News Archive
Is Your Payroll Information 'Clean'?
The Taxman is asking all employers to spring-clean their payroll data to prepare for...
Online VAT Filing Compulsory
Are you already filing your VAT returns online? If not, then you need to prepare to switch to online filing as this will be compulsory for...
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 Numbers for 2012/13
Tax rates and thresholds for 2012/13 have been announced as follows...
January Question & Answer Section
I want to close down my consultancy company and pay the funds it holds to me as the only shareholder. Should I wait until the...
January Key Tax Dates
Deadline for filing 2011 Self Assessment personal, partnership and trust Tax Returns...
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...
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...
Pension Lifetime Allowance Decrease
There is another change due in April 2012 that will affect tax relief for pension contributions. The Lifetime Allowance...
Using VAT Groups
Do you control several companies, or own one company, which in turn controls several other companies? You could save...
December Question & Answer Section
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...
December Key Tax Dates
19/22 - PAYE/NIC and CIS deductions due for month to 5/12/2011
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...
Teachers to Tell All
The Taxman has launched another campaign to encourage people to pay tax on income they have previously omitted from their...
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...
Reclaiming VAT
Before you can reclaim VAT on goods and services you have bought you need to...
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...
November Key Tax Dates
19/22 - PAYE/NIC and CIS deductions due for month to 5/11/2011
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...
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...
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...
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...
October Question & Answer Section
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...
October Key Tax Dates
Due date for payment of Corporation Tax for the year ended 31 December 2010
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...
Business Exit Planning
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.
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...
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.
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.
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
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.
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'.
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.
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.
August Question and Answer Section 2011
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?
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
Web Bots Are Out to Get You!
The Taxman has announced he is going to start targeting tax evasion by online traders, private tutors...
What if You Dont Pay Your Tax!
July is one of those big tax-paying months...
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...
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...
July Question and Answer Section
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...
July Key Tax Dates
Deadline for PAYE settlement agreement for 2010/11
Tax Efficient Profit Extraction
As a company owner you can choose 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.
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...
Why Stamp Duty Form Changes?
Stamp Duty Land Tax (SDLT) forms have changed, but why?
Missing Trader Fraud
This is a type of VAT fraud that costs the UK millions of pounds every year. It works like this...
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 original home...
June Key Tax Dates
19/22 - PAYE/NIC and CIS deductions due for month to 5/6/2011
Higher Penalties for Late Returns
Your personal self-assessment tax return for the tax year to 5 April 2011 must be submitted to HMRC by 31 January 2012, or by 31 October 2011...
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...
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...
Paying 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...
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...
May Key Tax Dates
New VAT Scale charges for fuel used in private journeys on company cars.
Plumbers Tax Safe Plan
The Taxman has launched a new tax disclosure opportunity called the Plumbers Tax Safe Plan (PTSP). It is aimed at plumbers and heating engineers who have...
Changes to NIC Class 2 Payments
As a self-employed person you probably pay your class 2 NIC, (formerly known as 'NI stamp') by monthly direct debit, or when the quarterly bill arrives from...
PAYE Notices are Coming
The Tax Office has started to issue electronic PAYE code notices (forms P9) to employers for 2011/12. If you have provided an...
New Pensioners to Receive Tax Bills
If you first received your state pension after 5 April 2010 you may have to pay an unexpected tax bill...
April Question and Answer Section
Q. I generally invoice about £5,000 per month, some £60,000 per year, so my business is not yet VAT registered. However, from 1 April a new...
April Key Tax Dates
5 - End of 2010/11 tax year. Last day to use up your annual exemptions for capital gains tax, inheritance tax and ISA's...
Taxman Starts Business Records Check
The Taxman is concerned that many small businesses are not keeping adequate records to support the entries on their tax returns...
Taxman to Hassle Tax Cheats
In addition to the 50,000 letters being sent about keeping business records, the Taxman is writing to 12,000 self-employed people who claim...
