list. |
If you are not already a client and are interested in
becoming one, we
would love to come to meet with you to discuss how we can help and
provide you
with a competitive quote for our services. All new client consultations are provided free of charge and without obligation |
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| Tax Tips & News - January 2012 | ||||||||
|
Welcome... We are committed to ensuring all our clients don't pay a penny more in tax than is necessary. Please contact us for advice in your own specific circumstances. We're here to help! |
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| Is Your Payroll Information 'Clean'? | ||||||||
| The Taxman is asking all employers to spring-clean their
payroll data to
prepare for RTI. What does RTI stand for? It stands for Real Time
Information,
and within the next 18 months it will become as familiar to you as
PAYE. RTI is a new way of submitting payroll data to the Tax Office. Instead of sending the PAYE information in annually after the end of the tax year, all employers will have to submit the payroll data online on every occasion the payroll is run. This will allow the Taxman to understand who is being paid what amounts, and what PAYE is due, on a real-time basis. The details of employees' pay will be passed to the Department for Work & Pensions, to allow the amount of Universal Credits (which are replacing Tax Credits from October 2013) paid to workers to be adjusted on a monthly basis. RTI will be compulsory for all employers and pension providers by October 2013. Before payroll data can be accepted under the RTI system it must be 'clean'. That means having an accurate date of birth, full official name (not just initials or nick-name) and correct National Insurance number, for each and every employee. If the data for one of your employees does not agree to that on the Tax Office computer, the submission of the payroll data under RTI may fail, and you may get fined. It will take some time to check the details of every employee on a large payroll, so it would be best to start this task as soon as possible. |
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| Online VAT Filing Compulsory | ||||||||
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| Are You On The Taxman's Target List? | ||||||||
| The Taxman has formed a number of task forces to
investigate certain
business sectors, where he believes tax rules are being ignored. A summary of the current work of those task forces is listed below, but bear in mind that each task force will move on to a new geographical area once the first area has been investigated. London Properties This task force is investigating commercial property deals in Greater London, where the VAT rules may not have been applied correctly. Where they find such a case, the tax officers will review the entire tax compliance of the property owner, across all taxes. Landlords HMRC are targeting landlords with three or more let properties in the North West of England and North Wales. Have you or your family correctly declared all of your rental income? Construction Industry The targets are self-employed builders (including small companies) in the North West of England and North Wales. The task force is looking for under-declared sales (such as cash jobs) and over-claimed expenses (where there are no supporting invoices). Remember to keep every receipt for purchases and keep a log of all business mileage. We can help you by advising what expenses are allowable to claim against your income. No Tax Return Submitted This task force is currently operating in the South East of England, looking for businesses who have not submitted tax returns for corporation tax, VAT, PAYE or income tax. |
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| Tax Numbers for 2012/13 | ||||||||
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| January Question & Answer Section | ||||||||
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| January Key Tax Dates | ||||||||
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| Need Help? | New Clients Welcome | |||||||
| Please contact us if we can help you with these or any
other tax or
accounts matters. |
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| Tax Tips & News - December 2011 | ||||||||
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Welcome... We are committed to ensuring all our clients don't pay a penny more in tax than is necessary. Please contact us for advice in your own specific circumstances. We're here to help! |
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| Autumn Statement Tax Summary | ||||||||
| George Osborne did not have great tidings to impart when
he presented
his Autumn Statement to the House of Commons on 29 November 2011. The
best he
could offer the ordinary taxpayer was a freeze in road fuel duty until
1 August
2012, when it will increase by 3.02p per litre. Train and tube fares
were due
to rise by a whopping 8.2% next year, but this rise will be limited to
(wait
for it...) 6.2%. Businesses who occupy small commercial premises receive some generosity with an extension to the business rates relief scheme to 1 April 2013 (already extended for a year to 1 October 2012). Different business rates relief schemes apply in England, Wales and Scotland so ask your local authority what relief applies to your building. Occupiers of larger business premises may be able to defer payment of up to 60% of the increase in business rates for up to two years. Other key tax announcements for businesses and individuals were: - New anti-avoidance rules for employer asset backed pension contributions, effective from 29 November 2011. - State pension age rises to 67, to be phased in over two years from April 2026. - Freeze in the couple and loan parent elements of working tax credit in 2012/13. - No increase in child tax credit above the rate of inflation, as had been announced. - Capital gains exemption to be frozen for 2012/13. - Research & Development tax credit for larger companies given above the profit line rather than as a tax reduction, to apply from 2013. - New Seed Enterprise Investment Scheme (SEIS) from April 2012, giving income tax relief of 50% for investments of up to £100,000 in start-up businesses. - Exemption from CGT when gains realised in 2012/13 are reinvested under SEIS in the same tax year. - 100% capital allowances in certain new Enterprise Zones, not in all zones. - Main rate of corporation tax will reduce to 25% from April 2012. - Air passenger duty to be extended to private jets from 1 April 2013. Further detail on the new tax rules and rates will be announced on 6 December 2011, so we will cover any significant items for small businesses in our January 2012 newsletter. |
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| Low Value Consignment Changes | ||||||||
| Businesses in the UK who sell small value items by mail
order have long
complained that they are undercut by shipments coming in from the
Channel
Islands. This is due to the operation of low value consignment relief
(LVCR),
which exempts from VAT parcels coming into the UK from outside the EU,
where
the value of the goods is less than a prescribed limit. The Channel
Islands are
outside the EU, but close enough to the UK to make shipping relatively
cheap. The limit per parcel for LVCR was £18 for years, but it was reduced to £15 from 1 November 2011. HMRC have just announced that the LVCR will be removed altogether from 1 April 2012 for goods imported from the Channel Islands. This change should help UK based businesses, but will not help the distribution centres and flower growers in the Channel Islands! |
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| Pension Lifetime Allowance Decrease | ||||||||
| There is another change due in April 2012 that will
affect tax relief
for pension contributions. The Lifetime Allowance, which is the maximum
tax
favoured fund you can have in a pension scheme, will reduce from £1.8 million to £1.5 million from
6 April 2012. The maximum fund of £1.8 million will produce an indexed linked pension of around £75,000 p.a. for a man retiring at 65, using current annuity rates. So the new cap of £1.5 million is not helpful. If you already have pension funds, which in total are worth more than £1.5 million, you may need to apply to HMRC to ring-fence your existing pension savings for tax purposes, under what is called 'fixed protection'. To work out whether fixed protection is required, you must add together the values of all your various pension funds. Most people will have accumulated funds in a number of schemes over their working life as they change jobs, or start contributing to new pension schemes for other reasons. If you are in this position, you will need to request a 'Lifetime Allowance Factor' (valuation of the fund), from all the companies with which you hold a pension scheme. Such requests normally take around eight weeks to process, so you need to get a move on. The application for fixed protection must reach HMRC by 5 April 2012, and it must be made on the prescribed form. Late applications will not be accepted. Where fixed protection is granted you will not be able to make any further tax-allowable pension contributions to a registered pension scheme, or build-up further benefits in a defined benefits scheme. So if you are considering applying for fixed protection for your pension funds, you should first take expert pensions advice. |
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| Using VAT Groups | ||||||||
| Do you control several companies, or own one company,
which in turn
controls several other companies? You could save time, hassle, and VAT
in some
limited circumstances, by asking the Tax Office to treat all your
companies as
one VAT group. You then only have to complete one VAT return for the
VAT group,
instead of one return for each company, and pay one amount of VAT over
to HMRC.
