HMRC has recently turned its attentions to property owners and investors with the launch of new taskforces and initiatives to recover additional tax revenues. Firstly, aimed at buy-to-let landlords in the South East, HMRC currently has a taskforce monitoring the activities of landlords whose self assessment tax returns may not reflect the value of their property portfolios. If you have rental property and think you may have underpaid tax, please seek professional advice. This particular initiative is not accompanied by an opportunity for landlords to avoid penalties for outstanding tax owed and any declarations should be treated with caution to avoid further enquiries being opened. (more…)
April 9, 2013
Now as the tax year draws to a close, it is a good time to ensure that you have considered all the options when it comes to reducing your tax bill with tax planning. In this article we look at what you could be thinking about now to legitimately reduce your liabilities. (more…)
February 26, 2013
How to account for the cost of staff training is something we are frequently asked by clients and the answer is never straightforward. There are always a number of factors to consider and the issue of whether tax relief can be claimed, or a course classified as a tax-deductible expense, comes down to what the course actually does for the individual in relation to his or her job role. (more…)
February 21, 2013
Time is running out very quickly for self-employed people who sell directly to customers and who haven’t paid all the tax they owe. They have just two weeks left to voluntarily come forward to HMRC and pay their dues. This time limited Amnesty will expire on February 28th 2013, so if you think you might owe unpaid taxes, you should act quickly to avoid penalties. (more…)
February 18, 2013
The new year always means a load of new resolutions, most of which must have been broken by now. Less obvious as a new arrival are the many new acronyms to get your head around thanks to the impending introduction of RTI (real time information). RTI is the Government’s latest initiative to streamline the collection of payroll related information. From April 2013, detailed online payroll submissions must be made by an employer every time an employee is paid. This replaces the former annual P35 submission made and includes information on PAYE, NIC and Student Loans. (more…)
January 24, 2013
This month, RJP uncovered a serious case of corporate identity fraud committed against one of our clients, Class Affinity Projects Ltd, a telecoms specialist trading as Class Telecommunications. They had their identity professionally ‘cloned’ by highly sophisticated fraudsters who went to great lengths to obtain hundreds of thousands of pounds worth of credit for goods and business services using their identity.
Companies like Class Telecom with an impeccable credit history are prime targets for this fast growing type of crime, which is becoming more prevalent as a direct result of the economic climate. Personal identity theft has increased by over a third since 2010 and in the US, Dun and Bradstreet estimate corporate identity theft accounts for 15% or all commercial credit losses. (more…)
January 22, 2013
Increase to Annual Investment Allowance (AIA)
Top of the announcements for SMEs was the 10-fold increase to AIA. As of January 2013, the amount business owners will be able to write off as tax deductible capital expenditure in the year of purchase will increase from £25,000 to £250,000. This is a massive boost and far more significant than the previous government’s attempt at encouraging investment amongst business owners. In April 2010, the relief was £100,000, which was also generous, but not large enough to enable a lot of companies to write off all their capital purchases in the first year. This new limit however will achieve that in a single hit and we expect a lot of businesses will take advantage and upgrade their infrastructure. (more…)
January 18, 2013
Share ownership has always been a powerful motivator for companies looking to recruit and retain talented and loyal staff. It’s something Nick Clegg referred to last year when he talked of the ideal John Lewis Partnership model for companies to aspire to. The Deputy Prime Minister believes companies that offer shares to their workers tend to be more dynamic, have higher levels of morale and staff who are more motivated to work hard.
At a time when salary increases may not be a viable offering for many companies, share options are set to become an even more attractive proposition, provided new proposals earmarked for inclusion in the 2013 Finance Bill are adopted. In the past, what the Government has announced in the Autumn Statement has tended to be introduced, so we expect this tax planning opportunity to become available to clients later in 2013. (more…)
January 7, 2013
We are living in an era of greater financial equality than in the past, which means that spouses or partners are more able, in these enlightened times, to be ‘discreet’ with one another over the exact amount of their earnings. These days, many couples prefer not to disclose salary details to their partner and where they do maintain a joint account, may simply do so for household budgeting.
This practice is a result of many years of growing equality, which has now been delivered a side swipe by the Treasury by the introduction of some rather over-complicated changes to child benefit payments. A by-product of these changes is that the income levels of many individuals will be made clear to their partner, whether they want them to or not. (more…)
November 27, 2012
When a company is wound up informally there are important tax issues to be aware of, both for the company and for its shareholders; any losses must be accounted for and the relevant tax legislation must be borne in mind when disposing of the company’s remaining assets.
If you are in a position whereby you might wish to wind up a company, you may also wish to utilise any tax planning opportunities in order to minimise your personal tax liabilities. These are likely to involve tax planning in advance and may cover multiple accounting periods and span more than one tax year. (more…)
September 24, 2012