What is the Annual Investment Allowance? (Part 2)

Posted on November 26th, by Helen in business advice, Small business tax. Comments Off

The Annual Investment Allowance enables a business to reduce its tax bill by claiming for the cost of capital equipment in the year it bought the equipment. Up until December 2015 the maximum Annual Investment Allowance is £500,000. But from January 2016 this amount drops to £200,000.

This might seem very straight forward but in fact it is slightly more complicated than that. For a business with an accounting year that is partly in 2015 and partly in 2016 the amount that can be claimed is a proportion of each limit. There are transitional rules that affect how much can be claimed and it all depends on the timing of your purchase. So if you buy a number of pieces of equipment for fairly low costs this may not be a problem. Alternatively you may buy one large piece of machinery … Read More »

The 10 worst excuses for filing your tax return late

Posted on January 6th, by Helen in News, Tax. Comments Off

Just in case you missed them  – as published by HMRC – here is the top 10 list for filing your tax return late:

1. My pet dog ate my tax return… and all the reminders.

2. I was up a mountain in Wales, and couldn’t find a postbox or get an internet signal.

3. I fell in with the wrong crowd.

4. I’ve been traveling the world, trying to escape from a foreign intelligence agency.

5. Barack Obama is in charge of my finances.

6. I’ve been busy looking after a flock of escaped parrots and some fox cubs.

7. A work colleague borrowed my tax return, to photocopy it and didn’t give it back.

8. I live in a camper van in a super-market car park.

9. My girlfriend’s pregnant.

10. I was in Australia.

Failing to meet the 31st January deadline and filing your tax return late will … Read More »

Do you make credit card sales?

Posted on December 3rd, by Helen in Small business tax, Tax, Uncategorized. Comments Off

The Credit Card Sales Campaign is an opportunity to bring your tax affairs up to date if you’re an individual or business that accepts credit or debit card payments.

Who can do this

This opportunity is for you if:

you accept card payments for goods or service
you haven’t declared all your UK tax liabilities

Get the best terms

You need to tell HM Revenue and Customs (HMRC) if you either:

haven’t registered with them
have failed to declare all your income

This is called a ‘voluntary disclosure’.

What happens if you should disclose but don’t

HMRC has details of all credit and debit card payments to UK businesses. This information is used to identify individuals and businesses that might not have paid what they owe.

Credit Card Sales Campaign Helpline
Telephone: 0300 123 9272
From outside the UK: +44 300 123 9272
Monday to Friday, 9am to 5pm

Danger – Bad tax advice!

Posted on September 5th, by Helen in Tax. Comments Off

Did you know that the information that HMRC give you is often incorrect?

A civil Service Capability Review has found that one in four of us contacting HMRC is given incorrect or incomplete information. ONE IN FOUR!

That’s a massive problem.

The official message is that Self Assessment is easy, but it clearly is not true. Tax is complicated and it changes every single year. Even for small mounts of money, tax is taxing!


The Statutory Residence Test – or, am I a UK taxpayer?

Posted on May 19th, by Helen in Tax. Comments Off

The Statutory Residence Test was introduced from April 2013 to determine your tax residence; it sets out what makes you UK resident for tax purposes.

With the ease of global travel we have a lot more freedom to choose where we want to live and work. So why should it matter whether we are resident in the UK for tax? Well, if you are UK tax resident then you pay tax on all of your worldwide earnings. And if not, then you will not be entitled to the same tax allowances as a UK resident.

The Statutory Residence Test works as follows:

If you spend 183 days or more  in the UK then you are a UK resident for taxes.

But you will automatically be resident overseas for tax and not the UK if

1.      You spend less than 16 … Read More »

Tax free mobile phones

Posted on March 19th, by Helen in Payroll, Tax. Comments Off

You are allowed to provide your employees with one tax free mobile phone each. But you have to do it the right way otherwise it could cost you and your employee tax and national insurance.

The tax free mobile phone

The contract must be between the employer and the mobile phone company.
There are no reporting requirements
There is no tax or NI to pay
Tablets are not included but smartphones are.

Employee’s own phone – employer pays supplier direct

The contract is between the employee and the phone company
You have to report on a P11D
Add the value of the benefit to earnings through the payroll
Employer pays class 1 NI
Employee pays NI, but no tax
No NI is payable if it was acquired for business use only but still have to report

Employee’s own phone – employer reimburses monthly contract

The contract is between the employee and the phone company
You … Read More »

Urgent – Register for Self Assessment tax return today

Posted on October 4th, by Helen in Tax. Comments Off

Deadline to register for self assessment tax return is 5th October

You may never have worried about filling in a tax return before now. Unfortunately you could be in for a shock and a penalty if you fail to register a new source of income for the tax year ending April 2013. You have until October 5th to register any change in circumstances with HMRC. This is particularly likely to affect those employees with earnings over £50,000 still claiming child benefit.

So Who Needs to complete a tax return?

You need to complete a self assessment tax return if any of the following apply:

You are self-employed
You are a company director, unless it is a non-profit organisation and you don’t receive payments or benefits
You are a Minister of Religion of any faith
You are a Lloyds Name/Member
You have annual income over  £100,000
You are an employee/pensioner … Read More »