October 2010

You need to post your VAT return at least three days early if you enclose a cheque with that return, as the payment date for cheques is the day the cheque clears the HMRC bank account rather than the date the cheque arrives at the HMRC office. You can pay any VAT due electronically even if you submit your VAT return by post. Electronic payments, including Bank Giro payments, give you a further seven days to pay the amount due.

How to pay VAT

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

Have you incurred VAT on business expenses in other EU countries since 1 January 2009? If your business is VAT registered in the UK you can claim a refund of that overseas VAT. The deadline for claims relating to 2009 has been extended from 30 September 2010 to 31 March 2011. The minimum claim is €50 per country. The refund will be paid by credit transfer into your bank account, which may involve bank charges for translating the refund into £’s sterling.

 VAT refund scheme for UK businesses

http://www.hmrc.gov.uk/vat/managing/international/overseas-traders.htm

If you no longer live in the UK, but still have some income arising from the UK, you may be eligible to set your UK personal allowances against that income and secure a tax repayment. You need to complete form R43 for the tax year in which the income arose, and submit it to HMRC within four years of the end of the tax year.

 2009/10 form R43 for non-residents

http://www.hmrc.gov.uk/cnr/r43-2010.pdf

If you subscribed for shares in an unquoted company, which subsequently went bust, you may be able to claim tax relief against your income for that loss. HMRC previously only allowed claims for this tax relief where the shareholder subscribed for the shares in his or her own name alone, not through a nominee or in joint names. HMRC have now changed their view on this and will allow valid claims for the loss on shares held in joint names or through a nominee. Ask us to help you with the claim.

 New HMRC practice on share loss relief

http://www.hmrc.gov.uk/briefs/cgt/brief4110.htm

If you receive a PAYE reconciliation form (P800) check the figures carefully as mistakes in allowances and income do occur. Where the form shows tax underpaid of less than £300 you won’t have to pay that tax. Higher amounts will generally be collected through your PAYE code for 2011/12, or HMRC will make a separate payment request in 2011. You can ask for a longer time to pay if you need it.

Explanation of PAYE under and overpayments

http://www.hmrc.gov.uk/p800/paye-tax-calcs.htm

HMRC notes to help understand the P800

http://www.hmrc.gov.uk/helpsheets/p800-notes.pdf

If you pay your PAYE electronically allow at least 3 working days for the payment to reach the HMRC bank account, as HMRC cannot accept payments through the faster payment service (FPS).

If you setup a direct debit to pay your PAYE be sure to quote the correct payment reference. The 13-character reference number is case–sensitive, and any mistake may lead to your PAYE payment being rejected or getting completely lost in the HMRC computer.

Paying PAYE

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

If you use the Employer CD-rom to run your payroll you need to install the September 2010 update through the HMRC website. To avoid all this hassle ask us to run your payroll for you. 

Update for Employer’s CD-rom

http://www.hmrc.gov.uk/employers/cdrom/

If you move house, or change your name, don’t forget to tell HMRC about your new contact details. You only have to tell HMRC once by completing the change of details form on their website, and they will update your records for most taxes and benefits they deal with. However, if you leave the UK permanently you need to complete a form P85.

 Changes to taxpayer name or address

http://www.hmrc.gov.uk/individuals/change-of-circs.htm

Form P85

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

When a taxpayer has deliberately evaded tax of at least £25,000, and has been charged a penalty as a result, HMRC can publish that taxpayer’s details. However, they must not do this if the tax relates to a period before 1 April 2010. If the Tax Inspector threatens to publish your details in connection with a tax dispute, please get in touch with us so we can help you deal with the problem.

Publishing details of tax defaulters

http://www.hmrc.gov.uk/compliance/cc-fs13.pdf