What is Tax Avoidance

Tax avoidance involves bending the tax rules to try to gain a tax advantage that was never intended. It usually involves contrived transactions that serve no real purpose other than to artificially reduce the amount of tax that someone has to pay. It is not the same as effective tax planning but is often promoted as such.

What is Making Tax Digital?

Making Tax Digital (MTD) is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers.

Making Tax Digital for business (MTD-FB) begins on 1 April 2019 with MTD for VAT. From that date, VAT-registered businesses above the threshold of £85k will have to keep digital records and submit VAT returns using compatible software.HMRC lists Sage, QuickBooks and Xero as software that will be compatible with MTD for VAT.

Other components of Making Tax Digital, such as income tax and corporation tax, have been placed on hold until April 2020 at the earliest. Check this resource hub for updates on the latest developments, straight from HMRC.

Top 10 worst tax return excuses

HMRC revealed some of the worst excuses submitted last year for late tax returns.

The 10 worst excuses for missing the 31 January Self Assessment deadline for 2013 to 14 were revealed by HM Revenue and Customs (HMRC).

From broken kitchen appliances, hungry pets and arguments that last five years – some people will stop at nothing to pass the blame for their tardy timekeeping. Some of the excuses submitted included:

New Tax Year Rates & thresholds

Unless otherwise stated, these figures apply from 6 April 2021 to 5 April 2022.

PAYE tax and Class 1 National Insurance contributions

You normally operate PAYE as part of your payroll so HMRC can collect Income Tax and National Insurance from your employees.

Your payroll software will calculate how much tax and National Insurance to deduct from your employees’ pay.

Tax thresholds, rates and codes

The amount of Income Tax you deduct from your employees depends on their tax code and how much of their taxable income is above their Personal Allowance.

March 2021 Budget Summary

March 2021 Budget Summary

Our summary of the main points of the Chancellors budget announced on 03rd March 2021. Contains Information relating to Individuals, Employees and Employers.
Please note that some items are still to be rubber stamped and or we await further Government/HMRC details.

Making Tax Digital (MTD) VAT

Making Tax Digital (MTD) is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers.

Making Tax Digital for business (MTD-FB) begins on 1 April 2019 with MTD for VAT. From that date, VAT-registered businesses above the threshold of £85k will have to keep digital records and submit VAT returns using compatible software.HMRC lists Sage, QuickBooks and Xero as software that will be compatible with MTD for VAT.

Other components of Making Tax Digital, such as income tax and corporation tax, have been placed on hold until April 2020 at the earliest. Check this resource hub for updates on the latest developments, straight from HMRC.

HMRC’s Brexit Plans

What Brexit VAT implications does your business need to be aware of? How businesses manage Value Added Tax (VAT) will radically change this year because of two events: the introduction of Making Tax Digital (MTD) and Brexit.

The former is a certainty and we have advice on what it means for your business, a checklistto help you get ready and moreMTD advice articles to prepare your business.

CIS Tax Refunds Apply Now

For those Sub Contractors working under the CIS Constrution Industry Scheme that believe they are eligible for a tax refund we would just like to remind you that although it is now well into the current tax year but you are still allowed to make a claim for a repayment from HMRC. You will need to have the details of all of your net earnings received, materials paid for and tax stopped. This will be on the yearly statement that your Contractor is obliged to supply you with.

To maximise any potential refund you will need to make sure that you have included all of your allowable business expenses.

It may interest you to know that a recent survey we did with some of our CIS Sub Contractor clients we discovered that nearly half of them had missed out or overlooked allowable expenses that they were not claiming.

Don’t make the same mistake, call us now and we will help you.

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