February 2011Corporation tax returns and paymentsFebruary 28, 2011 Are you ready for the changes coming on 1 April 2011? From that date you will have to file online in iXBRL format your corporation tax return, tax computation and accompanying accounts. Also you must pay your corporation tax and related payments electronically.
If you don’t want to struggle to understand how to use the HMRC free software for submitting a company tax return (which doesn’t cope with charities or companies with odd sorts of income), ask us to help you file online. There are some concessions for small charities, but not for small companies.
HMRC approach in transitional period for iXBRL filing http://www.hmrc.gov.uk/ct/mandatory-online-filing.pdf
Concessions for small charities http://www.ion.icaew.com/TaxFaculty/20990
Paying corporation tax Lump sum payments for motor expensesFebruary 24, 2011 Some companies pay their employees a lump sum to cover the motoring expenses they incur when using their own cars for business journeys. This is a perfectly acceptable way to pay for the business mileage. However, HMRC want to see a clear link between the mileage claims and the amount of the lump sum payments. If there is no link, the lump-sum amounts should be subject to NICs as part of salary. This was the issue in the Total People Ltd case, which HMRC are taking to the Upper Tax Tribunal. Total People Ltd case TC00661 http://www.financeandtaxtribunals.gov.uk/Aspx/view.aspx?id=5028 HMRC reaction to Total People Ltd case Is postal delay a reasonable excuse?February 22, 2011 The postal system is often blamed for delaying tax returns or tax payments, but you need to have evidence of when the return was posted to claim a reasonable excuse for late filing, and escape the penalty. This evidence could be a proof of posting certificate issued by the Post Office. Alternatively if you have a system for recording when each return was posted and follow up non-receipt promptly, the Taxman should accept this. To avoid postal delays submit your tax returns online and pay your tax electronically. Runham and another TC 00933 http://www.financeandtaxtribunals.gov.uk/Aspx/view.aspx?id=5300 How to file online CKLG Accountants announce Magpas Helimedix as their 2011 charity partner!February 21, 2011
First off is the resident marathon runner Peter German all set to run the London marathon in April! please support Peter by donating at the Magpas Helimedix Just Giving site - http://www.justgiving.com/Magpas-The-Emergency-Medical-Charity0 Magpas - Saving lives and reducing disability by the rapid provision of on the spot emergency medical expertise wherever it is needed within the East of England.
Correcting CIS returnsFebruary 18, 2011 If you discover a CIS return contains an error, you need to contact the CIS helpline on 0845 366 7899 to correct the fault as soon as possible. When you make this call you will now be subject to some additional security checks, and you will need to have a copy of the original CIS return to hand during that call. How to correct errors on a CIS return http://www.hmrc.gov.uk/cis/returns/correct-return.htm Further security for CIS returns VAT flat rate scheme and interestFebruary 14, 2011 Following the Thexton Training Ltd case, the treatment of interest received by a business operating the flat rate scheme has changed. Where bank interest paid as a core part of the business activities the interest should be included in the turnover for the flat rate scheme. However, where the interest is received as a passive activity, such as on a current or deposit account it is outside the scope of VAT and should not be included in the turnover for the flat rate scheme. If you have included bank interest in your turnover subject to the flat rate you can make a claim for refund of the VAT paid within the last four years. Ask one of our VAT experts if you need some assistance with this claim. Thexton Training Ltd case TC00919 http://www.financeandtaxtribunals.gov.uk/Aspx/view.aspx?id=5287 State Pension missed from PAYE codesFebruary 9, 2011 HMRC has left out the amount of the State Pension from the PAYE codes of up to 250,000 pensioners for the tax years 2008/09 and 2009/10, although the pension information was provided to HMRC by the Department of Work and Pensions. HMRC will not collect the extra tax due from the affected pensioners, where the error is identified. In other cases the taxpayer may have good grounds for using ESC A19 to deny HMRC the right to collect the underpaid tax.
Ask for an internal reviewFebruary 7, 2011 If you receive a VAT penalty you should always accept the Taxman’s offer of an internal review into the penalty decision, as recent statistics show 56% of penalty and other decisions reviewed by HMRC are eventually overturned. To accept the offer of a review, you must reply to HMRC in writing within 30 days of the date of the penalty notice. You can present evidence with the acceptance form of anything that may support your position, such as your reasonable excuse for submitting the form late, or whatever was the cause of the penalty. If you need advice on what to send to HMRC to get the review process moving, please ask one of our VAT experts. How to appeal an indirect tax decision http://www.hmrc.gov.uk/complaints-appeals/how-to-appeal/indirect-tax.htm Home to work travel expensesFebruary 4, 2011 If you are self-employed your business may be based at your home address, although you perform the majority of your work at your customers’ sites. In such cases the Taxman may argue that you can’t claim the cost of travelling to your customer’s sites, as your business is not truly home-based. Paul Mellor proved to the Tax Tribunal that his self-employed work as an electrician was based at his home as he prepared quotes there, so he could claim the costs of travelling to his customer’s sites. Paul Mellor TC 00906 |
Archives
|
CKLG staff has voted Magpas Helimedix as the charity that they would most like to support throughout 2011. Following an interesting presentation at the weekly staff meeting from the Chief Operating Officer Daryl Brown and their Communications Coordinator Antonia Brickell the staff are now planning how and when they will fund raise throughout the year!.jpg)