Also the transactions between the companies that are within the VAT
group are
generally ignored for VAT purposes. There are exceptions for certain
international services. The companies within the VAT group don't have to carry on similar trades, they can operate in quite different business sectors. However, where some companies regularly receive VAT refunds and others pay VAT each quarter, it would not be sensible to put those payment and repayment companies together in one VAT group. Also, once the companies are together in one VAT group the limits for various VAT reliefs, such as cash accounting, error reporting, or partial exemption, apply to the turnover of the whole group. An LLP can join a VAT group with a company, if both bodies are under common control. This can be useful where an LLP has been used in place of another associated company (an additional associated company may increase the corporation tax rate paid by the main trading company). A general partnership, which is not an LLP, cannot join in a VAT group under any circumstances. |
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| December Question & Answer Section | ||||||||
| Q. I own a number of rental
properties; a mixture of self-contained flats and houses. I've received
an
email from a property expert that says I can claim capital allowances
as a
percentage of the cost of these properties, which will produce a
guaranteed tax
refund for me. Is that true? A. No, this is not true. Capital allowances cannot be claimed for equipment or fittings used within residential properties, which the Tax Office refer to as 'dwelling-houses'. There is an exception for properties that qualify as furnished holiday lettings, when each letting must generally be for short periods of less than 30 days. If you make a capital allowance claim for your rental properties it may be passed by the Tax Office, under their 'process now, check later' system. But when the Tax Inspector checks your claim it will be refused, any tax refunded will have to be repaid with interest, and penalties will be charged. This can happen up to 20 years after you submitted the incorrect claim! Q. My employer has given me a form P11D, which shows that I am taxed on the cost of my smart phone. I thought each employee could have one tax-free mobile phone, so why are I taxed on my only mobile phone? A. Tax Officials think smart phones are computers rather than phones, so don't want to apply the 'one free mobile per employee' rule, when the mobile phone is a smart phone. However, this can work in your favour if the private use of the smart phone provided by your employer is insignificant. Where any computer equipment is provided to you solely for work purposes, and there is no significant private use, there should be no tax charge. This tax-free treatment doesn't apply where the contract for the mobile phone is in your own name and not the company's name. In that case, where your employer pays for your smart phone the cost is taxed as if it was part of your salary. To remedy this, make sure your next smart phone contract is made between your employer and the telephone provider and you are not a party to that contract. Q. I work as a nurse in a NHS hospital. My professional organisation tells me I can claim tax refunds for the last 6 years, for the cost of the particular shoes and socks I need to wear for work. Is there a limit on what I can claim? A. There are set limits for such costs, known as flat rate expenses, which vary according to the taxpayer's profession and work description. The full list of tax claimable flat rate expenses can be found here: http://www.hmrc.gov.uk/manuals/eimanual/EIM32712.htm. Nurses can claim £100 per year, against their taxable income, for the cost of shoes and socks or tights. This figure was £70 per year from 2004/05 to 2007/08. However, you need to make your claim quickly, as the deadline for claims relating to 2005/06 is 31 January 2012. The deadline for 2006/07 is 31 March 2012, and for 2007/08 it's 5 April 2012. However those deadlines only apply if you were taxed under PAYE, and did not submit a self-assessment tax return for those tax years. If you did submit a self-assessment tax return for the year the claim relates to, your claims period is already limited to 4 years from the end of that tax year. In that case the earliest year you can claim for is 2007/08, and the claim must be received by HMRC by 5 April 2012. |
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| December Key Tax Dates | ||||||||
| 19/22 - PAYE/NIC and CIS
deductions due for month to 5/12/2011 31 - Deadline for 2010/11 self assessment online returns to be filed if you are an employee and want tax underpaid to be collected by adjustment to your 2012/13 PAYE code (for under payments of up to £3000 only). VAT reclaim deadline for submission of all claims for non EU traders wanting to reclaim VAT in the UK |
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| Need Help? | New Clients Welcome | |||||||
| Please contact us if we can help you with these or any
other tax or
accounts matters. |
If you are not already a client and are interested in
becoming one, we
would love to come to meet with you to discuss how we can help and
provide you
with a competitive quote for our services. All new client consultations are provided free of charge and without obligation. |
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| Tax Tips & News - November 2011 | ||||||||
|
Welcome... We are committed to ensuring all our clients don't pay a penny more in tax than is necessary. Please contact us for advice in your own specific circumstances. We're here to help! |
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| Reality of Self-Employed Contracts | ||||||||
| A recent case heard in the highest UK court (the Supreme
Court) may
affect whether workers are defined as employees, and hence whether they
are
entitled to employee rights and whether the employer has to pay them
under
PAYE. The case was called Autoclenz Ltd v Belcher. Autoclenz Ltd required its workers to be self-employed contractors and issued contracts to those workers, which they were required to sign in order to be offered any further work by the company. The company provided the workers with all the tools and materials they needed, but deducted a 5% charge for use of those tools and materials from the invoices it prepared on behalf of its 'self-employed' workers. The workers were paid so badly that they made claims to the employment tribunal to be paid the national minimum wage and holiday pay. The tribunal agreed the workers were employees in spite of the contracts they were required to sign. When the case reached the Supreme Court it found that the written contracts were a sham and did not reflect the reality of the relationship between the workers and the company. This case shows that the definition of a sham contract is very wide. If the contract you have with your self-employed workers doesn't reflect the true agreement between you and those workers, the written contract could be ignored by the Taxman and any court. To ensure your self-employed contractors are not treated as your employees, check that all of the following documents truly represent the reality on the ground: - Written contract with the worker, and with any agency that provided the worker; - Security clearance and passes (different for contractors?); and - Health and safety instructions (who is responsible for what?). |
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| Teachers to Tell All | ||||||||
| The Taxman has launched another campaign to encourage
people to pay tax
on income they have previously omitted from their tax returns. This
time
private teachers are targeted under a scheme called TCup: Tax Catch Up Plan for
tutors and coaches. If you want to use the TCup scheme you need to tell the Taxman you intend to make a disclosure by 6 January 2012, either using the notification form on the HMRC website, or by telephoning: 0845 601 8817. On notification the Taxman will issue you with a disclosure reference number (DRN) and payment reference number. You will need to quote the DRN when you make the full disclosure of all your outstanding tax matters by 31 March 2012. That is also the deadline for paying all the tax due on your previously undeclared income, interest on that tax, and the relevant penalty. To ensure your payment is matched to your disclosure form you need to quote your payment reference number. It is up to you to calculate the penalty you should pay due to your late declaration of income. Under the TCup scheme the penalty can be 0%, 10% or 20%, depending on whether your under-declaration of income was an innocent mistake, careless error, or deliberate error. This is a considerable discount on the 100% penalty enforceable for deliberate and concealed errors discovered by the Taxman in normal circumstances, (which incidentally can be up to 200% where certain off-shore income is involved). We can help you make a full disclosure and calculate the tax, interest and penalties due. |
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| PAYE Refunds and Underpayments | ||||||||
| The Taxman has set his computer the task of recalculating
the PAYE paid
by many millions of people for the tax year 2010/11 and for the tax
years
2003/04 to 2007/08. The PAYE system does not cope well when an individual has employment or pension income from a number of different sources at the same time. Sometimes the tax free personal allowance get double counted, or not counted at all. Taxable benefits may get missed or not updated when the value of the benefit changes part way through the year. From the computer checking those tax calculations it found about 2.3 million people who paid too much tax for 2010/11. Those taxpayers have been receiving letters about tax refunds since July. The Taxman also plans to send out another 6 million letters about tax refunds due for the earlier tax years: 2003/04 to 2007/08. If you receive a telephone call or email purporting to be from the tax office about a tax refund, DO NOT respond as this will be a criminal scam. Genuine tax refunds will be sent by letter only. Around 1.2 million people will receive a tax computation (form P800) telling them they have underpaid tax for the tax year 2010/11. The average amount owing is £600. Where the tax due is less than £3,000 it will be collected through the taxpayer's PAYE for 2012/13. If you have underpaid tax of less than £3,000, the amount due will be deducted in instalments from your monthly salary or pension in the year starting 6 April 2012. Only where the amount due is £3000 or more will you be sent a tax demand, but you will still be given a reasonable time to pay. We can help you check the P800 tax calculation, but please send us a copy of all the forms you receive from the Tax Office, as we may not get a copy directly. |
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| Reclaiming VAT | ||||||||
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| November Question & Answer Section | ||||||||
| Q. I left London on 5 May
2010 to work full time for a Danish company in Copenhagen. My own
UK-based
company ceased at that time, and I received a capital payment on 30
November
2010. As I received that money after I left the UK permanently, do I
have to
pay UK tax on the pay-out? A. Unfortunately yes. Although you may be regarded as not resident in the UK for income tax purposes from 5 May 2010, you do have to pay UK capital gains tax on the gain made in November 2010. The tax year is not split for capital gains tax, as it can be for income tax. If you are resident in the UK in any part of the tax year, you are taxed in the UK on gains made in that tax year, even if the gain is made after you have left the UK permanently. Q. I've received an alarming letter from the Taxman about a private bank account I held in Switzerland from 2000 to 2005. I didn't include the interest from that account on my tax return as I thought it wasn't taxable in the UK. What should I do now? A. The Taxman is writing to around 6,000 individuals and organisations that held accounts with a private bank in Geneva, based on a list of accounts stolen from that bank in 2006. Unless you had non-domicile status when you held your Swiss bank account, which may have permitted you to be taxed only on funds brought into the UK, you should have declared the Swiss account on your UK tax return. You need to come clean now, and pay the tax due on your Swiss bank account interest to the UK tax office. If you delay the Taxman will open a serious fraud enquiry into your tax affairs. Talk to us about how to confess all to the UK tax authorities. Q. The Taxman has hit me with a huge penalty for paying my company's PAYE late in 2010/11. But I've always paid my PAYE on time. What's going on? A. PAYE deductions paid late to the Tax Office (HMRC) from 19 May 2010 attract automatic penalties. 'Late' means the cheque reached HMRC after the due date of 19th of the month or the electronic payment cleared the HMRC bank account after 22nd of the month or the last banking day before that. The HMRC bank accounts do not accept 'faster payments', which clear through most bank accounts in 4 hours. HMRC needs 3 working days to accept an electronic payment. You should have received a warning letter about your first late payment in 2010/11. If you believe you had a reasonable excuse for paying late you should appeal against the late payment penalty. We can help you with that. |
