As well as the £100 penalty that is charged by HMRC for all late submissions, further penalties will start to build up if the return is not submitted by the end of April.

From the beginning of May additional penalties will accrue at the rate of £10 per day and could build up to £1,000 by the end of July with even higher penalties after then.

Even if the taxpayer’s position is fairly straightforward it can take a while to assemble all the records needed to prepare a self-assessment return.  The self-employed will have to prepare their accounts while anyone letting out property will have to calculate the rent they received and what expenses they can deduct in order to work out their net income.  Taxpayers with substantial savings investments will have to review their financial records to work out their taxable income.  And anyone who also has income from a regular job will have to add in their income from employment by finding the P60s and P11Ds which were provided by their employer last year.  Some people’s tax affairs may be even more complicated.

HMRC is increasingly performing its own checks to determine whether people might need to complete a self-assessment return and pay tax: by reviewing land registry records to look at property
ownership, assessing business records, cross-checking information obtained from banks and looking at information provided by employers.

Anyone who knows they should have prepared a self-assessment return but missed the deadline and anyone who thinks they might have needed to prepare a return but weren’t sure should act now to
minimise the penalties which they could be charged by HMRC.

The staff at Pemberley Accounting possess the knowledge and experience needed to make an accurate assessment of whether a self-assessment return is required.  If one is needed then they can ensure it is completed and submitted quickly and accurately so as to minimise any possible penalties and give you peace of mind.

If you want to know more then call Katy today on 078 105 18812 for your free initial consultation.

HMRC has a new penalty regime for late returns which means that all returns submitted late - even by just one day – will now be subject to a fixed £100 fine.  This applies even if there is no tax to pay or the tax due has already been paid.

If the assessment is not submitted until 3 months after the deadline of 31 January then an additional penalty of £10 for every further day will be incurred until the submission is made.

So submitting 4 months late (on 31 May) will result in a penalty of £100 + £10 * 31 days (from 1 May to 31 May) – a total penalty of £410.

Six months’ delay results in a further fine of £300 or 5% of the tax due whichever is higher on top of the fixed penalty of £100 and the £10 daily fine for every day over 3 months late.  So if the return is
submitted on 1 August, all of the following penalties will be incurred:
- £100 fixed penalty
- £900 representing £10 per day for 90 days from 1 May to 29 July 
- £300 or 5% of the tax due whichever is higher.

So a taxpayer who owes £100 in tax but who doesn’t file their return until 1 August would have to pay penalties of £100 + £900 + £300 = £1,300 on top of the tax due.

Submitting twelve months late will result in an additional fine on top of those already incurred of £300 or 5% of the tax due whichever is greater.  Serious cases could be fined up to 100% of the tax due.

The run-up to Christmas is a busy time and completing tax returns can often be overlooked.  But it is important to prepare now.  For the self-employed accounting records need to be brought up-to-date, for individuals with income from property letting or other investments the income and expenses need to be calculated, and because the returns for both must be made on-line the registration and security process must be completed.

Pemberley Accounting has a great track record in working with its clients to ensure that their tax returns are completed correctly and on time thus avoiding penalties which could otherwise run into hundreds or even thousands of pounds.  Pemberley Accounting can help guide you through the process so you can enjoy Christmas knowing that your tax affairs are in safe hands, ready for the New Year.

Call Katy today on 07810 158812 for your free initial consultation.

The fines can be as much as 3% of the PAYE and NIC which was paid late and this is a fixed penalty regardless of whether the payment was made a month late or just a day late.  It is possible to appeal against the penalty but the reason for late payment must fall within HMRC’s strict definition of ‘exceptional circumstances’ such as the sudden, serious illness of the person responsible for making the payments.  Just being busy or misreading the calendar when determining when to make the payment will not be sufficient excuse to avoid the penalty.

Because HMRC did not send out letters once a payment had been made late in 2010/11 some companies continued to pay late throughout the tax year and have only just been made aware of their error by receiving penalties for multiple late payments – which could amount to hundreds or even thousands of pounds.

With HMRC continuing to extend its financial penalties for late submission of returns or payments by both employers and taxpayers it is important that companies and individuals know the rules.  If you want help understanding what returns and payments you need to make to HMRC then give Pemberley Accounting a call.  With their knowledge and experience they will help you avoid any penalties from HMRC by understanding the various deadlines which must be met.  Your first consultation with Pemberley Accounting is free so give Katy a call today on 07810 158812.

Now HMRC has turned its sights on private tutors and coaches.  The Tax Catch-Up Plan is aimed at anyone providing private lessons whether it be academic coaching, music lessons, sports training or any similar activities.  Anyone who charges a fee and so receives an income from the provision of private tuition or coaching has until 31 March 2012 to tell HMRC about outstanding tax for the years up to 5 April 2010 and pay what they owe.  Those who declare any untaxed income before the deadline will be subject to lower penalties, and perhaps none at all, compared to those who are detected through HMRC’s own checks once the deadline has passed.

