Chartered Accountants of Poynton, Cheshire |
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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. |
When Tax Inspectors Call....During the year the Inspector of Taxes will carry out many enquiries on individuals and companies. In broad terms, these inspections aim to detect fraud and tax evasion as well as help to promote compliance with tax laws and regulations. Selection for an enquirySome taxpayers are chosen at random. These enquiries generally look at one particular aspect and are therefore often known as 'aspect enquiries'. For instance, the enquiry might check that the taxpayer's bank interest has been declared. If the process confirms this aspect of the tax return is accurate, the enquiry will end. More serious enquiries will often begin with a suspicion that the taxpayer has failed to fully declare their income and falsified their expenses. Starting an enquiryThe taxpayer will be informed, in writing, that they are to be investigated. This notification will state the reasons why the inspector is taking this action and the information that he or she will need. Conduct of the enquiryThe precise structure of each investigation will depend on the nature of the enquiries. Usually, the taxpayer will have to submit all their accounting records to the inspector. After these have been studied, the inspector will interview the taxpayer. This interview will give the inspector the opportunity to explain the findings of the review. The interview also gives the taxpayer the opportunity to explain the transactions and answer any questions raised by the inspector. Concluding the enquiryThe investigation process can be quite lengthy, often running for several months. As well as the interview, it can involve lengthy correspondence. Eventually, both parties will agree on the amount of underpaid tax, if any. If some tax has not been paid, the inspector will also apply penalties for the failure. These penalties can be up to 100% of the underpaid tax. The inspector can decide whether to reduce this to reflect such matters as the taxpayer's co-operation, the size and seriousness of the offence and the amount of voluntary disclosure made by the taxpayer. A tax enquiry is a very serious matter and if you are being investigated you should get advice from Appletons Accountants who can guide you through the process. New Tax PenaltiesA new penalty regime is being introduced for incorrect returns for income tax, corporation tax, PAYE, National Insurance and VAT. more... 
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