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Welcome… To July’s Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman. If you need further assistance just let us know or you can send us a question for our Question and Answer Section. We are committed to ensuring all our clients don’t pay a penny more in tax than is necessary. Please contact us for advice in your own specific circumstances. We’re here to help! July 2012 · Tax Campaigns Update · Company Money in Personal Account · VAT Opting to Tax on Buildings · Homes Worth Over £2 million! · July Question and Answer Section · July Key Tax Dates Tax Campaigns Update top The Taxman is determined to target tax evaders, so has been running several campaigns to target particular business sectors, such as doctors, electricians and e-traders. The latest campaign is aimed at individuals who should be paying tax at 40% or 50%, but who have not submitted a tax return when requested to do so. These people will be offered a reduced penalty if the missing tax return is submitted by 3rd October 2012, and all the outstanding tax is also paid by that date. If you know someone who has put their head in the sand regarding their tax affairs, please ask them to get in touch with us as soon as possible, so we can help them complete their missing tax returns. Read More   Company Money in Personal Account top VAT Opting to Tax on Buildings top Here’s a nice problem to have: your company holds a lot of money, but you want to leave it there for now. Perhaps you don’t want to be taxed personally if you take the money out of the company. The company may also have long-term plans for the funds, such as acquiring another business or property when a suitable target is identified. In the meantime the company may only be able to earn 1% interest on the money, but you could earn say 4% on the same amount in your personal deposit account. Could you hold the funds on behalf of the company (as a nominee), and place them in your deposit account to achieve the higher interest rate? It is possible, but there are several issues to deal with: Read More Buildings are generally exempt from VAT, but there are a lot of exceptions to this. A person who holds an interest in a building (freehold or leasehold) can opt to tax the building, such that income from selling or letting the building is subject to VAT. If you purchase a building and the purchase price includes VAT, you do not have to opt to tax that building. Consider Ali who owns a VAT registered car repair business. He purchases a new commercial unit for £200,000 plus VAT of £40,000. The unit is used entirely for the car repair business, so Ali can reclaim the VAT of £40,000 in the same way he reclaims VAT on other purchases. Read More   Homes Worth Over £2 million! top July Question and Answer Section top The Government wants to clamp down on tax avoidance by people who purchase their homes through companies, or other structures like trusts or partnerships, (known as non-natural persons). It is proposing new tax charges will be applied follows: a) From 1 April 2013 an annual charge will apply on the value of residential property worth £2 million of more owned by non-natural persons; and b) From 6 April 2013 Capital Gains Tax (CGT) will be charged on the disposal of residential property where the selling price is £2 million or more, and the seller is a non-natural person who is not resident in the UK. There will be an exemption from the annual charge for established property development businesses, but only if the business has been operating for at least two years. Read More Q. I’m worried about the Granny tax. Is this going to affect me? I’m aged 64 with an annual income of around £16,000. Answer Q. Until 31 May 2011 I was employed as loss adjuster for company A, and I drove 4,400 business miles in my own car for that company in 2011/12. I then joined rival company B, and drove a further 8,080 miles on business, also in my own car, by 5 April 2012. Both companies paid me 40p per mile for those business journeys. Can I claim anything extra on my tax return? Answer Q. The company provides the sales reps with pay-as-you-go mobile phones, who purchase top-ups when they need them, claiming the cost back on expenses. Does the cost of the top-ups need to be included on the forms P11D for those employees? Does it make a difference if the employee bought the pay-as-you-go phone? Answer   July Key Tax Dates top 5 – Deadline for PAYE settlement agreement for 2011/12. 6 – Deadline for 2011/12 forms P11Db, P11D and P9D to be submitted and copies of P11D and P9D to be issued to relevant employees. Deadline for employers to report share incentives for 2011/12 – form 42. 14 – Return and Payment of CT61 tax due for quarter to 30 June 2012. 19/22 – PAYE/NIC and CIS deductions due for month to 5/7/2012 or quarter 1 of 2012/13 for small employers. 19 – Class 1A NIC due in respect of the tax year 2011/12. 31 – Second self assessment payment on account due for 2011/12. Second 5% penalty surcharge on any 2010/11 outstanding tax due on 31 January 2012 still unpaid. Deadline for Tax Credits to finalise claims for 2011/12 and renew claims for 2012/13. Half yearly Class 2 NIC payment due. Penalty of 5% of tax due or £300, whichever is greater for 2010/11 personal tax returns still not filed.   Need Help? top New Clients Welcome top Please contact us if we can help you with these or any other tax or accounts matters. In addition, if there’s anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list. If you are not already a client and are interested in becoming one, we would love to discuss how we can help and provide you with a competitive quote for our services. See details of our Business Companion Service.   About Us top Simple Accounting Limited offers a cost effective Business Companion service to business owners who use MYOB, Mamut, Solar Accounts, Quickbooks or Clearbooks. We offer a range of accountancy services despite being specialists. ‘All clients using these software packages can benefit from our support. Visit our website http://www.simpleaccounting.co.uk for a look at the resource on offer.’   If the images do not show. If the images contained within this email do not show correctly please add this email to your safe senders list.

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