Welcome to our newsletter
We hope you enjoy reading the newsletter and remember - we are here to help you so please contact us if you need further information on any of the topics covered.
Wishing you a Merry Christmas and a Happy New Year.
Norton Tax Shops Ltd
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The Tax Catch Up Plan
We are always delighted when you kindly refer a new client to us. It shows us we are providing the services to you that we always strive for, and we then try and do our best for the person you have referred.
One area where we can help is when you come across someone who for whatever reason has not declared all of their income - or perhaps fears that may be the case. The latest HMRC initiative aimed at such a person is the Tax Catch Up Plan. Although it is primarily targeted at those delivering tuition and coaching or who use those skills in another way to supplement income, this initiative can also be used to cover any situation where income has not been declared.
The incentive to using this new plan is a substantial reduction in the level of penalty usually charged. We will always try to get the penalty reduced to the lowest possible - that can be nil, 10% or 20% of the outstanding tax, depending on the circumstances.
That will save a lot of money as normally the penalty for paying too little tax can be as much as 100% of the tax. There is a deadline of 6 January 2012 to notify participation in the Tax Catch Up Plan.
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Chancellors Autumn Update
A few points
The Chancellor announced a credit easing programme to underwrite up to £40bn in low-interest loans to small and medium-sized firms. If you need funding please speak to us first as we know the correct ways to approach banks and the banks that might be interested in lending.
Business rate holiday relief for small firms has been extended to April 2013
He also announced a £1bn "youth contract" to subsidise six-month work placements for 410,000 young people. This will start in April and you could receive £2,275 to take on a young person.
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CIS - New Penalty Regime
From October 2011, the penalties for late or non-filing of a contractor's monthly return within the Construction Industry Scheme have changed.
The first return falling within the new penalty regime was the return for the month ending 5 November 2011. The following penalties will apply to that return and all subsequent months' returns that are not filed or filed late:
- A fixed penalty of £100 immediately if a return is late.
- A second, fixed penalty of £200, two months after the filing date if the return is still outstanding.
- If the return is still outstanding six months after the issue of the first penalty, a tax-geared penalty is charged which is the greater of £300 or 5% of the amount of deductions shown on the return.
- If the return is still outstanding twelve months after the issue of the first penalty, a further tax-geared penalty is charged which is the greater of £300 or 5% of the amount of deductions shown on the return. Higher levels of penalty apply where, as a result of the failure to file the return on time, information has been deliberately withheld.
- Interest will be chargeable on any penalty paid late.
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Beware, HMRC do not come bearing gifts!
A few of our clients have received correspondence from HMRC requesting a check of VAT records visit. The letter implies that this visit is an opportunity for HMRC to check over VAT returns submitted and for taxpayers to ask HMRC any questions about their VAT affairs.
HMRC are also issuing similar letters regarding checking business records, with a view to ensuring self assessment returns have been completed correctly and will be in the future.
Please be aware that these letters have not been issued as HMRC want a cosy chat with you. Instead HMRC have concerns that not enough tax has been paid in the past and therefore they will be looking to collect.
It is therefore vital that these letters are treated as urgent and are responded to promptly.
If you have VAT or self assessment returns outstanding it is important that these are submitted as soon as possible as this shows that you are trying to get back on track. This will also help reduce any penalty charges levied against you.
We would always advise you to contact us so we can represent you against HMRC and if you have joined our tax compliance scheme, our time costs would be covered. If you haven't joined our scheme you can still join now. Please contact us so that we can talk you through its benefits. | |
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With Christmas In MindAnnual Staff Parties
Please remember there is a £150 (average cost per person) per tax year limit under which no benefit in kind arises on the employee respect of attendance at a staff party. There is no requirement for the function to take place at or around Christmas, although many do. The employer has to identify the average cost per function per person and if there is more than one function the employer has to establish to which (if any) function(s) the exemption applies.
To get an average cost per person requires the inclusion of VAT, accommodation and transport after which the total is divided by the total number of people attending, including non employees. Note that each function must be open to all employees generally, although it can be restricted to employees from a department, division or site. Any staff being excluded from a particular function would result in that function being taxable in full on employees attending, with no exemption.
If there is one function and the cost per person exceeds £150, it is a taxable benefit as the limit has been exceeded. The full amount of the cost is taxable and there is no ability to deduct £150 from the benefit in kind arising. |
VAT Surcharges
We have received details of VAT surcharges being imposed on several of our clients for the late payment of VAT.
This is due to clients making payments via internet banking that are not clearing in HMRC's bank account until 2 or 3 days after the payment was made. HMRC have informed us that they are now able to receive payments via the faster payment service, which should lead to less surcharges being issued.
We have successfully appealed against the VAT surcharges issued against clients of ours that have been affected by this. If you too have been affected, please contact us with your details as soon as possible.
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Please contact a member of our team if you would like to discuss any of the issues raised.
For more information about Norton Tax Shops Ltd, please contact Sally Deacon or Mark Loader by email at admin@nortontaxshops.co.uk, by phone to our Kingswood office or visit our website at www.nortontaxshops.co.uk. |
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Norton Tax Shops Limited
7 Regent Street, Kingswood, Bristol, BS15 8JX. Telephone: 0117 3030080
7 Soundwell Road, Staple Hill, Bristol, BS16 4QG. Telephone: 0117 9109946 | |
