Your quick and easy guide and reference to some frequently asked key financial questions:
As we are fast approaching 5th April 2016 have you considered careful tax and Investment planning?
- Have you maximised your ISA investments this year?
- Have you maximised your pension contributions?
- If possible have you utilised your Capital Gains Tax personal exemption? Currently £11,100 for 2015-16.
- If your employer still pays for the private fuel used in your company car you can effectively avoid the car fuel benefit charge if you repay your employer for the private fuel before the end of the tax year. It may be worth crunching the numbers as the tax on the benefit in kind is expensive and the private fuel refund may be less.
- For Inheritance Tax purposes each person can give £250 a year to any number of recipients, as well as £3,000 annually over and above that amount. They can also make regular gifts out of their income (not capital) that should fall to be exempt.
- If you are married or in a Civil Partnership and one partner/spouse has a much lower level of earned income, consider transferring income producing assets to the lower income earner. With Income Tax rates at a maximum 45% this current tax year savings could be significant.
- If you or your partner/spouse are affected by the Child Benefit claw back for high income earners, have you considered equalising your income (if possible) to avoid the charge, or have you considered your obligation to file a Self-Assessment tax return to disclose your liability?
- If your income is likely to exceed £100,000 this tax year have you considered the potential reduction or loss of your personal tax allowance?
- If you are a high income earner paying tax at the 45% additional rate could you take advantage of charitable donations reliefs or other planning opportunities to defer, reduce or eliminate the impact the 45% rate?
- Is it likely you will have business tax losses for 2014-15?
***** Every person’s circumstances are different and the above list is by no means exhaustive. Please call Peter on 0779 082 2039 if you would like to organise a review of your tax planning opportunities for 2014-15.
Get up to £2,000 off your Employers National Insurance for the year 2015/16
- As from 6 April 2015, employers can claim the Employment Allowance and reduce their employer Class 1 NIC by up to £2,000. Please contact Peter on 0779 082 2039 for eligibility and conditions
Key Dates for 2016/17
- P9D, P11D and P11D(b), Expenses and benefits annual return forms to reach HMRC.
- Employers to give a copy of forms P9D and P11D to relevant employees.
- Form 42 or other related forms (to report share-related benefits provided to employees) to reach HMRC.
- Class 1A NICs payments for tax year ended 5 April 2015 by approved electronic payment methods (for non-electronic payments the deadline is 19 July).
- 2014/15 Second payment on account for self-assessment
- Last date to inform HMRC of new sources of personal income for 2015/16 year
- 2015/16 Income Tax return due to HMRC in paper format, and to apply for tax to be coded against income in following year (where less than £3000)
- 2015/16 Income Tax return due to HMRC electronically 2014/15 balancing payment 2015/16 first payment on account 2014/15 Capital Gains tax
Monthly Repeat Deadlines
19th of each month
- Deadline for sending Employment Payment Summary (EPS)
- Deadline for receipt of the contractor’s monthly return
- PAYE and Class 1 NIC liability deadline for electronic payments to be cleared in HMRC’s bank account
Quarterly Repeat Deadlines
2nd May / August / November/ February
- Forms P46 (Car) for quarter ended 5 April/July/October/January to reach HMRC.
- Deadline for electronic payments to be cleared in HMRC’s bank account for any PAYE and Class 1 NICs for small employers
Private Limited Companies Corporation Tax and filing obligations*
- Filing of Company accounts with Companies House: 9 Months after the financial year end.
- Filing of Company Tax return to HMRC: 12 Months after the financial year end.
- Pay Corporation Tax: 9 Months and 1 day after the financial year end
* Newly incorporated companies and restarted dormant companies will automatically have different reporting dates. Please contact Peter on 0779 082 2039 for further details
|1 day late||3 months late||6 months late||12 months late|
|A penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.||£10 for each following day – up to a 90 day maximum of £900. This is as well as the fixed penalty above.||£300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.||£300 or 5% of the tax due, whichever is the higher. In serious cases you may be asked to pay up to 100% of the tax due instead. In some cases the penalties can be even higher than this. These are as well as the penalties above.|
Penalties for not telling HMRC your company is liable for Corporation Tax
|Type of failure||Maximum penalty payable|
|Non-deliberate||30% of the potential lost revenue|
|Deliberate but not concealed||70% of the potential lost revenue|
|Deliberate and concealed||100% of the potential lost revenue|
If you file your Company Tax Return late, your company or organisation will be charged a flat-rate penalty of £100. HMRC will charge a further £100 penalty if you file your return more than three months late. If your Company Tax Return is late for three or more accounting periods in a row, the initial flat-rate penalty increases to £500 with a further £500 charged if you file your return more than three months late.
There are additional penalties for very late Company Tax Returns as tax-related penalties
The penalty is a percentage of the extra tax due when HMRC corrects your mistake. This is known as ‘potential lost revenue’ or ‘PLR’
|Type of error||Penalty range for unprompted disclosure||Penalty range for prompted disclosure|
|Careless||0% – 30%||15% – 30%|
|Deliberate but not concealed||20% – 70%||35% – 70%|
|Deliberate and concealed||30% – 100%||50% – 100%|
If your company or organisation does not keep these records, it may be charged a penalty of up to £3,000.
For information of users: The material included in this site is primarily published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action, as a result of the material published herein, can be accepted by the authors or the firm.