Marshall Smalley Accountants

Missed the deadline for 2010/11 tax returns - Acr Now!

2012-02-10T03:36:00.000-08:00

The filing deadline has now passed and anyone who still hasn’t filed their 2010/11 tax return should send it to HMRC as soon as possible, as well as pay any outstanding tax due for the 2010/11 tax year. The new penalties for late Self Assessment returns are:
an initial £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is paid on time;
after 3 months, additional daily penalties of £10 per day, up to a maximum of £900. Further delays could result in a maximum penalty of £1600! In more serious cases, the penalty after 12 months can be up to 100 per cent of the tax due.

PAYE Coding Notices

2012-02-06T05:40:00.000-08:00

HMRC will be sending out PAYE coding notices during the months of January, February or March. The new tax code applies from 6th April 2012 to ensure you pay the correct amount of tax. Not everyone will get a notice so don’t panic if you don’t receive one. HMRC will send a copy of your new code to your employer or pension provider. If you have an agent acting for you, make sure they are aware that you have a new code as they won’t receive a copy direct from HMRC.

Tax Returns for Landlords and Furnished Holiday Let Owners

2012-01-18T02:42:00.000-08:00

Over the last few years, the buy-to-let market has grown substantially and with it, many landlords have been able to profit from the ever-increasing rental income and record low interest rates. However, landlords are often tempted to file their own tax returns to cut down on costs. The cost of filing inaccurate returns can be far greater. Seeking professional advice can reduce the amount of tax you pay.

HMRC Still Unfairly Targeting Family Businesses

2012-01-09T07:51:00.000-08:00

Despite being widely criticised for unfairly targeting 12,000 smaller businesses HMRC
have announced that they will continue with their controversial business records checks.
Whilst HMRC initially emphasised the educational aspect of their business records checks
the reality is that they are compliance checks that can result in the collection of additional taxes.
Marshall Smalley Accountants advise all clients that it is essential to take advice from the outset
to ensure businesses are properly prepared before a business records check takes place and manage the whole process as far as possible.
So if you receive a letter from saying they would like to arrange a visit make sure you
take advice before acting.

2012-01-06T01:24:00.000-08:00

HMRC has announced that electricians will be the next group targeted as part of its crackdown on tax evasion.
The Electrician's Tax Safe Plan will be launched in February 2012 and will offer favourable terms
for electricians to come forward and declare their unpaid tax.
Following this, HM Revenue & Customs will target those in the trade who have not come
forward.
If you any undeclared income then seek advice from Marshall Smalley Accountants and take action whilst
you can.

HMRC Targets Fashion Houses

2012-01-06T01:21:00.000-08:00

Letters have been issued by HMRC to a number of Fashion Houses and designer labels warning against non-payment of the national minimum wage.
Letters are expected to go out again in line with London’s Fashion week in February.
Put things right now to avoid penalties later or even prosecution for non compliance.
Contact Marshall Smalley specialist Tax advisor for help.

Make the most of Capital Allowances

2011-11-18T01:53:00.000-08:00

Businesses that invest in Plant and Machinery, under the current capital allowances rules can claim an Annual Investment Allowance that enables 100% tax relief against profits for the first £100,000 spent in a year.

From April 2012 the amount of 100% relief is being reduced to £25,000. Therefore the time available for maximum tax relief from investment is closing fast. Contact Nottingham Accountants Marshall Smalley to discuss the timing of a new purchase and the effect this could have on your business cashflow.

Vat email reminders

2011-09-21T08:27:00.000-07:00

When you enrol for VAT online services you can opt to receive free email reminders. It is strongly recomendaded by HMRC that you sign up to this service. It allows you to provide an email address which HMRC will use to remind you that your return is due. HMRC will email you about six weeks before the return due date.

To receive email reminders, log in to the VAT online service and go to the 'At a glance' page. In the 'Maintain email address' section, select 'Add email address'. Then select 'Add email address' again from the 'VAT messages' section. You'll then be prompted to add your email address. HMRC will send you a confirmation code by email and you should input that code online by selecting 'Confirm email address' from the 'Maintain email address' section.

Late issue Self Assessment Statements

2011-08-11T01:28:00.000-07:00

HMRC have written to self assessment taxpayers apologising for not issueing statements in July and as such interest will not chrged on the late payment of the second payment on account so long as it is paid before 27th September 2011. This removing of interest charge only applies to the second payment on account.

Tax credit deadline

2011-07-06T08:45:00.000-07:00

The 31 July 2010 renewal deadline for tax credits is fast approaching. Most claimants who haven’t renewed yet will need to do something by the deadline, because missing it could result in tax credits payments being stopped.