Traps with the Flat Rate VAT Scheme
The VAT flat rate scheme for small businesses is generally straight-forward to operate, but here are a few traps...
Leaving it to Charity
If you haven't made a Will, you should do so without delay. If you don't have any...
March Question & Answer Section
Q. I've been told I will have to pay all my business taxes online very soon. How can I do this if...
March Key Tax Dates
19/22 - PAYE/NIC and CIS deductions due for month to 5/3/2011
More PAYE Reconciliations
In October and November last year we told you the Taxman was issuing 6 million tax reconciliations (forms P800), for the tax years 2008/09 and 2009/10. This process is still not complete, but the Taxman has started to issue a further 450,000 forms P800 for the tax year 2007/08.
Changes to Tax Credits
The system of Child and Working Tax Credits is due to be reformed over the next few years, and it is expected a new benefit called Universal Credit will replace the familiar Tax Credits from April 2014.
How to Challenge a VAT penalty
If you receive a VAT penalty, perhaps because you have submitted your VAT return late, the Taxman should offer an independent review of the penalty.
Clamp-down on Loan Schemes
There are a number of tax saving schemes marketed to freelancers and contractors, but these schemes can be sensitive to changes in the tax law. One such scheme that involves loans made though particular trusts (known as EBTs) has recently been taken off the market by various suppliers.
February Question & Answer Section
Q. My husband inherited a house in 1986 when it was worth £40,000. He gave me a half share in the property in 2009 when it was worth £450,000. We sold the property in December 2010 for £460,000, but we never lived there. How do I calculate my share of the profit?
February Key Tax Dates
2 - Last day for car change notifications in the quarter to 5 January - Use P46 Car
Associated Company Changes
Companies controlled by the same people plus their relatives are counted as 'associated' for corporation tax purposes...
Furnished Holiday Lettings Changes
Furnished holiday lettings have some specific tax advantages. On 9 December 2010 the Government released draft tax legislation that is expected...
Take Care with VAT
The VATman expects all businesses to take reasonable care when completing their quarterly VAT returns. If you make a mistake...
Tax Numbers for 2011/12
The tax rates for 2011/12 have been frozen at the 2010/11 levels but the threshold at which the 40% tax rate is applied is reduced to £35,000. This introduces a subtle tax increase...
January Question & Answer Section 2011
My employees earn an average of £490 per week, how much more NI will I have to pay for each employee from April 2011?
January Key Tax Dates 2011
Due date for payment of Corporation Tax for the year ended 31 March 2010
2010 Autumn Statement
The Chancellor George Osborne delivered his Autumn statement on 29 November 2010, but this was NOT a Pre Budget Report full of tax information as we had come to expect from Gordon Brown.
Business Tax Changes 2011/12
The small profits rate of corporation tax will fall by 1% to 20% from 1 April 2011.This rate applies to profits of up to £300,000 if there are no associated companies.
Personal Tax Changes 2011/12
The tax-free personal tax allowances for 2011/12 have not been announced but we do known that the tax free allowance for those aged under 65 will be at least £7,475
December Question & Answer Section
Q. My family has invested in rental properties over a number of years. Some properties are held in my name alone, others are owned jointly with my sister.
December Key Tax Dates
19/22 PAYE/NIC and CIS deductions due for month to 5/12/2010
It's Christmas Time Mr Taxman!
It's that time of year when staff parties abound, and you may be thinking of handing out small seasonal gifts to employees, customers or suppliers. Before you get too generous, make sure you know the tax implications.
Planning for the VAT Increase
We know the standard rate of VAT will increase on 4 January 2011 from 17.5% to 20%, but will your business be ready?
