What Is The Plumber Tax Safe Plan?
HM Revenue & Customs have decided to offer a “disclosure opportunity” to those engaged in the plumbing and heating business. I have been asked recently why the government would do this! I could think of a few unprintable answers to this but a number of amnesties have been offered in the past few years to different areas of business and relating to specific areas of income.
The problem HMRC have is that the whole system of Self Assessment is based on the notion that people tell HMRC the truth about their income and work out their own tax liabilities based on that income
New Mileage Allowances From HMRC for 2011 Onwards
Our ever generous government, following hot on the heels of the magnanimous 1p per litre cut in the fuel duty on Budget day last month, have finally increased the mileage allowance that employees are allowed to be paid tax free by their employers.
Don’t get too excited. The change only relates to the first 10,000 miles and from 6th April 2011 the rate has increased from 40p/mile to a staggering 45p/mile. The rates for more than 10,000 miles in a tax year remains at 25p/mile.
I am being a bit scarcastic because a 12.5% increase after so many years only takes us back to the pre 2002 Authorised Mileage Rate of, yes you guessed it, 45p per mile.
Tax Resource Center Updated For 2011-12
You will be pleased to see that the much acclaimed Tax Resource Center on the website that is for the benefit of the registered members is now fully updated with the changes made in the budget last week.
This resource center is provided free of charge and is full of information and tax calulators. So, if you want to know what level of car benefit your new vehicle will attract – check it out…
ECJ Ruling Turns Take Away Food VAT On It’s Head!
The European Court of Justice has issued a ruling that will deeply affect the government if adopted here – and which is hard to see how they could refuse.
The current UK VAT position for hot takeaway food is that it is standard rated and so subject to 20% VAT. However, a recent ruling means that the supply of hot food is zero rated as long as it is consumed immediately off the premises.
Should I Be A Limited Company?
This question has come up several times recently. To help clear up confusion on this difficult question, and to allow simple figures to be played around with, I have included a basic calculator on the website for you to have a play with…
Ltd or LLP – What Is The Difference?
Just recently I have been asked about setting up an LLP (Limited Liability Partnership) for a potential client. Very quickly it became obvious that there was a misconception about terminology. They were asking about an LLP but things that were being mentioned referred directly to a Limited Company.
So what is the difference?
Self Assessment Returns – Sorted Once Again!
I am sitting here with my feet up having just filed the last of our 2010 Self Assessment Forms for clients. It is always a slightly satisfying time although marred each year despite my best attempts by clients who just will not co-operate. I chase, text, telephone, email, visit and even harrang offenders in the streets trying to get information out of them. This year I have just one..
Happy New Year!
I can’t believe that another year is drawing to a close. I suppose it must be a sign of old age that the years are accelerating.
I also can’t believe all the changes we have endured over the last 12 months. This time last year we were eagerly looking forward to a general election to replace the unelected prime minister Gordon Brown. Now I look back at the election, the days of uncertainty, the historic coalition starting – and wonder where it all went wrong.
Working Together – You, Me and Xero!
Proud to be a Xero Certified Partner, I have extended our client services to include the following functions, which are exclusive to Xero Partners:
Xero Cashbook – Manage your cashflow online with Xero, but leave the rest of your account management in our hands. Contact us any time using the “Ask My Accountant” button on the help menu in Xero Cashbook if you have any questions.
Mileage Allowance Payments
After a discussion I had with new client on Friday afternoon, it seems there is still a huge amount of confusion about what and how much an employee/business owner can be re-imbursed for using their private vehicle for work. It is true that if you use your private vehicle in your business, you can claim 40p/mile for the first 10,000 miles in a tax year and then 25p/mile over that level completely tax and NI free. This is fairly straight forward and hasn’t changed for a while. Just remember to keep mileage records in your diary or similar to back up your claim.
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