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| November Key Tax Dates | ||||||||
| 2 - Last day for car change
notifications in the quarter to 5 October - Use P46 Car 19/22 - PAYE/NIC and CIS deductions due for month to 5/11/2011 |
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| Need Help? | New Clients Welcome | |||||||
| Please contact us if we can help you with these or any
other tax or
accounts matters. In addition, if there's anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list. |
If you are not already a client and are interested in
becoming one, we
would love to come to meet with you to discuss how we can help and
provide you
with a competitive quote for our services. All new client consultations are provided free of charge and without obligation. |
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|
Tax Tips & News - October 2011 |
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| Welcome... To October's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman. If you need further assistance just let us know or you can send us a question for our Question and Answer Section. We are committed to ensuring all our clients don't pay a penny more in tax than is necessary. Please contact us for advice in your own specific circumstances. We're here to help! |
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| Business Record Checks Update | ||||||||
| The Taxman believes that a lot of businesses do not pay
the right amount
of tax because they don't accurately record their business income and
expenditure. In other words their business records are not of a high
enough
standard to produce accurate accounts. We agree that many businesses do
not
keep perfect records but we work with business owners to help them
retain the
necessary documents, and use those records alongside a good
understanding of
the business, to produce a reasonable statement of profit or loss for
the tax
return. Unfortunately the Taxman is not taking such a helpful approach. He is now sending out 120 tax officers to examine the un-sorted raw records held at thousands of businesses. If the tax officer (who is not a trained accountant), judges the business records to be inadequate the business owner could receive a penalty of up to £3,000. Some businesses have been visited already as part of a training exercise for the tax officers. Following those 'test and learn' visits the tax officer may have made recommendations, but he won't have raised a penalty, unless there were absolutely no business records to examine. Now the learning stage is over and the gloves are off. We expect penalties to be imposed on many businesses by these lightly-trained tax officers. If a tax officer asks to examine your business records, please contact us immediately. Potential penalties can be avoided if we are able to explain to the tax officer exactly how your basic business records are turned into an accurate profit/loss statement. |
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| Splitting Businesses to Avoid VAT | ||||||||
| Now the standard rate of VAT is 20%, some business owners
are tempted to
split their businesses into different entities, so the part with
non-business
customers or both parts falls under the compulsory VAT registration
threshold
when split. This enables them not to register to have to charge VAT to
those
customers. The Taxman is alive to this tax planning and where he
believes they
have been artificially separated to avoid VAT, he will direct that the
businesses should be re-aggregated. A frequent target of the Taxman on business-splitting grounds are VAT-registered farms, where a member of the family runs a bed & breakfast business which is not VAT registered, from the same location. He will argue that because some buildings have both a farm use and a B&B function, the two businesses are part of a whole and should come under one VAT registration. Although the use of the same building can be a factor that indicates two businesses are connected, the Taxman is required to consider a range of factors to determine whether the businesses are genuine separate entities. He must judge whether each factor points towards one business, two separate businesses, or is neutral. If the majority of the factors are either neutral or point towards separate businesses, the Taxman should not direct that the businesses be combined for VAT purposes. If you are not happy with the Taxman's decision you can appeal to the Tax Tribunal. Where you operate two or more businesses within your family, the following questions can help you decide whether the Taxman will challenge your businesses as being artificially split: 1. Is the business designed to operate as an individual business, despite utilising central resources, for example a franchised business? 2. Is the business so intrinsically linked with other 'connected' businesses that it can only be considered to be one indivisible business, for example wet sales and catering in public houses and restaurants? 3. Is the business carried on in separate departments or divisions, but is in reality one legal entity, for example a quasi partnership? 4. How much independence does the business have from any other 'connected' businesses by way of legal and technical resources? 5. Does the business owner have autonomy in the way he/she operates the business, for example access to premises, opening times, recording sales, purchase of stock and materials, bank accounts and annual accounts? 6. What would happen if the business owner was unable to operate their business personally? 7. Has the business owner registered the business with HMRC for corporation tax or income tax separately from those businesses that are 'connected'? 8. Is the business owner working together with their partner/spouse in his/her business as a quasi co-owner or just assisting them as a family member in their business? The Taxman has the power to direct that two or more businesses should be treated as one business for VAT purposes, even where those businesses are contained within separate legal entities, such as limited companies. Please discuss your business structure with us if you think it could be challenged by the Taxman. |
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| Stuck in the UK? | ||||||||
| If you have been forced to leave your job in the Middle
East and return
to the UK, you may be considered resident for tax purposes in the UK in
the
current tax year (2011/12). This will affect your tax position for this
year
and possibly next tax year (2012/13). Your residence status for tax purposes can depend on whether you have a full time job in another country and do not undertake significant duties in the UK. Due to the unrest that arose this spring in a number of countries, the Taxman decided to relax the rule about not performing significant duties in the UK, but only for the tax year 2010/11. The relaxation only applies to workers who have been forced to return to, or stay in the UK, following Foreign Office advice concerning the following counties; Bahrain, Egypt, Libya, Syria, Tunisia and Yemen. The definition of residence in the UK for tax purposes is due to change from 6 April 2012, and the new definition will look back to the taxpayer's residence status in the immediately preceding years. Thus the number of days you are in the UK during 2011/12 could have an impact on your tax residence status for 2012/13. |
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| Student Loan Notices | ||||||||
| As an employer you are required to collect repayments of
student loans
your employees took out through the Student Loan Company (SLC) while
they were
studying, during years after September 1998. You are told to start making SLC deductions by a form SL1 from the Tax Office (HMRC). HMRC is currently tidying-up the data it holds on employers who collect student loan repayments. You may receive an unexpected SL1 notice for a current employee from whom you are already collecting SLC deductions. Alternatively you may receive SL1 notices for employees who have left your employment. In both cases you should simply file the SL1 notices and take no further action. If you have a SLC loan yourself and are self-employed, the SLC loan repayments should be collected through your annual self-assessed tax bill, which is generally split over three payment dates. You need to tell us about your student loan, so we can ensure the right boxes are completed on your tax return form. If your self-employed profits are less than £15,000 per year, you are not required to make any SLC repayments. This also applies if your salary is under £15,000 or you have a number of jobs from which you earn under that threshold in each. |
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| October Question & Answer Section | ||||||||
| Q. My cafe was badly
damaged in the recent riots, but my loyal customers have collected
£3,000 to
help me open the business as quickly as possible. How should I treat
this sum
for tax purposes? Is it a personal gift, or a contribution to be set
against my
repair costs? A. This gift from your customers should be treated as income for your business for income tax or corporation tax purposes. You are likely to have a lot of repair expenditure to set against your income for the current period, so you may well not have a profit to declare even after including the gift as income. Q. I've received a tax refund for 2010/11, but I'm worried that it's not correct as I usually have tax to pay each year. Also I haven't even submitted my 2010/11 tax return yet. A. You are right to be worried about the tax refund, as the Taxman's computer has issued some incorrect refunds recently. If you normally complete a self-assessment tax return but also have some income taxed under PAYE, the computer should wait until your tax return has been submitted before calculating the tax to be refunded. In a few cases this has not happened, and the tax refund has been based only on the taxpayer's PAYE income. Please ask us to check the tax calculation that should have arrived with your refund cheque. Q. The Tax Office has written to me saying £2,800 tax I owe will be collected by restricting my PAYE code for 2012/13. What does this mean? A. The Taxman is now permitted to collect up to £3,000 of unpaid tax or overpaid tax credits through PAYE codes. Your PAYE code tells your employer how much of your income to treat as tax free, and thus how much tax to deduct from the rest. A common PAYE code for 2011/12 would be 747L, which gives you tax free income of £7,475 for the year. If you owe £2,800 in unpaid tax, and your highest marginal tax rate is 40%, your tax free income will be reduced by £7,000 (£2,800/ 40%), leaving you with tax free income of £475 and a PAYE code of 47L. The numbers will be slightly different in 2012/13, but essentially you will pay more tax each month from April 2012 until the tax debt is elimin |
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|
||||||||
| 1 - Due date for payment of
Corporation Tax for the year ended 31 December 2010 5 - If a Tax Return has not been received, individuals and trustees must notify HMRC of new sources of income and chargeability in 2010/11 14 - Return and payment of CT61 tax due for quarter to 30 September 2011 19 - Tax and Class 1B national insurance due on PAYE settlements for 2010/11 19/22 - PAYE/NIC and CIS deductions due for month to 5/10/2011 or quarter 2 of 2011/12 for small employers 31 - Deadline for 2010/11 self assessment paper returns to be filed for HMRC to do the tax calculation and/or if tax underpaid is to be collected by adjustment to your 2012/13 PAYE code (for underpayments of up to £3,000 only |
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|
New Clients Welcome | |||||||
| Please contact us if we can help you with these or any
other tax or
accounts matters. |
If you are not already a client and are interested in
becoming one, we
would love to come to meet with you to discuss how we can help and
provide you
with a competitive quote for our services. All new client consultations are provided free of charge and without obligation. |
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|
TAX TIPS & NEWS - September 2011 |
||||||||
| Welcome... To September's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman. If you need further assistance just let us know or you can send us a question for our Question & Answer Section. We are committed to ensuring all our clients don't pay a penny more in tax than is necessary. Please contact us for advice in your own specific circumstances. We're here to help! |
|
|||||||
| Swiss Bank Account Tax Deal | ||||||||
| Stashing money in a Swiss bank account is not against the
law. As long
as you declare all the income and gains from your overseas investments
and bank
accounts on your UK tax return, there is no problem at all.
