News Archive

Withdrawal of CIS Gross Payment Status

Every month the Taxman's computer reviews the tax records for a number of contractors in the Construction Industry Scheme (CIS) who...

Business Assurance Visits

If the Taxman suggests he should visit your business as part of their Business Assurance programme, should you...

VAT on Google Adwords?

Google Adwords is a popular form of marketing for getting your website onto the Google search results page. It is an international service for VAT purposes as it is sold to UK businesses by...

Deferring a Capital Gain and EIS

We are now in a new regime for capital gains tax where the total of your gains and your taxable income for the year influences the rate of...

August Question and Answer Section

If I transfer my business to a new company will I be able to take advantage of the NIC holiday announced in...

Applying New CGT Rules

The June Budget introduced some complex changes to capital gains tax (CGT) that apply from 23 June 2010. For disposals made on or after that date there are now three alterative...

Giving Shares to Employees

There are a number of approved share schemes that a company can use to provide its employees with shares in the company they work for, or options to buy those shares at a favourable price...

VAT Online - are you ready?

Compulsory online filing for VAT returns is here. The first period for which an established business with a turnover of £100,000 or more is required to submit their tax return online...

Young People and Taxes

The summer is here and the exams are over, so many young people will be leaving school or college this month to take their chances in the jobs market.

July Question and Answer Section

Q. My company has bought a classic motorcycle as an investment. Can it claim a tax deduction for the cost?

July Key Tax Dates

5 Deadline for PAYE settlement agreement for 2009/10. 6 Deadline for 2009/10 forms P11Db, P11D and P9D

Summary

We all knew that Chancellor George Osborne was going to announce an increase in Capital Gains Tax (CGT) today, but we didn't expect the rate to rise immediately...

Individuals

The rate of CGT is to increase from 18% to 28% from 23 June 2010, but taxpayers with taxable income and gains below £37,400 will continue to pay CGT at 18%...

Businesses

The small profits rate of corporation tax will be cut from 21% to 20% from 1 April 2011, when it was previously expected to increase to 22%...

Changes in Capital Gains Tax

The Coalition Programme for Government, published on 20 May 2010 contains this pledge

Other Tax Changes Ahead

The Coalition Programme for Government also contains a number of other proposed tax and law changes that may impact on you or your business if they come to pass

Post Credibility Team

This is the new name for the VAT investigations unit! This new unit is sending out computer-generated letters to businesses who have claimed a refund for the last VAT period or periods

PAYE Codes for 2010/11

We have heard that the Taxman has almost finished sorting out the mess his new computer made out of the 2010/11 PAYE codes

June 2010 Question and Answer Corner

June 2010 Key Tax Dates

Furnished Holiday Lettings Saved!

For the last 12 months we have been warning you that the favourable tax concessions for furnished holiday lettings (FHL), would end on 6 April 2010.

New Penalties for late PAYE

From this current tax year the Taxman can impose penalties if you are late in paying over the payroll and CIS deductions you make in the tax year.

Commercial Property Losses

Normally a loss arising from letting of commercial or residential property, can only be carried forward to set against profits from that same property business...

New VAT Partial Exemption Rules

Some VAT registered businesses make sales that are exempt from VAT as well as sales that are subject to VAT at the standard, lower or zero rate.

May 2010 Question and Answer Corner

May 2010 Key Tax Dates

Company Car and Van Changes

VAT Payments and New Penalties

New Rateable Values from 1 April

New Employment Regulations

There are a host of new employment related regulations coming into force on 6 April 2010.

April Question and Answer Corner

April Key Tax Dates

Budget March 2010 - Business Tax

Budget March 2010 - Individuals

Budget March 2010 - Pension Contributions

Budget March 2010 - Stamp Duty Land Tax

Budget March 2010 - VAT

Budget March 2010 - Tax Avoidance

How to Keep Accounting Records

The Taxman is very keen for all businesses and individuals who need to submit a tax return, to keep complete and accurate records.

Filing VAT Returns Online

You may have recently received a letter from the VATman that officially notifies your company or business to file its VAT return online, or face penalties.