SELF ASSESSMENT – LATE FILING PENALTIES

2011-04-20T07:47:00.000-07:00

Late filing penalties are getting tougher.
From April 2011 if you do not file your Self Assessment Tax Return or pay your tax liability on time, the penalties you have to pay are changing. The more you delay, the greater the penalty.
Even if you have no tax to pay or if you have already paid the tax you owe, if your return is only one day late you will be charged an initial penalty of £100.00. If you fail to file your tax return more than three months late you will be charged an automatic daily penalty. For full details on the new penalties for filing a late return or for paying your tax late, please refer to the insert sent to you individually by HMRC with your Notice to complete a tax return for the period ended 5th April 2011.

Marshall Smalley 2011 Budget Overview

2011-03-30T06:08:00.000-07:00

The Budget delivered on 23 March 2011 announced tax breaks for business with the aim of raising the level of growth in our economy. For example, tax rates for companies of all sizes are reduced, Enterprise Zones are being reintroduced and Enterprise Investment Scheme and Entrepreneurs reliefs were enhanced. Meanwhile, with higher personal taxes from 6 April 2011 and families tightening their belts as far as possible the fuel duty reduction is a token help with prices rising generally. We hope this is a useful summary of some of the main changes BUSINESS TAXES Corporation Tax: from 1 April 2011, the main rate of corporation tax will be reduced to 26% and then to 25% from 1 April 2012, 24% from 1 April 2013 and 23% from 1 April 2014. Small companies’ rate: as previously announced, this will be reduced to 20% from 1 April 2011. The effective rate of tax for profits between £300,000 and £1,500,000 is 27.5%. Capital allowances: as previously announced, writing-down allowances will be reduced to 18% from April 2012 and the Annual Investment Allowance (AIA) reduced to £25,000. Mileage allowance payments: from 6 April 2011, 45p per mile (up from 40p) can be claimed for the first 10,000 miles per year travelled by an employee on business. Research and development (R&D): from 1 April 2011, the rate of the additional deduction available for undertaking R&D will increase from 75% to 100% of qualifying expenditure. From 1 April 2012, the deduction will increase to125%. Online filing for corporation tax returns: from 1 April 2011 corporation tax returns must be made electronically. This includes the submission of statutory accounts in an electronic format know as iXBRL. PERSONAL TAXES Income tax: as previously announced in Budget 2010, the personal allowance will increase to £7,475 from 6 April 2011 and the basic rate will be reduced to £35,000. Budget 2011 has announced that, from 2012/13, the personal allowance will be increased to £8,105 and the basic rate limit reduced to £34,370. National insurance: as previously announced, from 6 April 2011 employee’s national insurance rates will increase from 11% to 12% below the upper earnings limit and from 1% to 2% above that, with employer’s national insurance contributions rising from 12.8% to 13.8%. Enterprise Investment Scheme (EIS): the rate of income tax relief given under the EIS scheme will be increased from 20% to 30% from 6 April 2011. The maximum amount an individual can invest annually will rise from £500,000 to £1m from 6 April 2012. Inheritance tax: as previously announced, the £325,000 threshold for the nil-rate band is frozen. In addition, where 10% or more of a deceased’s net estate is left to charity the rate of IHT will be reduced to 36% from 6 April 2012. Capital Gains Tax: the annual exemption for 2011/12 will rise to £10,600. Entrepreneurs Relief (ER): from 6 April 2011, the lifetime limit of gains which can benefit from ER will rise to £10m. Individual Savings Accounts: the annual limit is to be increased to £10,680 for 2011/12, up to half of which can be saved in cash deposits. PROPERTY Stamp Duty Land Tax (SDLT): as previously announced, a new increased 5% rate for purchases of residential property will apply to some houses from 6 April 2011. SDLT: bulk residential purchases – a relief will be introduced for purchasers who acquire more than one residential property. The rate of SDLT will be determined by the average consideration subject to a minimum rate of 1%. Enterprise Zones: the Government intends to create 21 new enterprise zones. A business in an enterprise zone will enjoy several advantages: • 100% discount on rates • enhanced capital allowances • relaxed planning obligations Furnished holiday lettings: as previously announced, from 2011/12 losses from furnished holiday lettings can only be set against furnished holiday lettings income rather than against total income. In 2012/13 further rules will restrict the properties that qualify. VAT Registration and de-registration thresholds: the registration threshold will increase to £73,000 and the de-registration threshold to £71,000. Both changes apply from 1 April 2011. Low value consignment relief (LVCR): the threshold at which LVCR operates is being reduced from £18 to £15 from 1 November 2011.

Self Assessment Filing Deadline: Monday 31 January

2011-01-11T00:42:00.000-08:00

If you do not file your tax return on line by midnight on Monday 31 January you may receive a late filing penalty from HMRC.
Please do speak to us if you need assistance to beat the deadline or calculate how much tax you should pay.