Pemberley Accounting is skilled in assessing individual’s tax position relating to self-employment or secondary incomes and can help minimise any penalties from past under-payment.  If you are concerned about your position then call Katy today on 07810 158812 for your free initial consultation.

-       people waiting up to three months for a reply to a simple letter

-       less than half of telephone calls to HMRC offices are answered

-       even if they do get through many callers are left on hold for minutes on end

-       the transfer of HMRC’s advice service online means the elderly and others who lack access to the internet or find new technology daunting are unable to get help

-       information and advice given by inexperienced HMRC staff is regularly wrong.

If you are experiencing any of these problems, or need any other assistance with your accounting and tax affairs, then why not give Pemberley Accounting a call?

If you appoint Pemberley as your agent for tax purposes, then its staff can access HMRC through its agent’s telephone service to ensure your problems are resolved as quickly as possible.  Pemberley Accounting can also help you with filing your accounts and tax returns online as well as giving you clear information and advice based on its years of experience.

So call Katy Gunnell at Pemberley Accounting today on 07810 518812 for your free initial consultation.

These disturbing figures are from a recent survey by Clydesdale and Yorkshire Banks which also included data showing that almost 10% of small businesses made late VAT payments, resulting in fines for many.

“For small businesses, every penny really does count, so the cost of falling foul of red tape can make a fundamental difference to their ability to succeed,” said Gary Lumby, director of small business banking at the banks. He added that, “A significant number of small firms do not know where to turn for advice on these matters.”

Pemberley Accounting has the knowledge and experience to help small businesses with all their accounting and tax needs.  Starting with a free initial consultation, Katy Gunnell takes her clients step-by-step through the process of preparing their accounts, filing tax returns and making any VAT or other tax payments which are necessary.

So call Katy today on 07810 518812 to arrange a meeting and take the first step to giving yourself peace of mind.

Fed up of hundreds of thousands of people filing their tax returns late every year, the taxman has decided on dramatic increases to the fine for late returns.  Instead of the current £100 flat rate fine a new increasing scale of fines is being introduced for the 2010/11 tax year.  If you miss the 31 January 2012 filing deadline then there will be automatic £100 fine.  For the next three months, the fine will increase by £10 a day until the tax return is submitted, up to a maximum of £900 – making a total of £1,000.  For delays of between three and six months an additional fine of a flat £300 or 5% of the tax due (whichever is higher) will be levied.  Another flat fine of £300 or 5% of the tax due (again whichever is higher) will be charged if the delay extends up to 12 months.

Got that?  So if you are 12 months late with your tax return then you will be fined a minimum of £1,600.  Ouch!  That’d hurt.

And the taxman has decided that he won’t cancel the fine if you don’t have any tax to pay, like he often does now.  So just being a day late with your tax return means a £100 fine.  Automatic.  No appeal.  No deal.

So take one simple step to avoid being fined and call Katy at Pemberley Accounting today on 078 105 18812.  Your first consultation is free and once she has completed a full assessment of your tax position she will work with you to ensure your tax returns are submitted on time.  Whether you are employed, self-employed, a contractor or even a director of your own limited company, her comprehensive experience of tax and accounting will ensure you pay only the tax due and don’t get fined for any late returns.

Don’t put it off.  Submitting your return ahead of the deadline doesn’t mean you’ll pay any tax due early.  But it does mean you won’t get fined.  So call Katy today.

But under the Plumber’s Tax Safe Plan (PTSF) then if you declare any unpaid taxes from the past five years before 31 May 2011, then additional penalties are likely to be limited to just 10% of the unpaid tax.   If you don’t take advantage of the PTSF and HMRC later investigates your accounts and finds evidence of unpaid taxes then the penalties could be up to 100% of the unpaid tax.

If you are unsure of how best to deal with your accounts and taxes then why not speak to Pemberley Accounting?  With extensive experience of dealing with small businesses and the self-employed, they could help you minimise your tax liabilities while ensuring you comply with all the relevant rules.

Call Katy today on 07810 518812 today for your free initial consultation.

If you were better prepared and had worked with Pemberley Accounting to get your returns submitted well in advance, then well done you!

Whichever camp you fall in, now’s the time to start preparing for the end of the 2010/11 tax year, which is only a short time away, on 5 April.  If you want to minimise your tax bill for the year it is far easier to ensure you will be able to claim the maximum allowances and tax-deductible expenses, arrange your business affairs and otherwise plan your tax affairs most efficiently if you take steps now, before the end of the tax year.

