April 2012

Have you recently received a letter from HMRC saying you are no longer entitled to working or child tax credits? Even if you are not entitled to a tax credits payment at this time, there are good reasons for staying in the tax credits system:

• If your circumstances change, a new tax credits claim can only be back-dated for one month.
• Any tax credits overpayments from earlier years are immediately repayable on leaving the tax credit system.
• Claims for the disability element of working tax credits may not be able to be  renewed if they lapse.

CLICK HERE - Explanation of tax credits withdrawal letters

CKLG Accountants in Cambridge are here to help.

From 7 January 2013 child benefit will still be paid to parents who currently receive it, or who make new claims. However, where one or both of the parenting couple has net income over £50,000 a tax charge will apply equivalent to 1% of the child benefit received by the family, for every £100 of income over that threshold. With our help you may be able rearrange the distribution of income within your family, such that no one has net income of over £50,000, and the child benefit tax charge is avoided.

CLICK HERE - Child Benefit income tax charge

CKLG Accountants in Cambridge are here to help.

If you did not pay any employees through your PAYE scheme in 2011/12 you do not need to make an end of year return for that scheme, (forms P35 and P14). You may have already told HMRC you want close the PAYE scheme. In either case where your PAYE scheme was dormant in 2011/12 you need to tell the Tax Office, as soon as possible. The easiest way to you this is by using the online form on the HMRC website, see link below.

CLICK HERE - Employer notify no PAYE return required

CKLG Accountants are here to help.

If you are selling more than a few personal items online, the Taxman may consider that you are trading. In which case you need to declare your profits and pay tax on them.

The Taxman has just launched a campaign aimed at those who have not properly declared their profits for selling in online markets. If this applies to you, please talk to us. If you make a detailed disclosure to HMRC by 14 September 2012, and pay all the tax and interest due on the undeclared income by that date, the penalties charged will be minimal. However, you need to contact HMRC by 14 June 2012 to be included in this scheme. We can help you with that.

CLICK HERE - e-markets campaign page

CKLG Accountants in Cambridge are here to help.

A Junior ISA can be opened by, or on behalf of, individuals aged under 18 who live in the UK, who are not entitled to a Child Trust Fund account. Up to £3,600 can be deposited in a Junior ISA in each of the tax years: 2011/12 and 2012/13. However, the funds cannot be withdrawn until the account-holder reaches age 18, or becomes terminally ill. If you contribute to your child’s Junior ISA the income from the account will not be taxed on you, even if that income exceeds £100 per year. This tax exemption for funds provided by parents does not apply to income from cash ISAs, which can be opened by 16 and 17 year olds.

CLICK HERE - Govt information re Junior ISA

CKLG Accountants in Cambridge are here to help.