There is little doubt that employment practices in the UK are changing. You may have heard of, or work in, the ‘Gig Economy’. This is where temporary positions are common and businesses contract with independent workers for short-term engagements. At one end of the market there are legitimate contractors working, often through their own personal service company, for a daily rate on a fixed term project. At the lower end of the market, businesses are forcing lower paid employ
Introduction Chancellor Philip Hammond’s 2018 Budget speech on 29 October was noted as the 'trick or treat' Budget with its proximity to 31 October. October is a strange month for a Budget. We are so near Bonfire night and Christmas decorations are in the shops. The Budget speech lasted 73min, his longest Budget speech to date, and had a few bad jokes regarding business rate on public toilets. The Chancellor said that austerity is ‘finally coming to an end’ and that wages gr
Changes are set for April 2019. Businesses with manual and Excel based systems and without the right software will be most affected. You should consider what changes may be required in your recordkeeping systems. There are millions of small businesses in the UK that do not use specialised accounting software, or keep their records manually or on Excel. These businesses will struggle the most. Are you ready to submit VAT returns under the new MTD system? I read about VAT MTD
Introduction The Chancellor, Philip Hammond, has delivered his second Budget of the year, following the spring 2017 Budget. Most of the announcements of that earlier Budget were not passed as law before the June Election. It was only when the Conservatives returned to power and with the introduction of a second Finance Act of 2017 did most of the spring 2017 Budget actually become law. Based on the speech you would be forgiven for thinking that there was hardly any tax in the
If one spouse or civil partner is working and the other has no taxable income, it is worthwhile considering transferring income producing investments to the non-working spouse/civil partner in order to utilise their personal allowance e.g. bank interest, dividends and property income. This will save tax on the income and will increase the overall return from these investments. This can be useful with even the smallest amounts of savings. Use Non-Taxpayers’ Allowances e.g Mr a
As the Self Assessment deadline for Tax Returns for 2013-14 has now passed; HMRC will begin to start issuing penalty notices to those taxpayers who did not meet the legal requirement to file their returns on time. A fixed penalty of £100 will be due for all returns which were outstanding at 31 January 2015. This penalty is no longer reduced where the liability is lower than this or where a repayment is due. HMRC will also start to add £10 daily penalties up to a maximum of 90
If you want to submit a paper copy of your tax return, you must do so by 31 October, following the end of the tax year. For the current 2014/15 tax year (ending on 5 April 2015), the deadline for paper returns is 31 October 2015. HMRC will then calculate what you owe and set a deadline for payment. However, you can also file online by 31 January following the end of the tax year, and your bill will be calculated for you automatically. Late filing penalties Those who failed to
HMRC published their "Top 10 oddest excuses for late tax returns". There are no claims of being abducted by aliens. We we all eagerly await to see what people may dream up for this year's 31 January deadline...
Hopefully, you’ve already filed your Self Assessment Tax Return for 2012-13. If you have then relax…….. and enjoy reading the list of 10 oddest excuses for late filing of tax returns.
Penalties for late filing
If your Tax Return is not filed by 31 January 2014,
A very good (tax!) argument for bringing spouses and other relatives into the business is that they then also get to utilise their tax-free Personal Allowances and lower tax bands. Frequently this is done on a salaried basis but the self-employed also have the option to take on a business partner. If a person paying 40% tax brings his or her spouse (who has no other income) into the business, they can save over £4,000 in tax just by utilising the second Personal Allowance. Li
Paying salaries is an expensive affair, thanks to Employers’ National Insurance Contributions (NICs) at nearly 14%. Converting some of your salary into tax-favoured ‘benefits’ such as approved Childcare Vouchers, or employer pension contributions, generally means a saving for the employee and the employer. An example: Bob takes an annual salary of £60,000 so he pays tax at 40% and Employees’ NICs of 2%. The company is also paying Employers’ NICs at 13.8%. The Board of directo