Tax Return Deadline is Approaching

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It comes around almost as fast as Christmas, and here we are again. The 31 January 2017 marks the deadline for filing of the 2015/16 Self-Assessment Tax Return (SATR).

Individuals who are required to submit a SATR include, the self-employed and some landlords, investors, company directors, high earners and people who have worked overseas.

Those taxpayers who fail to file their Return online by midnight on Tuesday 31 January will be subject to an automatic penalty of £100. This applies even if there is no tax to pay, or the tax is paid on time.

Tax Returns which are not filed after a further three months will be subject to daily penalties, and additional penalties will apply to Returns which remain unfiled after six and 12 months, adding up to a potential penalty of £1,600 or more.

Penalties and interest charges also apply for the late payment of tax, and these will continue to be applied until HM Revenue & Customs receives payment.

Green & Co can help with all your tax planning needs, including filing your Tax Return – please contact us for further assistance.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Prevent Late Payment Penalties With A Time To Pay Arrangement

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For those seasoned Self Assessors the 31 January deadline will be all too familiar. This is when your tax return is due, along with your balancing payment and the first payment on account for the current tax year (if applicable).

You may not be so aware, however, of the late payment penalties that are imposed should any tax remain unpaid at 30 days, 6 months and 12 months after the 31 January payment deadline. The penalty is 5% of the tax outstanding at that date. So, for example, if any of your 2013-14 tax payment remains unpaid at 28 February 2015, 31 July 2015 and 31 January 2016, penalties will be imposed at each of these dates, at 5% of the tax outstanding.

These penalties can be avoided if you contact HMRC prior to the date on which they are imposed, and agree a ‘time to pay arrangement’ with them. The time to pay arrangement must be agreed and in place in order for the penalties to be suspended. Late payment interest, however, cannot be prevented and will accrue until the tax bill has been settled.

So, if you find yourself unable to pay your tax, then a call to HMRC before the tax becomes due could save further self-assessment debt. The number for the HMRC Business Payment Support Service is 0300 200 3835.

For further information please contact Green & Co.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Image courtesy of FreeDigitalPhotos.net

Deadline Dates – April 2015

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1 April 2015

  • Payment of corporation tax liabilities for SMEs account period ended 30 June 2014 where payment is not made by instalments.
  • Reduction in main rate of corporation tax to 20%. Small profits rate is abolished except for ring-fence profits.
  • Change to emission thresholds for business cars (zero rate ends).
  • Application to defer Class 2 or 4 NICs for 2014/15 or claim exception for 2015/16.
  • Multiple contractors to advise HMRC that they wish to be treated as a single contractor for 2015/16.

5 April 2015

  • 2014/15 tax year-end.
  • Ensure personal allowances, exemptions and tax bands are efficiently used.
  • Deadline to pay previously unpaid Class 3 NICs for 2008/09.

6 April 2015

  • Start of the 2015/16 tax year. Ensure payroll and other systems are updated.
  • Personal allowances increased to £10,600.

7 April 2015

  • Electronic filing and payment of VAT liability for quarter ended 28 February 2015.

14 April 2015

  • Forms CT61 for quarter ended 31 March 2015.
  • Quarterly CT instalment for large companies (depending on accounting year-end).
  • EC sales list deadline for monthly paper return.

19 April 2015

  • Payment of PAYE/CIS liabilities for month ended 5 April 2015 if not paying electronically.
  • Payment for PAYE liability for quarter ended 5 April 2015 if average monthly liability is less than £1,500.
  • File monthly CIS return.

21 April 2015

  • File online monthly EC sales list.
  • Submit supplementary intrastate declarations for March 2015.

22 April 2015

  • PAYE liabilities should have cleared HMRC’s bank account.

30 April 2015

  • Companies House should have received accounts of private companies with 31 July 2014 year-end and plcs with 31 October 2014 year-end.
  • HMRC should have received Corporation Tax Self A returns for companies with accounting periods ended 30 April 2014.

If you have any questions regarding these deadlines, please contact us.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Photo credit: freedigitalphotos.net

HMRC Targeting Direct Selling

From time to time the Revenue look at different sectors of the economy and focus their attention on making people aware of what their responsibilities are. They are currently looking at the direct selling market.

Direct selling is when you sell direct to customers either door – to – door, in the customers home or in the workplace. Possibly the most recognised direct selling organisation is Avon products, where representatives go into peoples homes and sell cosmetics, perfumes and household products etc.

The representatives or agents,  as they may be called, may  do the job on a full time basis or as a second job or in the evenings to fit round family commitments. Payment may be in the form of commission rather than a salary or hourly wage.

Direct sellers will usually be classed as self employed although this may not always be the case. To establish your status in this regard you will need to look at the contract you have with the firm you are working for and ask yourself the following:

  • Are you able to work as and when you want?
  • Do you receive holiday pay or sick pay from the company?
  • Do you risk your own money when you set the business up?
  • Can you hire other people to carry out the work on your behalf?

The HMRC is offering all direct sellers that started before April 2011 and that haven’t registered with them as self employed the opportunity to come forward and get their affairs in order.  But hurry you only have until the 28th February to do it.

Go to www.hmrc.gov.uk/campaigns/dsc.htm for all the necessary information

The End of July Is Approaching! Know What You Need to Provide for Your Tax Credits Application

Do you have children at home or a low income job?  If so, you may qualify for tax credits.  Tax credits are non-taxable payments issued by the UK government.  The Child Tax Credit may be available to those who are financially responsible for children or young adults living in their home. Those who are employed, but still earn a low income may qualify for the Working Tax Credit.    It is often possible to receive both types of credit.  A short questionnaire to help you determine eligibility is available on the HM Revenue & Customs website.  Don’t let this money go unclaimed if you qualify.

Many people do not understand how tax credits work or know that they may be eligible.  In many cases, it is well worth hiring an accountancy firm to help prepare your taxes in order to ensure you are taking advantage of every opportunity to keep more money in your bank account instead of paying it to the government.

Knowing you have the possibility to receive a credit back certainly makes spending the time sorting out the taxes less painful.  What could you do with a bit of extra money?  Splurging on a vacation, a down payment on a car or paying off debt are commonly at the top of wish lists.

What You Need:

If you plan on applying, the deadline to submit all tax credit applications is the end of July.  You will need to provide several pieces of information when applying.

  1. Your National Insurance Number
  2. Documentation of expenses if you paid a registered provider to care for your children.
  3. Documentation of any benefits received, such as payments from Jobseeker’s or Career’s allowance contributions
  4. Documentation of all income received, including that from side jobs and investments, such as rent, pensions and interest on savings accounts
  5. Detailed documentation of your income during the last tax year (from April 6th of the past year to April 5th of the current year).  Those who were employed can easily access this information on either their P60 certificate or their final paystub for the tax year.  Those who were self-employed during the tax year will need to prepare a detailed list of all income on their own.

How to File

  • Gather up all of the above information and then call the Tax Credits helpline.  You will then be sent the tax credits application packet.
  • Fill out the tax credits application.  If you need help with your taxes, contact an accountancy firm.
  • Submit the application to the tax credits office and wait to hear if you qualify.

It is important for business owners to have a basic knowledge of tax credits.  Many people who qualify don’t apply.  Employees who have more money available to them through tax credits are often happier and more productive workers.  Learn the basics about the tax credits application from an accountancy professional and encourage employees to research their eligibility.