The January Tax Return deadline has passed and for a few, they have still not completed their returns and will shortly be charged daily penalties, if you are one of these, don’t wait for the bill – act now.
Continuing Payroll changes
The new Real Time Information payroll system is continuing to be developed, with penalties yet to be introduced for those who don’t comply, so if you are not already operating the new system correctly you have another chance to get things sorted out before it costs you dearly. One of the main new changes is the abolition of being able to recover Statutory Sick Pay, this is being cushioned by the Employment Allowance, worth up to £2,000 per annum. Talk to us for help regarding maximising the use of this. Pension auto-enrolment is still lies ahead for most employers, if you wish to discuss these changes further, contact us.
Client referral incentive
We have consistently received a number of referrals from our clients who are happy with the service we provide, and pass our details on to friends, family and colleagues. We are very grateful when you recommend us to others, so we have decided to introduce a reward for this to show our appreciation. If you know of anyone who would benefit from our services, please do not hesitate to pass on our details, or ask us to contact them. Make sure they mention your name when they contact us, and we will be in touch for you to choose from a selection of rewards.
The risk of HMRC launching a tax enquiry remains high, with several small businesses being the subject of investigations over the past 12 months. Our Tax Investigations Service, covering the cost of helping you during an enquiry, remains outstanding value; if you haven’t already subscribed, we urge you to consider doing so this year. We have written to you with full details of the service.
Now is an important time to ensure that you have maximised your potential tax savings for the current year, and planned for the start of the next tax year, 2014/15, which is quickly approaching. A few key considerations are as follows:
ISA allowance – Ensure that you make full use of your ISA limit before 5 April and get in early after 6 April with the new allowance available, extended in yesterdays budget from 1 July 2014.
Dividends – Company directors and shareholders should ensure they consider the most efficient amount of dividends to declare before 5 April.
Annual Investment Allowance – the allowance for expenditure on new capital equipment was doubled in the budget from £250,000 to £500,000 to the end of 2015. Make the most of this unexpected increase by reviewing any planned capital expenditure.
PAYE – Good news for most is that the earnings threshold at which employers and employees start paying NI is set to increase again in April, from £148 per week to £152 per week. Additionally, the tax free personal allowance is set to rise to £10,000 per year.
Scams and mis-selling
HMRC e-mail – If you have had an e-mail from HM Revenue and Customs saying you are due a refund, this is a scam. HMRC will never e-mail you about your tax affairs.
Companies House have also been targeted by very realistic looking scams. You will only usually get a reminder for your Annual Return and accounts, anything else is likely to be false.
Be on your guard, scammers are getting ever more sophisticated in what they do, especially by phone or email.
Keep up to date
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As ever, if you have any queries, please do not hesitate to contact a member of our team.