WEBSITE NEWS UPDATED MARCH 2011

Filing Deadlines

31 March 2011
Corporation Tax returns for accounting periods ended 31 March 2010 should reach HMRC by today.
Private companies with 30 June 2010 year-ends should file their accounts with Companies House by today. (read more)

What do your accounts mean?

Do you know the implications of an overdrawn director’s loan account?  Do you understand the difference between profit and cash? (read more)

Business Reviews
As the government works out the details following the comprehensive spending review, do you know how these cuts will impact your business?  How are you setting budgets for 2011?  Are you meeting your banking covenants? (read more)

Pensions Auto-Enrolment
New employer duties are planned to come into force from 1 October 2012.  Do you realise the cost implications for your business? (read more)

HM Revenue & Customs are focussing on ...

...private expenditure within company accounts.  Are you dealing properly with your motor expenses?  Do you have any “dual purpose” expenditure?  How do you calculate “use of home as office” expenses? (read more)

Good news! Corporation Tax rates set to fall
The rate at which small companies pay tax on their profits will fall to 20% from April 2011. (read more)

VAT rate to rise
The standard rate of VAT rose to 20% on 4 January 2011.  There was also be a corresponding increase in the VAT flat rate percentages. (read more)

Decrease in Annual Investment Allowance (AIA)
This allowance allows a business to claim the amount spent on most plant and machinery against their taxable profits reducing the amount of tax payable.  Currently the limit is £100,000 but from April 2012 this is reducing to £25,000. (read more)

Writing down allowance
From April 2012 these are decreasing from 20% to 18% for the main “pool” and from 10% to 8% for the “special rate pool”. (read more)

IR35
It has been announced that this is to be reviewed.  Watch this space....... (read more)

Tax Credits
There are a number of changes announced to the thresholds and rates for tax credits from April 2011.  This makes acting on tax credits in this tax year all the more imperative. (read more)

Entrepreneur’s Relief increases
For gains made after 22 June 2010 which qualify for Entrepreneur’s relief, the lifetime limit has increased to £5million.  (read more)
But watch for the pitfalls…

Capital Gains Tax Increases
From 23 June 2010 a second rate of 28% for Capital Gains Tax (CGT) has been introduced. (read more)

Allowances from 2011
From 6 April 2011 the personal allowance is to increase to £7,475 for those under 65.  The basic rate limit will be reduced so that higher rate taxpayers will not benefit from the increase in personal allowance. (read more)

Income Tax rate hike
The new 50% rate of tax for taxable income above £150K is now with us as it became effective from 6 April 2010. Even more painful is the 60% marginal tax rate for taxable income above £100K. (read more)

Pensions changes
The taxation of pensions has already changed for higher earners with the complex anti-forestalling legislation. The full tax consequences will be felt from 6 April 2011 with the contribution limit reduced to £50,000. (read more)

New PAYE tax penalty regime
New penalties are being charged for failure to submit monthly returns and payments on time from 6 April 2010. Benefit from our payroll processing service to ensure your returns are submitted on time. (read more)

Pre year-end tax planning
To ensure you are maximising the tax breaks available to your business, you need to plan the timing of expenditure ahead of your business year end. (read more)

Research and development tax credits
We are in the midst of a consultation with HMRC which will end on 22 February 2011.  They are keen to target this valuable tax relief so that it achieves its aim of encouraging innovation in the UK which follows on from the report by James Dyson in March 2010. (read more)

Business record crackdown by HMRC
HMRC’s random enquiry programme has shown that for 40% of the small and medium sized entities there is a problem with poor record keeping which they believe could be leading to a loss of tax. (read more)

“Out of the ashes into the fire......."  The Bribery Act 2011 and its implications.
For well over a century the state has attempted to control and punish bribery in a rather informal and piecemeal way. This new Act now consolidates this activity into four new bribery offences which can be committed by corporations and individuals, and stretches its jurisdiction well beyond these shores. (read more)

Do you have what it takes to join our growing team?
We are always on the lookout for talented business advisors to join our specialist team. (read more)