Blog
Latest News & Advice from Smith Emmerson
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SELF-ASSESSMENT – PENALTIES SIGNIFCANTLY INCREASED
Under the previous rules the penalty for late submission of your tax return was £100. However if you tax liability was less than £100 then your penalty was capped at this level i.e. no tax due no penalty. HMRC have said that this was not enough of a deterrent and therefore a new penalty regime has been announced for the 2010/11 tax year. If your tax return is filed late the new penalties are: Day one – initial ...
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New Time Limit On Capital Allowances Claims
The Government is proposing to issue a consultation document regarding claiming capital allowances on fixtures and fittings in commercial property. At present there is no time limit over which expenditure can be claimed. Whilst it is only possible to amend previous claims going back two years, it is currently possible to amend the claim say for the year-ended 31 July 2009 based on new information about expenditure incurred in 1999 that has been overlooked. Our understanding ...
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New Website for Smith Emmerson
July 2011 sees the launch of Smith Emmerson’s new website. The new site introduces its visitors to the broad range of products and services that we offer, as well as information about our team and history. The new site is designed to guide the customer effortlessly through our services information to identify the optimum solution for their needs. The website will be regularly updated with news and information, so please visit regularly. The website was designed and ...
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A Boost to Small Businesses
Small businesses will have access to an additional £450 million of discounted loans after the Royal Bank of Scotland (RBS) and Santander negotiated extra European funding. The funds have been secured from the European Investment Bank (EIB). The RBS will have funds available of £300 million at 0.6 per cent below its standard interest rate and Santander has £150 million to lend at 0.7 per cent below its usual rate. The available money is aimed at businesses ...
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Salary or Dividend – Which is Best?
Assuming your company is paying Corporation Tax at the small company rate of 20% (profits up to £300,000), it is generally more tax-efficient to distribute profits by way of dividends to shareholders. Overview: National Insurance is not payable on dividends. As a higher-rate tax payer, your employment income is taxed at 40%, whereas dividends are taxed at 32.5%. Employment earnings above £150,000 are taxed at 50% whereas dividends are taxed at 42.5%. Salaries attract both Employers and Employees National Insurance ...
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Pool Cars
There is no taxable benefit for an employee who drives a company car where the vehicle concerned qualifies as a pool car. A car only qualifies as a pool car if all the following conditions are satisfied: it is available to, and actually used by, more than one employee it is made available, in the case of each of those employees, by reason of their employment it is not ordinarily used by one of them to the exclusion of the others any private use ...
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Business Travel – Employees & Directors
Where an employer reimburses an employee who earns at a rate of £8,500 pro-rata per annum or a company director for costs incurred by them personally in respect of business travel, the employer must report the reimbursement on form P11d. However, where the employer has agreed a dispensation with HM Revenue & Customs in respect of business travel there is usually no requirement to report it on a P11d. Receipts or invoices must always be produced ...
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What are the Tax Implications for Divorce?
When married couples or civil partners take the decision to separate then tax is not going to dominate conversation. However tax issues cannot be disregarded as urgent action may be required in the tax year of separation to avoid any nasty tax surprises. Generally transfers of assets between husbands and wife’s and civil partners take place on a no gain, no loss basis. However, this rule only applies in the tax year of separation. Transfer of assets ...
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Early Start for Business Record Checks by HMRC
Despite HMRC announcing that their proposed Business Records Checks programme (BRC) would commence later this year, we have been advised that the first BRC letters have been issued trying to arrange visits to businesses to carry out the records check. This has come as a surprise and should you receive such a letter please let us know immediately. Please remember that HMRC will look to impose penalties if the standard of your record keeping falls below what ...
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Company Cars – Advisory Fuel Rates from 1 March 2011
With effect from 1 March 2011 the revised advisory fuel rates relating to mileage payments for business journeys in company cars are as follows: Engine size Petrol Diesel LPG 1400cc or less 14p 13p 10p 1401cc to 2000cc 16p 13p 12p Over 2000cc 23p 16p 17p Petrol hybrid cars are treated as petrol cars for this purpose. The new rates are effective from 1 December 2010, but for the ...
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