Marshall Smalley Accountants Blog
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28 July 2010 04:37
Taxpayers are not required to make payments on account for 2010 if the 2009 income tax and Class 4 National Insurance liability is less than £1,000. So getting your return in on time could reduce the payment due 31 January 2010 and mean there’s nothing to pay by 31 July 2010.
28 July 2010 04:32
The 2nd payment on account for personal tax is due by 31st July 2010. If you are having problems making payment, contact Nottingham Accountants Marshall Smalley to discuss your position. We maybe able to arrange for you to pay in installments. Give us a call to find out!
20 July 2010 05:31
Tax investigations by HMRC are worrying, stressful, even puzzling and will certainly raise a number of questions in your mind. Where can you get help quick so you can focus on taking care of your business?
We can provide the answers in a straightforward manner explaining HMRC’s investigation and their powers so you know what to expect, how long it will take and what it is likely to cost.
We have over 31 years experience and specialise in managing HMRC investigations and disputes. We will support you throughout to help you and your family survive the process whatever your tax problem involves, these can be:
•Corporation Tax or Income Tax Enquiries
•HMRC’s Offshore Disclosure Facility or the Tax Amnesty
•Civil Investigation of Fraud
•Notifying HMRC of tax evasion to protect you from prosecution
•HMRC Specialist Investigations
We are based in Nottingham and can work with you wherever you are, in the UK or overseas.
Contact Marshall Smalley Accounts for help and advice regarding your tax investigation from specialists tex investigation accountants.
20 July 2010 05:30
If you sell more on credit than you buy on credit, we should look at the VAT Cash Accounting Scheme. Normally you pay VAT on your sales according to when you invoice but using this scheme defers the payment of VAT as it is based on when the customer has paid you.
20 July 2010 05:28
If you are self-employed and your business profits have reduced we may be able to reduce your income tax payment due on July 31.
08 July 2010 08:18
Payroll taxes for the month ended 5 July and payments of Class IA NICs on benefits should reach HMRC by 19 July.
08 July 2010 08:14
Tax credits can add up to very significant sums, so if you think you qualify you need to act quickly, claim now and ask for your claim to be backdated.
Declarations of income for last year are also due by the end of July.
22 June 2010 02:03
Initial tax headlines from todays speech include:
Corporation Tax
Main CT rate to reduce by 1p every year for 4 years to 24%
Small Companies Rate to be cut to 20% from 1 April 2011
Taxation of Foreign profits, IP and R&D to be reformed to make UK more business friendly
Reduction in Capital Allowances from 20% to 18%, and from 10% to 8%, from 1 April 2012
Annual Investment Allowance reduced from £50,000 to £25,000 from 1 April 2012
Videogames relief will not be introduced
VAT / Indirect Tax
20% main rate to be introduced on 4 January 2011, with continued exemptions for essential goods
Insurance Premium Tax rates to increase from 5% to 6% and from 17.5% to 20%
Capital Gains Tax
Rate of CGT to increase to 28% for higher rate and top rate income tax payers (basic rate taxpayers rate to remain at 18%) with no tapering based on length of ownership
New CGT rate to be introduced for gains made from midnight
Annual exemption to remain unchanged at £10,100
Entrepreneurs' Relief will apply to first £5M of qualifying gains
Income Tax
Personal
21 June 2010 09:53
We now need to complete and submit any P11Ds to HMRC by 6 July and pay the Class IA NIC’s on benefits by 19 July.
Many directors/shareholders of owner managed companies have borrowed from their companies over the last year, and those loans must generally be declared as a beneficial loan on the form P11D. One exception is where interest has been paid on the loan at a rate higher than or equivalent to the official rate, which was 4.75% for the whole of 2009/10 tax year. This means that there will be many companies who may need to complete forms P11D for the first time.
Please contact us if you need assistance with the completion of your P11D Benefit Returns.
11 May 2010 07:52
It’s now time for employers to prepare the returns of benefits and expenses, forms P11D and P11D (b) for the tax year ended 5 April 2010.
The forms are required for directors or employees who are provided with benefits or for whom you pay or reimburse expenses.
To avoid late filing penalties the deadline for filing the P11D and P11D (b) with HMRC is 6 July 2010. The penalties associated with these returns can be severe, for example late filing penalties of up to £300 per P11D, plus £60 per day for continued failure.
The Class 1a National Insurance liability is due for payment by 19th July 2010 and late payment will incur interest charges.
In addition employees must be provided with a copy of their P11D by 6 July 2010.
If you would like any assistance with the preparation and submission of these forms why don’t you call Marshall Smalley and we’ll help you if we can.
11 May 2010 07:50
The deadline for your 2009-10 Employer Annual Return (P35) is 19 May and almost all employers must file it online. If you file it late or on paper when it should have been filed online HMRC will charge you a penalty.
Marshall Smalley provide a payroll service that is available to all our clients so if you are finding payroll or any other compliance matters taxing why not talk to Marshall Smalley?