Unfortunately some
individuals have taken advantage of the Swiss laws which permit banks
to keep
their customers' details completely confidential, even from tax
authorities,
and did not declared the income on their tax returns. To remedy this non-disclosure (AKA tax evasion), the UK Government has reached a unique tax deal with Switzerland. From 2013, investment income from Swiss bank accounts held by UK residents will be subject to a withholding tax of 48%, and gains made on those investments will be subject to withholding tax of 27%. These withholding taxes will NOT apply if the bank account holder authorises the bank to disclose all details of the income to HMRC, and pays any associated taxes in the UK. To settle past tax liabilities, all existing funds held by UK taxpayers in Switzerland will be subject to a one-off deduction of between 19% and 34%. This deduction will only apply to amounts in bank accounts open at 31 December 2010, which remain open at 31 May 2013. However, if the bank account holder has instructed the bank to disclose details of the account to HMRC, the one-off deduction will not apply, but HMRC will follow-up all disclosures made. If you hold a Swiss bank account, now would be a very good time to discuss this with us! |
||||||||
| Business Planning Exit | ||||||||
| Are you thinking about hanging-up your working boots and
passing-on your
business? This takes a lot of planning to get the best possible tax
outcome. If you have younger relatives who could take on the business it is advisable to get those individuals involved in the management for a considerable period before you go. You may need to restructure the business to make this hand-over easier, perhaps incorporate, or slim-down the enterprise. Where your business is already run though a company, a neat method of exiting for the founder is to have the company to purchase its shares from you. However, this 'purchase of own shares', as it is called, must be planned and undertaken in a very precise way to ensure the tax charges are as low as possible. Another option is to sell of all or part of the business to another person. This also needs to be planned at least a year in advance to ensure you and all your fellow shareholders achieve the maximum tax relief on the sale. Entrepreneurs' relief can be claimed for most company sales, which reduces the effective rate of tax from 28% to 10% on the first £10 million of gains made by each shareholder. To qualify for entrepreneur's relief each shareholder and the company must meet all of these conditions: - The shareholder must hold at least 5% of the ordinary shares of the company and 5% of the voting rights for the company for at least one year ending with the sale; - The shareholder must be an employee, or director, or company secretary of the company for at least one year up to the date of the sale; - The activities of the company must be at least 80% trading, as opposed to investments, or it must be the holding company of one or more trading companies. Where your family members have minority shareholdings check whether they will each meet the 5% threshold. Consider gifting some shares to your grown up children or spouse to achieve this threshold. Where shareholdings exceed 5% but the individual does not work for the company, consider making them a non-executive director, or giving them a small part time position at the company for 12 months to the date of the sale. If you are considering selling your business please talk to us well in advance to get the right planning in place first. |
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| Jointly Held Property Tax Savings | ||||||||
| With the threshold for 40% tax reducing every year
(£35,000 after
deducting allowances for 2011/12), it makes sense to review who pays
the higher
rates of tax within a family. Can some assets be transferred to the
partner who
pays a lower tax rate to reduce tax? For example a let property could be transferred from one spouse into the joint ownership of the married couple or civil partners, or entirely into the other spouse's name. Joint ownership has advantages, as on the eventual sale of the property up to two annual exemptions (£10,600 each for 2011/12) may be available to reduce the chargeable gain. Transfers between husband and wife or civil partners who are living together do not create a capital gains tax charge at the time of the transfer. Generally UK land can be held as joint tenants when the owners hold an equal undivided interest in the whole property, or as tenants-in-common where the individuals hold separate and identifiable shares, say 10% and 90% of the property (the legal terms may differ under Scottish law). However, where the owners are either married or in a civil partnership, the property will be treated for tax purposes as being held in equal shares (50:50), even if this is not the case. To be taxed on the actual interest each holds in the property the couple need to sign a declaration on Form 17 and submit it to HMRC. Form 17 has recently been reissued. HMRC now require evidence of the actual beneficial interest held by each person in the property to be submitted with form 17. This evidence may be a copy of the property deeds, or the purchase or transfer document. |
||||||||
| New Mileage Rates | ||||||||
| Where your employees use a company car or van, but pay
for the fuel
themselves, the company can pay a fuel-only mileage rate for business
journeys.
This fuel-only rate is guaranteed to be tax free when it is equal to or
less
than the advisory fuel rates set by HMRC. These
advisory fuel rates are now revised every quarter. The latest rates
applicable
from 1 September 2011 are shown below for different engine sizes, with
the
previous rates that applied from 1 June to 31 August 2011 shown in
brackets. Petrol & LPG Engines 1400cc or less: Petrol 15p (15p), LPG 11p (11p) 1401 to 2000cc: Petrol 18p (18p), LPG 12p (13p) Over 2000cc: Petrol 26p (26p), LPG 18p (18p) Diesel Engines 1600cc or less: 12p (12p) 1601 to 2000cc: 15p (15p) Over 2000cc: 18p (18p) Note there is now a different scale for diesel vehicles. The advisory fuel rates are based on average fuel prices per litre: - Petrol: 134.6p - Diesel: 139p - LPG: 75.8p If the prices in your local area are significantly higher, or your company cars are less fuel-efficient than average, you can pay a higher mileage rate. You need to keep a record of how you calculated that higher rate. Where your employees use their own cars for business journeys, you can pay a tax free mileage rate of 45p per mile for the first 10,000 business miles driven in one tax year, and 25p per mile for extra miles in the same year. This rate was increased from 40p per mile on 6 April 2011, so remember to pay the higher rate to your employees and to yourself when you undertake business journeys in your own car. Where the company is VAT registered it can reclaim VAT on the fuel element of mileage rates paid to employees, if the employee supplies the company with VAT receipts for fuel showing enough VAT to cover the claim. The advisory fuel rates are purely for fuel. The 45p per mile rate is only partly for fuel, the excess above the advisory fuel rate is to pay for other costs of running the car which are incurred by the employee. If you are self-employed, with an annual turnover below the VAT threshold of £73,000, you can use the 45p rate as an approximation for the cost of business journeys in your own car. |
||||||||
| September Question & Answer Section | ||||||||
| Q. I received my
self-assessment statement and payslip on 17 August 2011, which shows
tax due to
be paid by 31 July 2011. I paid the tax due as soon as I could, but I
am now
worried that I will get charged interest and a penalty for late payment. A. The late issuing of these statements was due to a lack of paper at HMRC's printers! As the delay was essentially their fault HMRC has decided to waive the interest due, as long as the tax payment is received by 27 September 2011. However, this interest free period only applies to the second payment on account of income tax for 2010/11, due by 31 July 2011. Any other late tax payments, such as tax due by 31 January 2011 will accrue interest as normal. Q. My son worked for a company that has gone into liquidation. The Tax Office are refusing to acknowledge the student loan repayments which were deducted from his salary in 2010/11 and pass those repayments on to the Student Loans Company. What can he do to get his student loan records corrected? A. This can happen when the company folds before submitting its end of year PAYE return: form P35. This form shows the totals for all the deductions taken from each employee during the year. Your son needs to provide HMRC with any evidence he has of the student loan repayment deductions, such as original payslips or his form P60 for the tax year. HMRC should then pass this information onto the Student Loans Company who will correct his payment record. Q. I recently applied for VAT registration for my business as the turnover had exceeded the compulsory registration threshold. Now I've had a call from the VAT office asking to come and see me. What have I done wrong? A. A visit to a newly registered business is now normal practice for VAT officers, particularly where the first VAT return shows a repayment due. The VAT inspectors will want to see the invoices for your first VAT period, and be assured that you know how to keep adequate business records. We can sit in on the VAT visit to provide back-up for any difficult questions if you wish. |
||||||||
| September Key Tax Dates | ||||||||
| 2 - Last day for car change
notifications in the quarter to 5 July - Use P46 Car 19/22 - PAYE/NIC and CIS deductions due for month to 5/8/2011 |
||||||||
| Need Help? | New Clients Welcome | |||||||
| Please contact us if we can help you with these or any
other tax or
accounts matters. |
If you are not already a client and are interested in
becoming one, we
would love to come to meet with you to discuss how we can help and
provide you
with a competitive quote for our services. All new client consultations are provided free of charge and without obligation |
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TAX TIPS & NEWS - August 2011
|
||||||||
| Welcome... To August's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman. If you need further assistance just let us know or you can send us a question for our question and answer section. We are committed to ensuring all our clients don't pay a penny more in tax than is necessary. Please contact us for advice in your own specific circumstances. We're here to help! |
