Chartered Accountants of Poynton, Cheshire |
|
Company VansThere has been a big change to the taxable benefit due on vans. Where an employer provides a van for an employee, which they can use for private journeys, the taxable benefit from 6 April 2007 becomes £3000 per annum. This taxable benefit is not levied if the private use is merely incidental. HMRC have given some guidance on what is incidental but this is not exhaustive so we will be pleased to advise on the situation if you are providing vans that can also be used for private journeys. Filing onlineEvery year, employers are required to send details of the salaries, tax and National Insurance deducted from their employees. These year-end returns have to be submitted by 19 May 2007 to avoid a fine. These documents can be submitted on-line via the internet. Appletons can assist you in this process. If you are a small business - defined by HMRC as having fewer than 50 employees - and you file your P35 online, HMRC will pay you £100 tax-free for doing so. You usually claim this back by reducing your next monthly PAYE payment. Tax TipWhen you buy new equipment for your business, ask whether it is energy or water efficient. Check the list on www.eca.gov.uk to see if you could get a 100% deduction fo the cost in the year of purchase. |
New Tax PenaltiesA new penalty regime is being introduced for incorrect returns for income tax, corporation tax, PAYE, National Insurance and VAT. This new penalty regime will apply to most taxes, rather than the separate rules that currently apply. The new penalties will be based on the amount of tax avoided and the reasons for that avoidance. So, there will be lower penalties for 'genuine mistakes' and much higher ones for deliberate actions to conceal income. The new penalty regime is expected to be introduced for accounting periods starting from 1 April 2008. Penalty levelThe amount of the penalty will depend on three criteria: - the amount of tax that would have been lost - the nature and behaviour giving rise to the understatement - the extent of the disclosure by the taxpayer. The penalties that can be levied will range from nil to 100% of the tax lost. The new regime means that there will be lower or no penalties for genuine mistakes that the taxpayer discloses, but potentially higher penalties for deliberate tax evasion. This should encourage taxpayers who discover errors in their tax affairs to disclose them without fear of excessive penalties. Suspended penaltiesA new concept of suspended penalties will be introduced. HMRC can impose a penalty that they will not enforce if no further errors are revealed while the suspension is in force. |
Whilst all due care and attention is taken in preparing the articles which appear on this website, no liability can be accepted for any of its contents. It is designed to be of a general nature, and no action should be taken without our specific help tailored to your unique circumstances. |