Time Runs Out for Tax Claims

For as many years as we can remember individuals have had six years from the end of the tax year to claim most allowances and tax reliefs in respect of that tax year, (some tax claims have to be made within two years).

Changes to the EC Sales List

If you regularly sell goods to VAT-registered businesses in other countries you will be familiar with the form VAT 101, also known as the EC Sales List.

March 2010 Question and Answer Corner

March 2010 Key Tax Dates

Errors in New PAYE Codes

The Taxman has started to issue the 2010/11 PAYE codes, for the tax year that starts on 6 April 2010.

Doctors and Dentists Asked to Confess

In our January newsletter we told you about the Taxman's crackdown on undeclared commissions.

Adding Overseas Purchases to Sales

If your business is not VAT registered you need to keep a 12-month rolling total of your sales...

When is Your PAYE Due?

This is an easy question - all PAYE and NIC deductions...

February 2010 Question and Answer Corner

February 2010 Key Tax Dates

Time to Pay Your Tax!

January is the month when those big bills become due for payment, and that includes your tax bills...

The Capital Gains Dilemma

The Government needs to raise more revenue to pay off the massive national debt, but it seems reluctant to announce higher tax rates.

Reclaiming Overseas VAT is Now Easier

At last a solution has been found to the problems businesses face when trying to reclaim overseas VAT.

Are You Declaring Commissions?

Insurance companies often pay commissions to professionals who recommend certain insurance policies to their clients.

Question and Answer Corner Jan 2010

Key Tax Dates for January 2010

Tax Deductions for Franchise Fees

One of the easiest ways to step into the world of business is to acquire the right to operate a franchise.

Christmas Gift Time Mr Taxman!

Many firms are foregoing expensive Christmas parties this year and as an alternative are giving small seasonal gifts to staff and customers.

Avoid the Higher VAT Rate

The standard rate of VAT is due to rise from 15% to 17.5% on 1 January 2010.

Tax Relief on Accountant Fees!

Certain MPs got into hot water recently for including the cost of preparing their personal tax returns in their expense claims.

Question and Answer Corner December 2009

Key Tax Dates for December 2009

Beware of Verbal Tax Advice

Tax is complex! It is not always clear which particular tax, or what rate of tax applies to a transaction.

Tips and Service Charge Changes

From 1 October 2009 tips, gratuities, and services charges cannot form part of the national minimum wage...

What to do When a Customer Goes Bust

In these troubled times the failure of one business can have a knock-on effect on its suppliers.

New Chance to Claim Benefits

If your income has dropped in the current tax year...

Question and Answer Corner November 2009

Key Tax Dates for November 2009

VAT Option to tax – 20 Years are up!

On 1 August 1989 the VAT law was changed to permit property owners to elect for specified buildings to be subject to VAT at the standard rate.

Late Tax Return & Payment Penalties

Late Tax Returns: Your personal tax return for the year to 5 April 2008 should have been submitted to the Tax Office by 31 January 2009 at the very latest.

New Company Forms from 1st October

When something changes with the set-up of your company, such as a new director, change of company name or registered office address, you need to fill in a form and send it to Companies House.

Transfer Investment Property to Stock

The property markets in all sectors have been through terrible times lately...

Question and Answer Corner October 2009

Key Tax Dates for October 2009

2nd Offshore Tax Amnesty Announced

If you live in the UK you should declare on your UK tax return all of the interest you receive from investments and deposit accounts situated anywhere in the world.

When is Paying a Dividend 'illegal'?

A dividend may be 'illegal', in that it is contrary to Company Law, when the proper procedures are not followed.

Correcting VAT Errors

Where you find an error in your VAT records, which has already been included in the figures reported on a VAT return, don't panic.

Giving Shares to Employees 2009

Dividends do not carry a NI charge for the paying company or for the recipient.

Question and Answer Corner September 2009

Key Tax Dates for September 2009

Flipping Houses

If you own and occupy more than one property as your home you can elect, within a set time period, for one of those properties to be your main home for tax purposes.

Budget For Your Tax Bill

If you are self-employed it can be a struggle to have enough money to pay the two instalments of your tax bill for the year due on 31 July and 31 January.

When is a Pick-Up a Van?

