Marshall Smalley Accountants

Summer Holiday Duty Free

2010-08-27T00:21:00.000-07:00

As of this year, travellers are permitted to bring back VAT and duty free goods to the value of £390. This is a modest increase on the £340 limit in place but is a significant increase from the £145 limit that prevailed for many years prior to December 2008.

The new £390 limit applies to any travellers to countries outside the EU, such as the US, Japan and Australia, who wish to bring items, such as electronic goods, perfume, clothes and souvenirs back into the UK.

For any help and advice regarding taxation, tax planning or general accounting advice please contact us.

National Minimum Wage increases from 1st October 2010

2010-08-06T02:28:00.000-07:00

The national minimum wage rates will increase for pay reference periods starting on or after 1st October 2010 onwards.

Main rate for workers 21 years old and above £5.93 per hour
Rate for workers aged 18-20 years inclusive £4.92 per hour
Rate for workers under 18 years and above
compulsory school age £3.64 per hour

A new apprentice rate of £2.50 per hour will be introduced for pay reference periods starting on or after 1st October 2010. This will apply to apprentices who are workers and

• Aged under 19
• Aged 19 and over and in first year of their apprenticeship.

Until October 2010, 21 year olds remain in the 18-21 year old rate band.

Tax Investigation specialists

2010-08-04T01:54:00.000-07:00

Marshall Smalley Accountants are specialists in dealing with HMR&C tax investigations. We are based in Nottingham but work thoughout the East Midlands and Nationally. We will work with you and negotiate with HMR&C for the best possible outcome.

Contact the tax investigaion specialists on 0115 9565171

Electronic vat filing

2010-08-04T01:38:00.000-07:00

The rules changed in April 2010, from now on you will have to submit your VAT returns online and pay any VAT due electronically if you have an annual turnover of £100,000 or more (exclusive of VAT).

If you have registered for vat on or after 1 April 2010 then you must file your vat returns online and pay any vat due electronically.

Even if your turnover drops below £100,000 (exclusive of vat) in the future you will still have to file your returns online.

For any help or questions regarding vat please contact Nottingham Accountants Marshall Smalley on 0115 9565171

Can You Defer Self Assessment Payments on Account?

2010-07-28T08:37:00.000-07:00

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.

Self assessment payment on account

2010-07-28T08:32:00.000-07:00

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!

Tax Investigation Help

2010-07-20T09:31:00.000-07:00

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.

VAT cash accounting scheme

2010-07-20T09:30:00.000-07:00

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.

Reduce your income tax

2010-07-20T09:28:00.000-07:00

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.

19 July Payment Deadline

2010-07-08T00:18:00.001-07:00

Payroll taxes for the month ended 5 July and payments of Class IA NICs on benefits should reach HMRC by 19 July.

Working Family Tax Credits

2010-07-08T00:14:00.000-07:00

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.

June 2010 Budget Highlights

2010-06-22T06:03:00.000-07:00

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 allowance to increase by £1,000 from 5 April 2011 - higher rate and top rate taxpayers will not benefit
Higher rate income tax threshold to remain unchanged until 2013
Furnished Holiday Letting rules will not be abolished

National Insurance

Employers NIC threshold to increase above inflation as planned
Up to £5,000 exemption from Employer's NIC for each of first 10 people employed by new businesses located outside South East

Inheritance Tax

No announcements in speech

Stamp Duty

No announcements in speech

Other

Introduction of a Bank Balance Sheet Levy, subject to a deminimis level, from January 2011
Landline Duty will not be introduced
Freeze in Council Tax for 2011/12

P11D Benefit Returns and Beneficial Loans

2010-06-21T01:53:00.000-07:00

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.

2010 P11D Season

2010-05-10T23:52:00.001-07:00

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.

File your 2009-10 Employer Annual Return online by 19 May

2010-05-10T23:50:00.000-07:00

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?

The Employment Status Indicator Tool

2010-05-06T00:57:00.000-07:00

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’.

Tax Return information checklist

2010-05-06T00:54:00.000-07:00

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 tax credit
Please provide all dividend Tax Vouchers if possible

Stock Dividends / Unit Trusts All Tax Vouchers / Summaries

Foreign Investment Income All Tax Vouchers / Summaries

Income from Trusts and Estates Trust or Estate Income and Tax Forms
( R185 and/or R185E)

Other Income Commissions, casual earnings

Mortgages or Other Loans Interest Certificates for any relevant loans

Pension Contributions Details of any changes, new or ceased policies including
any available certificates

Gift Aid Details of any changes, new or ceased arrangements
Capital Gains Disposals Details of any sales of shares, land, property etc
Please include details of original purchase date and cost if possible.

Capital Gains Acquisitions If you have purchased any new shares/securities, land or buildings then please provide us with details of the cost and date of acquisition for future reference

Gifts Details of any gifts made during the year

Anything Else? If you are unsure if something is of relevance to the completion of your tax return please talk to us

HMRC moves goalposts for cheque payers

2010-04-06T23:59:00.000-07:00

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.

The Budget Part 1?

2010-04-06T23:58:00.000-07:00

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 eligible businesses occupying premises with a rateable value of up to £6,000 and tapering relief for rateable values up to £12,000.

April VAT Changes

2010-03-29T06:45:00.000-07:00

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.

Time to Pay Large Tax Debts

2010-03-29T06:42:00.000-07:00

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.

New penalties for late PAYE payments

2010-03-29T06:41:00.000-07:00

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.

Filing of P35 Employer’s Annual Return Online

2010-03-16T06:35:00.000-07:00

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.

Changes to PAYE, National Insurance & Statutory Payments for 2010-2011

2010-03-16T06:33:00.000-07:00

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

When to Check your Self Employed National Insurance Contributions

2010-03-08T07:53:00.000-08:00

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.