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If you spend any length of time working abroad, you may be used to the idea that such periods, provided they cover a full tax year, are periods of non-UK residence, and that HMRC are not interested in your income while you are out of the country. What happens is that the year in which you leave and the year in which you return are effectively split into two parts for tax purposes, so that any overseas income after you leave and before you return falls out of the UK tax net. What has changed? On the surface, not a lot: if you work abroad for more than a full tax you will still be non-resident, and split year treatment can still be claimed – in fact it is......Read More
At the start of a new tax year, many things change, and this year is no exception. From 6 April 2013 the government has introduced a new “simplified” accounting system for small businesses – in most cases, this will be where turnover is below the VAT threshold, but where tax credits are being claimed, the new system may be applied in cases where turnover is twice that level. Under the new system it will be basically a matter of recording cash in and cash out, and/or claiming fixed rate expenses for certain costs such as motor expenses – on the face of it, a much simpler way of working out your profits. However as always there are winners and losers under these changes, and as they are......Read More
Late tax return penalty warning If you still haven’t submitted your 2011/12 tax return online you could be hit with more penalties. Anyone who hasn’t submitted their 2011/12 tax return by 30 April could incur a daily penalty of £10 for each day the online return is late. This can be charged for up to a maximum of 90 days. With the additional £100 late-filing penalty which was charged at the end of January gives a total of £1,000 in penalties. If the return is not submitted online by the end of July 2013 then a further penalty of at least £300 will be issued. Do not leave filing your tax return any longer. These penalties are an unnecessary cost which can be avoided. The Tax......Read More
Do you own a property which you let out, but never thought to let HM Revenue & Customs know about it? Be warned, the latest taskforce set up by HM Revenue & Customs is targeting Landlords. This specialist team is to focus on the so-called ‘accidental landlord’, or people with buy to lets. If you have tried to sell your house but were unable to and decided to rent it out, or had to move due to work commitments and decided to rent out your home instead of selling then you could unwittingly become a target for HM Revenue & Customs. Did you know that if your mortgage payment equals the rent you receive there could still be a taxable profit because HM Revenue & Customs only allows......Read More
RTI, or Real Time Information, is a new method of PAYE (Pay As You Earn), which will involve employers filing information online every time they pay employees. This new process will replace the old one of reconciling payments made throughout the year and submitting them annually on the traditional P14 and P35 year-end forms. There are numerous new RTI-ready software packages available to help businesses cope with the new system, and the HMRC have a handy list of recognised products to help you choose the one that’s right for your business. The new method is being rolled out to businesses on April 6 th 2013, and will eventually become mandatory for all businesses in October 2013. When a small business completes its first payroll run using RTI, this initial FPS......Read More
HM Revenue & Customs have produced a six month timetable for their investigation into tax evasion by wealthy individuals entitled " Closing in on Tax Evasion ". In addition to this, HMRC’s ‘affluence unit’ has announced that it is now targeting individuals with assets and property worth £1 million, having previously focused on those with £2.5 million or more. According to an article on Accounting Web, " PAC: Tax schemers run rings around HMRC ", the House of Commons Public Account Committee have accused HMRC of not coming down hard enough on tax avoidance schemes. The PAC chair, Margaret Hodge, quoted from a recent NAO report that suggested that £5 billion a year is kept from the Exchequer as a result of these schemes, and that an estimated backlog......Read More
It appears that HMRC have introduced a ‘VAT Outstanding Returns Campaign’. This entails chasing upwards of 50,000 businesses who have failed to submit all their VAT returns. Businesses have been given until the end of February to file any missing VAT returns and pay the outstanding amounts. The outcome of not doing this is that they will be more closely scrutinised or to quote the HMRC website “your tax affairs will receive closer attention” Sounds like a threat to me! HMRC are relentless in their pursuit of all things tax and small businesses are persistently targeted. I am not going to get on my soap box about the recently exposed larger corporations who have, for whatever reason, avoided paying their taxes. Suffice to say it is a reality......Read More
With the High Income Child Benefit Charge (HICBC) coming into force in the new year, families where one or more parents earn in excess of £50,000 will need to decide if they wish to opt out of receiving Child Benefit. The HICBC is unfair as families where both partners earn £49,000 each can still receive Child Benefit, but a family with only one earner who is paid £51,000 will have their Child Benefit reduced on a sliding scale. There is one saving grace however; the £50,000 threshold is adjusted taxable income and there are several ways to reduce this for the current and future tax years. If you would like more information please call us on 0800 1958048 or submit an online enquiry form. ...Read More
The "payslip" for Carlos Tevez has sent twitter fans all of a flutter. Is it real or not? As far as we can see it appears to be on a genuine payslip, but whether the figures are correct remain to be seen. It does make me wonder though. If it is real... what impact would a £24.00 FA Fine have on someone earning £7.9 million! If he were my client I would certainly want to talk to him about his benefits and tax, as we would definitely reduce both of these. ...Read More
Follow the link to hear Danny, a small business owner, describe how he was investigated by HMRC and chased for money he did not owe: Man describes how he was chased for money he did not owe Being investigated by HMRC can be time consuming, expensive and traumatic, but having the right support and guidance can help you to achieve a favourable outcome. We have years of experience in dealing successfully with situations such as this and we would be happy to discuss your individual circumstances without obligation. Contact us on 0800 1958048 or via e-mail to find out how we could help you. ...Read More
It is such a busy time of year, with Christmas around the corner, presents to give and receive and parties to organise and attend, but it is important to remember the mundane things that still need to be organised around the festivities – like your tax return. As a business owner, you probably know that you need to complete a tax return and that the deadline for doing so and for paying any tax that you owe is midnight on 31 January 2012, otherwise you will be asked to pay a penalty. You’ve already missed the deadline for filing your return using a paper form, so you will need to submit your details using HM Revenue & Customs (HMRC)’s Online Services instead. Before you can do this you will need......Read More
Anyone who provides teaching or coaching services without paying any tax on the money that they earn is being given the opportunity to inform HMRC of their situation to avoid potential penalties and criminal prosecution. Tutors and coaches are the latest in a long line of professionals who are being targeted by HMRC to bring their tax affairs up to date on the best possible terms by voluntarily making HMRC aware of what they owe before the deadline. Those who intend to make a disclosure must inform HMRC by 6 January 2012 and provide the necessary information and appropriate payment by 31 March 2012. The benefits of reporting your situation to HMRC in this way include paying a lower penalty or possibly avoiding paying one altogether and spreading your overdue......Read More
If you are a dentist, did you know that by incorporating your dental practice, you may be able to completely avoid paying dentists’ income tax for ten years? Saving money and protecting your assets could be easier than you think if your practice was registered as a Limited Liability Partnership (LLP). This would enable you to protect your investment in the business, whilst reducing the amount of tax that you pay on your share of the profits. If you would like to know more about how incorporating your practice would help you to protect your personal assets, save tax and national insurance and increase the income of your staff at absolutely no cost to you, please call Steve Knowles without obligation now 0114 2747576 or 07806 863880, or email dentists@knowleswarwick.com We......Read More
If you have a child about to go to College or University, the cost is a major consideration. Under “employee scholarships”, they could receive up to £15,480 per annum tax free. There is a specific exemption for “employee scholarships”, under which up to £15,480 per annum can be paid tax free to an employee who is attending a full-time course of education or training. Depending on circumstances, it may be possible to employ your child and pay this amount without incurring a tax liability. As always, there are conditions – • The course must be at a “recognised educational establishment” • The course must last for at least one academic year and full time attendance is required for a minimum of 20 weeks • Payments can be made only during......Read More
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