Welcome to our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.
If you need further assistance just let us know or you can send us a question for our Question and Answer Section.
We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.
Please contact us for advice. We’re here to help!
HMRC are currently writing to around 7,500 furniture retailers and car repair businesses asking the owners to check the figures reported on their VAT returns. If you receive one of those letters, don’t panic. HMRC do not believe your VAT return is wrong, they are just asking you to double check your sales and purchase figures. – Read More >>
Supporting the Sick
It is such a pain when a key employee is off sick. You are required to pay that person statutory sick pay (SSP) once he or she has been absent from work for four days. To add insult to injury you can’t reclaim any of the SSP paid since 6 April 2014. Payments of SSP made for periods before 6 April 2014 can be reclaimed from HMRC where the SSP exceeds 13% of the class 1 NI paid to HMRC for the month. – Read More >>
RTI Reports and Penalties
Real time information (RTI) was supposed to make the reporting of PAYE easier for employers, but it has introduced more filing deadlines, and new penalties for missing those deadlines. – Read More >>
There has been some panic whipped up in the media about employers having to pay vast amounts of back-dated holiday pay to employees who regularly get paid for overtime. – Read More >>
HMRC’s Let Property Campaign Leads To Record Hauls Of Capital Gains Tax
HM Revenue and Customs (HMRC) has confirmed its crackdown on buy-to-let landlords through its Let Property campaign has resulted in a surge in capital gains tax receipts, according to reports from accountants. – Read More >>
Survey Finds Two Thirds Of UK Small Businesses Are Confident About Their Prospects In 2015, But Only One Third Of SMEs Are Confident Of Securing The Finance To Achieve Growth
What does 2015 hold for small businesses? Well, if the results of the latest Liberis survey are correct, then the answer is good news, and as accountants we know that there’s nothing better than starting the new year with a bit of good news. The poll of 1,000 SME owners, carried out by OnePoll and commissioned by small business funder, Liberis, found that the vast majority of small and medium-sized enterprises are confident about the prospect of growing their business in the next 12 months. – Read More >>
Even Accountants Can Sometimes Be Lax About Filing Self-Assessment Tax Returns
Most people will probably not need any reminder about the looming deadline for online self-assessment Read More >>. As accountants though we feel it’s incumbent to mention it, none the less. Anyone who fails to submit their online assessment before 31 January, 2015, faces penalty charges. However, according to figures released by HMRC this week, not everybody is up to speed on this. Data released for the 2014 returns by HM Revenues and Customs shows that the number of people who submit their returns late is still surprisingly high given the severity of the penalties that await transgressors. –
February Questions and Answers
Q. Two years ago I invested £5,000 in a company under the EIS scheme, but now that company has gone into administration. How do I claim for the loss in value of my EIS investment?
A. As the company has not been struck-off the Companies House register its shares still exist, although they are probably worthless. You can make a negligible value claim for those shares by writing to HMRC, or on your tax return. This will give you a capital loss worth £5,000, which can be set against capital gains made in the same year the claim relates to or in later years. Also, as the shares were issued under the EIS scheme you can turn that loss into an income tax loss by submitting a share loss relief claim. We can help you with that.
Q. I run a small shop, which I inherited from my father. The shop has a flat above it which is let out. I’ve always reported all the income from the shop and flat together as self-employed income on my tax return. Is that correct?
A. No, the income from your shop and the flat should be reported separately on your tax return. The profit or loss from the shop should be reported on the self-employed pages of your return. The net income from the flat should be reported on the UK property income pages on your tax return. Any loss from the shop can’t be set off against profits from the letting, or the other way round.
Q. Back in 2010 I borrowed money from my company, and paid the corporation tax charge due. Business has now improved and my company can now pay a dividend to clear the debt I owe to the company. How can I reclaim the corporation tax charged?
A. You need to complete a form L2P to reclaim that tax charge, but that must be done online here: www.gov.uk/government/publications/corporation-tax-reclaim-tax-paid-by-close-companies-on-loans-to-participators-l2p You need to answer all the questions on the interactive form, then print it off and sign it. The signed form should be sent to: HMRC Corporation Tax Services PO Box 29997 Glasgow, G70 5AB
February Key Tax Dates
2 – Last day for car change notifications in the quarter to 5 January – Use P46 Car
19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/2/2015
28 – Talk to us about year end and pre-budget planning – First 5% penalty surcharge on any 2013/14 outstanding tax due on 31 January 2015 still unpaid