Category: Tax

SMEs pay almost £10 billion in tax compliance costs each year, according to research by the Association of Accounting Technicians (AAT). The survey of 500 businesses reveals that the average SME spends £4,376 complying with business taxes each year. Collectively, the SME sector spends £9.9 billion annually on tax compliance. Important findings: SMEs spend up … Continued

HMRC will shortly start issuing penalty notices to those individuals who did not file their returns on time. A fixed penalty of £100 will be due for all returns which were outstanding at 31 January 2015. HMRC will also start to add £10 daily penalties up to a maximum of 90 days where the return … Continued

HMRC announced in December that they were launching a campaign targeting solicitors who have not declared all their earnings. The Solicitors’ Tax Campaign (STC) means that both individuals and their firms will be under scrutiny. To take advantage of the lower penalties available under the STC you would need to: Notify the Revenue by 9 … Continued

Expected retirement incomes among 2015 retirees have hit a 6-year high, according to research by Prudential. The survey of more than 1,000 people planning to retire this year found that the average expected income is £17,000 a year. This is an 8% increase from the 2014 average of £15,800. Despite optimism increasing in 2015, expected … Continued

CGT entrepreneurs relief is available when owners of trading companies sell their shares, provided certain conditions are satisfied for the 12 months prior to sale. One condition is that the individual has 5% voting control, but a further condition is that they are an officer or employee of the company. There have been a number … Continued

If your business bought a car costing more than £12,000 prior to April 2009, the writing down allowance has been restricted to £3,000 a year and the car was kept separate from other assets. For accounting periods ending on or after 31 March 2014 for corporation tax and 5 April 2014 for income tax, the … Continued

Recent editions of this newsletter have featured the important changes to personal pensions for those over 55 that take effect from 6 April 2015. From 6 April 2016 the new flat rate State Pension will be introduced, which is expected to be around £150 a week.  A person’s actual entitlement will depend on their National … Continued

In last year’s Finance Act it was announced that the VAT rules for dealing with prompt payment (or early settlement) discounts would be changing from 1 April 2015. HMRC have now issued brief 49/2014 setting out guidance for businesses affected by the change, many of whom may need to change their invoicing procedures. From 1 … Continued

Phishing is the fraudulent act of emailing a person in order to obtain their personal/financial information such as passwords and credit card or bank account details. These emails often include a link to a bogus website encouraging you to enter your personal details. There is guidance available that explains how to recognise genuine contact from … Continued

More than half of over-40s don’t know whether they will be eligible for the government’s free pension guidance service, research by Partnership has found. Pension savers will have access to free and impartial guidance on how to benefit from the pension reforms that will be introduced in April 2015. However, Partnership’s survey of more than … Continued