December 2010

Have you registered to file your tax return online through the HMRC website? The deadline for filing your 2009/10 tax return online is 31 January 2011, but can take up to seven working days to complete the registration process before you can start to file online.

 First you need your UTR number and your NI number or UK postcode. The HMRC website will generate a user ID which you must note down and keep it safe. You must then wait for an activation code, which is sent by post to your registered address. Once this arrives go back to the HMRC website and login with your user ID and the activation code, within 28 days of the activation code being issued. You don’t have to repeat the registration process every year.

 You can avoid this hassle by asking us to submit your tax return on your behalf.

 How to register as a new online filing user

http://www.hmrc.gov.uk/sa/understand-online.htm#3

If you are planning to emigrate, allow lots of time to organise the move. The most tax efficient time to leave the UK is generally just around the end of March, but this will depend on your individual circumstances, and your final destination.
When you leave the UK you need to complete form P85 and submit it to your tax office, to inform HMRC of your departure date and other relevant details.

HMRC advice on income tax when leaving the UK

http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm

Form P85

http://www.hmrc.gov.uk/cnr/p85.pdf

CKLG Accountants final fund raiser of 2010 for their chosen charity Arthur Rank House raised £104.12! On the Winter Warmer menu - pies, cakes and mulled wine, eagerly consumed by friends, colleagues and staff!

We would like to take this opportunity to thank everyone who supported us through the year in our fund raising for Arthur Rank House, now it just remains for us to tot up the total and present a handsome cheque to Arthur Rank House!

New advisory fuel rates (AFRs) apply from 1 December 2010. Employers should use the AFR to reimburse the cost of fuel paid for by employees, which is used in company cars for business journeys. The AFRs can also be used to calculate the amount an employee should reimburse his employer in respect of road fuel paid for by the employer, which is used for private journeys.

Advisory fuel rates from 1 December 2010

http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

If you expected your self-employed profits for 2009/10 to be low, you may have reduced your tax payments on account for 2009/10. Once your 2009/10 tax return is completed you may find you owe extra tax for 2009/10. In this case

The Tax Office will send you a tax demand for tax due on 31 January 2010 and 31 July 2010. Please don’t be offended by the tone of this letter, it is not very tactful.

 How to pay self-employed tax

 http://www.hmrc.gov.uk/payinghmrc/selfassessment.htm

You have the right to amend your self-assessment tax return any number of times within 12 months of the final filing date. If you have filed your return online, you can amend it online, otherwise you must write to the Tax Office. Where you used the HMRC free software to file your tax return you may be locked out of the HMRC online system if you attempt to file a second amendment to your tax return online. Talk to us if you are uncertain about how to correct your tax return.

 How to correct or amend your tax return

 http://www.hmrc.gov.uk/sa/correct-repay.htm

If you want to claim exemption from Capital Gains Tax on the sale of your main home, the property concerned must actually be your home for a time. You don’t have to live there full-time, but some occupation is required. Where this tax exemption has been claimed, HMRC may ask for documentary evidence of your occupation, such as utility bills, bank statements, and council tax demands.

Occupation is required for CGT relief

http://www.hmrc.gov.uk/manuals/cgmanual/CG64465.htm

Janet Cronk CEO of CKLG Accountants was delighted to attend the official opening of the new head office of City Care Services at Kingfisher House, Great Shelford. City Care Services is a highly regarded private provider of care services to the elderly who’s aim is to provide the highest quality of care to clients in their own homes – thereby forging closer relationships and allowing a better understanding of individual needs. CCS are committed to providing the highest standard of care to their 400 clients by attracting the best people to join their trusted and highly trained team of over 100 community carers and helpers. Janet is seen pictured chatting to the Chairman of Cambridgeshire District Council Charlie Nightingale who was invited to cut the ribbon to open the new premises. CKLG would like to wish City Care Services every success in their new home!

If you need to ask HMRC for extra time to pay your company’s tax liabilities, you may have to forego your dividends. Where the company has paid out dividends, instead of paying its tax bills, HMRC are not inclined to grant a time to pay agreement. This block on dividends could cause extra tax liabilities to arise where you have an overdrawn loan account with your company. Talk to us to help sort out the mess. 

Guidance on time to pay conditions

http://www.hmrc.gov.uk/payinghmrc/problems/bpps.htm