Once again, the busy January Tax Return deadline has passed and we are now fully settled into our new offices in Parc Menai; it is therefore the ideal time to provide you with key updates.
Payroll changes ahead
The payroll system is being overhauled this April, affecting a large number of businesses. We held a seminar on this topic and the pension reform in September; it was great to see so many of you there. If you could not attend, or if you wish to discuss these changes further, it is not too late for you to 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 will be writing to you shortly with full details of the renewal procedure.
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, 2013/14, 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.
Dividends – Company directors and shareholders should ensure they consider the most efficient amount of dividends to declare before 5 April.
Annual Investment Allowance – Further to the recent reduction in the allowance for expenditure on new capital equipment to £25,000, the government have backtracked and increased this to £250,000 from January 2013. 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 £144 per week to £148 per week. Additionally, the tax free personal allowance is set to rise to £9,440 per year.
Scams and mis-selling
New pension cash-back offer – Beware if you are approached offering cash back on your private pension. Such offers can include fees of up to 50%, do not be tempted.
Banks – Have you taken out a loan? If you were also advised to take out an interest rate swap, you have probably been mis-sold this, and you should receive redress from the bank.
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.
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.