06 May 2010 08:57
The issue of whether a worker is employed or self-employed is often unclear. Treating a worker’s employment status correctly is important because if a business treats a worker as self-employed when they are really an employee, the tax risk falls on the business, not the worker.
Fortunately, it is possible to achieve assurance on the employment status of workers, HMRC’s website features an Employment Status Indicator (ESI) Tool, which enables the employment status of an individual or group of workers to be checked for Income Tax or National Insurance contributions purposes.
The ESI tool provides an indication of a worker’s employment status based on responses given to a series of questions, HMRC state that the result given may only be ‘indicative’.
06 May 2010 08:54
To provide you with the best service and advise you of impending tax liabilities as far in advance as possible, all necessary information should be passed to us by 30 September at the latest.
To help gather together the required information to prepare your self assessment tax return and keep our records up to date too there follows examples of the type of information we may need from you:
DESCRIPTION DETAILS REQUIRED
Employment Income Gross Pay and Tax Certificates (P60 or P45)
Benefit and Expenses Details (P11D)
Details of any Deductible Expenses
Self Employment or income from Limited Company
Accounts information for the accounting year/period ending during the Tax Year
Income from Pensions State Pension- Frequency and Amount
Other Pensions- Gross Pay and Tax Certificate (P60)
Property Income Details of any rental income receivable during the year and any expenses incurred including loan/mortgage interest
National Savings Annual interest details- please check pass books or statements are up to date
Interest from Banks/Building Societies Tax year certificates or up to date pass books/statements
Other Interest Received Full details including any tax certificates
Dividends Details of the net dividend received and the
07 April 2010 07:59
Cheque payments to HMRC now have to be sent in earlier to avoid penalties following a change of procedure by the taxman.
From the 1 April, cheque payments are not treated as received until the day the cheque clears, rather than when it arrives.
The change is another attempt by HMRC to encourage more tax payers to make electronic payments.
Rather than placing yourself in the hands of HMRC and relying on them to bank cheques promptly we recommend electronic payment methods are used as there are cash flow advantages too.
07 April 2010 07:58
In the recent Budget there were few new announcements, no real shocks and no big hand-outs. The Chancellor set out his stall, for the forthcoming general election following which we may have a further more heavy weight Budget.
However there were some changes that may help businesses:
More Tax Relief for Capital Expenditure
The annual investment allowance (AIA) will be increased from the current limit of £50,000 to a new limit of £100,000. The increase will have effect for expenditure incurred on or after 1 April 2010 for businesses within the charge to corporation tax and on or after 6 April 2010, for other businesses within the charge to income tax. The increase in the AIA will only benefit businesses that would otherwise have exceeded the current £50,000 limit for spending on eligible plant and machinery.
Capital Gains Tax Relief Doubled
With effect from 6 April 2010, the lifetime limit on gains qualifying for entrepreneurs’ relief will increase from £1m to £2m.
Small Business Rate Relief
The level of small business rate relief in England will be increased temporarily for one year from 1 October 2010. This will give full relief for
29 March 2010 02:45
The following VAT changes come into effect on 1 April:
• VAT-registered traders with annual turnovers of £100,000 or more (excluding VAT) will have to file their VAT returns online and pay their VAT electronically;
• All businesses registering for VAT from April will have to file their returns online and pay electronically;
• All VAT cheque payments sent by post will be treated as being received by HMRC on the date when cleared funds reach HMRC’s bank account – not the date when it receives the cheque. Businesses must allow enough time for their cheque to reach HMRC and to clear its account no later than the due date shown on their VAT return, or they may be liable to a surcharge for late payment. However, this change does not affect any cheque payments made by Bank Giro; and
• Anyone issuing an invoice that includes VAT, when they are not entitled to charge it, will be subject to a new VAT wrongdoing penalty. The penalty charged will be a percentage of the amount charged as VAT on an unauthorised invoice.
29 March 2010 02:42
New rules for businesses who want to reschedule large tax debts under HMRC’s Business Payment Support Service (BPSS) come into effect next month.
The BPSS gives viable businesses, experiencing temporary difficulties paying their taxes, the opportunity to reschedule their tax payments to a more affordable timetable, as part of a ‘time to pay’ arrangement. These arrangements can cover PAYE, National Insurance, VAT or any other HMRC taxes.
From April 2010, businesses seeking time to pay arrangements on tax debts of £1m or more must provide an Independent Business Review (IBR) in support of a time to pay request. Typically, this will include a review of a number of important areas, including: current trading and financial position; profit and cash flow projections; business and financial strategies; management systems; and funding and banking arrangements.
Marshall Smalley provide these services to businesses seeking support from their bankers and would welcome the opportunity to discuss your needs if you would like help in funding arrangements with bankers or HMRC.
29 March 2010 02:41
From May 2010 new penalties will be implemented for the late payment of PAYE. Employers will be liable for penalties if they do not pay the PAYE due each month, on time and in full. The exact amounts will be published soon, but it is clear that HMRC are planning to clamp down on employers who are notoriously late with their payments.