VAT Standard Rate 20% from 4 January 2011

2011-01-10T08:07:00.000-08:00

The standard rate of VAT is currently 17.5 per cent but increases to 20 per cent on 4 January 2011.
For any sales of standard-rated goods or services that you make on or after 4 January 2011 you must charge VAT at the 20 per cent rate. If you have a cash business and calculate your VAT using the VAT fraction you must use the VAT fraction of 1/6 on your standard-rated VAT inclusive sales from 4 January 2011.
The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions. Any sales you make at these rates are unaffected by this change.
If you use the Cash Accounting Scheme you will need to be able to identify payments received on or after 4 January 2011 that relate to supplies made before that date. VAT at a rate of 17.5 per cent will be due on these payments.
The flat rate percentages have been re-calculated to reflect a standard rate of VAT of 20 per cent. The new flat rates therefore also apply from 4 January 2011.

Tax investigation specialists

2010-10-08T08:14:00.000-07:00

Marshall Smalley Accountants specialise in resolving any tax investigation or Inland Revenue investigation in the most efficient and cost effective way.
We have over 30 years of experience of negotiating with the Inland Revenue with exceptional results.
We can help if you have committed tax evasion or tax fraud and need help making these disclosures to the Inland Revenue to help minimise your liabilities as far as is possible.
We are based in Nottingham and offer Tax Investigation services for the East Midlands and Nationally.

The Big Problem with PAYE

2010-10-08T08:13:00.000-07:00

Most taxpayers pay their tax through the Pay As You Earn (PAYE) system. Whilst the principle of PAYE is simple the reality can be problematical!
In our experience the most common and best avoided problem with PAYE is operation of Incorrect Tax Codes.
Tax codes are the keystone of the PAYE system. Your tax code ultimately determines how much tax you will pay. The accuracy of your tax code depends on HMRC being supplied with correct information on a timely basis and the tax office processing it correctly.
Best advice is to check your tax code and review it if you have a change of circumstances.
For example, if you turn 65 or 75 and therefore qualify for age-related relief – then your tax code will need to be changed. The tax office may or may not do so automatically.

Have you disposed of valuable assets?

2010-09-24T06:33:00.000-07:00

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 £10,100 for the 2009-10 tax year if you have a CGT liability you will normally have to pay it through your self assessment tax return.
For help and advice with capital gains and self assessment contact Nottingham Business Advisors Marshall Smalley Accountants on www.marshallsmalley.com

Changes to National Minimum Wage

2010-09-15T23:58:00.000-07:00

From 1 October 2010 the national minimum wage rates will increase. They are summarised below:

Adult Rate (workers aged 21 & over) from £5.80 to £5.93 per hour
Development Rate for 18-20 year old, from £4.83 to £4.92 per hour
Development Rate for 16-17 year old, from £3.57 to £3.64 per hour

Please note that the adult minimum wage rate has been extended to include 21-year-olds from October 2010 so in effect the pay rate for employees who are 21 will increase from £4.83 to £5.93 per hour from this date.

Also a new minimum wage rate for apprentices of £2.50 per hour is being introduced from October 2010. The new rate will apply to:
• Apprentices under 19
• Apprentices aged 19 or over, but in the first year of their apprenticeship.

You will need to apply the new rates to all payments for work commenced on or after 1 October 2010 so please make sure that you are complying fully with the new rates.

Please refer to www.bis.gov.uk/policies/employment-matters/rights/nmw for further information.

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.

So much for relaxing in front of the telly!

2010-03-08T07:51:00.000-08:00

Just when staying in is the new going out HMRC have sponsored a new weekly series The Business Inspector being shown on Channel 5 from 10 March, 8pm.

Apparently, the decision to fund the four part programme aimed at small businesses was taken to help raise awareness of the tax problems that result from failing to keep good business records.

Whilst the show is not being billed as a horror we suspect HMRC are hoping they will frighten some businesses to improve their tax compliance and reduce the amount of uncollected tax in the future!

HMRC Warning: Beware Incorrect Tax Codes!

2010-03-03T23:49:00.000-08:00

HMRC have issued a warning to the majority of tax payers who pay their tax through PAYE, due to weakness in their system it is more likely than ever your tax code could be wrong.
In our experience the most common and best avoided problem with PAYE is operation of incorrect tax codes and you should be alert to this very topical trouble.
Tax codes are the keystone of the PAYE system. Your tax code ultimately determines how much tax you will pay. The accuracy of your tax code depends on HMRC being supplied with correct information on a timely basis and the taxman processing it correctly.
Best advice is to check your tax code carefully and get it changed if it is wrong or your circumstances have changed.
We can help make tax less taxing, if you would discuss how we may help you please contact us

How to save 5% Self Assessment Surcharge Penalty

2010-02-22T05:52:00.000-08:00

The balance of self assessment tax for 2008/09 was due for payment on 31 January 2010, interest has been charged on unpaid amounts from that date.

If tax for 2008/09 has not been paid by 28 February 2010 a 5% surcharge will be added in addition to the interest. The surcharge penalty applies only to the unpaid 2008/09 tax liability and not to the unpaid payments on account being made for 2009/10.

