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Bank Protection Charges

There has been a recent change to the rules that protect money that is held in banks. Any banks that are authorised by the FSA are now covered by the Financial Services Compensation Scheme (FSCS).

bankThe FSCS will pay compensation to depositors if a bank, building society or credit union becomes insolvent and can no longer pay its customers. The majority of depositors, including most individuals and small businesses, are covered by the scheme.

The Tax Catch Up Plan

We are always delighted when you kindly refer a new client to us. It shows us we are providing the service to you that we always strive for. We then try and do our best for the person you have referred.

Using your own Family Limited Company to meet University costs of your son or daughter

The scope is substantial, with care, and can result in both a corporation tax deduction and no income tax charge on you to cover the benefit. The ultimate tax-efficient arrangement! As you can imagine, the rules are strict to achieve this.

Beneficial Ownership of an Asset

If you own an asset personally, with your spouse not being involved, that would normally mean that the capital gain on a sale will be taxed on you alone. The key aspect is who is the beneficial owner, rather than whose name is shown on the deeds or certificate of ownership. Often that will be the same person, but following a recent tax case there is scope for showing that perhaps each spouse is the beneficial owner with the result that ½ of the gain is taxed on each of them.

UK/Switzerland Tax Agreement

This ground-breaking agreement has been signed and is expected to take effect from January 2013. It will mean that UK residents can retrospectively regulate the tax position on their existing banking relationships in Switzerland by either making a one-off tax payment or disclosing their accounts. Future investment income and capital gains of British bank clients in Switzerland will then be subject to withholding tax, and the amount collected will be transferred to the British authorities by Switzerland. In addition, mutual market access for financial services will be improved.

IR35 Tax Yield Revealed

If you use your own personal services company to provide services, you will be well aware of the infamous IR35 rules. When they apply they result in the income of your company from the end-users being treated as your own earnings, with the result that PAYE and national insurance contributions are due.

Chancellor's Autumn Statement

The Chancellor of the Exchequer presented his Autumn Statement on 29 November 2011 in which he updated MPs on the state of the economy and the government’s future plans to combat the continuing financial problems facing the country. The economic growth forecasts for 2011 and 2012 have been revised downwards acknowledging that the recovery is slower than previously anticipated. The main points affecting small and medium sized businesses are as follows:

Capital gains tax
The annual exempt amount for capital gains tax will be frozen at £10,600 for 2012-13.

Late-paid PAYE: A ticking time bomb

As you may be aware HMRC introduced penalties for late-paid PAYE and related liabilities back in April 2010 but due to the way that the penalties are calculated the penalties have only started to be levied now.

Unfortunately it is not yet clear how this penalty regime will be applied and this may remain the case until the Real Time Information system is implemented. This is because HMRC's system does not flag up that a penalty situation has occured until after the last payment has been made and the year end reports have been filed.

Maximise your Tax Free Allowances before 5 April 2012

As you will be aware, the tax year ends on 5 April so prompt action is required if you wish to take full advantage of the following tax-free allowances:

Capital Gains Tax
The annual exemption is £10,600 per individual. If you have not used this year’s exemption and are expecting to realise a gain shortly, try to complete the transaction before 5 April 2012. If you have already used this year’s exemption, consider deferring the transaction until the new tax year.

Do you supply goods or services to European countries?

If you're a VAT-registered business in the UK that supplies goods and certain services to a VAT-registered customer in another European Union (EU) country, you'll have to tell HMRC about these supplies. To do this you need to complete an EC Sales List (form VAT101) showing details of each of your customers in the EU and the value (in sterling) of the supplies you've made to them in the period. If you haven't made any supplies (or issued any credit notes) you don't need to submit an ESL.