|
|||||||
| New Workplace Pensions Cost | ||||||||
| Another set of regulations is set to fall on the
shoulders of all
employers. This time it's a compulsory pension scheme for all
employees. This new pensions law is due to be introduced over four years from October 2012. The largest employers (120,000 or more employees) will be forced to sign up first. Those who employ less than 50 workers will be required to take part in the scheme from a date sometime in 2014 to 2016. The exact date will depend on your PAYE reference number. Only one-man companies will be exempt, otherwise every employer who has workers in the UK will be required to enrol those workers in a pension scheme. There will be exceptions for workers aged under 22, over state retirement age or paid less than £7,475. Employees will have to take an active decision to opt out and sign a form to do so. The employer will not be permitted to induce employees to opt out, or to screen out potential employees who do not wish to opt out of the pension scheme. Employers and employees will be required to make contributions to the pension scheme totalling 8% of the workers earnings, including tax relief given on the employees contributions. The employer must contribute at least 3% of the workers' earnings. This level of compulsory contributions will be imposed gradually over five years to 2017. Employers can use an existing pension scheme, set up a new one, or use the new low cost pension scheme established by the Government called NEST (National Employment Savings Trust). Where an existing scheme is used the employer will have to certify that it meets all the requirements for compulsory pension saving. Every employer will also be required to register with the pensions regulator. To prepare for these new regulations talk to your pension scheme provider, if you have one. If you don't have a workplace pension scheme you need to plan to set one up as this can take sometime to implement, and to start budgeting for the costs! |
||||||||
| VAT Initiative Starts | ||||||||
| Last month we warned you the Taxman was planning a
campaign to encourage
businesses to register for VAT. The Taxman is calling this campaign the
'VAT
Initiative'. To launch the VAT initiative the Taxman is writing to about 40,000 businesses whose turnover has apparently already exceeded the compulsory VAT registration threshold. Those businesses will be invited to register for VAT and pay over all the VAT owed since the date they should have registered, plus a low penalty of only 10% of the VAT outstanding. Those businesses that first exceeded the VAT threshold within the last 12 months may get away with a nil penalty, but it will be up to the Taxman to decide what level of penalty applies. The requirement to register for VAT is based on total turnover in a 12 month rolling period and needs to be reviewed each month to determine if the business needs to register immediately. The compulsory VAT registration thresholds of turnover in the past 12 months is... From 1 April 2011: £73,000 1 April 2010 - 31 March 2011: £70,000 1 May 2009 - 31 March 2010: £68,000 1 April 2008 - 30 April 2009: £67,000 1 April 2007 - 31 March 2008: £64,000 1 April 2006 - 31 March 2007: £61,000 The VAT initiative is also open to any business who has not received a letter from the Taxman, but believes they should have registered for VAT at some point in the past. If you want to take up the offer of low penalties for late VAT registration you need to tell HMRC you want to be part of this VAT initiative by 30 September 2011. We can assist you in doing this. Once your notification has been processed you will receive a notification reference number (NRN), which you must quote on your application form to register for VAT (form VAT1). Without this notification number you will not be able to take advantage of the nil or 10% penalties on offer. The VAT1 form must be completed in paper form, (NOT online) and posted to the VAT initiative section to arrive by 31 December 2011. Please talk to us before notifying HMRC of your intention to register for VAT. We can help you calculate any VAT due and any other tax owing on undeclared sales. |
||||||||
| Companies House Reminders | ||||||||
| You can now set up an email reminder service for your
company or LLP at
Companies House. Once you have registered you will receive timely
emails to
remind you of the due dates to submit the annual return and accounts
for your
business, and paper reminders will cease. You can register up to four email addresses for each business. Each email address nominated will receive an activation email which must be acted upon within five days, so don't set up the email reminder service just before you go on holiday. It will be possible to opt-out of the email reminder service and revert to paper reminders. Of course if we look after these for you, we will remind you as well! |
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| Less Tax for Students | ||||||||
| If you are employing students over the summer months,
don't forget to
give them the HMRC form P38S (2011) to sign. This form allows
the student to earn their full annual allowance of £7,475 from
their holiday
work before any tax is deducted. The student must confirm they will return to full time study at a named college, school or university for a course that will continue until at least 5 April 2012. The student must also not have employment during term time. The tax exemption does not cover NI contributions, so if the student's pay is at or above the earnings thresholds (£136 for employers contributions, £139 for employees contributions), you must deduct employees NICs and pay the appropriate employers NICs. Remember the national minimum wage (NMW) rates do apply to students and part-time employees. For workers aged 18 to 20 inclusive the current NMW rate is £4.92 per hour. Only apprentices aged under 19 or apprentices in their first year can be paid the reduced NMW rate of £2.50 per hour. |
||||||||
| August Question and Answer Section | ||||||||
| Q. I've heard I could
reduce inheritance tax by leaving money to charities in my Will. How
does this
work? Do I have to leave a minimum amount? A. Any bequests to charities in your Will are free of inheritance tax (IHT). This means the executors of your estate will only pay IHT at 40% on the value of your estate after deducting the following: - gifts to charities, - gifts to your UK domiciled spouse; and - your available nil rate threshold. For deaths after 5 April 2012 it is proposed that the rate of IHT paid will be reduced to 36%, if at least 10% of the net estate is left to charity. Your net estate is the amount on which IHT would be charged without considering the charitable gifts. You may need to redraft your Will to ensure your estate qualifies for this tax discount. Q. I earn £30,000 p.a. taxed under PAYE, but also have a variable amount of rental income. I read that 40% tax applies above £35,000 but I've also been told I can earn £42,475 before paying 40% tax. How much rental income can I receive before paying 40% tax? A. The 40% tax rate applies in the current tax year (2011/12) on taxable income above £35,000. This is your total income (earnings, rentals and any interest or dividends) less your tax free allowance of £7,475 and any other valid deductions, such as expenses relating to your rental income. So you can have gross income before deductions of £42,475 (£35,000 + £7475) before you have to pay 40% tax. However, you must declare any rental income you receive to HMRC. Q. My employees are occasionally required to work late in the evening. If I pay for taxis to take them home is that cost tax allowable for the business and will the employees be charged tax on the taxi fare? A. Where an employer pays for the travel costs of an employee for a journey between home and work (i.e. commuting), that cost would normally be a taxable benefit in kind for the employee. However, there is currently a particular tax exemption for late night taxis used when the employee is required to work past 9pm, and at the time the employee finishes work either public transport was unavailable or it would be unreasonable to ask the employee to use it, or car sharing arrangements have broken down. In this case the cost of the taxi is not taxable on the employee. But you can only use this tax exemption up to 60 times per year per employee. You need to keep accurate records of why each employee took a taxi to get home and the timing of those journeys. This tax exemption for late night taxis is due to be abolished from April 2012, so you may need to reconsider your employees' travel arrangements in future. The cost of taxi journeys for employees on business or to or from work will always be tax allowable for the business. |
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| August Key Tax Dates | ||||||||
| 2 - Last day for car change
notifications in the quarter to 5 July - Use P46 Car 19/22 - PAYE/NIC and CIS deductions due for month to 5/8/2011 |
||||||||
| Need Help? | New Clients Welcome | |||||||
| Please contact us if we can help you with these or any
other tax or
accounts matters. |
If you are not already a client and are interested in
becoming one, we
would love to come to meet with you to discuss how we can help and
provide you
with a competitive quote for our services. All new client consultations are provided free of charge and without obligation. |
|||||||
July 2011 TAX TIPS & NEWS
|
||||||||
| Welcome.... To July's Tax Tips & News, our newsletter designed to bring you tax tip and news to keep you one step ahead of the taxman. We are committed to ensuring all our clients don't pay a penny more in tax than is necessary. Please contact us for advice in your own specific circumstances. We're here to help! |
July 2011 Web Bots Are Out to Get You! What if You Don't Pay Your Tax! Must You Register for VAT? Repayment Claims for Tax on Interest July Question and Answer Section July Key Tax Dates |
|||||||
| Web Bots Are Out to Get You | ||||||||
| The
Taxman has announced he
is going to start targeting tax evasion by online traders,
