Stockport based Financial Practice Clarke Nicklin have published their March Tax Tips & News, designed to bring you tax tips and news to keep you one step ahead of the taxman.
Real Time Information (RTI) Penalties
HMRC has experienced significant problems in reconciling amounts of PAYE due from employers, to the amounts reported under real time information (RTI). As a result some of the automatic RTI penalties which were to apply from 6 April 2014, will now apply from:
– October 2014 for late filing of in-year RTI reports; and
– April 2015 for late payment of in-year PAYE due.
However, interest for late paid PAYE will still apply from 6 April 2014. To keep on top of what PAYE you have paid and what HMRC thinks is due, you should view the business tax dashboard facility on the HMRC website at regular intervals. Unfortunately we cannot access the business tax dashboard on your behalf. Read More
What is a business journey? –
A number of self-employed businesses have been waiting for a tax case to be decided which turned on the question of ‘what is a business journey?’ The test case concerned a doctor who was both employed by the NHS and self-employed as a private consultant.
The Upper Tax Tribunal decided that the doctor’s self-employed work started when he arrived at his private clinic, so the travel between his home and the clinic was not a business journey. This was in spite of the fact the doctor had an office at his home where he prepared his treatment plans.
Let Property Campaign:
The taxman has launched another “confess your tax sins” campaign aimed at individuals who have failed to declare rental income they have received from residential properties. This let property campaign (LPC) can’t be used by companies that let property or by landlords who let commercial rather than residential properties.
Like other tax disclosure campaigns the taxman promises that you will pay a lower amount of penalties if you disclose under the LPC, but the tax due and interest on late paid tax will have to be paid in full.
Vat on books and leaflets:
There is no VAT on printed books, booklets, newspapers, and leaflets. Well there is – it’s zero-rate VAT, so the customer pays no VAT, but the supplier can reclaim the VAT it pays on purchases.
Printing businesses have to be very clear about which of their products they treat as zero-rated for VAT and which are standard-rated so 20% VAT applies. The VATman likes to come round and check. If you have classified your printed products incorrectly, VAT on the earlier sales (up to four years ago) will have to be paid. It’s unlikely that you will be able to recover this extra VAT from your customers.
March Q & A’s –
Q. I’ve received a refund of the PPI premiums I paid on top of my mortgage. Do I need to declare this sum on my tax return?
Q. I’m self-employed. How do I work out what to claim for motoring expenses in my accounts?
Q. How do I go about claiming the £2,000 employment allowance?
Download the full newsletter off all the Tax tips and hints here