So as far as you are able to paying off or reducing the unpaid tax on your self assessment account by 26 February 2010 will avoid or reduce the surcharge penalty.

If you are unable to pay because of cash flow problems, HMRC may agree to allow you time to pay. The tax man will waive the surcharges on the tax covered by the arrangement if you stick to the agreed schedule of payments.

So if you can’t pay your tax because of cash flow problems take action mow to establish a time to pay arrangement with HMRC by 26 February 2010.

In the event that you haven’t paid your tax or made an arrangement with HMRC by the end of this week you may appeal against the 5% surcharge penalty, but for that to succeed you will need some reasonable excuse!

Contact Nottingham Accountants, Marshall Smalley if you need help with your time to pay arrangement.

Capital gains tax to rise?

2010-02-22T05:50:00.000-08:00

Capital gains tax is hotly tipped to increase in the next tax year. If you are considering a disposal of chargeable assets completing the sale by 5 April 2010 could reduce your capital gains tax bill.
Of course the starting point is to establish the chargeable gain and any number of capital gains tax reliefs may apply to reduce or even eliminate the tax charged.
Anyone planning a disposal of assets may contact Nottingham accountants Marshall Smalley for a preliminary discussion without obligation.

New 50% tax band and tax free personal allowances lost?

2010-02-15T08:05:00.000-08:00

The new 50% income tax band comes into effect for the 2010/11 tax year and will apply to those earning more than £150,000 a year.

Additionally, from 5 April 2010 those earning over £100,000 p.a. will see their personal allowance decrease. The personal allowance is currently £6,475.
If you are affected by these changes you may wish to consider making changes that will reduce your income tax bill. For example those with earnings over £150,000 might accelerate some income into 2009/10 tax year or delay expenditure to 2010/11.
Nottingham Accountants Marshall Smalley has a number of other strategies that may be appropriate depending on individual facts and circumstances, contact us without obligation for a preliminary discussion of your requirements

How to register for vat online filing

2010-02-10T07:36:00.000-08:00

To enrol for VAT online you need the following 5 pieces of information about your business to hand:
• VAT Registration Number
• The postcode of your principal place of business
• Your effective date of registration for VAT
• The final month of the last VAT return you submitted
• The BOX 5 figure from the last VAT Return you submitted

You will find the first two pieces of information on your VAT4 (Certificate of VAT Registration), the third on the letter you receive from HMRC confirming you must in future file online and pay electronically and the fourth and fifth on the last VAT return you submitted.
For all further instructions of how to proceed with your registration, please use this link

Please note for those of you who have engaged us to process VAT returns manually, we will continue to do so and we will inform you of the figures to enable you to file your returns online and make your electronic payment.

HMRC Internet Security Warning!

2010-02-09T08:48:00.000-08:00

The regular issue of security alerts from HMRC is a response to the massive volume of phishing emails being used by fraudsters in an attempt to steal tax refunds.
WARNINGS:
• HMRC NEVER MAKE DIRECT CONTACT BY EMAIL.
• DO NOT RESPOND TO ANY EMAILS PURPORTING TO BE FROM HMRC.
• NEVER PROVIDE YOUR BANK OR GATEWAY LOGON INFORMATION TO AN UNKNOWN SOURCE.
To see the latest tax security warnings visit HMRC's security warnings.
If you are in any doubt call us.

VAT Returns Online

2010-02-09T08:45:00.000-08:00

From 1 April 2010 existing VAT registered businesses with a VAT exclusive annual turnover of £100,000 or more and all businesses newly registering for VAT will have to file their VAT returns online and pay any VAT due using an approved electronic method.
This is now VAT law so failure to comply will result in penalties.
If you are affected by this change don’t wait for HMRC to write to you, register for online filing and sign up for VAT online services. Contact Accountants in Nottingham, Marshall Smalley Accountants for assistance now.

Are you claiming your entitlement to Working Tax Credits?

2010-02-01T06:26:00.000-08:00

To find out if you qualify for Working Tax Credits and how much you might receive;

 take a look at the online calculators available on the HMRC website at Tax Credits Guide - Tax Credits Questionnaires,
 call the Tax Credits helpline on 0845 302 1415, or
 find out more information on Tax Credits and benefits on the HMRC Website or on the DirectGov Website.

Penalties for late self-assessment tax return filing

2010-02-01T06:24:00.000-08:00

There is an automatic penalty of £100 for late filing, but the penalty is capped by the amount of tax outstanding i.e. you will not have to pay the full £100 if you owed less than that amount in tax on 31 January; and if you owe nothing on that date, you will not be charged any penalty.

Furthermore, if HMRC accept you have a reasonable excuse, perhaps they didn’t provide a UTR within their promised service deadline; you may also avoid the late filing penalty. Contact us if you have a self assessment tax problem.