Certain pick-up trucks and other commercial-type vehicles are built to very high comfort standards these days, so a pick-up or 'van' can easily be used as the main family vehicle. In which case does the company owned van become a company car?

Beware Tax Email Scams

Many people are currently waiting for a tax rebate from the Tax Office, as they have claimed for losses to be set against an earlier year's income.

Question and Answer Corner Aug 2009

Key Tax Dates for August 2009

Tax Savings of Incorporation

You can still save tax by operating your business through a company rather than as a sole trader or partnership, but the level of tax savings will depend on the range of salary, dividends and benefits that you want to take out of the company.

Are You Trading in Properties?

Low property prices are tempting some people to acquire residential properties to develop and sell when the market improves.

Company Cars Getting More Expensive

If you drive a company car you need to keep an eye on the tax you pay for using the vehicle, as this is likely to increase year on year.

Tips for Quick VAT Registration

There are a number of reasons why you would want to, or need to, register for VAT quite quickly.

Question and Answer Corner July 2009

Question and Answer Corner

Key Tax Dates for July 2009

Car Scrappage Scheme Tax Implications

The car scrappage scheme, which was launched on 18 May 2009, also applies to small vans that weigh up to 3,500kg.

Claiming Tax Relief on Overseas Property

In our Budget newsletter we mentioned that UK residents could now make claims for tax reliefs associated with furnished holiday let property situated in other EEA countries.

Credit Crunch Tax Credit Protective Claims

You know the tax system is crazy when the Taxman encourages you to claim a benefit, which you don't currently qualify for, just in case you do start to qualify for the payment later in the tax year.

Beware the VAT Threshold

Even if your business is not registered for VAT, you need to be aware of the point where your total sales require you to become VAT registered.

Question and Answer Corner June 2009

Key Tax Dates for June 2009

How to Avoid the New 60% & 50% Tax Rates

The 60% tax rate will apply to the portion of taxable income falling between £100,000 and approximately £113,000, due to the gradual reduction in the basic personal allowance between these thresholds from 6 April 2010.

New NI Threshold to Record

We are now into the new tax year and you may be recording the first salary payments for 2009/10.

P11D Forms and Dispensations

It's time to start work on those tiresome forms P11D to report expenses and benefits paid to employees and directors in the year to 5 April 2009.

HMRC Bank Account Changes

HMRC has changed some of the bank accounts it uses to receive tax payments and repayments of overpaid tax credits.

Question and Answer May 2009

Question and Answer

Key Tax Dates for May 2009

Individuals - April Budget 2009

Tax changes and details for Individuals

Business Tax - April Budget 2009

Business Tax details

Company Cars - April Budget 2009

Campany Car tax changes

VAT - April Budget 2009

VAT changes

Property - April Budget 2009

Property tax changes

Tax Avoidance - April Budget 2009

No Budget would be complete without announcements designed to discourage those that deliberately evade tax.

Traps in the VAT Flat Rate Scheme

The Taxman likes to encourage small businesses to join the flat rate VAT scheme.

The Service Company Question

It's time for employers to complete the annual form P35, and this year section 6 of part 3 is causing confusion once again.

Car Benefit Changes from 6 April

Company cars still used by company directors, sales representatives, car dealership staff, and certain disabled workers.

Giving to Charity Tax Efficiently

It's the London Marathon this month and thousands of people will be running to raise money for their favourite charities.

Question and Answer Corner April 2009

Question and Answer Corner

Key Tax Dates for April 2009

Top 10 Year End Tax Planning Tips

Sunday 5 April 2009 is the last day of the current tax year, and many small businesses choose either 5 April or 31 March as the end of their accounting year.

Budget Day will be 22 April 2009!

Normally March is the month in which Budget is presented, during which he announces the tax rates and thresholds for the coming tax year.

New Penalties from April 2009

The Taxman is getting tougher on taxpayers, businesses and employers, who make mistakes on tax returns, VAT returns and other forms such as P11Ds, and PAYE end of year returns which must be submitted to HMRC. From April 2009 there is a new system of penalties, which will be calculated as a percentage of the potential lost revenue that arises from the mistake.

Why Pay the National Minimum Wage?

