Two new VAT penalty regimes came into effect for VAT periods beginning on and after 1 January 2023, for late filing of VAT returns and for late payment.
Late filing of a VAT return now attracts a penalty point rather than a warning or formal default surcharge notice. Only when you reach a certain threshold of points do you have to pay a fixed financial penalty of £200.
The points threshold which generates a financial penalty varies according…
Read MoreIn February 2022 HMRC suddenly withdrew the interactive online PDF form for reporting expenses and benefits for employees (form P11D). Employers were forced to submit their P11Ds electronically or go back to using paper P11D forms.
In the February 2023 edition of the Employer Bulletin HMRC has made it clear that paper P11D and P11D(b) forms won’t be accepted for the tax year 2022/23 or any other year. Also, paper amendments for P11D forms for earlier years will be rejected from 6 April 2023.
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For years HMRC has accepted that associate dentists can be treated as self-employed rather than as employees of the dental practice they work for, but this informal agreement is about to end on 5 April 2023.
This was first announced by HMRC in September 2021, in December 2021, and again in the February 2023 Employer Bulletin.
Where a contract for engaging an associate dentist runs from or over 6 April 2023 the Dental Practice that they work for will no longer be…
Read MoreElectronic sales suppression (ESS) is the term for when a sales till is programmed to hide or reduce the value of individual sales.
For example, the electronic point of sale (EPOS) software installed on the till may deliberately exclude certain items from the sale records. Alternatively, the EPOS software may be set to operate in a training mode, allowing the sale to be rung up, but excluding it from the daily takings.
In December 2022 HMRC raided 90 businesses that were involved…
Read MoreIn March we reminded you to check whether yournational insurance contribution (NIC) record contains any gaps, and how this could affect entitlement to the state retirement pension. The deadline for paying voluntary Class 3 NIC to fill any NIC deficiencies in tax years back to 2006/07 had been set at 5 April 2023.
However, to make the payment of NIC online taxpayers need to call HMRC, and their phone lines have been overloaded with the large numbers of people wanting to pay the class 3…
Read MoreView our free guide to The Spring Budget 2023.
We are committed to ensuring all our clients don’t pay a penny more in tax than is necessary.
If you have any questions or would like one-to-one advice tailored to your needs, please call us on 01792 466 428 or email [email protected].
Read MoreMany people don‘t realise that they have significant gaps in their National Insurance Contribution (NIC) record, and as a result they won‘t be entitled to the full state retirement pension. This can come as a shock when you start to receive your state pension, but by that time it may be too late to fill the gaps in your NIC record.
A taxpayer needs 35 complete NIC years (as payments or national insurance credits) in order to receive the maximum state retirement pension,…
Read MoreIn his Autumn statement in November 2022 Chancellor Hunt announced cuts to the dividend allowance and the additional tax rate threshold, where individuals start to pay tax at 45%. You need to take these changes into account when planning how and when to extract profits from your company.
Many family companies spread the shareholding over various family members to take advantage of the dividend allowance which allows an individual to receive up to £2,000 of dividends tax free in a tax year.
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Online platforms such as Airbnb are now obliged to provide HMRC with data about the payments it makes to individuals who let rooms on a short-term basis. HMRC is matching that data to tax returns and writing to taxpayers who have apparently not declared their rental income correctly.
If you receive such a letter don’t be alarmed by the aggressive tone, as HMRC is asserting that you owe tax, but that may not be the case.
If you…
Read MoreAs an individual landlord you can’t deduct finance costs, including interest, from your residential property rents for tax purposes. Instead, you get tax relief for those costs as a basic rate tax credit calculated as 20% of the lower of:
– finance costs for the year plus any unused finance charges brought forward;
– your property income profits with no deduction for finance costs,
– or your adjusted total income for the year that exceeds your Personal Allowance.
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