The VAT Flat Rate scheme provides smaller businesses with a number of options that can often create real cash savings. Benefits include: * Simplified administration, quicker to produce returns* Depending on the market sector your business operates within, you may be able to reduce your overall VAT payments. To qualify, your annual turnover must not […]
State pensions subject to PAYE?
Apparently, 60% of pensioners are unaware that their State Pension is taxable income. Historically this assumption is probably based on the way in which their pension is paid – without deduction of tax. This may be about to change! The Office of Tax Simplification has come up with an idea to streamline the taxation of […]
10% reduction in IHT rates…
If you leave at least 10% of your net estate to a recognised charity this may reduce the amount of Inheritance tax paid by your estate to 36% instead of 40%. The following notes explain some of the factors that need to be taken into account. 1. The net value of your estate is the value […]
HMRC flexes new muscles!
From 6 April 2012 HMRC can exercise new powers that will allow them to require a cash deposit or a bond, which can be cashed on demand, from certain employers where it is considered there is a real risk that they will not pay their PAYE and NIC liabilities. HMRC have said that this will […]
Potential tax refunds for smart phone users
HMRC have at last woken up to technological advances in recent years, and in particular, to the so-called smart phones. Until recently HMRC decreed that smart phones were not mobile phones and therefore subject to tax as a benefit in kind. Users of iPhones, Blackberries and other “Android” devices, who have suffered a benefit in […]
Tax Credits apply now to secure benefits
In order to qualify for a full year’s Tax Credit claim for 2012-13 your application needs to be made before 6 May 2012. This is because HMRC will not back date an application for more than one month. Prior to 6 April 2012 it was possible to backdate applications and notification of changes for three […]
HMRC to stamp on residential property transactions
How much Stamp Duty Land Tax will you pay when you buy residential property in the UK following the Budget? Firstly the extension of the nil rate band to £250,000 for first time buyers ceased 24 March 2012. The current Stamp Duty Land Tax (SDLT) rates are: Residential property purchased outside disadvantaged areas Zero charge […]
Is your birthday after 5 April 1948?
If the answer is yes you will not qualify for the higher value personal allowances presently available to the over 65s and over 75s. From 6 April 2013 Age Related Personal Allowances are being phased out. Here’s how the changes will work in practice: 1. If your birthday is after 5 April 1948 you will not […]
Who will pay the highest rate of income tax in 2011-12?
General considerations:You will normally be paying tax at the 40% income tax rate if your income less tax allowances exceeds £35,000 and at the additional rate, 50%, on any of your taxable income that exceeds £150,000. There are special tax rates that apply to company dividend income. Additionally, your Personal Allowance reduces when your income […]