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!
Does your company still own or lease the car you use for private journeys? You may need to rethink that arrangement in light of the tax charges due to apply in the years ahead.
From 6 April 2015 all company cars will generate a tax charge for the driver and the employer, even electric cars will be taxed on 5% of their list price – read more >>
Child benefit claw-back
If you or your spouse/partner claim child benefit, and at least one of you has adjusted net income of £50,000 or more for the year, the highest earner must declare the benefit on their tax return in order to pay back part or all of the child benefit as a tax charge.
HMRC is writing to taxpayers who it thinks should have paid the child benefit tax charge for 2013/14, but didn’t. Unfortunately some people who have received such letters are childless, or haven’t claimed child benefit for decades – read more >>
Last month we warned you about the penalties coming into effect for late filed RTI reports. The good news is that HMRC are cutting employers just a little slack, and will now allow three extra days in which to submit the full payment submission (FPS) report.
Normally the FPS must be submitted on or before the day the employees are paid, but there are some circumstances in which the FPS can be submitted up to 7 or 14 days later – read more >>
Salary, dividend or pension contribution?
When you work for your own company you can decide how much salary to pay yourself, how much to pay into your pension fund, and what proportion of the remaining profits to take as a dividend. The split is important as it will affect the tax and national insurance payable by you and your company
A salary just sufficient to be covered by your personal allowance (£10,600 for 2015/16), will be tax free, assuming you have no other income – read more>>
HMRC Softens Stance On Late PAYE Filing Penalties And Gives SMEs An Extended Period Of Grace
It may not be Christmas, but it would appear that some element of festive spirit is still alive and well at HMRC.
With the new PAYE submissions date imminent, HMRC has announced that small businesses with fewer than 50 employees will be granted three days’ grace for late PAYE submissions before penalties will be imposed. It may not be much, but as accountants we know that every little helps when times are tough – read more>>
Missed The Self-Assessment Tax Return Deadline? Steven Glicher Accountants Might Just Be Able To Help
If you’ve missed the deadline for filing your online tax return, then you take some degree of comfort from the fact that you were definitely not alone.
Figures for the 2014/15 self-assessment filing have not yet been released, but to give some context, last year an estimated 870,000 tax payers received an automatic late filing penalty – read more>>
UK Taxpayers Paying £5 Billion In Unnecessary Tax, Claims New Prudential Report
Are you a taxpayer paying more than you need to?
Are you wasting money by not taking advantage of all the necessary tax breaks available? If you are then you should be talking to your accountant or having a quiet word with your financial adviser. Mind you: you’re not alone. Many people like you are also failing to make the most of the tax-efficient advantages available – read more>>
March Questions and Answers
Q. In the February newsletter you said holiday pay was not a contractual right. I don’t understand how that can be the case. Please explain.
A. New regulations came into force from 8 January 2015 which indicates that employees can’t take a claim to a civil court for breach of contract if their employer fails to pay amounts of holiday pay on the basis of an entitlement under the Working Time regulations. The new regulations indicate that the right to holiday pay is a separate statutory right not contractual right. However, if the amount of holiday pay is stipulated in the employee’s employment contract, and that amount is not paid, the employee may be able to claim breach of contract.
Q. My company uses the flat rate VAT scheme, so we don’t reclaim VAT on the things we buy. When I set up the company it bought some office furniture for £1,500. I am now moving to new offices and selling the old furniture. Must the company charge VAT on the sale of the furniture even though it didn’t reclaim VAT when it purchased the items?
A. Any sales the company makes, including selling on surplus assets, must carry VAT as the company is VAT-registered. There are different rules when selling land or buildings. The fact that the company didn’t reclaim VAT when it purchased the assets is irrelevant.
Q. I run a pub which has a cash machine (ATM) inside. I’ve just received an extra business rates bill from the local authority in respect of the cash machine for £3,600! They haven’t charged a separate bill for the ATM before now. Is there anything I can do?
A. You can appeal against the business property valuation, including the treatment of the ATM as a separate property. Do this by contacting the national Valuation Office Agency (VOA). If you can’t agree a reduction in the property’s rateable value you can take your case to a Valuation Tribunal. But don’t delay, as if you succeed in getting a reduction in the rates due, you will only get a refund for periods from 2010 to 2015, if your appeal was made by 31 March 2015.
March Key Tax Dates
19/22 – PAYE/NIC, student loan and CIS deductions due for the month to 5/3/2015
31 – Last minute tax planning for the 2014/15 tax year. Ensure you use up all exemptions to which you are entitled