Pemberley Accounting Services works effectively with a wide range of people and businesses to help them with their tax affairs.  For example, if you are in business and thinking of paying yourself a dividend or if you let out property then Pemberley Accounting can help forecast and minimise your tax bill.   If you are thinking of buying or selling a business or other investment then we can help you understand and minimise the effect on your tax bill.

If you’re an existing client, then give us a call today to get a review of your tax affairs now before it’s too late.  You’ll already know how reasonable our rates are and how much money we can save you.

If you need help with your tax and haven’t used Pemberley Accounting before then you too should give us a call today.  We’re friendly, fully qualified and give a free initial consultation to make sure our service is right for you.

Under the Act, the taxman will have the power to fine any businesses considered to have failed to keep proper tax and accounting records.  But if the company records are assessed to be up to scratch then this will mean that tax investigations will be less likely in future years.

Pemberley Accounting has in-depth knowledge and experience of accounting and tax for small and medium-sized businesses.  If you need help with your book-keeping or are worried about your tax records then contact Pemberley Accounting today for a free initial consultation.

Don’t leave it to chance – get peace of mind with Pemberley Accounting.

Even if you can't face completing the whole process before Christmas, Pemberley Accounting can help by giving advice on what records you need to prepare and can start work on your behalf rather than leaving it all until January.  Pemberley Accounting anticipates a rush in January as many people scramble to find an accountant to help with their tax affairs so why not contact them today and book an initial consultation?  Give yourself peace of mind over Christmas by spending a little time now to save a lot of worry and extra expense in the New Year.

In a recent twist to this story, HMRC has now started sending out new tax demands to people who have recently received tax repayments.  It seems that there has been an error in the system which is supposed to ensure that taxable benefits, such as company cars, are included in the calculation of tax due.  So taxpayers who received a refund because these benefits were not recorded by HMRC are now getting demands to pay the tax due.

If you have recently been contacted by HMRC with a tax demand which can't understand or you don't feel is correct, then why not contact Pemberley Accounting who will be pleased to see if they can assist.  Their first consultation is completely without obligation and free of charge.

Some of these rejections were due to the most basic errors such as missing signatures from balance sheets but others were because the accounts did not comply with the latest Companies Act or Companies House rules.  Companies House is reported to have increased its vigilance in reviewing accounts and is becoming more 'picky' in rejecting accounts for formatting errors.

If accounts are rejected and not corrected before the filing deadline then Companies House issues an automatic late filing penalty of between £150 and £1,500 for private companies.

Pemberley Accounting has extensive experience in preparing company accounts and none of the accounts prepared for its clients have ever been rejected by Companies House.  Why risk having your accounts rejected with all the extra work involved in resubmitting them, not to mention having to pay financial penalties?  Entrust your accounts to the experts at Pemberley Accounting and give yourself peace of mind.

HMRC blamed the backlog on the effects of the recession which means that while the value of taxes due to be collected has increased, it has come under pressure to achieve cost savings by streamlining its operations.

Pemberley Accounting can help you recover any taxes you have overpaid by taking a proactive role in contacting HMRC on your behalf.  Our successful track record of reclaiming overpayments is based on accurate submission of documents and regular phonecalls with HMRC to ensure your case is being progressed as quickly as possible.

VAT

The headline rate of VAT will be increased to 20% from 4 January 2011. There will be no change to zero-rated and exempt items such as food, children's clothing and books.

Capital Gains Tax

The headline rate of Capital Gains Tax rises from 18% to 28% with immediate effect, but only for higher rate taxpayers. This is a lower increase than that which had been widely predicted and the first £10,100 of annual gains remain tax-free, at least for now.  Entrepreneurs' relief rate of 10 per cent will be extended from the first £2 million of gains to the first £5 million.

PAYE

Personal tax-free allowance increased by £1,000 to £7,475 from April 2011.  40% tax threshold will be reduced to £42,375 to claw-back the increase in te tax-free allowance for higher-rate taxpayers.

Employees' National Insurance

National insurance contributions payable by employees rise by 1% to 12% from April 2011 up to the upper earning limit (UEL) which will be reduced by £1,650.  Employee NIC rate will rise by 1% to 2% above the UEL.

Corporation Tax

Small businesses will benefit from a reduction in the Small Profits Rate of corporation tax from 21% to 20%. This applies to firms with profits not exceeding £300,000. The standard rate of corporation tax will be reduced to 27% from April 2011, with further 1% reductions in each of the following three years.

Manufacturing allowances and reliefs

The Annual Investment Allowance will be reduced to £25,000 a year, with the intention of targeting support to smaller firms. Capital allowances will be reduced for plant and machinery from 20% to 18% per annum.  Allowances for assets held for longer periods will be cut from 10% to 8% per annum. These changes will not take place until April 2012.

