Our cover article focuses on the importance of keeping business records following the announcement of a new initiative by HMRC, where they intend to check up to 50,000 business records annually, and exact penalties for what they consider to be significant failures.
Another area commonly under HMRC scrutiny is tax relief on motoring and travel related expenses. In ‘Avoiding travel turmoil’ we remind you of the specific rules for self-employed individuals.
We also look at two areas concerning corporation tax. ‘- iXBRL deadline fast approaching’ looks at the changes ahead that require all corporation tax returns to be filed online and ‘Counting the costs’ looks at a new development in the rules surrounding associated companies.
There are also two areas of change from April 2011 which affect all businesses.
The first area of change concerns National Insurance Contributions (NIC) where new rates and bands apply for 2011/12 as well as changes as to when self employed Class 2 NIC is payable.
The second concerns the Bribery Act 2010 which comes into force from April 2011. As this is applicable to every business, regardless of size, we have included a brief outline to keep you in the picture.
On the personal tax side, you may be aware of child trust fund (CTF) accounts. However, new accounts are no longer available for a child born after 3 January 2011. Instead, for children born after that date, a new savings account – the Junior ISA is to be introduced later this year. In ‘Child savings accounts’ you can find out more.
For all this and more click Spring 2011 Newsletter
As 2010 has been an unprecedented year with the publication of three Finance Bills, unsurprisingly our winter newsletter concentrates on tax issues.
Following an announcement issued in October, our front cover focuses on the restrictions relating to tax relief on pension contributions and the bad news that some high earners could find themselves with an additional tax charge.
If you are entitled to Working Tax or Family Tax Credits, from April 2011 the rules are set to change and we have produced a summary to keep you up to date with the current position. We have also included a simple overview of R&D tax credits. Whilst the rules are complicated the rewards can be very valuable to qualifying companies.
Furnished Holiday Lettings have been a hot topic since the Labour government announced proposed changes. Whilst the legislation is yet to go through, the coalition government has published new proposals for the next tax year. If this legislation is likely to affect you please read our update.
The government is also looking to reform the PAYE system. Whilst no decisions have been taken our article ‘The Future of PAYE’ is an interesting insight into how HMRC view the future. Rules on employer provided cars are also set to change so if you are thinking of changing your car, our article ‘Reducing tax emissions’ may help you decide what to buy next!
‘Extracting profits wisely’ reviews the many options available to extract profits from a company and how to get the best tax deal!
Please contact us if you have any questions regarding any of the articles or tax planning tips we have included in our newsletter or if you would like further information on a topic we haven’t covered. Your views are always important to us and we would welcome any feedback you could give us.
A PDF version of the Winter 2010 Newsletter can be downloaded her Winter 2010 Newsletter
Increase in the standard rate of VAT
In his Emergency Budget speech on 22 June 2010, Chancellor George Osborne announced an increase in the standard rate of VAT from 17.5% to 20% to be effective from 4 January 2011. There are no changes to the zero or reduced rate (5%).
This article sets out some of the key issues for businesses to deal with in the run up to the standard rate change.
Click here to down load the VAT 20% Guide
George Osborne presented his first Budget on Tuesday 22 June 2010.
For the first time, forecasts were published in advance of the Budget. The Office for Budget
Responsibility was formed in May 2010 to make an independent assessment of the public
finances and the economy in advance of each Budget and Pre-Budget Report.
Within the framework of these forecasts George Osborne stated that a tough but fair
Budget was needed. Many fundamental announcements have been made which affect the
taxation of most individuals. These are in addition to changes already made by the previous
government, such as the 50% tax rate and changes to the tax relief available for pension
contributions.
Our summary focuses on the issues likely to affect you, your family and your business. To
help you decipher what was said we have included our own comments.
For a full PDF version of the newsletter click here Budget June 2010 Newsletter
This briefing provides a practical summary of recent developments affecting employers including where relevant the related tax considerations. Including New PAYE penalties and filing online.
Click her for a PDF version of Essential update for employers
Our Spring 2010 newsletter including:
Capital losses
PAYE penalties for late payment
The provision of a phone for business
Facilitating Funding
The tax treatment of Furnished Holiday Lettings (FHL) has been advantageous for many years but the rules are set to end in April 2010.
Salary sacrifice
Download a PDF version of Spring 2010 newsletter
This briefing is intended for both unincorporated and incorporated business clients.
It focuses on some key direct tax areas affecting the owner managed business so that essential
opportunities to maximise tax savings or minimise liabilities are not overlooked. Areas covered include
capital allowances, extraction of profits and employment taxation. It includes the more important year end
tax tips to help identify the areas that should be considered shortly before both the end of an accounts
period and/or tax year.
Click to down load PDF version of Practical Tax Tips for the owner managed business
HMRC cut the rate of interest on underpaid Income tax, NIC, CGT, Stamp duty and certain other taxes from 3.5% to 2.5% as of 23 March. For underpaid corporation tax the rate was reduced from 2.5% to 2% as of 16 February and from 2% to 1.5% from 16 March
The rate of interest on overpaid Income Tax, NIC, CGT, stamp duty and certain other taxes remains unchanged at 0%. For overpaid and early paid corporation tax, the rate fell from 1.25% to 0.75% as of 16 February and from 0.75% to 0.25% as of 16 March.
The new tax rate bandwidths are as follows:
- Basic Rate (currently 20%) on all taxable income from £1 to £37400
- Higher rate (currently 40%) on all taxable income over £37400
- The income tax personal allowance has increased from £6035 to £6475 for 2009/2010.
Please note employee & employer national insurance is payable on income over £5715.
As from 6th April 2009 all L suffix tax codes should be increased by 44 points to 647L.