HMRC Business and Self Assessment Payment Support

2010-02-01T06:18:00.000-08:00

If you're worried about being able to meet Tax, National Insurance, VAT or other payments owed to HMRC or you anticipate that you can’t afford to make payments becoming due, we can contact HMRC Business Payment Support to ask for time to pay. Please call Nottingham Accountants Marshall Smalley for help.

Self Assessment Filing Deadline: Sunday 31 January

2010-01-25T23:57:00.000-08:00

If you do not file your tax return on line by midnight on Sunday 31 January you may receive a late filing penalty from HMRC.

Please do speak to us if you need assistance to beat the deadline or calculate how much tax you should pay.

Call Nottingham Accountants Marshall Smalley on 0115 9565171 for help and advice

Tax Health Plan (THP) for Medical Professionals with understated income

2010-01-11T03:26:00.000-08:00

HMRC are obtaining information from various sources, including NHS trusts, private hospitals and medical insurers and will pursue those with undeclared tax liabilities who decide not to make a disclosure by 31 March 2010.

Whilst those who voluntarily contact HMRC by 31 March, make a full disclosure and qualify under THP are assured by HMRC they will be able to put their tax affairs in order simply and benefit from the certainty of a reduced 10 per cent penalty.
THP is the first initiative in a new HMRC campaign focused on professionals and will operate in two stages:

• Up to 31 March 2010, medical professionals can register their intention to make a voluntary disclosure

• By 30 June, those who have registered must have made their disclosure as well as arrangements to pay all tax interest and penalties due.

Please contact us for expert advice and support if you think you may benefit from the Tax Health Plan.

Self Assessment Tax Return

2010-01-07T01:58:00.000-08:00

Don't panic if you haven't yet filed your self assessment tax return for 2008-09 due by the 31st January 2010. With our help you may still be able to file ontime and avoid a penalty. If your return is complicated there maybe options to file an estmated return to avoid the penalty and then you can bring your affairs upto date after the deadline.

Don't forget that although HMR&C advertise the penalties thay can only be enforced if tax is actually due.

Visit www.marshallsmalley.com to find out more.

Happy New VAT Year!

2009-12-19T03:45:00.000-08:00

The standard rate of VAT, which fell temporarily to 15%, is due to go back up to 17.5% from the start of the New Year.
HMRC recognise that the change may cause problems for certain businesses at a particularly busy time of year, and has announced a measure designed to help.
Special accounting arrangements for businesses operating beyond midnight on 31 December 2009 effectively defer the start of the new VAT rate for some traders. These mean that pubs, clubs, restaurants and other retail businesses remaining open past midnight on New Year’s Eve will be allowed to continue charging VAT at 15% on their sales until they close or until 6am on 1 January 2010, whichever is the earlier.

Vat rate change and sage update

2009-12-19T03:43:00.000-08:00

The rate of vat is changing back to 17.5% from 1st January 2010.

Here is the process to folow to change the vat rate in Sage.

From the settings list (Sage 50 Accounts v16)

• Configuration
• Tax codes
• Highlight the T1 code (should currently say 15%)
• Select edit
• Change rate to 17.5%
• Select OK
• Select apply
• Select close

NB
Best to go back into configuration and tax codes and make sure T1 now reads 17.5%.

Incorporation Tax Advantages

2009-11-30T00:13:00.000-08:00

Whether you are a sole trader or in partnership there could be tax savings if you transferred your business to a company.

Not only can incorporation mean that you pay lower corporation tax on your business profits and keep more of your earnings it also presents a number of interesting tax planning opportunities.

This is especially topical as we have the introduction of 50% income tax from 6 April 2010.

For example if your business has valuable goodwill or other assets that would be chargeable to capital gains tax you might consider an incorporation that involved you selling such assets to your company and paying 10% tax now. This could then give you the ability to withdraw capital from you company in the future and avoid the 50% income tax rate.

Alternatively you may wish to consider splitting income to use your spouse or civil partners lower rates of income tax and/or their annual tax free personal allowance.

Of course there are many factors to be weighed in each case, the decision to incorporate needs to be considered carefully and in practice it doesn’t happen overnight.

If you are interested, please let us know and we can arrange without obligation to meet for an initial discussion.

Do you have a Partnership Agreement that really protects your business?