16 March 2010 01:35
All P35 Employer’s Annual Returns for 2009-2010 must be filed online. If you use our services to process your payroll this is already in place, but if you process your own payroll and require our help to submit the return online, please give us a call. Also please note that from now onwards there will be no financial incentive for submitting the returns online.
16 March 2010 01:33
The emergency tax code applied to all new starters who are unable to provide a P45 does not change from 1 April. This also means that there will be no increase in any tax codes unless you have received personal tax code notices from HM Revenue & Customs. Employees on this code can still earn £125 per week or £540 per month without paying tax. The threshold for paying NI also stays at £110 per week or £476 per month. However there is a new tax band of 50% for any taxable earnings over £150,000 per year.
From 1 April the rate of Statutory Sick Pay is unchanged at £79.15 per week. However the rates for Statutory Maternity Pay, Paternity Pay and Adoption Pay increase to £124.88 per week. Please ensure that these rates are correctly applied where required and that any entitlement to reclaim these payments is correctly made
08 March 2010 03:53
For both the tax year ending on 5 April 2010 and the next year to 5 April 2011 the small earnings limit for exception from payment of the Class 2 “self employed stamp” is £5,075.
If your self employed earnings have reduced you should check your position as you may now be eligible to claim exception from the weekly payment, or even a refund of overpaid contributions.
Alternatively, you may already have been granted a three year exception but if your self employed income has then increased that may no longer be appropriate and you should contact HMRC to start paying class 2, this will avoid you building up arrears of contributions that have to be paid at a later date.
08 March 2010 03:51
Just when staying in is the new going out HMRC have sponsored a new weekly series The Business Inspector being shown on Channel 5 from 10 March, 8pm.
Apparently, the decision to fund the four part programme aimed at small businesses was taken to help raise awareness of the tax problems that result from failing to keep good business records.
Whilst the show is not being billed as a horror we suspect HMRC are hoping they will frighten some businesses to improve their tax compliance and reduce the amount of uncollected tax in the future!
04 March 2010 07:49
HMRC have issued a warning to the majority of tax payers who pay their tax through PAYE, due to weakness in their system it is more likely than ever your tax code could be wrong.
In our experience the most common and best avoided problem with PAYE is operation of incorrect tax codes and you should be alert to this very topical trouble.
Tax codes are the keystone of the PAYE system. Your tax code ultimately determines how much tax you will pay. The accuracy of your tax code depends on HMRC being supplied with correct information on a timely basis and the taxman processing it correctly.
Best advice is to check your tax code carefully and get it changed if it is wrong or your circumstances have changed.
We can help make tax less taxing, if you would discuss how we may help you please contact us
22 February 2010 01:52
The balance of self assessment tax for 2008/09 was due for payment on 31 January 2010, interest has been charged on unpaid amounts from that date.
If tax for 2008/09 has not been paid by 28 February 2010 a 5% surcharge will be added in addition to the interest. The surcharge penalty applies only to the unpaid 2008/09 tax liability and not to the unpaid payments on account being made for 2009/10.
So as far as you are able to paying off or reducing the unpaid tax on your self assessment account by 26 February 2010 will avoid or reduce the surcharge penalty.
If you are unable to pay because of cash flow problems, HMRC may agree to allow you time to pay. The tax man will waive the surcharges on the tax covered by the arrangement if you stick to the agreed schedule of payments.
So if you can’t pay your tax because of cash flow problems take action mow to establish a time to pay arrangement with HMRC by 26 February 2010.
In the event that you haven’t paid your tax or made an arrangement with HMRC by the end of this
22 February 2010 01:50
Capital gains tax is hotly tipped to increase in the next tax year. If you are considering a disposal of chargeable assets completing the sale by 5 April 2010 could reduce your capital gains tax bill.
Of course the starting point is to establish the chargeable gain and any number of capital gains tax reliefs may apply to reduce or even eliminate the tax charged.
Anyone planning a disposal of assets may contact Nottingham accountants Marshall Smalley for a preliminary discussion without obligation.
28 July 2010 04:37
Taxpayers are not required to make payments on account for 2010 if the 2009 income tax and Class 4 National Insurance liability is less than £1,000. So getting your return in on time could reduce the payment due 31 January 2010 and mean there’s nothing to pay by 31
Read More
28 July 2010 04:32
The 2nd payment on account for personal tax is due by 31st July 2010. If you are having problems making payment, contact Nottingham Accountants Marshall Smalley to discuss your position. We maybe able to arrange for you to pay in installments. Give us a call to find out!div
Read More
20 July 2010 05:31
Tax investigations by HMRC are worrying, stressful, even puzzling and will certainly raise a number of questions in your mind. Where can you get help quick so you can focus on taking care of your business?We can provide the answers in a straightforward manner explaining HMRC’s investigation
Read More
20 July 2010 05:30
If you sell more on credit than you buy on credit, we should look at the VAT Cash Accounting Scheme. Normally you pay VAT on your sales according to when you invoice but using this scheme defers the payment of VAT as it is based on when the
Read More