August 2011

Many sub-contractors in the construction industry scheme (CIS) are waiting for CIS tax repayments. HMRC expect to clear the backlog of CIS claims by 31 August, and to deal with new claims within 15 days.

If you are waiting for a CIS tax repayment, which you need to pay another tax bill, you should contact the HMRC Business Payment Support Service (BPSS) on 0845 302 1435 before the tax becomes overdue. The BPSS can arrange to defer payment of your tax bill until the CIS refund arrives.

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Tax Office staff are calling newly registered self-employed individuals to provide them with information on tax issues. This is a pilot project designed to help new businesses. If you receive such a call you haven’t been marked out for special attention by the Tax Office. The caller will not have access to your tax records.

CLICK HERE FOR MORE - HMRC telephone education for new businesses

Jeremy joins CKLG Accountants as an Associate following his retirement from a major accountancy firm. With expertise in strategic tax planning for wealthy families, business planning for owner managed businesses and international tax issues Jeremy brings a wealth of experience to the team.

Jeremy will also help clients of CKLG who have complex or international tax issues, and those involved in buying, selling or restructuring their businesses.

Where your cumulative sales for a 12 month period exceed the VAT registration threshold (currently £73,000), you must register for VAT. HMRC are writing to around 40,000 businesses whose turnover has apparently exceeded the VAT registration threshold, inviting them to register for VAT under the special ‘VAT initiative’ campaign.

If you receive such a letter from HMRC, or realise you should now be VAT registered do contact one of our VAT experts.  If you register for VAT under this ‘VAT initiative’ will be charged a penalty of only 10%, or possibly no penalty at all if the delay in VAT registration is less than 12 months.

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If your business has registered for VAT since 1 April 2010, you are required to submit all your VAT returns online. You do not have the option of submitting a paper VAT return.

Some newly VAT–registered businesses have missed the deadline for submitting their first VAT returns because they did not receive a paper VAT form from HMRC. If no VAT return is submitted HMRC will estimate the VAT due (based on the VAT registration application), and raise an assessment for that VAT. If you receive an estimated VAT assessment do contact one of our VAT experts.

CLICK HERE - Online filing missed by new VAT traders

CLICK HERE - Penalties for late VAT returns

HMRC are posed to investigate employers who are not applying PAYE correctly to gross wages and travel expenses. An employer should not give their employees tax relief through the pay packet for the travelling expenses, where a P11D dispensation is not in place. We can help you apply for a P11D dispensation, and apply PAYE correctly to all wages paid.

CLICK HERE - Pay day by pay day tax relief models 

HMRC is currently sending out thousands of PAYE reconciliations (forms P800) for the year to 5 April 2011. This form shows what tax was deducted under PAYE and how much tax should have been paid for the tax year. Some people will be due a repayment of tax, others will have tax to pay. It is important that you check all the figures on any P800 form you receive, as they may not be correct. We can help you with this.

PAYE reconciliations Q&As - CLICK HERE

Blank SA payslip to download - CLICK HERE