If your business is under pressure to keep costs low, you may be tempted to pay the least possible wage you can get away with.

Question and Answer Corner March 2009

Questions and Answers in March 2009

Key Tax Dates for March 2009

Key dates for March 2009

New Companies House Late Filing Penalties

It's more important than ever to get your books and records into us on time because from 1st February 2009 private companies that fail to file their accounts on time will face increased fines.

Sharing Family Rental Income

In these difficult times it makes sense to share out the family income as much as possible so all the family's tax free allowances are fully used.

Dividend Planning

If you run your own company one way to share the dividend income around the family is to ensure that each family member owns some shares in the company, so they can receive dividends voted on those shares.

Save Tax on Winding up a Company

It is often not quite as easy to close down a limited company, as it is to set one up.

Question and Answer Corner Feb 2009

Q & A in Feb 2009

Key Tax Dates for February 2009

Key dates for your diary in Feb 2009

Overdrawn Directors Loan Account Issues

If you borrow funds from your own company or get it to pay personal bills on your behalf, there could be additional tax bills for both you and the company unless you repay that money to the company quickly.

Tax Help for Losses and Falling Sales

If your sales have dropped and costs have risen, you may be making a loss. This is not a disaster, but you should take action soon to get the best out of the tax system at this difficult time.

Planning January 31 Tax Payments

Remember remember 31 January, because that's when your biggest tax payment is due, particularly if you are self-employed. You will need to pay any balance of tax due for 2007/08 by that date, and at the same time make the first payment on account for the tax due for 2008/09.

Being Taxed on your Keyman Policy?

Many small businesses take out keyman policies designed to pay out on the death or incapacity of a key person, such as a lead director. The premiums paid for such policies are only tax allowable as a business expense if all of the following conditions apply:

Question and Answer Corner Jan 2009

Questions and answers

Key Tax Dates for January 2009

Changes to Capital Allowances for Cars

The Pre-Budget Report has clarified the future tax relief available on the purchase of cars and motorcycles.

Claiming Small Business Rate Relief

Are you missing out on a reduction in your business rates? The small business rate relief scheme (SBRR) can reduced your business rates by over 50% if your building has a rateable value of less than £5,000.

Increase Your Pension Fund Value

The recent downturn in world stock markets has reduced the value of many pension funds. If you are nearing your expected retirement date you may well want to boost the value of your pension fund for it to have sufficient future income to pay out the required level of pension.

Statutory Sick Pay Changes

Some of the rules and forms for statutory sick pay have changed recently, so make sure you have the right forms to hand when the winter flu hits your office.

Question and Answer Corner December 2008

Question and Answer Corner

Key Tax Dates for December 2008

Key Tax Dates for your diary in December 2008

VAT Rate Reduction

In order to boost consumer spending across all sectors the standard rate of VAT will fall from 17.5% to 15% for a limited period from 1 December 2008 to 31 December 2009, when it will return to 17.5%, as the Chancellor predicts that the recession will be almost over by then.

Small Business Issues

Issues that small business owners need to know.

Personal Tax Changes

Income tax & allowances changes and information

National Insurance Changes

There is no immediate change in the main rates of class 1 employers and employees national insurance from 6 April 2009.

Other Taxes Changes

Business Rates, Car Tax & Excise Duties

10 Ideas to Crunch the Credit Crunch

If your business is feeling the pinch in this general economic downturn, it's more important than ever to look at what you can do to help your business.

Losses on Property Lets

With increased interest rates, losses on property lets may be increasing, so it's worth taking a look at how those losses are treated for tax purposes.

VAT Problem for House Builders

In the present climate where house builders are stuck with properties they can't sell, they may be tempted to rent them out.

Using Losses in a Group of Companies

Although single companies can normally only carry losses forward, where there are several companies in a group the losses made by one company can be set against profits made by other companies for the same year.

Question and Answer Corner Nov 2008

Your new questions answered

Key Tax Dates for November 2008

Dates to remember for November 2008

Contractors Beware Dragonfly Case

Many independent workers offer their personal services through their own companies for a variety of reasons. They don't want to be tied into one company as an employee, and using their own limited company allows them to have more control over the tax they pay.

