Everyone starting out as self-employed needs to register with HMRC when they’ve started working for themselves.
If you do not register within 100 days of going self employed you may have to pay a penalty. The registration gives HMRC the information they need.Further penalties can also arise if you delay and are behind with your taxes.
If you are self employed in a partnership, each of the partners must register separately too.
Contact us to give your business the best start with tax by visiting our website www.marshallsmalley.com
Tuesday, 29 September 2009
Student Tax Calculator
Tax can be confusing when you start working so HMRC have produced an easy to use tax tool for students.
Students in the UK are liable to pay income tax and national insurance contributions on their earnings, just like everyone else. Due to confusion they often end up paying the wrong amount. It’s worth checking because if you have overpaid you can get the cash back from the taxman.
Just use the student tax checker on HMRC’s website:
http://stccalculator.hmrc.gov.uk/UserDetails.aspx
Or visit your local accountants in Nottingham www.marshallsmalley.com
Students in the UK are liable to pay income tax and national insurance contributions on their earnings, just like everyone else. Due to confusion they often end up paying the wrong amount. It’s worth checking because if you have overpaid you can get the cash back from the taxman.
Just use the student tax checker on HMRC’s website:
http://stccalculator.hmrc.gov.uk/UserDetails.aspx
Or visit your local accountants in Nottingham www.marshallsmalley.com
Have you disposed of valuable assets?
If valuable assets are being or have been sold, there may be a Capital Gains Tax (CGT) liability and you should remember this when completing your self assessment tax return.
CGT is a tax on capital which affects comparatively few so most people have no cause to consider CGT. In addition to CGT being unfamiliar to many there are also a number of reliefs that can make CGT complex.
Broadly, CGT is payable on the difference between what you paid for an asset and what it’s worth when you dispose of it. This might be through a sale, exchange or gift. If you were given the item in the first place, CGT may be payable on the entire disposal value!
After an annual tax-free allowance of £9,600 for the 2008-09 tax year if you have a CGT liability you will normally have to pay it through your self assessment tax return. CGT is levied at a single rate of 18 per cent for 2008-09.
For help and advice with capital gains and self assessment contact Nottingham Business Advisors Marshall Smalley Accountants on www.marshallsmalley.com
CGT is a tax on capital which affects comparatively few so most people have no cause to consider CGT. In addition to CGT being unfamiliar to many there are also a number of reliefs that can make CGT complex.
Broadly, CGT is payable on the difference between what you paid for an asset and what it’s worth when you dispose of it. This might be through a sale, exchange or gift. If you were given the item in the first place, CGT may be payable on the entire disposal value!
After an annual tax-free allowance of £9,600 for the 2008-09 tax year if you have a CGT liability you will normally have to pay it through your self assessment tax return. CGT is levied at a single rate of 18 per cent for 2008-09.
For help and advice with capital gains and self assessment contact Nottingham Business Advisors Marshall Smalley Accountants on www.marshallsmalley.com
Would you like to reduce your Payments on Account of Tax?
You may make a claim to reduce your payments on account of tax if you expect your business profits for the current tax year will be less than the year ended 5 April 2009.
This will reduce the amount to be paid to HMRC on account of your 209/10 tax bill and could help your January cash flow.
The claim can be included in your 2009 tax return or you can elect using HMRC form SA303. Please just give us a call if you need our assistance on 0115 956 5171 or visit www.marshallsmalley.com
This will reduce the amount to be paid to HMRC on account of your 209/10 tax bill and could help your January cash flow.
The claim can be included in your 2009 tax return or you can elect using HMRC form SA303. Please just give us a call if you need our assistance on 0115 956 5171 or visit www.marshallsmalley.com
Monday, 14 September 2009
Employee Expenses and Benefits
A-Z Guide for Employee Expenses and Benefits
HMRC has issued a fairly comprehensive guide explaining their reporting requirements for assets, facilities and services commonly provided to employees.
This confirms their interpretation of the tax rules for benefits and expenses and gives us another useful tool.
Follow the link below to see the A-Z Guide.
http://www.hmrc.gov.uk/paye/exb/a-z/a/index.htm
For help and advice on emloyee benefits and expenses contact Nottingham Business Advisors Marshall Smalley Accountants on www.marshallsmalley.com
HMRC has issued a fairly comprehensive guide explaining their reporting requirements for assets, facilities and services commonly provided to employees.