private tutors, personal trainers and life coaches. In order to find out who is failing to pay tax on all their income the Taxman is to send out web bots (automatic search programmes), to trawl the internet for data on sales and services advertised by UK residents. This data will then be compared to sources the Tax Office holds such as bank interest and tax returns. If you declare all of your profits and earnings on your tax return you have nothing to fear. But you may have friends or family members who earn a little bit on the side by selling stuff or advertising their services online, so please pass on this advance warning. For example, a hobby making decorative items could lead to selling the products at a market or through a website. A common misconception is that if no profit is made the income source does not need to be declared. Unfortunately the Taxman is unlikely to agree. Where the costs are not recorded any income will be treated as profit, and thus will amount to taxable income. The same applies to private tuition; even if the turnover is very small it must be declared where there is intent to make a profit from the activity. Those online traders or private tutors who have not declared this source of income to the Taxman and who are not registered for self assessment, should contact the Tax Office by 5 October 2011 to notify them there is income recieved during the 2010/11 tax year. The best way to do this is to complete the self assessment registration form CWF1, either online or in paper form. We can do this for you. The Taxman will then issue the individual with a tax return form to complete for 2010/11. Where the individual has traded online for several years without declaring the income, a more detailed disclosure to the Tax Office will be required. Please talk to us before approaching the Tax Office, as such a situation needs to be handled very carefully! |
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| What if You Don't Pay Your Tax! | ||||||||
| July is
one of those big
tax-paying months.... - If you are self-employed you need to pay your income tax and class4 NIC on- account payment for 2010/11 by 31 July. - A company with a 30 September 2010 year end must pay its corporation tax by 1 July 2011. - Employers must pay class 1A NICs on benefits by 19 July. - Quarterly payments of PAYE are due by the same date. Monthly payments of PAYE and CIS deductions are due by 19th of every month, or by 22nd if paying electronically. If you or your company will not be able to pay the tax due on time you should contact the Tax Office business payment support line (0845 302 1435) without delay, or we can do this for you. Once the tax due is actually late, even a day, it is much more difficult to negotiate a reasonable payment plan with the Taxman. The Taxman is now very keen to chase every penny of tax owed, and you will start to receive aggressively worded letters if you don't pay on time. If you do not react or pay promptly you will receive telephone calls and possibly personal visits from professional debt collectors. The situation can escalate quite quickly into bailiffs being authorised to seize goods, or a court judgement being enforced. If you receive a letter demanding tax due, don't ignore it. Even if you believe there is nothing owed you need to sort the situation before the heavies turn up! |
||||||||
| Must You Register for VAT? | ||||||||
| There is
a myth in certain
quarters that every legitimate business is required to be VAT
registered. This is not the case. Your business (as a sole trader,
partnership or company) does not have to become VAT registered until
the total sales for 12 consecutive
months exceeds £73,000. However, this total does apply to
all the businesses you
run as a sole
trader. You can't artificially divide your businesses to avoid
registering for VAT. Once your business is VAT registered you must charge VAT at the appropriate rate (normally 20%) on your sales. You also have to submit regular VAT returns, either quarterly or monthly, which means you need to keep your records of sales and purchases up to date. If this all sounds abit too much to cope with there are a number of schemes you can sign up to which are designed to make VAT reporting much easier for small businesses. One of those schemes is the flat rate scheme for small businesses. When you use this scheme you don't have to worry about your purchases. You just have to total-up your sales each quarter and pay over a flat percentage as VAT to the Taxman. The percentage used will depend on your trade sector. If your business makes very few purchases you can benefit significantly from being within the flat rate scheme. Some people prefer to keep their total sales below the complusory VAT registration threshold, so they don't have to charge VAT and submit VAT returns. They do this by turning work down that would take them over the VAT threshold. This is not illegal,but the Taxman is very suspicious of businesses who manage their sales in this way. If you use this strategy to avoid VAT registration, you need to be albe to prove all your sales are correctly recorded and declared. Later this year the Taxman will offer a limited amnesty to those who have sales over the VAT threshold but who have not registered for VAT. Once that amnesty period is over he will start to actively investigate traders who report total sales just below the VAT threshold. Contact us for further information if you are interested in taking advantage of the amnesty. |
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| Repayment Claims for Tax on Interest | ||||||||
| You may
be able to claim a tax
repayment from the Tax Office if your bank has deducted 20% tax from
interest paid. If your tax-free allowance (up to £9,640 for those
aged 75 or more in 2010/11), completely covers all of your income, the
full 20% tax deducted from interest received can be reclaimed. Or you
may only be due to pay 10% tax on interest if your tax-free allowance
is exceeded with savings income up to £2,440 in 2010/11. This may
well apply to older relatives. Where a tax repayment is due, and you don't submit a self-assessment tax return each year, the tax due back should be claimed on form R40. Unfortunately the R40 form cannot be submitted online, it has to be sent to the Tax Office in paper form. However, you can claim tax repayments for the years 2005/06 to 2010/11 all at once, with a seperate R40 form for each tax year. We can help you with this. To avoid these tax repayment claims being necessary in the future, if you have a low income you can register to receive interest from banks and building societies with no tax deducted. This is done by completing form R85 for each account held. You cannot use the R40 form if you have a taxable capital gain to report for the tax year. In this case you must register for self-assessment and complete a full self-assessment tax return form. This applies even if you may be due a refund or income tax for the same tax year. |
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| July Question and Answer Section | ||||||||
| Q. I've always prepared the accounts for my
own company and submitted them to Companies House and the Tax Office
with no problems. However, this year the Taxman sent back my company's
accounts and tax return saying they were in the wrong format. I'm
confused. What have i done wrong? A. Company accounts for periods ending after 31 March 2010 that are sent to the Tax Office on or after 1 April 2011 must be submitted online in iXBRL format. There is some free software on the HMRC website that allows you to submit your company's tax return and accounts in this iXBRL online format. However, this software is not that easy to use and it will not cope with all types of company. Please ask us if you would like help in submitting your company acocunts and tax return online. Q. My company pays a business subscription to Linkedin, the business networking site. It allows me to make business contacts that generate work for me. Is the Linkedin subscription a tax allowable expense for my company? A. The Linkedin subscription is tax allowable for your company as it is a means to generate work for the business. However, there may be a benefit in kind charge for you if the Linkedin subscription is raised in your name rather than in the name of your company. If this is the case the company is paying your personal liabilitiy (the subscription fee). As linkedin does not appear on the list of approved professional organistations whose subscriptions are tax allowable for employees, there will be a personal tax charge. Q.My wife and i acquired a cottage in 2002 and let it as furnished holiday lettings from 2005. We ceased advertising the property this year and it is now on the market. Will we get the lower 10% rate of capital gains tax on any profit we make on the property sale? A. Yes, as long as the property is sold within three years of the date the holiday business ceased you should both qualify for entrepreneurs' relief on the gain. This relief gives you the lower 10% rate of CGT after deduction of your annual exemption, for gains of up to £10 million per person. |
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| July Key Tax Dates | ||||||||
| 5 - Deadline for PAYE settlement
agreement for 2010/11 6 - Deadline for 2010/11 forms P11Db, P11D and P9D to be submitted and copies of P11D and P9D to be issued to relevant employees Deadline for employers to report share incentives for 2010/11 - form 42 14 - Return and Payment of CT61 tax due for quarter to 30 June 2011 19/22 - PAYE/NIC and CIS deductions due for month to 5/7/2011 or quarter 1 of 2011/12 for small employers. 19 - Class 1A NIC due in respect of the tax year 2010/11 31 - Second self assessment payment on account due for 2010/11. Second 5% penalty surcharge on any 2009/10 outstanding tax due on 31 Januar 2011 still unpaid. Second £100 penalty if 2009/10 tax return due for filing on 31 January 2011 is still outstanding. Deadline for Tax Credits to finalise claims for 2010/11 and renew claims for 2011/12 Class2 NIC payment due. |
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| Need Help? | New Clients Welcome | |||||||
| Please contact us if we can help
you with these or any
other tax or accounts matters. |
If you are not already a client
and are interested in
becoming one, we would love to come to meet you to discuss how we can
help and provide you with a competitive quote for our services. All new client consultations are provided free of charge and without obligation. |
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JUNE 2011 TAX TIPS & NEWS
|
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| Welcome..... To June's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman. We are committed to ensuring all our clients don't pay a penny more in tax than is necessary. Please contact us for advice in your own specific circumstances. We're here to help! |