Pension Changes Ahead
The Government wants to restrict the amount of tax relief claimed for making pension contributions. This will now be achieved by restricting the annual allowance for everyone to
Update on PAYE 'Errors'
The Taxman's new computer has been busy reconciling the PAYE records for millions of people for the 2008/09 and 2009/10 tax years. About 4.7 million of these calculations have led to under or overpayments of tax
Refund of Overseas VAT
From 1 January 2010 you were able to reclaim VAT incurred on business expenses in other EU countries, by using the online portal set up by HMRC.
November Question & Answer Section
Q. I incorporated my business last year, but I haven't got round to opening a bank account in the company's name.
November Key Tax Dates
2 Last day for car change notifications in the quarter to 5 October
Taxman Brings in the Heavies
The Taxman has hired four debt collection firms to help collect an additional �140 million of unpaid taxes each year. Those firms are...
National Minimum Wage Changes
In the current recession you may have been forced to freeze or even reduce wages. If your workers are low paid you must be careful that...
PAYE 'Errors'
You have no doubt heard on the news about the PAYE 'errors' affecting millions of people this autumn. The underlying problem is not new - the PAYE system...
Tell the Taxman Now
Did you know you could be landed with a penalty if you fail to tell the Taxman when you become liable to pay tax? For example, when you become self-employed...
October Question & Answer Section
Q. As I was made redundant last year I decided to take time out and build my own house. A neighbour told me I could claim back the VAT on my costs, even though I...
October Key Tax Dates
1 Due date for payment of Corporation Tax for the year ended...
Cycle to Work Scheme Update
The cycle to work scheme allows employers to lend cycles to their employees tax-free, and in some cases the employees can purchase the cycle at the end of the loan period. However, the Taxman is looking carefully at abuses of this scheme...
Dividend Planning for Tax Credits
It is sometimes suggested that Child and Working Tax Credit awards can be maximised if the family's income is low in one year and high in...
Maximum NI Contributions
The cycle to work scheme allows employers to lend cycles to their employees tax-free, and in some cases Before the General Election NI was referred to as a 'tax on jobs', and essentially it is a tax, as once you have sufficient NI contributions to qualify for state benefits any extra payments will not entitle you to further benefits...
VAT Rates and Refunds
VAT can be very complicated at times! Most goods and services carry VAT at the standard rate, which is currently 17.5% and is due to increase to 20% on 4 January 2011. However...
September Question and Answer Section
Q. The Taxman has told me I owe him �3,300, and I must pay at least �200 per month or a distraint order will be served. I can only manage to pay �150 per month, so what happens...
September Key Tax Dates
19/22 PAYE/NIC and CIS deductions due for month...
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 was 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 Question and Answer Corner
June 2010 Key Tax Dates
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 Question and Answer Corner
May 2010 Key Tax Dates
May 2010 Key Tax Dates
Company Car and Van Changes
Company Car and Van Changes
VAT Payments and New Penalties
VAT Payments and New Penalties
New Rateable Values from 1 April
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 Question and Answer Corner
April Key Tax Dates
April Key Tax Dates
Budget March 2010 - Business Tax
Budget March 2010 - Business Tax
Budget March 2010 - Individuals
Budget March 2010 - Individuals
Budget March 2010 - Pension Contributions
Budget March 2010 - Pension Contributions
Budget March 2010 - Stamp Duty Land Tax
Budget March 2010 - Stamp Duty Land Tax
Budget March 2010 - VAT
Budget March 2010 - VAT
Budget March 2010 - Tax Avoidance
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 Question and Answer Corner
March 2010 Key Tax Dates
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 Question and Answer Corner
February 2010 Key Tax Dates
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 Gain 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
Question and Answer Corner Jan 2010
Key Tax Dates for January 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
Question and Answer Corner December 2009
Key Tax Dates for 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
Question and Answer Corner November 2009
Key Tax Dates for 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
Question and Answer Corner October 2009
Key Tax Dates for 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
Question and Answer Corner September 2009
Key Tax Dates for 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
Question and Answer Corner Aug 2009
Key Tax Dates for August 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
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
Question and Answer Corner June 2009
Key Tax Dates for 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
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
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
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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