2009-11-30T00:11:00.000-08:00

Many partners in business don’t have a formal agreement or realise that not having one could mean they are at risk when changes happen. Without an agreement, firms are governed by The Partnership Act that dates from 1890! The application of this Victorian legislation could be the source of problems if it doesn’t fit your modern day requirements.
A good partnership agreement will ensure that other partners have a survival plan to follow in different circumstances and that protects the future of your business.
While it’s advisable to draw up partnership agreements early on, there is no legal duty to do so; many businesses operate on trust alone. Whilst trust has to be a major factor in any successful partnership this can present dangers which partners may not be aware of.
For example The Partnership Act may be problematical because without an agreement:
• any Partner has the right to dissolve a firm
• there is no restrictive covenant on a partner who is leaving
• all partners are entitled to an equal profit share
• if one partner wants or has to retire other partners can just take over and make no goodwill payment.
• no person may be introduced as a partner unless every single existing partner agrees
• if one partner dies or is declared bankrupt, the partnership is automatically dissolved
Additionally, if you already have a partnership agreement, make sure it’s up to date, as it may not be relevant to your current business. It’s also essential to check that all partners have signed the agreement and that it’s not just in draft form – failure on either of these counts means your agreement is not valid.
It’s ironic that whilst your business is a large part of your wealth you may not have it properly protected. In our experience it’s too easy to underestimate the value of a Partnership Agreement.
We work with a number of legal practices who are prepared to undertake a free initial appraisal of existing agreements. Please contact us if you would like to take advantage of this offer.

IR35 Pitfalls

2009-11-17T00:21:00.000-08:00

The IR35 legislation enables HMRC to tax some contractors as though they are employees those caught may pay significantly more tax, reducing take home pay by up to 25%!
If you are a contractor your Company could have an increased IR35 risk if for example:
• You cannot decide your hours
• Your tasks are not clearly defined
• You are personally named in the client contract
• You cannot provide a substitute
• You cannot work for other clients
• You receive benefits from your client
HMRC can backdate tax liabilities if you are found to be inside IR35 so avoid the pitfalls and speak to us if you need help.

Stamp Duty Land Tax Holiday Ends Soon

2009-11-17T00:19:00.000-08:00

If you are in the process of buying a house you may be able to take advantage of the higher stamp duty land tax threshold before it reverts back to £125,000 from 1st January 2010.
To give the property market needed boost, the chancellor announced a stamp duty land tax holiday on purchases of residential property costing no more than £175,000. The holiday period ends on 31 December 2009. From 1 January 2010, the threshold will revert to £125,000.
This means if you are eligible to save stamp duty on residential property completion must take place on or before 31 December 2009. Missing the deadline could be costly!

Working Through Further Education

2009-11-17T00:17:00.000-08:00

Students in the UK are liable to pay income tax and national insurance contributions on their earnings, just like everyone else.

However there is a statutory exemption that may remove any possible tax charge where an employer, or a third party, incurs expenditure on work-related training for employees. It does not matter whether the employer directly incurs the expenditure or reimburses the employee's expenditure. The exemption covers sums that would otherwise be taxable as earnings, as benefits, or under the vouchers rules.

So if you have or are thinking of employing a part time employee who is in further education we could perhaps look at the package and think about restructuring to take advantage of the available exemption. You don't have to pass all the savings on to the employee!

£1,000 Employment Subsidy

2009-11-09T07:41:00.000-08:00

In certain circumstances subsidies are available if you employ someone who has been claiming Job Seekers Allowance for more than 6 months. Please follow the link below for more details:

http://www.jobcentreplus.gov.uk/jcp/Employers/AdvertiseaVacancy/recruitmentsubsidy/

For commercial reasons our advice generally is to base your recruitment decision making on the qualities of the applicants and if that results in you receiving a £1,000 subsidy then think of it as a bonus.

Do you have a Shareholders Agreement?

2009-11-09T07:39:00.000-08:00

As a business evolves its good practice to consider the shareholders agreement or consider implementation of such an agreement if you don’t already have one.

A properly prepared shareholders agreement should be a useful tool that protects the owners of a Company. The agreement may for example cover:

• The price to be paid for shares or a formulae that needs to be used.

• Directors decision making powers.

• Matters requiring shareholder approval.

• Responsibilities.

• Dividend policy.

• Restrictive covenants and confidentiality.

In our experience it’s too easy to underestimate the value of such an agreement to the owners of a Company.

We work with a number of legal practices who are prepared to undertake a free initial appraisal of existing shareholder agreements. Please contact us if you would like to take advantage of this offer.

Time to Change Your Company’s Constitution?

2009-11-09T07:37:00.000-08:00

In light of Companies Act 2006 changes we recommend companies review their articles and memorandum of association and consider making changes, you may for example:

• Change the objects clause so that the powers of the Company are unrestricted.

• Remove references to alternate directors.

• Eliminate references to annual general meetings.

• Unrestrict the authorised share capital.

• Enable board meetings by telephone and other forms of electronic communications.

We are working with a number of legal practices who are prepared to undertake a free initial appraisal of constitutional documents. Please contact us if you would like to take advantage of this offer.

NDO Disclosure Opportunity Deadline

2009-10-05T00:51:00.000-07:00

Taxpayers with undeclared tax liabilities must notify HMRC by 30 November 2009 of their intention to make a disclosure if they wish to take advantage of the favourable terms offered by HMRC. According to HMRC NDO is a never to be repeated opportunity!
If you would like advice or assistance please contact us on 0115 9565171 or by visiting www.marshallsmalley.com

The Big Problem with PAYE

2009-10-05T00:47:00.000-07:00

Giving your business the best start with tax

2009-09-29T09:08:00.000-07:00

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

Student Tax Calculator

2009-09-29T09:07:00.000-07:00

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

Have you disposed of valuable assets?