June 2011 Tax Efficient Profit Extraction Property Development Issues Stamp Duty Land Tax Missing Trader Fraud June Question and Answer Section June Key Tax Dates |
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| Tax Efficient Profit Extraction | ||||||||
| As
company owner you can chose
how to extract the profits from your company, and by making the right
choices you can minimise the tax and NI paid by you and the company. The Taxman would like you to take all the profits in the form of a salary and possibly a bonus, as these carry the highest NI charges and ensure the tax is deducted under PAYE before you get your hands on the net income. It is good practice to pay yourself at least a small salary that is covered by your personal allowance (£7,475 for 2011/12), as this makes the best use of your tax free allowances. However, the maximum salary you can take so that neither you nor the company pay NICs is £7072 in 2011/12, as the threshold for NICs is lower than the tax threshold. Most company owners extract any further amount they need in the form of dividends. If the gross dividend is less than the basic rate limit of £35,000 you will pay no further income tax on that income, and no NI Charges. However, larger dividend payments will create an additional tax charge in your hands of 25% (for 40% tax payers) of the net dividend or 36.1% (for 50% taxpayers). If you don't actually need the income now consider extracting the profits in another form such as employer pension contributions although you will have to pay income tax on the pension you eventually receive. You can also charge a rent for assets you own which the company uses. These assets could be real property (land) or intellectual property (e.g.patents). If you lend funds to the company it can pay you a commercial rate of interest on that loan. These profit extraction methods are free of NI charges. We can discuss other methods of extracting profits, perhaps using your family members. Please contact us for specific advice in your own circumstances. |
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| Property Development Issues | ||||||||
| There
are a wide range of tax
issues to consider when developing properties. Here we touch on just a
few of them... - Your own home is normally free of capital gains tax when you sell it, but this tax exemption does not apply if you purchase a property with the intention of developing it and turning a profit. In this case the profit you make could be subject to income tax (at rates of up to 50%) rather than capital gains tax (18% or 28%), as the Taxman will want to view development activity as a trade. It is very rare that the Taxman succeeds in providing the development of a single property is a trade, but if you make a habit of developing and selling on properties, while claiming capital gains exemption, you could lay yourself open to a tax investigation. - Where your property includes a significant amount of land, the profit attributed to the land in excess of half a hectare will normally be subject to capital gains tax. This half-hectare limit can be strectched in circumstances where the land and any accompanying outbuildings are closely related to the main residential building. - When purchasing a run-down property to develop you must think about the cost of VAT. If you are not a VAT registered builder you normally can't reclaim the VAT on the development costs. However there is a scheme that allows DIY builders to reclaim VAT when a non- residential building is being converted into a home. There are a number of other conditions that must be met for this DIY builders scheme to apply. - VAT may be charged at the lower rate of 5% on certain building services when the building has been empty for at least two years, or the development changes the number of dwellings in the building. The rules that allow this lower rate of VAT to apply are very complicated so you need to take advice before you start the development project. If you are looking at property development it is important to get advice before proceeding. |
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| Stamp Duty Land Tax | ||||||||
| The
forms used to report Stamp
Duty Land Tax (SDLT) due on a purchase of UK land and property are
changing. The lead purchaser must now provide an identity number such
as NI number abd date of birth. Where the purchaser is a company the
company's tax reference number (UTR) or VAT registration number should
be used. Partnerships should use their UTR or VAT registration number. If the lead purchaser does not have any of the above reference numbers, as they are not registered for tax in the UK, they should use another unique reference number such as passport number, and state the country of issue of the document. The new forms have been available since 11 April 2011, and will become compulsory from 3 July 2011. The online filing system for SDLT will incorporate the changes from 3 July. The Taxman may well be collecting the additional information for a reason, perhaps to cross-reference to taxpayers files! |
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| Missing Trader Fraud | ||||||||
| This is
a type of VAT fraud
that costs the UK millions of pounds every year. It works like this... A VAT registered company based in the UK purchases small high-value goods (such as mobile phones) in another EU country and imports them into the UK (with zero-rate VAT). The importer then sells those goods at a VAT - inclusive price within the UK. However, before the VAT collected from the UK customers is paid over to HMRC, the importing company is liquidated and its directors disappear (become a missing trader), leaving the VAT unpaid. However, this is not the end of the story, as if you are the UK customer who bought those goods from the fraudulant importing company the Tax Office will block your claim for repayment of the VAT you paid on your purchase. This block can apply whether or not you knew you were part of a fraudulent supply chain. To avoid involvement in a chain of sppliers that includes a criminal trader you should undertake 'know your customer' checks. These involve carrying out credit and identity checks on your supplier, and on the directors of the company. Also check the goods actually exist and are as described (i.e. new goods). You should be suspicious if you are offered a deal that looks very attractive and has any of the following attributes: - The company is newly established and has no financial or trading history. - The company has been acquired recently and the new owners have no previous involvement in your sector. - The company trades from residential or short-term lease property. - Your contacts in that company have poor knowledge of the market and products. - There is no apparent risk for you in the deal. - Repeat deals at the same or lower prices and small or consistent profit. - Instructions to make payments to third parties or into offshore bank accounts. - You are asked to pay much less than the full marker price for the goods. - You are offered an unsecured loan with unrealistic rates and/or terms. |
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| June Question and Answer Section | ||||||||
| Q. In
2009 my
family and i moved out of the home i owned and rented a house near my
daughter's school. i have recently sold the origional home. Do i
qualify for the capital gains tax exemption on that property, even
though i wasn't living in it when it was sold? A. Yes you do qualify for the tax exemption. As you sold your former home within three years of moving out, all of the gain arising on the sale of the property will be exempt from capital gains tax. This assumes you occupied the property for the remiaing period of your ownership. You do not have to declare the gain on your tax return. Q. On 15 April 2011 I receive severance pay of £80,000 equal to my annual salary, but I was suprised that £23,000 was deducted as tax. I was lead to believe the first £30,000 would be tax free and the rest would be taxed at 20%. Can I reclaim the excess tax deducted? A. It is likely that the first £30,000 of your severance award was tax free, if it was a genuine redundancy payment. This is not always the case as a number of strict conditions must be met. In the past when such severance payments were paid after the individual had received their P45 form, a BR (basic rate) tax code was applied to the payment which meant only basic rate tax at 20% was deducted. However, since 6 April 2011 employers are required to apply an OT tax code on a month 1 basis to such severance payments. This means that tax is deducted at the basic, higher and additional rates without the benefit of the personal allowances. The month 1 basis means only 1/12 of the basic rate and higher rate limits for the year are taken into account. The taxable part of your severance payment (£50,000) would have generated a tax deduction of £23,166 using an OT code as follows... Basic rate: 35000/12 = 2916.67 x 20% = 583.33 Higher rate: 115,000/12 = 9583.33 x 40% = 3833.33 Additional rate: (£50,000-9583.33-2916.67) x 50% - 18,750.00 Total = £23166.66 You can reclaim the excess tax charged in your tax return for 2011/12. Q. I''ve received a letter from the Taxman asking for my tax return for the year to 5 April 2010 to be submitted. But I submitted that tax return in September 2010, and I've paid all the tax due for that tax year. Do I have to submit that form again? A. No. The letter you have received from the Tax Office is a mistake. About 40,000 if these standard letters (Notices SA316) have been printed with the wrong tax year: 2009/10 rather than 2010/11. You should receive another notice SA316 asking for the tax return for 2010/11, and a letter of apology concerning the mistake. |
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| June Key Tax Dates | ||||||||
| 19/22 - PAYE/NIC and CIS deductions due for month to 5/6/2011 | ||||||||
| Need Help? | New clients Welcome | |||||||
| Please contact us if we can help you
with these or
any other tax or accounts matters. |
If you are not already a client
and are interested in
becoming one, we would love to come to meet you to discuss how we can
help and provide you with a competitive quote for our services. All new client consultations are provided free of charge and without obligation. |
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MAY 2011 TAX TIPS & NEWS
|
||||||||
| Welcome....
