Filing Deadlines
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.
Do you know the implications of an overdrawn director’s loan account? Do you understand the difference between profit and cash? Does your accountant take time to explain what your accounts mean – both now and their implications for the future?
At Zenon, we aim for our clients to understand their accounts and use their figures for running their business. Talk to us to see how we can help you.
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? How is cashflow management? Speak to us about how we can assist you in performing a business review to help your business stay lean enough to survive the recession.
New employer duties are planned to come into force from 1 October 2012. Do you realise the cost implications for your business?
Under these duties, employers will have to
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enrol eligible workers into a qualifying workplace pension arrangement;
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choose a qualifying scheme to discharge this new obligation; and
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make a minimum 3% contribution towards a defined contribution scheme
Together with our associates, we can help you plan for these changes. Contact us for further details and an appointment.
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?
Find out from us the minimum requirements for ensuring you are complying with the tax legislation in this area.
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. This had been set to rise under the previous Government’s proposals to 22%.
The main rate of corporation tax will fall to 27% from April 2011 and then by 1% each subsequent year so that by April 2014 the main rate will be 24%.
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. In addition, there is be anti-forestalling legislation to prevent large scale abuse.
How is this affecting your business?
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.
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”.
Call us and we can assist you with planning to maximise the value of these allowances, especially considering the interaction with the falling rates of corporation tax.
IR35
It has been announced that this is to be reviewed. Watch this space.......
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.
Call us to arrange a meeting to review whether you are maximising your entitlement.
Entrepreneur’s Relief increases
For gains made after 22 June 2010 which qualify for Entrepreneur’s relief, the lifetime limit has increased to £5million.
Where this applies the effective rate of Capital Gains tax is 10%. But watch for the pitfalls…
Call us to discuss how you can maximize your entitlement to this potentially very valuable relief.
Capital Gains Tax Increases
From 23 June 2010 a second rate of 28% for Capital Gains Tax (CGT) has been introduced. Therefore we now have 3 rates, 10% where Entrepreneur’s relief is available, 18% where income and gains do not exceed the higher rate threshold (2010/11 £37,400) and 28% where income and gains exceed the higher rate threshold. If you are looking to dispose of assets where significant gains are likely you may wish to consider the planning options available. Just call us.
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.
Come and talk to us about mitigating higher rates of tax.
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. Talk to us about reviewing your remuneration packages to try to alleviate the full effect of these changes.
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. Talk to us to find out how we can help you plan to minimize your tax exposure.
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. Consider how you need to plan your cashflow requirements to ensure you can make the payments on time.
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. With a raft of changes from 1 April 2011, contact us to find out how you can plan to properly utilise the tax incentives which are in place.
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. Do you have a view on how the relief could be improved? Is a claim for this relief something which you have considered but are unsure how to take a claim forward? Are you aware that the relief is not just for “men/women in white coats”? Please give us a call and we will be happy to discuss any potential claim with you.
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. It is even more important that accurate and up-to-date records are kept as HMRC plan to tackle this issue with a programme of business record checks. We are able to assist – come and talk to us before HMRC makes the first move....
“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.
Historically the various prosecution authorities worked closely with business to help and support, and only took action in the most severe of cases. There is now a shift in emphasis towards more generalised prosecutions for which all those in business must be prepared.
The four offences are
1. A general offence of offering, promising or giving a bribe.
2. Requesting, agreeing to receive or accepting a bribe.
3. Bribing a foreign public official
4. A corporate offence of failing to prevent bribery.
The first two categories of offence are not particularly new but much simpler for the prosecution authorities but the last two are new. Particularly in the last category, lack of knowledge is no defence; neither is the fact that the person committing the bribery offence was not actually employed by the business. They simply have to be an "associated person" which carries with it a very wide definition. The penalties for non compliance are severe.
So what needs to be done? To have a defence to this offence, "adequate procedures" must be demonstrated which are likely to include risk assessment, top level commitment, due diligence, clear policies and procedures, effective implementation and monitoring and review.
In an already difficult market place these are unwelcome additional burdens for business but with a few key actions the risk in this area can be significantly minimised.
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. If you believe you have the skills and attributes to add value to us and our clients, please contact us.