26/12/2010, by HM Revenue & Customs, Tax article - VAT & Excise Duties
Are you ready for the change in VAT? HM Revenue & Customs warns that the standard rate of VAT goes up to 20 per cent on 4 January 2011 – so it’s worth getting your business ready now.
Introduction
From Tuesday 4 January, you will need to charge the new 20 per cent VAT rate on all standard-rated sales you make from that day onwards.
If you’re in retail, you must use the new 20 per cent rate for all standard-rated takings you receive on or after 4 January. The new ... Continue Reading
23/12/2010, by Low Incomes Tax Reform Group, Tax article - Income Tax
Received a P800 tax calculation? Having a battle with HMRC? Want to know what to do next? LITRG summarise below their guidance to help you get to grips with it.
Introduction
In September this year, HMRC began sending out the first ‘automatic reconciliations’ from their new PAYE system. An estimated six million people are due to receive a tax calculation as a result – a ‘P800’ – by the end of the year. This might cover a single tax year (2008/09 or ... Continue Reading
21/12/2010, by HM Revenue & Customs, Tax article - General
Jane Frost of HM Revenue and Customs (HMRC) reminds those who are self employed and claiming tax credits to tell HMRC about their total income for the previous tax year.
Introduction
Are you self employed and claiming Tax Credits? If so, you should let HMRC know your total profits for 2009/10 as soon as possible.
If you fail to provide the correct details, it could lead to an overpayment of Tax Credits. And if you supply incorrect information, it could even lead to a penalty.
Letters ... Continue Reading
20/12/2010, by HM Revenue & Customs, Tax article - VAT & Excise Duties
Brian Redford, Deputy Director, Intermediaries and External Communication, Business Customer Unit, HM Revenue & Customs (HMRC) reminds businesses of recent changes to VAT online filing.
Online VAT Filing is Here!
If you run a business with an annual turnover of £100,000 or more (excluding VAT), you will now have to file your VAT returns online for any periods that begin on or after 1 April 2010. You will also have to pay any VAT due electronically, for example, by Direct Debit.
Anyone ... Continue Reading
19/12/2010, by Mark McLaughlin CTA (Fellow) ATT TEP, Tax article - Business Tax
Mark McLaughlin CTA (Fellow) ATT TEP points out that a recent case offers some comfort for small and cash-based businesses.
Introduction
When it comes to HMRC commencing enquiries into the tax returns of self-employed individuals, it would not be surprising if cash businesses were seen by HMRC as something of a 'soft target'. The record keeping standards expected by many HMRC officers appears to be very high, and even the smallest discrepancy can result in proposed additions to turnover ... Continue Reading
19/12/2010, by Steve Allen, Tax article - VAT & Excise Duties
Steve Allen of VAT Advisers Ltd highlights a selection of recent VAT cases.
Tribunals Says Taxi Firm acts as Principal for Cash Work
This case is interesting in that it concerns the age-old problem of trying to decide whether a business is acting as an agent or a principal.
The Appellant company supplies taxi services to account customers, whom it invoices regularly, and from whom it receives payment directly. It also provides cash work, which includes taxis picking up at taxi ... Continue Reading
19/12/2010, by The Provincial Tax Practitioner, Tax article - General
The Provincial Tax Practitioner tells a seasonal story with a tax theme.
Christmas Present
It’s that time of year again in the Provincial Tax Practitioner’s office and the festive spirit has been turned away at the door, sent packing with a frozen flea in its ear.
Clients’ books and records are piling in, despite constant reminders throughout the year to bring them in earlier; Post It notes are obliterating my computer screen; everybody expects an office party; ... Continue Reading
17/12/2010, by Low Incomes Tax Reform Group, Tax article - Income Tax
Have you challenged a PAYE underpayment calculation (‘P800’)? Have HMRC replied saying that you still have to pay? LITRG explains what next steps you might take.
Introduction
We have written in previous articles about the tax calculations being sent out to PAYE taxpayers over recent months, explaining how you might check and challenge them.
We now explain what to do next if HMRC have rejected your request for tax to be written off, and how to pursue your case further ... Continue Reading
17/12/2010, by Lee Sharpe, Tax news - HMRC Administration, Practice and Methods
Earlier this week, HM Revenue & Customs published a further Technical Consultation on draft legislation to enshrine published but 'discretionary' concessions (tax treatments) into law, as part of a comprehensive review following the Wilkinson case.
Although most of the concessions dealt with in this Consultation are of limited scope, ESC C16, which allows distributions from a company to be treated as capital, rather than income, will be of interest to many tax advisers and business owners ... Continue Reading
17/12/2010, by HM Revenue & Customs, Tax article - General
HM Revenue & Customs wants students to make sure they hang on to their hard-earned cash and don’t pay too much tax this holiday season.
Holiday Jobs
If you have a holiday job, you won’t have to pay tax if your total earnings for the tax year are less than £6,475. This figure is known as the “personal allowance” and everybody’s allowed to earn this much before they start paying tax.
To make sure you don’t pay tax, however, you need to fill in a ... Continue Reading
