Menu

Update week ended 27 October 2010

27th October 2010

PAYE hot potato You may be receiving the form P800. If the form shows that you have under £300 outstanding (per tax year) – the good news is that the tax is written off (see our 16 Sep blog). If under £2,000 (in total for both fiscal years) you will receive a P2 form detailing how much is collected through the payroll. Please ...read more

Update week ended 1 October 2010

4th October 2010

Swiss bank accounts As you may have read, a rogue employee at a Swiss bank stole data on overseas account holders and distributed this to Tax authorities across Europe. As a result, HMRC have begun “fraud” investigations against account holders in the UK. The bank concerned HSBC have told that they will write to all 9000 holders – who were affected by ...read more

Tax update week ended 24 September 2010

25th September 2010

5 October deadline If you’ve never filled in a tax return but have received some form of untaxed income or gain – e.g. selling a rental property, you have until 6 months before the tax payment deadline. The most recent completed tax year is the year ended 5 April 2010. Therefore, if you have something to report (relating to that year), ...read more

Tax update week ended 17 September 2010

20th September 2010

Naming and Shaming The ability to “name and shame” is one of HMRC’s most controversial powers. 4 conditions must apply: 1. After deliberately evading tax, the individual has suffered at least one penalty. 2.The penalties relate to wrongdoing, tax returns and VAT returns for periods after 1 April 2010. 3.The underpaid tax is £25,000 or more. 4.The individual has not fully co-operated, hence HMRC levied more ...read more

Tax update – week ended 10 September 2010

13th September 2010

NI Holiday This “holiday” scheme started last Monday (6 September 2010), so HMRC clarified matters. The scheme only applies to:

  • The first 10 employees employed in a business during the first trading year. If an employee leaves in this time, his “place” can’t be taken by another.
  • Earnings paid to employees on or after 6 September 2010, where his/her first year expires
...read more

Tax update – week ended 27 August 2010

3rd September 2010

VAT reclaims in time A married couple opened a pub in County Durham, April 2004. They submitted VAT returns, paying sales tax (VAT) to the government every 3 months. However, they didn’t realise that they could reclaim the VAT on purchases – up until they de-registered for VAT in March 2006. Somebody pointed out to them that they had lost out on ...read more

Tax update – week ended 20 August 2010

25th August 2010

Update 1. Employers lending cycles to employees The HMRC ordinarily taxes loans of cars, equipment etc. as a "benefit in kind". Essentially the benefit of this loan is considered part of the employee's wages. This is generally subject to income tax (20%/40%) and national insurance both for employers (12.8% national insurance) and employees (11% national insurance) Lending a cycle (and helmet) to ...read more