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November’s Tax Tips & MYOB News As the nights draw in it’s a good time to start planning your work’s Christmas party. Remember the HMRC allow your company to spend up to £150 (in total) per staff member on annual parties. This could for example be split between a summer barbeque and Christmas Party. For more about benefits which employees do not need to declare on a P11d have a look at our Resources Section. If any clients have not yet given us details for your 2013/14 Tax Returns – please complete our Online Tax Return for each Director.   November 2014 · Pensions Death Tax · Taskforce at Large · National Insurance Contributions · Mini One Stop Shop (MOSS) · November Questions and Answers · Checking the credit of your customers Pensions Death Tax top Currently if you die before you have started to draw your pension, the value of your pension fund will not usually be subject to inheritance tax (IHT) at 40%, as it is excluded from your estate. However, there can be a 55% tax charge where your pension fund is passed to someone else under your will, especially if you die aged over 75. From 6 April 2015 the 55% tax charge will be abolished. If you die before you reach age 75 you will be able to pass on your pension fund on death to any one you choose without a tax charge. The new owner of the pension fund will have no tax to pay when he or she makes withdrawals from the fund, whether those withdrawals are in the form of a lump sum or as income drawdown. Read More   Taskforce at Large top   National Insurance Contributions top HMRC has set up specialist tax investigation teams to concentrate on recovering unpaid tax from particular business sectors or as a result of tax fraud. The latest HMRC taskforce teams are looking at: – fraudulent VAT repayments in the West Midlands and Nottingham areas; and – property tax evasion in South West England and South Wales. The property taskforce is using data gathered about property transactions by the Valuation Office in order to target taxpayers who may have sold properties but not declared a capital gain on their tax returns. The same data set will be analysed for possible non-declaration of rental income. Read More It seems that HMRC is trying to gather every penny in tax and national insurance contributions (NIC), from every possible source. Recently it has been demanding payment of class 2 NICs from landlords and investors in investment partnerships. If you get a bill for back-dated class 2 NICs should you pay it? The annual class 2 NI liability is a relatively small amount (£143 for 2014/15), but it can provide you with an entitlement to the UK state pension. At least ten full years of NI contributions will be required to receive any state pension if you reach state pension age (SPA) after 5 April 2016. Note that SPA is gradually being increased up from age 65. If you are currently aged under 54 you will not become entitled to your state pension until you reach at least 67. Read More   Mini One Stop Shop (MOSS) top   November Questions and Answers top This sounds like a friendly retail outlet where you might buy a pint of milk on a Sunday evening. In fact it is short-hand for the online portal which UK businesses should use from 2015 to account for VAT they owe in respect of digital services provided to customers in other EU countries. We mentioned this new rule in our July 2014 newsletter. “Digital services” includes a multitude of products such as: – music downloads; – video on demand; – electronic books; – online games; – anti-virus services; – software purchased by download; – charges by online auction sites; – sales of data or images online; and – automated learning or exams. From 1 January 2015, if you sell a digital service to someone in another EU country, who is not a business (ie an individual, Government body or perhaps a charity), you must account for VAT in the country where that customer belongs. Read More Last year I bought a run-down pub and converted it into a restaurant. I registered for VAT after the work was done, but before the restaurant opened. Can I reclaim any of the VAT paid on the costs of converting and fitting out the restaurant?Answer HMRC has sent me a tax calculation for 2013/14 which says I owe over £5,000. I don’t understand how this much can be due as all my tax is dealt with under PAYE and I don’t have any other significant income. What should I do? Answer Q. My personal service company stopped trading on 31 August 2014, after a good run of 10 years. There is about £22,000 available to distribute to me as the only director/ shareholder. Can I claim entrepreneurs’ relief on that pay-out and do I need to show it on the tax return?Answer   Checking the credit of your customers top Are you worried about extending credit to one of your customers?  Well, you can now get the company accounts of one of your key customers for free… The simplest way is to use the XBRL tool at Corefiling.com which offers free sets of Company House filed returns: Companies.Corefiling.com/search You can also keep a log of their filings and find out more about credit searches on our helpsheet.    November Key Tax Dates top   New Clients Welcome top  19/22 –  PAYE/NIC, student loan and CIS deductions due for month to 5/11/2014. 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, Acclivity, Mamut, Solar Accounts, Quickbooks or Clearbooks. ‘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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