June 2012

The deadline for renewing working and child tax credit claims is 31 July 2012. If you haven’t received a renewal pack by 30 June 2012 call the tax credits helpline on 0345 300 3900. Don’t panic if your self-employed profit figures for 2011/12 are not finalised. You can include estimated figures on the renewal form, and we can help you provide final self-employed profit/loss figures for 2011/12 by 31 January 2013.

CLICK HERE - Renewing tax credits claim

CKLG Accountants in Cambridge are here to help.

PAYE paid late within a tax year attracts a late payment penalty, but only for payments relating to periods starting after 5 April 2010. HMRC have been mis-calculating some penalties for late PAYE payments in 2010/11. For example the PAYE due by 19 April 2011 should form part of the penalty calculation for 2011/12 if paid late, not the penalties due for the tax year 2010/11.

HMRC will recalculate the late paid PAYE penalties already charged for 2010/11 to remove any penalties for late month 12 payments. If you are affected you should receive a letter including details of the revised penalty calculation, and a refund of the excess penalty within a few weeks. 

CLICK HERE - PAYE Penalty refunds for 2010/11

CKLG Accountants in Cambridge are here to help.

The PAYE rules regarding share-based payments, which include share option awards, changed from 6 April 2012. Any payments (including taxable awards) made after the employment has ceased and the form P45 has been issued, must be subject to the 0T (zero T) tax code by the former employer, on a week 1 or month 1 basis. HMRC have issued a list of six  questions and answers regarding taxation of such share-based payments.

CLICK HERE - Share-based payments post P45

CKLG Accountants in Cambridge are here to help.

The earnings threshold from which student loans have to be repaid through the payroll has increased from £15,000 to £15,795 from 6 April 2012. Some payroll software has not caught up with this change, so do check your software is calculating the required deductions correctly. There are also problems with the new style of form P45, where some employers have not completed box 5 correctly. Call the Employer Helpline (0845 7143 143) if you are uncertain about making student loan deductions for a new employee.

CLICK HERE - Student loan threshold increased

CKLG Accountants in Cambridge are here to help.

HMRC have issued new guidance to sub-contractor companies in the construction industry scheme (CIS) on how to reclaim CIS tax deductions through the PAYE system. The company should complete the form P35 as normal for the tax year, showing the total CIS deductions, and also send HMRC a paper repayment claim explaining the reason for the overpayment.  

CLICK HERE - New guidance for CIS subbies

CKLG Accountants in Cambridge are here to help.

When you make a donation to a charity or to a community amateur sports club, you may make a declaration that your donation is made under Gift Aid. This declaration can be made in writing, online or over the phone, but in all cases it should include your name and address details, the name of the recipient charity, and a statement that you have paid sufficient UK tax to cover the 20% tax the charity will reclaim from HMRC.

It is not possible to completely eliminate your tax liability by making donations under Gift Aid. Such donations would only reduce your tax liability to 20%.  

 CLICK HERE - Giving to Charity through Gift Aid.

CKLG Accountants in Cambridge are here to help.

All VAT returns for periods starting on or after 1 April 2012 must be filed online, and any VAT due must be paid electronically, not by a cheque. Electronic payment includes using direct debits and Bank Giro pay-sips. Are you ready for this change? Talk to us if you want some help with filing VAT returns or other tax returns online.

CLICK HERE - How to submit VAT returns online

CKLG Accountants in Cambridge are here to help.

The one year holiday for employers’ national insurance contributions (NICs) is still available for new businesses based outside of the East and South-east regions of England, and London. The South-east region stretches up to the Northamptonshire border, so you need to be quite clear where your principal place of business is. The business must be a new start-up, not an existing business that has been transferred to a new company. There are also some excluded sectors such as road freight, coal and export businesses. Talk to us about the rules before you apply for the NIC holiday.  

CLICK HERE - Employer NICs holiday for new businesses

CKLG Accountants in Cambridge are here to help.

Do you have a smart phone? If you do, you can now download an app to help you keep accurate and timely business records. These apps have been developed in consultation with HMRC, and are designed for businesses that are not VAT registered. Most of the apps are free to use, and include links to official HMRC guidance on record keeping.

CLICK HERE - List of mobile apps for record keeping

CKLG Accountants in Cambridge are here to help.

If you have recently logged-on to the HMRC online service for PAYE for employers, or corporation tax you will have seen a request to sign-up for the tax dashboard. This is a new tool to provide a single view of all your business tax liabilities arising from corporation tax (for company) or income tax (individual), VAT and PAYE. Your business must be registered with the HMRC online service for corporation tax or self-assessment before you can use the tax dashboard. We can help you register for this service, and bring together all your online logins for different taxes.

CLICK HERE - Business tax dashboard

CKLG Accountants in Cambridge are here to help.

Approved alterations to listed buildings carry VAT at the zero rate, but VAT registered tradesmen who repair (rather than alter) such buildings must charge VAT at 20%. This encourages the owners of listed building to alter their protected buildings rather than repair them. Revised VAT regulations will ensure that building materials and building services supplied for alterations to listed buildings will carry VAT at 20% from 1 October 2012. However, where the contract for work on a listed building was signed by 21 March 2012, the zero rate of VAT will continue to apply.

CLICK HERE - Alterations to listed buildings

CKLG Accountants in Cambridge are here to help.