Tax Tips - May 2012

It has been a while since I issued some Tax Tips, so here are 5 important tips you should be aware of for the month of May.

1. Submit your 2011 Tax Return. If you have not submitted last year’s tax return HMRC will now start charging daily penalties. Where a client has not filed a Tax return 3 months from the return due date Daily penalties will start to accrue for a period up to 90 days at a rate of £10.00 per day, the rate is fixed and cannot be changed (except by legislation) and in the majority of cases this will be an automatic process

2. HMRC has wrongly sent penalty notices to taxpayers who no longer have to submit a tax return. If you have received a penalty notice and no longer need to complete a tax return then you can write to HMRC appealing this notice.

3. Do you operate through personal service companies? If so you may be subject to IR35 rules and it is important to have a meeting with a tax advisor to see if any potential liability can be mitigated.

4. Do you operate takeaway food outlets and are you operating the present VAT rules correctly? The new proposals state VAT should be charged on all hot food takeaway except freshly baked bread.

5. End of year PAYE Employers' Return is due in by 19th May. You will needs to submit the P35 & P14 forms online by this date or face a penalty between £100 - £3,000. Even if no tax have been deducted. To avoid unnecessary penalties tell your PAYE office by May 19th that no return form is required.

I hope you found these tips useful and if you require any assistance please do not hesitate to get in touch.

Being the start of the tax year I am looking to speak with newly self employed individuals.

Have a great weekend




Mitch the Tax Man

Mitch@ljd.uk.com
@mitchyoung27