The Finance Bill received Royal Assent on 19 July 2011. We have updated our tax systems so we can comply with their requirements to file your company tax returns and accounts online with the Tax Office. Guess what?, the Tax Office have not yet got their act together and they are unable to accept online filing of company tax returns until October 2011.
It is just not good enough! Your comments please.
HM Revenue and Customs have just published the rates applicable from 1 September 2011
The rates only apply where employers:
The rates do not apply in any other circumstances. In particular, employees driving company cars are not entitled to use them to calculate a deduction if employers reimburse them at lower rates. Such calculations should continue to be based on actual costs incurred.
THE GOVERNMENT INCREASES THE TAX BREAKS ON APPROVED SCHEMES
A&C Chartered Accountants would like to remind our clients and readers of the opportunities available to save a substantial amount of tax. These are schemes approved by HM Revenue and Customs.
The schemes are as follows
A&C Chartered Accountants would like to remind all new businesses of the NIC Holiday. It would appear that the take up is lower than expected and we can only assume not every new business is claiming their entitlement. Do not miss out on this generous offer from HM Revenue and Customs.
A&C Chartered Accountants would like to advise all clients and other readers of the changes to the penalties for filing your tax returns late and for not paying your tax on time. A very important point to note is that the late filing penalty is no longer capped to the amount of unpaid tax at the filing due date. So if you habitually file your returns late on the belief that because you are normally due a tax refund ( e.g CIS cases ) or have no tax to pay, you will not receive a penalty then you need to think again and get your returns in on time and pay on time.
A&C Chartered Accountants would like to draw to your attention the latest campaign that HM Revenue and Customs (HMRC) are undertaking to target small buisnesses that are trading over the VAT registraition threshold and who are not yet VAT registered. The VAT Initiative campaign is an opportunity for businesses to tell HMRC that they should be registered for VAT and take advantage of a reduced penalty. HMRC are in the process of contacting over 40,000 businesses who they suspect fall into this category.
We would like to adviise you that you must register for VAT if any of the following applies:
Important dates to note:
A&C Chartered Accountants are extensivley experienced in this area. Please contact us for further information
Inheritance tax (IHT) planning
There are a number of ways that children can help to reduce the size of your estate and in turn it’s Inheritance Tax (IHT) Liability.
Annual exemption
You can give away £3,000 a year with no IHT implications whcih means a poteinal saving of £1,200 in future IHT charges. Mother and father can, therefore, give away £6,000 each year and if they forget one year they can double up the next year.
Gifts of interest
You can lend your children money, e.g to buy their first house, interest-free wthout having to worry about IHT on the lost interest. Please note, however, that the loan will have to be repaid to the estate on your death.
Gifts on marraige
Parents can give £5,000 and grandparents £2,500 on your child’s marraige and this will be exempt from IHT
Small Gifts
Gifts to upto £250 are exempt from IHT.
To explore these and more ideas contact us at A&C Chartered Accountants
The Tax Office publish approved ‘ advisory fuel rates ‘ which apply where employers reimburse employees for business travel in their company cars, and where employees reimburse the cost of fuel used for private use travel in a company car where fuel is provided by the employer. The rates effective from 1 June 2011 can be found at www.hmrc.gov.uk/cars/advisory_fuel_current.htm
The rates are updated four times and any changes will take effect on 1 March, 1 June, 1 September and 1 December.