Are you expecting a refund from HMRC

If you are expecting a refund of Tax paid following the end of the tax year on the 5th April 2015, then you should get your Self Assessment Return submitted as soon as you can.

If you need help completing and submitting your return then why not give us a call for a FREE, NO OBLIGATION ‘FIXED PRICE’ quotation.

It costs less than you  might think and we generally recover more in additional refunds that our fees! We can secure your refund rapidly and get the funds paid out to you quickly as well!

Have you submitted your Self Assessment?

Only 4 days left to file your SA100 Self-Assessment Return, if you are to avoid the automatic £100 Fixed Penalty!

The penalties go up from there and get very expensive quite quickly:

    • One day late: £100 fine
    • Up to three months late: £100 fine plus £10 for every subsequent day (max £900)
    • Six months late: All of the above, plus £300 or 5 per cent of tax due (whichever is higher)
    • One year late: All of the above, plus £300 or 5 per cent of tax due (whichever is higher)

In serious cases, you may have to pay 100 per cent of the tax due if one year late.

Need help, speak to us, we offer a rapid turnaround service. Don’t just leave it or you could owe thousands, even if you have no tax outstanding!

Are you going to pay HMRC £100 because your Self Assessment is late?

Have you completed your Self Assessment return yet?

If not, you could receive a £100 ‘Fixed Penalty’ charge for late submission, if it hasn’t been received by HMRC on line by midnight on 31st January 2015.

Here are some excuses HMRC is unlikely to accept as a good reason for late submission:

https://uk.finance.yahoo.com/news/hmrc-unveils-10-worst-excuses-155515619.html

If you need help, or know somebody who does, call Alan on 01227 392881 or email us at: info@brilliantatbookkeeping.net

New Class 2 NI Rules for Self Employed

HMRC plan to collect Class 2 National Insurance from Self Employed individuals at the end of the Tax Year along with Tax and Class 4 contributions. Currently the Self Employed pay a weekly levy of £2.75 per week which they must arrange to pay independently.

From April 2016 this will be collect annually when you complete your SA 100 Self Assessment Return.

For more information call us!

NIC Proposed Changes

Goodwill valuations!

Incorporating a client’s sole trade or partnership business can be a very attractive option from a tax perspective resulting in:
The ability to minimise tax paid on profits.
The generous tax position created by Entrepreneurs Relief on the Capital Gain realised by the sale of the goodwill of the sole trade or partnership to the limited company.
Having successfully agreed the valuation of the goodwill with HMRC (SAV) the Capital Gain is taxed at 10% (subject to qualification for Entrepreneurs Relief) and consideration for the purchase of the goodwill is typically credited to the Director’s Loan Account in the incorporated company and is available to draw down as cash flow permits.The generous tax position created by Entrepreneurs Relief has led HMRC to place valuations of goodwill for incorporation purposes under increased scrutiny resulting in many accountants and tax advisers entering into protracted correspondence and negotiation with HMRC increasing:
The financial cost of incorporation to the client.
The risk of an enquiry into the disposal of the goodwill being opened by HMRC.
The value of goodwill being significantly reduced or worse considered to be nil.
HMRC are challenging valuations of goodwill where there is typically:
A misunderstanding of the nature of the asset being transferred.
A lack of documentation supporting the transfer of the asset.
3. Incorrect timing.
Use of unsustainable, inappropriate and unsuitable multiples.
Adjustments to relevant earnings (e.g. salaries) and a failure to make relevant reductions.
If you would like to see how we deal with these issues and the steps we take to prevent them please contact us.

Self Assessment 2013/14

Have you completed your 2013/14 SA100 Self-Assessment Return. This is for the tax year 6th April 2013 to the 5th April 2014 and needs to be submitted and any tax owing, paid by the 31st January 2015.

If you haven’t yet started, then you should make sure you start now! It can often take several weeks or even months to collect up and collate all of the information required, P60, Investment and Bank Interest, or, if you are self employed completed accounts.

If you need any help completing or submitting your Self-Assessment Return, or you have not been asked to submit a return but have undeclared income then why not give us a call on: 01227 392881 and find out what we can do for you.

Top 5 Fears that Paralyze Small Business Owners and Stop Growth

From the Huffington Post

As an executive business coach, it’s fair to say that most business owners intuitively understand that in order to develop a successful company we must be prepared to put in long hours, days and nights of work. We tell ourselves, friends, mentors and advisors that we are motivated to succeed at all costs and will not give up until we can offer jobs, fulfill a need in the marketplace, meet our personal lifestyle goals, and achieve financial freedom and a sense of purpose.

http://www.huffingtonpost.com/dr-tiffany-d-sanders/top-5-fears-that-paralyze_b_6063534.html

HMRC to collect more debt through tax codes

HMRC can currently collect debts of up to £3,000 by adjusting an individual’s Pay As You Earn (PAYE) tax code which applies to their employment or pensions income. This collection method is known as ‘coding out’. The effect of this is to recover the debt from an individual’s income, by increasing the amount of tax that is deducted from their income during the tax year.

Currently the limit set on the amount which can be recovered this way is £3,000, however for those with PAYE earnings of £30,000 or more the amount which can be recovered via coding out will be increased from April 2015 to a possible maximum of £17,000. The amount which can be collected increases using a sliding scale of band earnings, for example those with annual PAYE earnings of between £40,000 but less than £50,000 could have debts of £7,000 collected this way. If an individual’s earnings are less than £30,000, there is no change to the £3,000 coding out limit.

These changes will only apply to underpaid Self Assessment and Class 2 National Insurance debts and Tax Credit overpayments. Changes will be reflected in 2015/16 tax codes. If an individual does not want the debt coded they should arrange to pay off the debt or agree a suitable payment plan with HMRC.

The current £3,000 coding out limit will still apply to the collection of Self Assessment balancing payments and PAYE underpayments.

If you don’t want the debts to be included in your tax code, then you will need to pay the full amount you owe or speak to us to agree a suitable payment arrangement.