Monthly Archives: December 2014

12 Day of Tax Tips – Day 3

12 Day of Tax Tips – Day 3

Calculator and paper work

Accounting for Start Ups

Real time information on payroll have been in place since April 2013 (some since April 2012). A system of penalties are in place but have never been enforced. For people operating payroll with less than 50 employees, those penalties will start in March / April 2015 for missed returns.

The cost of the penalties  start at £100 for small businesses per late return, and if the return is more than 3 months late, there is a 5% additional penalty. Of course, there are other penalties if the payment is received late.

As time marches on, smaller businesses will need to comply with the pension auto enrollment rules – so all staff are automatically enrolled into an authorised pension scheme. The more up-to-date payroll information is, the easier it will be to collect the required information for auto enrollment. Should you require more information on this, please contact us and we can talk you through what is required from a business perspective.

When making your payment, you must ensure that the reference number you quote on the payment is for the correct month especially is you are paying outside the expected payment period. So the full reference will be 123PA00123456 add tax year and month, so the January 2015 period payment will have 1510 at the end of the number as January is the 10th payroll month of the year.  If payments are not correctly allocated, you could be issued with a fine even through the correct amounts have been paid in total for the year.

 

Always talk to your accountant before acting on any advice. If you’d like to talk to us about your accounting requirements, please complete the contact form >>>> HERE <<<< and we’ll get in touch.

 

 

 

 

 

12 Days of Tax Tips: Day 2

12 days of tax tips – Day 2

If you are planning a capital investment for your business, you may be used to the Annual Investment Allowance being £25,000 or £250,000 depending on the time of the investment .

The annual investment allowance changed in April 2014, and the value is now standing at £500,000 until 31st December 2015. That new print room you’ve been thinking of replacing may now be worth it as you could get the whole lot as a tax deduction. However, check with your accountant as to what is qualifying spend.

sport-car-front_f12-NYBO

 

Sorry, the new Lamborghini Aventador LP 700-4 with a recommended price from £260,040 is not allowable for the Annual Investment Allowance. (I know this is not a picture of the car !)

 

 

Always talk to your accountant before acting on any advice. If you’d like to talk to us about your accounting requirements, please complete the contact form >>>> HERE <<<< and we’ll get in touch.

 

 

 

 

 

 

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12 Days of Tax Tips: Day 1

12 Days of Tax Tips: Day 1

It’s that child benefit issue again. From 1st January 2013, child benefit was taken away from people earning over £50,000. Of course, you can still claim the benefit, but you may have to pay it back. Can be very harsh when only one person works.

Here is an example:
David & Sarah both earn £49,000 so have a total income of £98,000. They receive child benefit for their two children totaling £1,770. As they earn less than £50K as individuals, they get to keep the benefit.

James & Caroline: only James works and he earns £60,000 and they receive £1,700 child benefit for their children. However, as James earns over £50K, he effectively has to repay all the benefit as income tax by the 31st January.

TIME IS MONEY concept: alarm clock and lots of euro coins

 

So, if you earn over £50,000 and your household receives child benefit, you must complete a tax return and repay the benefit.

 

 

 

Always seek advise from your accountant before acting on this article. If you’d like to get in touch, then please complete the form >>>> HERE <<<<<and we’ll get back to you.

 

 

 

 

 

 

 

 

 

 

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