Parking fines – a business expense?

Accounting, Businesses, Corporation Tax, Tax/VAT Cases l

parking ticketsThe rules relating to the tax treatment of parking fines have been clarified thanks to a recent first tier tax tribunal decision brought by G4S.

Though prohibited under HMRC rules, to date, many companies have treated their employees’ parking fines as a tax deductible expense. However the situation has now been confirmed with a clear precedent for HMRC to reject any future such claims.

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HMRC new power to issue pay now, investigate later demands

Accounting, Businesses, National Insurance, Personal Tax, Tax/VAT Cases l

Tax calculatorHMRC are reported to be undertaking a targeted campaign against IT and financial services contractors, using the new “accelerated tax demands” to force tax payers into making payments within 90 days, ahead of the tax payer being able to respond.

* Campaign started August 2014

* £1bn collected to date

* £24m already refunded on appeal

* 64,000 notices expected by 2020

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HMRC announces £45m to improve customer service

Businesses, Corporation Tax, National Insurance, Personal Tax, Tax/VAT Cases, VAT l

angry-Homer-phoneHMRC has announced today that it is allocating £45m to improve customer service, as it released statistics  indicating a prolonged decline in the quality of its call handling.

The allocation will pay for around 3,000 additional staff to join customer service teams, alongside around 2,000 staff who are being moved over from other parts of HMRC to help with the tax credits deadline and letters and forms.

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Why is an accountant needed?

Accounting, Corporation Tax, Growth, Tax/VAT Cases, VAT l

HectorWe are often asked “why is an accountant needed?” and “how do you provide value for money?”.

In the age of computerised accounting packages and online platforms for completing returns this is a reasonable question.

A big part of the answer is our knowledge of legislation, and how we can apply our knowledge to benefit those who we work with. A great example of this has been highlighted recently by Accountingweb, where HMRC have changed an interpretation of long standing VAT legislation which could have a significant impact on businesses who don’t take alternative advice, costing them £’000’s.

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Increased opportunity to pay your Self Assessment through your PAYE tax code

Payroll, Personal Tax, Tax/VAT Cases l

article-2284938-17AE137D000005DC-727_296x224HMRC are increasing the limit of £3,000 for underpayments which can be collected by way of adjustment to the taxpayer’s tax code but only where the main source of PAYE income is £30,000 or more.

Any tax deductions from PAYE income will be limited to a legislative 50 per cent overriding limit.

Collection of tax by this method continues to only be an option if the relevant Tax Return is submitted by 31 December after the tax year end.

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