Chartered Accountants of Poynton, Cheshire |
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Paying less tax - Defer Your GainsThere are many ways to save tax - all of them perfectly legal. For example, if you realise Capital Gains after the end of the tax year, and delay payment of the tax for 12 months and split sales across the end of the tax year – you can make use of two years’ annual exemption. Also, make an outright gift to your spouse, who can make use of his or her exemption, too. Delaying a sale can also mean more taper relief – so less tax. Save employers’ NICEmployee costs may be high, but save employers’ national insurance contributions by rewarding employees through all employee share schemes and pension contributions instead of additional salary or bonuses. Ensure business borrowings attract tax reliefFunds borrowed for business purposes obtain full tax relief; your mortgage does not! Appletons can help you to identify ways to make the most of tax-saving opportunities and investments. We are always pleased to discuss matters with you – contact us today for further information. Tax ReturnsIf you submit your tax details to us, we can advise you of your exact tax liability. |
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. |
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