This confirms their interpretation of the tax rules for benefits and expenses and gives us another useful tool.
Follow the link below to see the A-Z Guide.
http://www.hmrc.gov.uk/paye/exb/a-z/a/index.htm
For help and advice on emloyee benefits and expenses contact Nottingham Business Advisors Marshall Smalley Accountants on www.marshallsmalley.com
2009 Tax Return Filing Deadline
31 October is the last date by which self assessment tax returns can be submitted to HMRC on paper for the tax year ended 5 April 2009.
However, 2009 returns can still be submitted on time up to 31 January 2010 if filed online.
For help with your self assessment tax return contact accountants in Nottingham, Marshall Smalley Chartered Certified Accountants on www.marshallsmalley.com
However, 2009 returns can still be submitted on time up to 31 January 2010 if filed online.
For help with your self assessment tax return contact accountants in Nottingham, Marshall Smalley Chartered Certified Accountants on www.marshallsmalley.com
Friday, 11 September 2009
Ease the Business Rate Burden
A new deferral Scheme offers the chance to postpone payment of some of your business rates bill for this financial year only and you may also qualify for the Small Business Rates Relief Scheme.
2009/2010 Business rates deferral scheme
You may be able to spread the payment of the increase in your 2009/2010 business rates bills over a three year period.
You can apply at any time until 31st March 2010 provided you have some of your bill left to pay. However, you are advised to apply early.
Contact your local borough council local taxation section to request an application form or to find out more information.
Small Business Rate Relief
If you run a small business further help may be available to pay your business rates bills with Small Business Rate Relief (SBRR). This relief supports small businesses who generally occupy only one business property. The relief is available at 50% for eligible properties up to £5,000 rateable value and relief decreases at the rate of around 1% per £100.00 of rateable value up to 0% at £10,000.
To find out more or to apply for SBRR for the first time, ask your local authority for an application form. Further information can be found at:
www.businesslink.gov.uk.
For further information on saving you business money contact Nottingham Accountants Marshall Smalley on 0115 956 5171 or visit www.marshallsmalley.com
2009/2010 Business rates deferral scheme
You may be able to spread the payment of the increase in your 2009/2010 business rates bills over a three year period.
You can apply at any time until 31st March 2010 provided you have some of your bill left to pay. However, you are advised to apply early.
Contact your local borough council local taxation section to request an application form or to find out more information.
Small Business Rate Relief
If you run a small business further help may be available to pay your business rates bills with Small Business Rate Relief (SBRR). This relief supports small businesses who generally occupy only one business property. The relief is available at 50% for eligible properties up to £5,000 rateable value and relief decreases at the rate of around 1% per £100.00 of rateable value up to 0% at £10,000.
To find out more or to apply for SBRR for the first time, ask your local authority for an application form. Further information can be found at:
www.businesslink.gov.uk.
For further information on saving you business money contact Nottingham Accountants Marshall Smalley on 0115 956 5171 or visit www.marshallsmalley.com
Monday, 7 September 2009
R & D Questionnaire
The following questionnaire may help you decide if you can claim tax relief on your project and flag up some issues to consider…
Please contact us if you need assistance with your claim for R&D tax relief by calling Nottingham Accountants Marshall Smalley on 0115 9565172 or visiting www.marshallsmalley.com
1. In outline, as a result of the R&D project what has been achieved to develop or improve the technology of products that already existed?
2. Why was the knowledge to develop or improve the technology not available elsewhere?
3. When did the R&D project start?
4. Who were the persons leading the R&D project and what was their relevant experience to the project?
5. Was any part of the R&D project subcontracted out?
6. What technological uncertainties were involved in the project?
7. In respect of each uncertainty when was the development or improvement achieved?
8. In respect of each uncertainty how was it overcome?
9. Excluding any capital items how much extra do you estimate to have been spent as a result of the R&D activity?
10. Who owns the intellectual property rights of the R&D project?
11. Has any patent application been or being made?
12. What plans are there to exploit the R&D commercially?
13. Has any other party contributed to the funding of the R&D project?
14. Have you identified the R&D project costs and documented the basis for allocating any costs to the project?
15. Are the documents evidencing the project costs still available?
16. Do you have professional fees insurance that can cover the costs arising from HMRC enquiries following the submission of tax returns that include R&D tax relief claims?
