Archive for the 'Paying Tax' Category

Penalties increasing for late filing of 2012 tax returns.

Published on May 1, 2013 in Paying Tax and Straight from the Boss. 0 Comments Tags: , , , , , , .

Individual taxpayers who are yet to submit their 2011/12 self-assessment tax return are reminded that they will be hit by increasing penalties from next month.

The online deadline for filing self-assessment returns for the 2011/12 tax year was 31 January. Individuals that missed this deadline will have already received an initial £100 late-filing penalty.

From 1 May, there will be an additional daily £10 penalty for each day the online return is late, up to a maximum of 90 days.

For paper returns, which were due by the 31 October deadline, daily penalties began on 1 February.

Further penalties of at least £300 – or five per cent of the tax due, whichever is the greater – will then be issued for returns that are six and 12 months late.

So if you have still to file your 2011/12 self assessment tax return then you need to take action as quickly as possible because in this instance time definitely means money!!!!!!

This article was compiled by Ashley Barrowclough, Partner at Balance Accountants.

The main rate of Corporation Tax (CT) will fall to 20% on 1 April 2015 – Budget 20 March 2013

Published on March 21, 2013 in Budget March 2013 and Paying Tax. 0 Comments Tags: , , .

The process unifies the small profits rate and the main rate so there is a single

rate of corporation tax, simplifying the tax system and making the UK rate lower

than the US, Japan, France and Germany.

Back to Main Page – Budget 20 March 2013

Personal Allowance – Budget 20 March 2013

Published on March 21, 2013 in Budget March 2013 and Paying Tax. 0 Comments Tags: , , , .

From April 2013 the personal tax allowance will increase to £9,440 with the basic

rate limit falling slightly from the current limit to £32,010, making the 40% rate

come into play once your income reaches £41,450.

The date of the expected increase of the Personal Income Tax Allowance to

£10,000 has been brought forward to 6th April 2014. The basic rate limit will

decrease once again in 2014/15 to £31,865 making the income limit £41,865 for

the higher rate of tax to apply.

This change is anticipated to make a £50 gain for over 24.5 million individuals in

the UK in 2014/15.

Back to Main Page – Budget 20 March 2013

Self-Assessment Tax Liabilities Can Be Collected Through Your Tax Code

Published on February 7, 2012 in Paying Tax and Tax and Financial News. 0 Comments Tags: , , , .

From April, HMRC will be able to collect small debts up to £3,000 through taxpayers’ PAYE codes. 

Regulations came into force on 20 July 2011 to permit the additional method of recovery for self-assessment debts and tax credit overpayments.  The taxman began last summer to send letters to selected self-assessment taxpayers with outstanding debts, and then to tax credit claimants with overpayments due for direct recovery.

The letters notify recipients that money owed can be collected through their pay by reducing their PAYE code.  A statement of liability is enclosed, showing a summary of the debts, interest accrued to date, and the daily interest accrual rate.  Accrued interest will be dealt with separately, and will not be collected through the tax code reduction.

If the taxpayer does not wish to have his or her code reduced, the individual’s tax adviser should contact the Revenue to discuss payment by an alternative method.  This is also the case if having the debt coded out would cause hardship.

HMRC say the same safeguards that exist to prevent excessive deductions from salary via PAYE will apply to the coding out of debts.

Severe Penalties for Late Submission of 2010/2011 Self Assessment Tax Returns

Published on April 6, 2011 in Food for Thought and Paying Tax. 0 Comments Tags: , , , , .

HMRC have increased the penalties that it charges for the self-assessment tax returns that are due to be filed for the 2010/2011 tax year.

Charges that will apply from 1 February 2012 relating to self-assessment tax returns for 2010/2011 are as follows:

Penalties for Late Submission of Tax Returns

One Day Late
You will be charged an initial £100 even if you have no tax to pay or you have already paid the tax that you owe.

Three Months Late
You will be charged an automatic daily penalty of £10 per day up to a maximum of £900.

Six Months Late
You will be charged further penalties which are the greater of 5% of the tax due or £300.

Twelve Months Late
You will be charged further penalties which are the greater of 5% of the tax due or £300.
In serious cases you face a higher penalty of up to 100% of the tax due.

Penalties for Late Payment of Tax

30 Days Late
You will be charged an initial 5% of any unpaid tax.

Six Months Late
You will be charged a further 5% of any unpaid tax.

Twelve Months Late
You will be charged a further 5% of any unpaid tax.

All of these penalties are in addition to the interest that HMRC will charge on outstanding tax and penalties.

This article was compiled by Deborah Bradley on behalf of the Balance Team.  If you have any comments please leave them below.