January 2011CKLG staff raise over £1000 for Arthur Rank House!January 28, 2011
The funds raised went towards paying for a major refurbishment of the craft room at the hospice. Creative therapy aims to facilitate motivation through creativity. Projects that patients can enjoy range from painting and drawing to flower arranging, music, simple DIY and even graphic design. Katie Read, Creative and Diversional Therapist at ARH comments “It is a welcome distraction from any pain or anxiety associated with a patient’s condition as well as helping them to practice motor and cognitive skills that may be deteriorating, helping to restore their self-esteem” New VAT leafletsJanuary 28, 2011 You will be aware that the standard rate of VAT increased to 20% on 4 January 2011, but did you know about the knock–on effects on VAT retail and small business schemes? If you use a VAT retail or small business scheme, make sure you refer to the latest VAT leaflet for the scheme you use. VAT notice 733: Flat rate scheme End of EBT loan schemesJanuary 26, 2011 Where you have taken advantage of a tax scheme to receive virtually tax-free loans or assets through employee benefit trust (EBT) in place of taxed salary, you may find the supplier of this scheme suddenly backs-out. This is because new a tax charge on disguised remuneration is coming into effect in April 2011. In addition, loans made or assets provided since 9 December 2010 may be caught by the new tax charge. Speak to us to sort out any tax pickle you find yourself in. Draft legislation and notes on ‘disguised remuneration’
Intra-family property transfersJanuary 24, 2011 When you acquire a property from your spouse, or civil partner, in the year you are living with them, you take on the cost of the property as it was when your spouse acquired it. This means your spouse makes no gain or loss on the disposal to you, but when you sell the property you are taxed on the full gain made over your combined periods of ownership. Please talk to us before giving away properties, or shares in a property to family members. No gain no loss transfers 50% tax underpaidJanuary 20, 2011 The Tax Office PAYE computer is not coping well with the 50% tax rate. If you are in this tax bracket for the current tax year, you may have paid insufficient tax under PAYE where you hold more than one concurrent employment or pension. This means you will be racking-up an income tax bill in 2010/11 due for payment by 31 January 2012. This seems a long way off, but advance warning allows you to save up the tax due. PAYE underpaid at 50% rate Don’t let your PAYE get lostJanuary 17, 2011 If your PAYE payments go missing within Tax Office, you may be charged a penalty for late payment, receive chasing letters, and possibly a visit from the bailiffs. To avoid problems always include the Accounts Office (AO) reference on any PAYE payment you send to the Tax Office, by post or electronically. Also add the year and month the payment relates to, at the end AO reference, without leaving a space. Eg: PAYE for month 09 in 2010/11 (due 19 January 2011) add 1109 to the AO reference. PAYE issues http://www.att.org.uk/technical/newsdesk/HMRCPAYEUpdate40
PAYE problems for pensionersJanuary 14, 2011 Many of the inaccuracies in PAYE reconciliations for retired people involve the mistakes with government–generated information such as: Non-taxable state benefits include the pensioners Christmas bonus, the winter fuel payment and the attendance allowance. If you are puzzled by the PAYE reconciliation you have received, please talk to us. PAYE calculation problems for pensioners http://www.litrg.org.uk/News/2010/paye-tax-calcs-pensioner
One telephone numberJanuary 12, 2011 HMRC have set-up a single telephone number for employees and pensioners to call if they have questions about their tax affairs: 0845 300 0627. Employers can use this number to raise queries about an employee’s PAYE code. However, if your have questions about how to operate PAYE for your employees you should call the employer helpline: 0845 7143 143, or call us. New telephone number for employees Associated companiesJanuary 10, 2011 There is good news for small companies who find themselves associated merely because the shareholders happen to be married to each other, or in a civil partnership. Say company A is owned by the Andrew and company B is owned by his wife Belinda. For periods ending on and after 1 April 2011, companies A and B will no longer be associated unless there is substantial commercial interdependence between them. As a result companies A and B could each save up to £13,125 in corporation tax. Ask us for further details. Regulations and notes for associated companies rule http://www.hmrc.gov.uk/budget-updates/autumn-tax/small-profits-1335.htm Tax repaymentsJanuary 6, 2011 There is a new problem with PAYE reconciliations for 2008/09 and 2009/10. Some taxpayers are receiving the same tax repayment twice. This happens where the taxpayer has submitted a tax return for the year concerned and received a tax repayment based on that return. Then an identical or very similar tax repayment is issued by the Tax Office PAYE computer system (NPS). If this happens to you, it in not your fault, but you can’t keep the extra repayment. You must tell HMRC as soon as possible. Contact HMRC Is it plant?January 4, 2011 It is often difficult to determine whether assets qualify as plant and hence the cost is deductible for tax purposes, or if the assets have become part of a building, when in general the cost will not be tax deductible. A decision must always be made on the particular facts relating to your business. If this is proving to be a headache for you why not discuss it with one of our tax experts. Whether an asset is plant |
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Janet Cronk, CEO of CKLG Accountants was delighted to present a cheque for £1012.50 to Dr. Lynn Morgan Chief Executive of Arthur Rank House in Cambridge. CKLG chose ARH as their charity of the year during 2010 and held several group and individual events to help raise funds.