17. Have you previously submitted other claims for R&D tax relief?
18. Have you undertaken any other R&D projects within the last six years?
Please contact us if you need assistance with your claim for R&D tax relief by calling Nottingham Accountants Marshall Smalley on 0115 9565172 or visiting www.marshallsmalley.com
1. In outline, as a result of the R&D project what has been achieved to develop or improve the technology of products that already existed?
2. Why was the knowledge to develop or improve the technology not available elsewhere?
3. When did the R&D project start?
4. Who were the persons leading the R&D project and what was their relevant experience to the project?
5. Was any part of the R&D project subcontracted out?
6. What technological uncertainties were involved in the project?
7. In respect of each uncertainty when was the development or improvement achieved?
8. In respect of each uncertainty how was it overcome?
9. Excluding any capital items how much extra do you estimate to have been spent as a result of the R&D activity?
10. Who owns the intellectual property rights of the R&D project?
11. Has any patent application been or being made?
12. What plans are there to exploit the R&D commercially?
13. Has any other party contributed to the funding of the R&D project?
14. Have you identified the R&D project costs and documented the basis for allocating any costs to the project?
15. Are the documents evidencing the project costs still available?
16. Do you have professional fees insurance that can cover the costs arising from HMRC enquiries following the submission of tax returns that include R&D tax relief claims?
17. Have you previously submitted other claims for R&D tax relief?
18. Have you undertaken any other R&D projects within the last six years?
Strictly R&D Tax Relief
We are led to believe HMRC will be adopting a stricter approach to claims for R&D tax relief in future, for example, not accepting estimated figures or assisting late claims.
For those with a qualifying project R&D tax relief is fiscally attractive.
The message is simple more than ever it’s important to determine if your R&D project qualifies for tax relief and put systems in place to identify the costs before they’re incurred.
If you are involved or planning an R&D project let us know if you would like us to support your claim for tax relief.
For those with a qualifying project R&D tax relief is fiscally attractive.
The message is simple more than ever it’s important to determine if your R&D project qualifies for tax relief and put systems in place to identify the costs before they’re incurred.
If you are involved or planning an R&D project let us know if you would like us to support your claim for tax relief.
Wednesday, 2 September 2009
Government Proposals Alarming Construction Industry!
A recently issued Government consultation document False self-employment in construction: taxation of workers proposes that every construction subcontractor should be deemed to be in receipt of employment income for all tax and NIC purposes, unless they can satisfy one of the three ‘key tests’:
• they provide plant and equipment (which would be defined as something beyond the tools of the trade they would normally be expected to provide); or
• they provide all the materials required to complete a job; or
• they provide other workers to carry out operations under the contract and are responsible for paying them.
This could mean a 12.8% PAYE and NIC liability for employers in respect of skilled workers who previously were regarded as self-employed.
At a time when the collapse in the housing market has already put the construction industry under pressure these proposals are bound to attract considerable interest before the opportunity to comment on them closes on 12 October 2009.
• they provide plant and equipment (which would be defined as something beyond the tools of the trade they would normally be expected to provide); or
• they provide all the materials required to complete a job; or
• they provide other workers to carry out operations under the contract and are responsible for paying them.
This could mean a 12.8% PAYE and NIC liability for employers in respect of skilled workers who previously were regarded as self-employed.
At a time when the collapse in the housing market has already put the construction industry under pressure these proposals are bound to attract considerable interest before the opportunity to comment on them closes on 12 October 2009.
HMRC Interest Rates Set to Change
HMRC are in the process of standardising the interest regime across all taxes and as a consequence rates will change in September for the first time in six months.
Interest charged on tax paid late will be based on Bank of England Base rate plus 2.5% whilst interest added to tax refunds will be 1% below that rate subject to a minimum of 0.5%.
If you need further advice please contact us in Nottingham on 0115 9565171 or visit www.marshallsmalley.com
Interest charged on tax paid late will be based on Bank of England Base rate plus 2.5% whilst interest added to tax refunds will be 1% below that rate subject to a minimum of 0.5%.
If you need further advice please contact us in Nottingham on 0115 9565171 or visit www.marshallsmalley.com
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