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).
This months edition includes:
– Smallest firms hit by higher pension costs
– Late payments affect almost half of small businesses
– Selected businesses begin Making Tax Digital testing
– Lack of funding holds back 1 in 4 SMEs
Downlaod the Full PDF Here
Our Data Card containing all the useful allowances and tax rates for 2018/19
This Months Edition includes:
– Thinktank wants major reform of ‘inefficient’ tax system
– More workers aim to become self-employed
– Small firms not ready for data protection shake-up
– Small businesses ‘hugely’ embrace apprenticeships
With a new tax year almost upon us, many sole traders will be reviewing their business structure and considering whether it’s worth switching to a limited company.
There’s no denying that incorporating a business proved popular in 2017, with Companies House reporting a 7% rise in the number of actively trading companies – bringing the UK total to 1.9 million.
Last year’s statistics also showed this trend is no flash in the pan as the number of actively trading companies increased by around 610,000 since 2010.
If you’re a sole trader who has weighed up the pros and cons and decided to form a limited company, here’s what you need to know to complete the transition.
Most employers choose to recognise the ongoing commitment made by their members of staff by providing various benefits and rewards.
Whether that’s in the form of the Christmas party or it extends to benefits such as a cash bonus or flextime, it all helps to ensure employees feel valued and motivated.
82% of workers feel motivated after receiving some form of recognition from their employers, according to research by the Rewards and Employee Benefits Association.
While that’s all good and well when it comes to looking after your staff, you also need to consider the tax implications of offering attractive employee benefits.
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
Included in this article:
– PERSONAL ALLOWANCES
– PENSION CONTRIBUTIONS
– INHERITANCE TAX
– CAPITAL GAINS TAX
– NON-UK DOMICILE TAXATION
– TAX CREDITS
– CORPORATION TAX
– BUSINESS DEDUCTIONS
– ENTREPRENEURS’ RELIEF
– UPCOMING CHANGES
Yet again small business owners are targeted by the government !
Read about the Winners and Losers in our guide to the 2017 budget!
What will VAT look like after Brexit
– here are a few thoughts!
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.
HMRC 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
The below message has been released by HMRC, regarding them “switching off” access to services via older internet browsers from 30 September 2015:
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.
HMRC 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.
The threshold for compulsory VAT registration has increased from £81,000 to £82,000.
The turnover limit for when businesses can deregister from VAT has also rising from £79,000 to £80,000.
If you have any queries around VAT, please contact our team on 01904 691141.
Have you or someone you know received a PPI repayment/compensation?
If the answer is yes, did you know that the interest element of what is received is taxable? Further, did you know that all the banks and building societies making payments are notifying HMR&C of who they are paying and how much? So what does this mean for you?
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!
The UK Employment Appeal Tribunal (EAT) has recently ruled under the Working Time Regulations (WTR) that non-guaranteed overtime should be factored in when calculating the amount of holiday pay that an employee is entitled to.
Silly VAT fact of the day: Snowballs are cakes (the tax tribunal says so).
Jaffa cakes are cakes because that was also tried and tested in the court.
Cakes are zero-rated because they are food stuffs for VAT, that is unless you are selling them as supplies in the course of catering (as in from a restaurant) when they become standard rated.
Biscuits are confectionary, confectionary is not a food stuff and so it is standard rated for VAT.
HM Revenue & Customers (HMRC) have launched a new campaign targeting property landlords. The “Let Property Campaign” will encourage tax payers with undeclared income or gains to come forward voluntarily on the promise of preferential terms including having 3 months to calculate and pay the outstanding tax.
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.