Tax year 2016/2017 – changes

We are now in the 2016/2017 tax year and many changes have taken place. If you are employed and over 25 your minimum living wage is now £7.20 per hour – see my previous post for more information. FOr those who are self employed the amount you are allowed to earn before paying tax in this year is £10,800 and next year will rise again to £11,000. If you have previously paid your class 2 national insurance contributions by direct debit this will change and they will be calculated and paid along with your self assessment tax and your class 4 national insurance. More information on the changes can be found on the HMRC website here Share this:Click to share on Twitter (Opens in new window)Click to share on Google+ (Opens in new window)Share on Skype (Opens in new window)Click to email this to a friend (Opens in new window)Click to share on Pinterest (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to print (Opens in new...

HMRC taxing tax digital

HMRC taking tax digital Share this:Click to share on Twitter (Opens in new window)Click to share on Google+ (Opens in new window)Share on Skype (Opens in new window)Click to email this to a friend (Opens in new window)Click to share on Pinterest (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to print (Opens in new...

Marriage Allowance

A little publicised marriage allowance has been introduced by HMRC which could mean that the average married couple could be better off by £212 per year. This is called Marriage Allowance and must be applied for. You can apply here. Basically you can transfer £1,060 of your personal allowance (the amount you can earn before paying tax) to your partner and this will reduce their tax liability by up to £212 for the tax year. The lower earner must have an income of £10,600 or less but you can visit the HMRC page to find out more information and apply for marriage allowance. The higher earner has to be earning between £10,601 and £42,385. Your application is completed online with HMRC’s marriage allowance application page and if the application is successful it will be backdated to 6th April. If you are employed or receive a pension the allowance will be given via a change in tax code. For the majority this will be to 1166M meaning that you will have £11,600 of personal allowance. If you are self-employed the marriage allowance will be given when your self assessment tax return form (SA100) is submitted. Marriage allowance continues each year unless you notify HMRC of a change in circumstances or either party cancels it. Bruton Young Bookkeeping can point you in the right direction for advice on a variety of financial matters. We have a panel of financial advisors and accountants that can assist with financial advice. Contact us for more information. Share this:Click to share on Twitter (Opens in new window)Click to share on Google+ (Opens in new window)Share...

HMRC SA100 Self Assessment Payments on Account

I have been asked many times recently to explain to clients and friends how HMRC’s payments on account system works when submitting an SA100 Self Assessment Tax Return. It is probably best explained by way of an example – see below SA PoA If you would like an editable version of this file for your own use please use the contact us link and send us a message requesting the editable file. There is also more guidance from HMRC here   The assumption is that as time moves on your business will increase its profits. Once you have payable tax of more than £1,000 then you become liable to make payments on account. These equate to half of the previous years tax liability. So for example, if you have a tax liability for 2014-2015 of £2,000 you will need to make payments on account towards 2015-2016 of £2,000. These payments are made in two parts, half in January and half in July. Obviously these are then deducted from the bill next year and new payments on account are calculated. We are happy to explain these figures in more detail and personalise them to your own liabilities if necessary. Just contact us!   Share this:Click to share on Twitter (Opens in new window)Click to share on Google+ (Opens in new window)Share on Skype (Opens in new window)Click to email this to a friend (Opens in new window)Click to share on Pinterest (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to...

Self Assessment Tax Return – what do I do?

Published by HMRC At HM Revenue and Customs (HMRC) we strive to make it as easy as possible for you to submit your Self Assessment tax return but we know that sometimes you’ll need our help. More than 85% of customers chose to submit their return online last year, with even more expected in 2016. You can do it at a time convenient to you – day or night – and there’s online support available too, including web chat and general queries answered on Twitter @HMRCcustomers. Here, we answer some of our customers more common queries: Do I need to fill in a tax return? Over ten million people in the UK need to complete a tax return. Find out if you’re one of them by taking our handy online test. HMRC will always notify you if we are expecting you to complete a tax return. Can you help me register for the Online Self Assessment Service? If you are a new online user, you will need to register first. Go to online.hmrc.gov.uk/registration and follow the instructions to enrol for online services. Please remember to make a note of the User ID that we allocate to you, as you will need that later in the process. You will then receive your activation code through the post. Please follow the instructions provided to activate your online account as soon as possible. Can you help me obtain a new user ID and/or password? If you’ve already registered but lost your log in details here are a few handy links to request new ones, without having to phone the helpline: User ID...

From broken kitchen appliances, hungry pets and arguments that last five years – some people will stop at nothing to pass the blame for their tardy timekeeping. 1. My tax papers were left in the shed and the rat ate them 2. I’m not a paperwork-orientated person – I always relied on my sister to complete my returns but we have now fallen out 3. My accountant has been ill 4. My dog ate my tax return 5. I will be abroad on deadline day with no internet access so will be unable to file 6. My laptop broke, so did my washing machine 7. My niece had moved in – she made the house so untidy I could not find my log-in details to complete my return online 8. My husband ran over my laptop 9. I had an argument with my wife and went to Italy for 5 years 10. I had a cold which took a long time to go The excuses were all used in unsuccessful appeals against HMRC penalties for late returns. While HMRC will not accept spurious excuses when the vast majority hit the deadline and pay up what they owe, we recognise that a number of taxpayers may have difficulties completing their tax return on time. For instance, those affected by flooding at their premises, or their agents’ premises, will not be asked to pay a penalty if their return is submitted without unreasonable delay. The department has also opened a Tax Helpline to give practical help and advice to people affected by severe weather and flooding – 0800 904 7900. Ruth...