October 2011

From 1 October 2011 the standard industry classification codes on a company’s annual return form are changing from a four-digit classification (SIC 2003) to a new five-digit system (SIC 2007). When you submit an annual return for your company to Companies House, you must use the new SIC 2007 code for returns made up to 1 October 2011 or later. Use the old codes (SIC 2003) for annual returns due before that date.

CLICK HERE FOR  ANNUAL RETURN CHANGES

CKLG Accountants in Cambridge are here to help

If an employee believes they have not been paid statutory sick pay (SSP) by their employer, the employee can complain to HMRC. If HMRC agrees with the worker they will direct the employer to pay the SSP due, but the employer can appeal to the Tax Tribunal. Health for Work Advice provides free advice to small businesses about how to handle employees who are reporting as sick. Remember the old ‘sick note’ has been replaced by a doctor’s ‘fit note’, also know as a ‘Statement of Fitness for Work’.

CLICK HERE - Health for work advice

CKLG Accountants in Cambridge are here to help you

Employers have to collect repayments of loans their employees took out through the Student Loan Company (SLC) when studying since 1999. The employer is told to start making student loan deductions by a form SL1 from HMRC. HMRC is currently tidying-up the data it holds on employers who collect student loan repayments. Some employers may receive an unexpected SL1 notice for a current employee from whom they are already collecting student loan deductions. Other employers may receive SL1 notices for employees who have left their employment. In both cases the employer should simply file the SL1 notices and take no further action. 

CLICK HERE - Calculating student loan deductions

CKLG ACCOUNTANTS IN CAMBRIDGE ARE HERE TO HELP YOU

Many ordinary business people don’t appreciate how the VAT registration rules apply. Say you are a sub-contractor in the building industry; you may feel like an employee but technically you are likely to be self-employed. Where you also provide plumbing services to domestic customers directly, both your sub-contractor income and your plumbing income must be aggregated to see if the VAT registration threshold has been breached. If you have several businesses running side by side talk to us about your VAT obligations.

CLICK HERE - How to register for VAT

CLKG Accountants in Cambridge are here to help you

If your business is VAT registered you run the risk of VAT penalties if you do not pay the VAT due to HMRC on time each quarter. HMRC has started to issue VAT penalty notices on yellow paper. Pay extra attention to any letter from HMRC on yellow paper and forward it to us immediately. We may not receive a copy of the penalty notice addressed to you from HMRC.

CLICK HERE - Penalties for delayed VAT

CLKG Accountants in Cambridge are here to help you

If you have been forced to leave your job in the Middle East and return to the UK, you may be considered resident for tax purposes in the UK in the current tax year (2011/12). This will affect for tax liability of this year and possibly next year. Your tax position for last tax year (2010/11) may depend on a special HMRC ruling concerning workers who have been forced to return to, or stay in the UK, following Foreign Office advice concerning the following counties; Bahrain, Egypt, Libya, Syria, Tunisia and Yemen. Talk to us if you are in this position.

CLICK HERE FOR - HMRC statement on full-time working abroad (see Annex)

CLKG Accountants in Cambridge are here to help you.

The Tax Office computer has been sending out incorrect tax computations and refund cheques. Where a taxpayer completes a self-assessment tax return and also has some income taxed under PAYE, the computer should wait until the tax return has been received before calculating the tax to be refunded. In a few cases this has not happened, and the tax refund has been based only on the PAYE income. If you receive an unexpected cheque from HMRC, please ask us to check the tax calculation.

CLICK HERE - Understanding your tax refund

CLKG Accountants in Cambridge are here to help you.