To May's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman. We are committed to ensuring all our clients don't pay a penny more in tax than is necessary. Please contact us for advice in your own specific circumstances. We're here to help! |
May 2011 Higher Penalties for Late Returns Tax Efficient Cars Capital Allowances for Holiday Lets Paying PAYE on Time May Question and Answer Section May Key Tax Dates |
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| Higher Penalties for Late Returns | ||||||||
| Your personal self-assessment tax
return for the year to 5 April 2011 must be submitted to HMRC by 31
January 2012, or by 31 October 2011 if it is submitted in paper form.
These deadlines also apply to your separate partnership tax return
where you are a member of a partnership. For tax returns for earlier years you would recieve a penalty of £100 if you submitted it later than those dates, but that penalty would be reduced to nil if you were due a tax repayment, or all the tax due was paid by 31 January. There was however no reduction for penalties relating to late partnership returns. For 2010/11 tax returns and later years, penalties for submitting the return late will not be reduced even if all the tax due has been paid on time. As well as the initial £100 penalty, there are additonal penalties! If you are... - More than three months late asubmitting your return the penalty is charged on a daily basis at £10 per day, up to a maximum of £900. - Over 6 months late with your tax return you will be hit with an additional penalty calculated as the higher of: £300 and 5% of the tax due. - Over 12 months late, the same penalty is imposed again. When a partnership tax return is submitted late those penalties apply to each partner in the partnership. If you are also late in paying the correct amount of tax you will receive a penalty for paying the tax late. These penalties are calculated as 5% of the outstanding tax due at the following intervals: 30 days late, 6 months late, and 12 months late. In view of these high penalties it is essential that we work with you to get your bill calculated in good time, so you can make the correct payments due and get your return done on time. Please send us the information to complete your accounts and tax return as soon as possible! |
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| Tax Efficient Cars | ||||||||
| There are quite a few types of car
which have CO2 emissions of no more than 110g-km; including certain
models of the Mini Cooper, Toyota Prius, Smart, and Fiat 500. If your
company buys one of these low emissions cars new (not second hand), it
can claim a tax deduction for the
full cost in the year of purchase and for all its running costs.
Where the car is provided to a director or employee of the company for their own private use, or for the use of a member of their family (perhaps for son or daughter), the director/employee will be taxed on 10% of the list price of the car. For example a Mini Cooper 1.6D has CO2 emissions of 104g/km and a list price of £15,730. The director/employee will be taxed on £1,573, per year, and if their top rate tax rate is 40% this will give in an annual tax bill of £629.30. The company will also have to pay class 1A NICs of £217 per year, but that cost is tax allowable for the company. The company can also pick up full cost of all servicing and insurance for the car with no extra tax charges. |
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| Capital Allowances for Holiday Lets | ||||||||
| Do you own a property that qualifies as
a furnished holiday let (FHL)? To qualify the property has to be
commercially let for short periods for at least 70 days per year,
although this minimum will increase to 105 days from April 2012. There
are also some other conditions. If your property does qualify as a FHL, have you claimed tax relief for all the equipment included in and attached to that property? FHL properties have advantageous tax rules that permit captial allowances to be claimed for the cost of equipment used in the building, which is not the case for other let residential property. Since April 2008 it has been easier to claim capital allowances on a range of items attached to buildings that qualify as integral features. For a typical FHL property capital allowances may be claimed on the following fixtures... - Bathroom fittings - Dishwasher - Cooker - Fridge-freezer - Central Heating - Fitted carpets - Swimming Pool For a new property with fitted kitchen, bathroom and carpets that cost £235,000, perhaps £25,000 would relate to the built-in fixtures. In addition you can claim capital allowances on the cost of furniture and curtains you provide in the property. Capital allowances must be claimed in your tax return. A capital allowances claim for the tax year 2009/10 should have been included in your tax return submitted by 31 January 2011, but that return can be amended to include a claim before 31 January 2012. If the property is used for private purposes the capital allowance claim must be amended to reflect that private use. A word of warning: HMRC is considering whether it will continue to accept claims for capital allowances for FHL properties following a Brief it released on 22 October 2010. Clarification of the meaning of this Brief has been requested by the chartered Institute of Taxation, but has not been provided. In the meantime, if you don't claim, you don't get the tax relief. |
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| Payinf PAYE on Time | ||||||||
| HMRC
are encouraging businesses to pay all their taxes electronically. Only
large employers with 250 or more employees, are currently required to
pay PAYE and other payroll deductions to HMRC by electronic means, but
this may become compulsory for all employers from October 2013. Before then let's hope HMRC will sort out their banking to make it easier for employers to pay on time. At present they do NOT operate the Faster Payment Service (FPS) on any of their bank accounts, so you need to allow at least three working days for an electronic payment to reach the HMRC account. This means electronic payments of PAYE must leave your bank on 19th to arrive on 22nd of the month, assuming none of those days falls on a weekend or bank holiday. To reduce the likelihood of PAYE payments going missing HMRC ask taxpayers to always include the Accounts Office (AO) reference on any PAYE payment. HMRC also recommend thayt the year and month the payment relates to should be added on to the end AO reference, without leaving a space. For example, PAYE for month 01 in 2011/12 (due 22 May 2011 for electronic payments), add 1201 to the AO ref |
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| May Question and Answer Section | ||||||||
| Q. My business is to become VAT registered
from 1 June 2011, but before that i will be taking delivery of a piece
of equipment which will be used by the business for a number of years.
Can i reclaim the VAT charged on the cost of the equipment even though
the purchase was made before my VAT registration came into force?
A. Yes you can. VAT on equipment and goods purchased up to 3 years before you became VAT registered can be reclaimed, if you still held that equipment or goods at the date VAT registration became effective. You must also have the origional invoice. You can reclaim the VAT paid on your first VAT return, or on any VAT return within the first three years of becoming VAT registered. Q. Help! I've received two tax calculations from the Taxman that say I owe £4,500 for 2007/08 and £7,200 for 2008/09. I didn't complete tax returns for those years as I was employed in several short-term contracts. What should I do? A. First compare the tax computations. The calculation for 2008/09 probably includes the tax due brought forward from 2007/08, so you may only owe £7,200 not £11,700 (£7,200 + £4,500). Next try to find your P60 and P45 forms, and any payslips for those tax years, and check the figures on those forms against the tax calculations. We can help you with this. Don't worry if you haven't retained those papers as the law only requires you to keep them until 31 January 2010, or 31 January 2011 for the later year. If you had good reason to believe that your tax affairs were in order for 2007/08 you may be able to ask HMRC to write-off the tax underpaid from the year under Extra Statutory Concession A19. You can also ask for the tax for 2008/09 to be collected over 36 months, if it is actually due. Q. Last year my company bought a second hand Mercedes AMG for £68,000. This has proved to be an expensive taxable benefit, so I'm trading it in for a cheaper model. I hope to get about £40,000 in the part-exchange and pay an additional £5,000 for the new car. What capital allowances will my company be able to claim for the old and new cars? A. The Mercedes AMG has CO2 emissions of more than 160g/km so the purchase price would have been added to your company's 10% capital allowances pool. Capital allowances of £6,800 (10% of £68,000) will have been claimed for the first year of ownership. The trade-in value of £40,000 will be deducted from the pool leaving a balance of £21,200 (£61,200-£40,000). The balance will be reduced by capital allowances of 10% for this year, and 8% from 1 April 2012, until the balance is less than £1,000 or company ceases to trade. So it's going to take a long time to get full tax relief for the value of the Mercedes. If your new car also has CO2 emissions of 160g/km or more, the cost of £45,000 will be added to the 10% pool. and annual writing down allowances will be given as for the Mercedes. To avoid this problem with the new cart you could look at either buying it privately, or getting the company to lease it. |
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| May Key Tax Dates | ||||||||
| 1
- New VAT Scale charges for fuel used in private journeys on company
cars. 2 - Last day for cat change notifications in the quarter to 5 April - Use P46 Car 19 - Deadline for Employers' 2010/11 end of year PAYE Returns (P35, P14, P38 & P38A). Penalties for non submission. 19/22 - PAYE/NIC and CIS deductions due for month to 5/5/2011 31 - Deadline for copies of P60 to be issued to employees for 2010/11 |
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| Need Help | New Clients Welcome | |||||||
| Please contact us If we can help you
with these or any other tax or accounts matters. |
If you are not already a client
and are interested in
becoming one, we would love to come to meet with you to discuss how we
can help and provide you with a competitive quote for our services. All new client consultations are provided free of charge and without obligation. |
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