Changes in Company Law Companies Act 2006

Not all the changes come in at once, as the regulation enactment dates of 6 April and 1 October are being used to gradually implement the changes between 2007 and 2009. This is a summary of the latest changes that will affect you.

New Tax Return Deadline

Halloween is particularly scary this year as it brings a new Tax Return deadline.

Telling Authorities About Changes

When you make changes to your company you need to tell Companies House and sometimes also HMRC.

Question and Answer Corner

VAT Threshold, Stamp Duty

Key Tax Dates for October 2008

Dates to remember for October 2008

Top Accountancy Prize to Jeff Cheung

Jeff Cheung of Leftley Rowe and Company based in Harrow, has won the ICAEW Knox Prize for his performance in the 2008 Professional exams.

Cycle to Gold - Less Tax!

Inspired by the efforts of our cycling squad at the recent Beijing Olympics?

How to Gift a Property

Let's say you are feeling generous, and want to share your wealth with your children. A gift on the occasion of a forthcoming birthday would seem like an ideal time to do so. However, gifts of assets are not generally free of Capital gains Tax (CGT) if their market value exceeds the value of the cost to the donor (you).

VAT - Checking the Numbers

Having an invalid VAT number amongst your documentation when the VATman investigates can be a costly problem. However, there are ways to minimise this risk.

Getting More out of Mileage Rates

In our August newsletter we reminded you about tax and NI free mileage rates for using your own car for business journeys. However, questions about mileage are still very topical given recent rises in running costs. How can you maximise a tax-free payment from your company?

Question and Answer Corner

National Minimum Wage, Stamp Duty and Business meetings

Key Tax Dates for September 2008

Dates to remember this month

Getting Your Business to Pay for Your Holiday!

It's holiday time and you may be tempted to get your limited company to pay for some or all of your holiday costs.

Dealing with the Changed Personal Allowance

The announcement by the Chancellor Alistair Darling about the changes to the personal allowance and the basic rate tax limit for 2008/09 took HMRC by surprise as much as everyone else.

Selling Your Business – the VAT Implications

Notes on the VAT implications of selling your business

Mileage Expenses below 40p per Mile

If you receive less than 40p per mile from your employer for using your own car on business journeys you can claim the extra back from the tax office.

Question and Answer Corner August 2008

intestacy laws and wills, serious accident and incapacity benefit, personal capitol gains tax

Key Tax Dates for August 2008

Dates to remember this month

Mileage Expenses and Rocketing Fuel Prices

Fuel prices are rocketing, so employees are increasingly reluctant to use their own cars for business journeys.

Planning to Sell Your Company?

The process of selling an established business can take some time. Even when you find a buyer the negotiations over exactly what will be sold can be drawn out.

£50,000 Annual Investment Allowance

All businesses can now claim a 100% allowance for items of equipment, including vans and trucks, but not cars, purchased from 1 April 2008, or from 6 April 2008 for unincorporated businesses.

Protect Your Pension Fund

The taxation of pensions changed on A Day: 6 April 2006. From that date a cap (the so-called lifetime allowance) was set on the value of a pension fund that can be used to pay out tax favoured pensions, including a tax free lump sum of up to 25% of the fund.

Question and Answer Corner July 2008

Questions and Answers

Key Tax Dates for July 2008

Key dates for your diary

Impact of Revised 2008/09 Tax Allowance

Although the changes in income tax rates (abolishing the 10% rate and reducing the basic rate from 22% to 20%) were announced in March 2007, most people took very little notice at that time. When the new rates took effect in April 2008 there was an almighty fuss....

Taxation of Non-Doms

There has been much discussion in the quality newspapers about the taxation of wealthy non-doms, but what does that mean?

Changes to Correcting VAT Errors

When you make an error in your VAT return, you can include the under or overpayment of VAT in your next VAT return, as long as the net error is not more than £2,000.

VAT on Pre-Incorporation Expenditure

As you prepare to set up your company you may buy assets ready for that company to use, or pay for services such as legal or accountancy, that relate to the new business.

Question and Answer Corner

A few questions answered this month.

Key Tax Dates for June 2008

A few dates for your diary this month.

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