Tax Alerts - 2012
05 Dec 2012
For nigh on 70 years, the PAYE system has operated to require employers to deduct, and account for, income tax and national insurance contributions on employees’ pay. Remittances have been made in-year and an annual reconciliation (through the dreaded P35) has been completed to identify any under, or over, payments of tax. R(eal) T(ime) I(information) is a move away from this, now dated, approach to a system that will require an ...(more)14 Nov 2012
Families in receipt of Child Benefit, where someone in the household earns more than £50,000, will soon receive a letter from HM Revenue & Customs (HMRC), outlining the new "high income Child Benefit charge" (HICBC), which comes into force on 7 January 2013.
Introduced by the 2012 Finance Act, the HICBC will be imposed on a taxpayer who has income of over £50,000 in a tax year, if they or ...(more)17 Oct 2012
You may be interested to know that HM Revenue and Customs have recently introduced a Business Tax Dashboard, an online service aimed at smaller businesses to help manage your tax liabilities.
The dashboard gives you an overall picture of your total tax position, including payments you have made and amounts you still owe, either for corporation tax or self-assessment, depending on the type of business you have. In addition, if you are ...(more)12 Oct 2012
The intermediaries legislation (known as IR35) effects individuals who provide consultancy and other personal services to their clients through companies or partnerships on terms that would have made them employees if they had been engaged directly by the client.
HM Revenue & Customs have been redesigning their approach to identify potential intermediary cases and have introduced a new risk based points system, which uses a series of business entity tests to determine ...(more)12 Oct 2012
If your job requires you to travel on business you may be entitled to tax relief for your expenses. Care should be taken to arrange business trips in such a way that maximises the relief available.
If you haven’t already claimed, it might not be too late - it is possible to go back several years to claim the relief!
For example, as an individual, for expenses incurred in year ended ...(more)24 Sep 2012
From the start of October 2012, there are new pension rules being introduced that impact on all employers with more than one worker.
Although the changes are being phased in, it’s important to take action now to ensure you’re prepared – are you ready?
Work based pensions are being reformed to encourage more people to save for their retirement, as many people are not saving at all, or if they ...(more)14 Jun 2012
This is indeed the question on most people’s minds as they consider how best to finance the purchase of that new business vehicle. There are various options – buy (either cash, bank loan or hire purchase), finance lease or operating lease. The commercial, accounting and tax implications of each option vary significantly and finding the most advantageous method for your business can be tricky.
The effect of the different tax treatments ...(more)14 Jun 2012
In the continuing constrained lending environment, securing affordable finance to fund future development and expansion plans can be problematic. Using the Enterprise Investment Scheme (EIS) may be one possible route to get round the problem.
EIS was launched to assist unlisted UK trading companies seeking financial backing, and, provided EIS investors satisfy various conditions, they can claim a range of tax reliefs both on their initial subscription and on any future ...(more)17 Apr 2012
A number of changes have been made to the tax legislation recently (in addition to those covered in our Budget article in March) so we thought it might be useful to include a brief catch up note to ensure you’re not missing out.
Previously Smartphones (such as Blackberrys and iPhones) were classed by HMRC as computers rather than mobile phones. As such a taxable benefit in kind arose on the provision ...(more)13 Mar 2012
"There is no such thing as a good tax ......" Winston Churchill, 1924
".....but we can help to make it better" Springfords, 2012
I’m sure we all agree with Mr Churchill, at least when it comes to our own tax liabilities. Unfortunately, tax isn’t optional, but Springfords can help you organise your tax affairs to ensure that you pay the minimum (legal!) amount.
We help many of our clients in this way, and ...(more)09 Jan 2012
If you are both a shareholder and director of an owner managed private limited company, you could extract the profits from your company in a number of different ways - but which one is best to minimise the overall tax payable?
Well, based on current tax legislation, if the company pays into a pension scheme on your behalf then these employer pension contributions are (within certain limits) the most tax-efficient way ...(more)09 Jan 2012
Research and development relief (R&D) is a corporation tax relief that could, provided certain qualifying conditions are met, help a lot of companies reduce their tax liability or even (for small and medium sized enterprises, SMEs) give rise to a tax credit (cash repayment). It doesn’t just apply to ‘test tube’ companies but can instead apply to any company in any sector which addresses a challenge in seeking to improve ...(more)