Our concise summary of yesterday’s budget for business owners and taxpayers

Please click on the link below for our summary of items in yesterday’s budget that will affect you.

budget_summary_2016_17_March – Shrewsbury

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Up to date advice on saving tax

Please click on the link below for advice on saving tax in 2015/16

2016_Ways_to_Save_Tax_Guide

Emergency Summer Budget

Here is a link to our summary of the Chancellor proposals. The changes to taxation of dividends is going to need to be carefully considered. There was also a major increase in the minimum wage (now living wage).

Emergency Budget 8 July 2015

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Please do not hesitate to contact us if you have any questions.

Save up to £212 in tax with the Marriage Allowance

I have uploaded our client guide to the Marriage Allowance.

Marriage allowance

Our client guides cover many of the tax and accounting issues faced by owner-managed businesses and tax-payers. Please contact us for further details.

Please be aware HMRC have not got the online registration process completely sorted for the Marriage Allowance. As explained by http://www.thisismoney.co.uk

“There is then an application process to go through and claimants are invited to complete their application online.

It has recruited three private operators to conduct ID checks for the system – Experian, Post Office and Digidentity.

This is being introduced gradually and HMRC admits there are restrictions at the moment that mean it may not work for everyone.

The restrictions you encountered are part of that. In order to transfer personal allowance, HMRC needs to verify who you are.

This requires evidence of the documents you were asked for. If you have them, HMRC says you can complete the process online in about 20 minutes.

If you don’t have these you’ll have to wait longer, although HMRC says it is taking phone applications for those who have tried the online application but hit a snag.”

Read more: http://www.thisismoney.co.uk/money/experts/article-3086308/Why-wait-Marriage-Allowance-tax-break-promised-Government.html#ixzz3cSw6kr3Y

 

How our Web Portal benefits our clients

Web-based portals are increasingly familiar to our clients, since these portals are already commonplace in many industries, including banking and insurance. It’s not surprising that many clients now expect instant access to information via web-based portals in their accounting and tax matters as well.

Now that we have our Portal in place, the benefits to our clients are starting to flow.

There are many benefits to our Portal. Some of the most important are:
Instant, 24/7 access to key financial documents. Clients can upload and store their own important documents as well (e.g Mortgage Statements).

A permanent secure storage facility – allowing you to meet HMRC document retention rules. If you store your documents in the Portal, there is no need to back them up and you will never have to worry about transferring this data when you change your computer.

Encrypted message exchange which is much more secure than e-mail technology. When emails travel to their intended destinations, they traverse an untold number of servers and can be intercepted and viewed by anyone with the proper technological know-how and desire. This inherent security flaw, at present, may place confidential data at risk. For some time now we have used Adobe Document Cloud e-sign (formerly Echosign) to send out sensitive documents. We recommend clients send sensitive information to us via our Portal.

 

The Portal is one of many technologies which are improving the service that progressive, innovative accountants can offer their clients. Please do not hesitate to contact us if you would like more information on this and other new technologies.

Keeping your business records secure

Many business owners have a loft/garage/spare bedroom  full of business records.

Business records have to be keep for 6 years. HMRC can levy fines if the records cannot be produced. These records can also get lost, damaged, muddled and key information lost. The link between the figures on the tax return and these  documents may then become unclear.

We have a simple, inexpensive solution to for you.

When we receive your records, we scan them for you. Then, using advanced software and our skills, we produce your accounts together with schedules of items making up the figures and an image of the documents themselves.  This will satisfy even the most demanding HMRC Inspector.

 

We will send you a copy of the file (which will be in PDF format) and show you how to store it in a free Dropbox or GoogleDrive account.

Price for this additional service depends on the volume of records. Prices start at £30 plus VAT.

HMRC Tax Investigations Yielding Greater Returns

HMRC has boosted returns from its investment into tax investigations carried out by local compliance teams, which focus on individual taxpayers and small businesses (a new report from The 2020 Group has found). For every £1 spent by local compliance teams in 2013/14, £18 was collected in additional tax. This is up from £16 per £1 invested during the previous year.

In total, £8.9 billion in extra tax was collected via local compliance investigations in 2013/14, up from £7.8 billion in 2012/13.

This high return on investment means that HMRC is likely to continue to pour resources into tax investigations undertaken by these teams. A growing number of ‘everyday’ taxpayers, including more SMEs, are likely to find themselves under scrutiny as a result.

This increased efficiency serves as a reminder that HMRC is broadening its range of targets. HMRC is no longer focusing solely on high net worth individuals with money held offshore or traditional cash businesses. The attempt to increase revenue has led to a greater focus on ordinary taxpayers.

HMRC has launched a range of campaigns in recent years targeting everyday taxpayers. The ‘Second Incomes Campaign’, for instance, means  that private tutors and even online traders are amongst those under more intense scrutiny. Voluntary disclosure schemes have also been launched to target specific job sectors, with solicitors being one of the most recent targets.

The 31st January filing deadline typically triggers a wave of new tax investigations. HMRC’s increased efficiency means that taxpayers should be ever more diligent when completing self-assessment tax returns.

The new aggressive approach adopted by HMRC means it is much more likely that tax-payers may end up on the receiving end of a tax investigation.

Here at TaxAssist Accountants we give peace of mind to clients by offering an insurance policy to pay our fees if a client is selected for enquiry.