2009-09-29T09:05:00.000-07:00

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

Would you like to reduce your Payments on Account of Tax?

2009-09-29T08:58:00.000-07:00

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

Employee Expenses and Benefits

2009-09-14T05:26:00.000-07:00

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

2009 Tax Return Filing Deadline

2009-09-14T05:23:00.000-07:00

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

Ease the Business Rate Burden

2009-09-11T00:57:00.000-07:00

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

R & D Questionnaire

2009-09-07T03:07:00.000-07:00

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?

Strictly R&D Tax Relief

2009-09-07T03:05:00.000-07:00

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.

Government Proposals Alarming Construction Industry!

2009-09-02T05:18:00.001-07:00

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.

HMRC Interest Rates Set to Change

2009-09-02T05:09:00.000-07:00

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

Company Cars - Advisory Fuel Rates from 1 July 2009

2009-08-24T08:18:00.000-07:00

HMRC have announced new rates that apply to all journeys on or after 1 July 2009.
The rates apply where employers reimburse employees for business travel in their company cars or require employees to repay the cost of fuel used for private travel.
Customs will also accept the rates for VAT purposes if employers retain sufficient receipts.
Follow the link below for the new rates:

http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

For help and advice regarding company cars contact Nottingham Accountants Marshall Smalley Chartered Certified Accountants on 0115 9565171 or visit www.marshallsmalley.com

HMRC’s New Disclosure Opportunity (NDO)

2009-08-24T08:07:00.000-07:00

The NDO is available to all UK taxpayers who decide to make a voluntary disclosure of direct or indirect tax liabilities. The irregularities do not have to necessarily involve an offshore bank account.

Under the NDO HMRC allow people with unpaid taxes to settle their tax liabilities at a discounted penalty rate. Where the tax does not exceed £1,000 there are no penalties.

The NDO registration window opens on 1 September and closes on 30 November whilst the longest deadline date for full disclosure and settlement is 12 March 2010.

NDO covers both onshore and offshore tax problems, we are more than willing to help anyone who would like to register and make a disclosure under NDO.

HMRC have said the NDO is "the last opportunity of its kind”. Meanwhile, HMRC has won access to offshore accounts of 300 banks, and will use that information to monitor who makes a disclosure.

For assistance or more information call Nottingham Accountants Marshall Smalley on 0115 9565171 or visit http://www.marshallsmalley.com/

New disciplinary procedures

2009-08-17T02:45:00.000-07:00

As of 6th April 2009, the Statutory Dismissal, Disciplinary and Grievance Procedure was replaced with the new Acas Code of Practice on Discipline and Grievance. Employers should ensure they ollow the new code carefully or risk falling foul of the financial penalties.

The new code sets out clearly the steps that an employer must take when dealing with issues concerning and disciplinary matter or grievance.

The code must be followed at all times, even in cases where employers simply issue an employee with a verbal or written warning. Failure to do so means that if a claim is brought against you in an Employment Tribunal, the Tribunal will have the power to increase any award made by upto 25%.

On a more positive note, employees will no longer be ale to successfully bring a claim of automatic unfair dismissal purely as a result of an employers failure to follow the statutory process. This does not mean however that no process need be followed as Tribunals will still be able to decide that a dismissal is unfair if a proper and reasonable procedure has not ben followed.

Do you really need to be registered for VAT?

2009-08-10T04:26:00.000-07:00

You must register only if the value of your taxable supplies in the last year or less has exceeded £68,000. De-registration may enable you to reduce your prices or to keep more of your sales.

HMRC’s New Disclosure Opportunity (NDO)

2009-08-10T04:25:00.000-07:00

HMRC have now confirmed the details of the NDO.
The NDO allows people with unpaid taxes linked to offshore accounts or assets to settle their tax liabilities at a favourable penalty rate. The NDO runs from the 1 September 2009 until 12 March 2010.
We have the expertise to help anyone who thinks they might benefit from the NDO.

VAT cash accounting scheme

2009-08-03T03:47:00.000-07:00

If you sell more on credit than you buy on credit, you 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.
Contact Accountants in Nottingham Marshall Smalley Chartered Certified Accountants on www.marshallsmalley.com

Can You Defer Self Assessment Payments on Account?

2009-08-03T03:46:00.000-07:00

Don't wait for help

2009-07-30T00:07:00.001-07:00

Don’t wait for HMRC to come after you if you owe money. If you anticipate any trouble paying, we can talk to the Business Payment Support Service to arrange additional time to pay.

31 July: How to pay?

2009-07-30T00:04:00.000-07:00

All the information you need to know about making self assessment payments is on HMRC’s website at How to pay Self Assessment.

