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May 2012

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To May’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!
May 2012
· New Tax Dashboard
· How Gift Aid Works
· Employer or Personal Pension Funding?
· Filing Online Difficulties
· May Question and Answer Section
· May Key Tax Dates
New Tax Dashboard top
If you have recently logged-on to the HMRC online service for PAYE for employers, or corporation tax, you will have seen a request to sign-up for the tax dashboard. This is a new facility that will provide a single view of all your business tax liabilities arising from corporation tax or income tax (for company or individual), VAT and PAYE.

The tax dashboard will show the following for each tax:

– Amount owed
– Repayments due from HMRC
– Payments already made
– Interest due on any late payments
– Penalties incurred, and
– Direct debit payment plans

You will not be able to reallocate payments between taxes, or even between periods for the same tax. The dashboard is merely a viewing facility. Read More
How Gift Aid Works top
Employer or Personal Pension Funding? top
There has been a lot of coverage in the press recently about tax relief for charitable donations.

When you make a donation to a charity or to a community amateur sports club you can make a declaration that your donation is made under Gift Aid. This declaration can be made in writing, online or over the phone, but in all cases it should include your name and address details, the name of the recipient charity, and a statement that you have paid sufficient UK tax to cover the 20% tax the charity will reclaim from the Tax Office.

Say you make a donation of £1,000 to a charity, and make a Gift Aid declaration for that gift. This results in a gift of £1,250 in the charity’s hands as they can reclaim basic rate tax (20%) on the gross equivalent of the gift. In this example, 20/80 x £1,000 = £250. Read More
Who should pay contributions into your pension fund: you or your employer? If you control the company you work for, the most tax efficient solution is almost certainly for the company to pay as your employer.

The company can set a reasonable level of pension contributions against its profits subject to corporation tax (at 20%, 24% or 25%), and it pays no employers’ NI charges on those pension contributions. A ‘reasonable level’ is where the salary plus benefits, including pension contributions, form a commercially reasonable remuneration package for the work done. As long as the total package is set at a commercial level or below, the company can receive tax relief for the remuneration payments. Read More
Filing Online Difficulties top
May Question and Answer Section top
Most tax and VAT returns now have to be submitted electronically, so if the return is late, even by a minute, the computer spits out a fine. This also applies to filing accounts and annual returns for companies or LLPs at Companies House.

Filing a tax return or submitting accounts online can be quicker, as there is no delay caused by sending a paper document in the post. You may also be given a longer period to file online, – an extra 7 days for VAT returns and an extra 3 months for personal tax returns. However, you do need software to file online, and this may not be freely available or the free version may not work for your particular circumstances. Read More
Q. I’m thinking of starting a new company. Will it qualify for the NIC exemption? Answer

Q. My business is VAT registered but the sales have dropped back, so my turnover is less than £75,000 per year. Can I stop charging VAT on my sales? Answer

Q. Last month the Tax Office wrote to me saying I would no longer receive tax credits, but I did nothing about it. Now my wife is expecting another baby so has reduced her working hours. Can I get my tax credits back? Answer
May Key Tax Dates top
2 – Last day for car change notifications in the quarter to 5 April – Use P46 Car

19 – Deadline for Employers’ 2011/12 end of year PAYE Returns (P35, P14, P38 &P38A). Penalties for non submission.

19/20 – PAYE/NIC, and CIS deductions due for month to 5/5/2012

31 – Deadline for copies of P60 to be issued to employees for 2011/12
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 for a look at the resource on offer.’

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