Hopefully you should all have now received the tax packs we sent earlier this month and an invitation to complete your checklist online at our website. Remember you also need to complete the tax return supplementary questionnaire online (Click Here). This replaces the paper ones we used to send – reception will send you a paper copy if you prefer.
This year we are trying to get everybody’s tax returns and accounts produced quicker so please complete the forms and send in your books.
HMRC have announced a consultation on Inheritance Tax and are welcoming views. I’ve included a link to a good article in the Telegraph which talks about peoples confusion and fear over the tax (Click Here) and the actual HMRC site if you would like to take part (Click Here).
Our Data Card containing all the useful allowances and tax rates for 2018/19
This months edition includes:
– One million firms comply with auto-enrolment
– Food and drink firms bring in record £22bn in exports
– Taxpayers reclaim £493m from HMRC
– One in 15 face fines after missing tax return deadline
Download it Here
Yet again small business owners are targeted by the government !
Read about the Winners and Losers in our guide to the 2017 budget!
Bedtime reading for things to know about before and after the tax year end.
Our summary of the latest budget, the first since Brexit! Download here
Click here to download your copy
This month includes whats happening with the new Digital Tax accounts and 2nd payment on accounts reminder.
The 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.
So what is FRS 102 we hear you ask?
FRS 102 is the main new UK GAAP standard which forms the basis of accounts preparation in the UK and it replaces all of the current FRSs and SSAPs.
Since 2000, companies have been able to claim significant tax relief for undertaking qualifying R&D, however the uptake among smaller businesses has been and remains low. This can mean reduced corporation tax, or a cash payment from HMRC.
The main barrier to claiming is thought to be concern that the R&D undertaken doesn’t qualify, leaving the business with additional professional fees to pay for an unsuccessful claim.
To overcome this, from Autumn 2015 HMRC are introducing the ability for smaller businesses who have never claimed R&D tax credits to gain advanced assurance whether an R&D project would/does qualify, ahead of doing any calculations and making the claim. This should reduce the speculative risk of making a claim for these businesses.
The Chancellor’s 2015 Budget contained some Radical changes to Dividend and Rental Income – none of it good news!
HMRC 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.
We 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.
Most business owners assume that their accountant will ensure that the tax bill each year is minimised – that’s what you pay our fees for isn’t it?
Unfortunately, with commercial property, many accountants do not make all the tax claims available as they don’t have the expertise to obtain the necessary information to make the claim in house. This means you could be missing out on accelerating how quickly you get tax relief for your investment, leaving the claim for your purchase cost until you sell the property which is likely to be years if not decades away. Under the current tax rates this also means that you could be obtaining tax relief today at up to 45%, compared to only 10% upon sale.
Now the dust has settled we have produced a 4 page guide to the relatively quiet 2014 Chancellors Autumn Statement for you to download here!
Auto-enrollment looms for small companies yet many are thinking they have nothing to worry about until 2016 or even 2017! Think again!
Book your place at our seminar here for 11am on 11 March 2015
There is an exemption from tax, NICs and reporting if you provide a party or similar function for employees that meets the following three conditions:
As a self-employed person, or someone who is running a business every day is important. However, some dates should be in your diary to ensure that you don’t fall foul of HM Revenue & Customs or Companies House.
We’d recommend having the following dates in your business diary as reminders of tasks which need to be done.
Tax crackdowns have arrived thick and fast in the past three years. Officials have targeted everyone from doctors to Avon ladies to claw back £35bn lost in unpaid tax each year – and more inquiries are in the pipeline.
Accountants claim that HM Revenue & Customs focuses on “soft targets” through special task forces that investigate specific job sectors.
According to the adulterous website, IllicitEncounters.com, accountants are the most exciting workers to go on dates with. Not because number crunching is a big turn on, but because their ‘boring’ jobs makes them more interesting in the bedroom, apparently.
We are regularly asked by business owners how they should buy a new car or van, which is a sensible thing to do. As accountants, we can calculate the tax savings and costs of the various options, but at Morrell Middleton we also look at the general commerciality of the purchase, and what suits you and your business.
A quarter of a million taxpayers were the subject of a tax investigation in the 2012-13 tax year. Our clients saved fees of over £15,000 that year being insured through Tax Safe.
Click here to read some of an article that appeared in the Telegraph Money section and an assessment of HMRC’s tactics.