Tax Credits deadline problem

2009-07-20T00:41:00.001-07:00

A self-imposed overtime ban undertaken by HMRC staff could lead to major delays in processing tax credit renewals by the 31 July deadline. The ban began last Monday.

31 July Self Assessment Payment Deadline

2009-07-20T00:39:00.000-07:00

The second payment on account of Self Assessment for the year ended 5 April 2009 should reach HMRC before 31 July.

Reduce your income tax

2009-07-13T01:07:00.001-07:00

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

2009-07-13T01:06:00.000-07:00

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

2009-07-06T08:10:00.000-07:00

Tax Refund Information Scam

2009-07-03T02:51:00.001-07:00

Some of our clients have received the following e-mail. Once the link is clicked it requests personal information including Mothers Maiden Name and also your credit card details!

This is obviously a scam to obtain personal information and should be deleted immediatley.

Message Received: Jun 30 2009, 08:30 PM
From: "HM Revenue & Customs"
To: undisclosed-recipients:;
Cc:
Subject: Tax Refund File Number 2009HMRC95841476X/622

ATTN: Dear Applicant,
2009 - Recalculation Tax Refund

After the last annual calculation of your fiscal activity we have determined that you are eligible to receive a tax refund of 284.23 GBP
Your TRN (TAX REFUND NUMBER): 2 7 9 0 2 1 6 8 1 5, please fill the payment form attached in the email.
Please submit the tax refund and allow us 3-9 business days in order to process it.

Note: For security reasons, we recommend that you close your browser after you have finished accessing your refund status.
- For security reasons, we will record your ip-address and date.
- Deliberate wrong inputs are criminally pursued and indicted.

Best Regards,
Greg Stephen
Tax Credit Office Agent
Preston
PR1 0SB
Telephone: 0845 300 3900
Opening hours:
8.00 am to 8.00 pm, seven days a week

Business payment support service

2009-06-29T07:55:00.001-07:00

If you're concerned about being able to meet tax, National Insurance, VAT or other payments owed to HMRC or you anticipate that payments coming due will cause you problems, the Business Payment Support Service may give you the additional time you need to pay, although interest will be charged.

Tax Credits - protect your right

2009-06-29T07:53:00.000-07:00

Tax credits are paid for a full tax year. A tax year runs from 6 April one year to 5 April the next.

To protect your right to tax credits HMRC should receive your claim within three months of the start of the tax year, so no later than 5 July 2009.

Making PAYE payments to HMRC

2009-06-22T04:50:00.000-07:00

CHANGES FROM MONTH ONE 2009-2010

If you normally make direct payments to HMRC, the action you need to take to implement the new changes are as follows:

Paying by CHAPS, BACS Direct Credit, Internet or telephone banking:

You need to provide your bank or building society with the HMRC new bank account number and sort code to prevent any delay in HMRC receiving your payment. The new bank account details are as follows:

ACCOUNTS OFFICE CUMBERNAULD
Account name HMRC Cumbernauld
Sort Code 08-32-10
Account No. 12001039

ACCOUNTS OFFICE SHIPLEY
Account Name HMRC Shipley
Sort Code 08-32-10
Account Number 12001020

Bank Giro and Post Office
You do not need to take any action as each payslip in your P30BC booklet has the new account number pre-printed on it.

Direct Debit and Debit or Credit Card over the internet using BillPay.
You do not need to take any action as the new account details will be updated automatically.

Further updates on these changes can be found at www.hmrc.gov.uk/payingonline.

Warning: PAYE Problems Ahead

2009-06-22T03:12:00.000-07:00

A New PAYE computer system is planned to go live on 29 June.

This is an enormous change involving in excess of 20 million employee records.

Whilst the new system should bring improvements Employers need to be aware that there will inevitably be problems over the next month or so as HMRC prepare for the changeover.
It is quite likely too that there will be some teething problems which will only come to light when the system goes live, so be prepared.

Vat on fuel for company cars

2009-06-22T00:36:00.000-07:00

HMRC have published the revised fuel rates for company car users.

These new rates will take effect from 1st July 2009 and will be effective until further notice, however HMRC have said that they are happy for the new rates to be implemented immediately should the employer wish to do so.

The new rates are as follows:

Engine size Petrol Diesel LPG
1400cc or less 10p 10p 7p
1400cc to 2000cc 12p 10p 8p
Over 2000 cc 18p 13p 12p

Petrol Hybrid cars are treated as petrol cars for this purpose.

Will the rate per mile figures change if fuel prices change?

HMRC have said that the rates will be reviewed twice a year. Any changes will take effect on 1 January and 1 July but will be published on the HMRC website about one month in advance.
HMRC will also consider changing the rates if fuel prices fluctuate by 5 per cent from the published rates when each review is made and we consider the price change will be sustained.
Employers should make themselves aware of any changes by referring to http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm