Winter
2011 |
CHRISTMAS
GREETINGS!
The Partners
and Staff
would like
to take this
opportunity
to wish you
all a Happy
Christmas
and a peaceful
and prosperous
New Year.
This year we will be donating the equivalent of our Christmas card budget to the Rainbow Trust Children's Charity.
The Trust supports the families of children with a life-threatening or terminal illness and, this year, celebrates its 25th anniversary.
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SPEND, SPEND, SPEND!!!
Certainly not something you hear often in the current economic climate. However, with the Annual Investment Allowance (AIA) reducing from £100,000 to £25,000 from 6th April 2012 (1st April 2012 for companies), if you are planning to spend significant amounts on plant and machinery, you should think about doing so before this date!
AIA's explained
Businesses can currently write off 100% of the cost of acquired qualifying assets against their taxable profits up to an annual limit of £100,000. Assets that can be written off in this way include commercial vehicles, plant, computers and other equipment – cars do not qualify.
What can you do with the relief?
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First and foremost, you can reduce your taxable profit by up to £100,000.
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If you are self-employed and pay tax at the higher rate, the AIA claim could save you 40% / 50% of your qualifying investment.
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If you earn more than £100,000, you could use the AIA claim to protect your personal tax allowance that may be lost without the claim.
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If you are self-employed or in partnership and your AIA claim exceeds your taxable income, the resulting loss can be set off against your other income and possibly generate a tax refund
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Even if you trade as a limited company or are a basic rate taxpayer, you will be able to recover up to 20% of your investment. |
We must assume that tax relief will stay at lower levels for the foreseeable future as the Government tackles the reduction in the national debt. This is, therefore, an opportunity that should not be passed over lightly!
To find out more about how your business can make the most tax efficient capital purchases, or to discuss specific expenditure, please contact Tim Subhan or Kevin Fisher.
VAT WHAMMY!
"Last Christmas, you gave me LVCR, But in April 2012, you took it away"
(with apologies to George & Andrew!)
Whilst LVCR (or Low Value Consignment Relief) may sound very dull, it is actually a minor VAT relief that thousands of people have benefitted from in recent years. This is the relief that, until 1st November 2011, allowed non-EU traders to supply goods of up to £18 in value to the UK, free of VAT. From 1st November 2011, the limit was reduced to £15.
It has now been announced that, from 1st April 2012, the relief will be abolished, but only for goods imported from the Channel Islands. It is this relief that has allowed companies, including Amazon and Play, to supply goods such as CDs, DVDs and Memory Cards at slightly lower prices.
So this will, indeed, be the 'Last Christmas' to pick up that bargain CD to complete your collection! |
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MISS THE 2011 TAX RETURN FILING DEADLINE AT YOUR PERIL!
A new and much tougher regime is now in force, with the main penalties being split between filing and tax payment penalties as follows:
Filing Penalties
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One day late - £100 fixed penalty, even applying where there is no tax to pay (unlike the old rules).
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Three months late – an automatic £10 daily penalty until the Return is filed.
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Six months late – a further penalty of £300 or 5% of the tax liability.
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Twelve months late – a further penalty of £300 or 5% of the tax liability.
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Payment Penalties
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Thirty days late – 5% of the unpaid amount.
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Six months late – a further 5% of the unpaid amount.
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Twelve months late – another 5% of the unpaid amount.
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In addition to these late payment penalties, interest at the official rate will be charged on all outstanding amounts, including unpaid penalties.
To avoid any delay, let us have your Tax Return information today!
AUTO ENROLMENT
In October 2012, the Government will be introducing new legislation which will make it compulsory for employers to enrol eligible workers into a workplace pension scheme. Those workers will then be required to make contributions into the pension scheme and this process will be known as 'auto-enrolment'.
Employers will be able to select their own pension scheme, which will have to meet certain qualifying criteria and implementation will be introduced gradually over a 4-year period ending October 2016.
The good news is that smaller businesses with fewer than 50 employees will only be required to enrol from May 2015. Although this seems to be a reasonable time away, this subject will doubtless be making the news over coming months.
| 31st January 2012 |
is the deadline for filing your 2011 Tax Return – if you have yet to let us have the information to prepare your Return, time is running out! Please, please, let us have your Tax Return information as soon as possible, so that we can minimise the last minute rush and be more pro-active in dealing with your tax affairs |
| 6th July 2012 |
2011/12 Form P11D filing deadline. |
| 31st July 2012 |
Second payment on account for 2011/12. |
| 31st October 2012 |
Deadline for filing 2012 'paper' Tax Returns. The online filing deadline remains 31st January 2013. |
CONGRATULATIONS TO...
Stephen Jones, who recently provided his 50th donation of blood. Will we be seeing him on Twilight in the near future?
For more information on blood donation, please see www.blood.co.uk
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THE IMPORTANCE OF P45 AND P46 FORMS
When an employee commences a new employment and does not have a form P45, the new employer is obliged to allocate an 'OT' code on a month 1 basis, which could result in the employee paying more tax than necessary.
In such cases, the employee should complete a form P46 as soon as possible. The form can be obtained either by downloading it from the 'HMRC' website (www.hmrc.gov.uk) or from their new employer. Once completed, the form should then be submitted by the employer to the Revenue, who will then issue the correct coding.
DISCLAIMER
This newsletter
has been produced
for the general
information
of our clients,
professional
contacts and
friends of the
firm. It is
intended to
give a brief
summary of issues
which we consider
may be of interest
and is correct
at the time
of going to
press. However,
clients are
advised to contact
us specifically
for advice before
acting, or refraining
from acting,
in respect of
any matter,
based on the
information
contained herein.
Myrus Smith
Chartered Accountants
is registered
to carry out
audit work and
regulated for
a range of investment
business activities
by the Institute
of Chartered
Accountants
in England and
Wales [ICAEW].
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