 Employers' National Insurance

Employers' National Insurance Contributions (NICs) will increase by 1% from April 2011 but the weekly earnings threshold for payment will rise by £21 per week above inflation. New businesses outside London, the South East and the East will receive a £5,000 exemption from NIC payments for their first 10 employees.

Duties

There will be no increases in cigarette, fuel or alcohol duties, although the Chancellor signified that rises may follow in the future. As previously announced, the planned 10% increase in cider duty will be scrapped.

Pensions

Basic state pension to be linked to earnings from April 2011, with a minimum increase of 2.5%.  Age by which private pension-fund holders must buy an annuity to rise from 75 to 77.

Although some mistakes can be corrected with a telephone call to the tax office, some HMRC staff are refusing to change anything without notification in writing from the taxpayer or their agent.

Following the publicity surrounding the errors in the tax codes sent out in January and February, HMRC has delayed sending out many of the more complex tax codes in order to give time for review.  But this means that some employers will not have received up-to-date tax codes in time for the April payroll, meaning certain taxpayers will still be taxed at the wrong rate.

If you are concerned about your tax code why not use our Code Checker service? 

For just £35 we will check your code and if it seems to be incorrect contact HMRC on your behalf - with the first letter and two phonecalls to HMRC included in the fixed fee*.

If you subsequently appoint us to prepare your annual tax return and/or your accounts then the Code Checker fee will be deducted from our charges for your first year.

*Cannot be used in conjunction with our normal free initial consultation and additional charges will apply for further work.

The main reasons for this overpayment are:

• errors in self-assessment tax returns and penalties due to late submission;
• failure to use all available income tax allowances;
• higher than necessary liabilities for capital gains tax due to poor planning;
• failure to make arrangements to minimise inheritance tax;
• not making use of tax-efficient savings schemes such as pensions and ISAs;
• failing to claim all means-tested tax credits.

Only 1 in 7 tax payers are reported to do anything to reduce their tax burden, with the remainder risking significant overpayments.  According to Katy Gunnell of Pemberley Accounting, all tax payers should take steps to ensure they claim all available tax allowances, complete their tax returns accurately, plan ahead to minimise their tax liabilities and make all their submissions to HMRC on time.  By taking action now many could save hundreds, or even thousands, of pounds.

Why not call Katy on 07810 518812 to find out how Pemberley Accounting could help you and to arrange your free initial consultation?

From 1 April 2010, the taxman will not treat payments by cheque as received until the day the cheque clears, rather than when the cheque arrives in the post.

So if you are posting a cheque to HMRC, you must allow enough time for the post to be delivered and for the cheque to clear to avoid the risk of a late payment penalty.

Katy Gunnell of Pemberley Accounting advises that taxpayers should send cheques to HMRC at least 10 working days before the due date of payment in order to be confident that the cheque will clear in time.  'Even without the risk of postal delays, the taxpayer is now reliant on the efficiency of HMRC to bank cheques promptly!', she added.  

HMRC is encouraging all taxpayers towards on-line filing and payment but this requires access to the internet, electronic registration and familiarity with the processes involved.

Pemberley Accounting is thoroughly experienced in on-line filing and payment routines.  Why not call Katy today on 07810 518812 to discuss how she can help you and arrange your free initial consultation?

Those most likely to be affected will be people with more than one job, pensioners with part-time jobs and anyone with investment income.

Many people never bother to check their tax codes, just assuming that whatever HMRC sends them must be correct.  But the taxman isn't always right so check your code now and if you don't think it's right get in touch with HMRC straightaway.

Why not use our Code Checker service? 

For just £35 we will check your code and if it seems to be incorrect contact HMRC on your behalf - with the first letter and two phonecalls to HMRC included in the fixed fee*.

If you subsequently appoint us to prepare your accounts and/or your annual tax return then the Code Checker fee will be deducted from our charges for your first year.

*Cannot be used in conjunction with our normal free initial consultation and additional charges will apply for further work.

Pensioners who have overpaid tax on interest on their savings can reclaim it using HMRC Form R40 and non-tax payers can get any future savings interest paid gross, without deduction of tax, by filling out Form R85 and sending it to their bank or building society.

As part of their TaxBack campaign, HMRC is writing to around 3.4 million pension credit recipients, asking them to check whether they have overpaid tax on their bank or building society interest.

If you're not sure whether you're due a tax refund then contact us today.

Amysas Morse, head of the National Audit Office, said "Older people want to pay the right amount of tax but many pay more than they need to because they do not claim allowances to which they are entitled and because of errors."

Checking that age-related tax allowances and allowances for certain of savings are being received are two simple ways of helping to ensure that older people are paying the right amount of tax.