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[2 Sep 2009 | No Comment | ]

It’s normal for some people to make tax payments on account every 6 months

If you’re self employed, or have lots of income from rent, dividends or investments, you may have become used to the pattern of making tax payments every 6 months.
However, the way the rules are structured, it normally comes as a bit of a surprise the first time you encounter the the “payments on account” regime. PoA for short. If most of your tax is paid under PAYE you won’t need to worry about this. The rule is …

annual »

[2 Sep 2009 | No Comment | ]
Payment Methods – Income Tax & Corporation Tax

There are four methods for paying a tax bill

We recommend making payments by bank transfer as this is the most assured way of proving the date and the amount of the tax you have actually paid.

Method 1 – Internet Banking
Make a payment to the Collector of Taxes for the amount required. Depending on the bank, they may already have HMRC Shipley or HMRC Cumbernauld as ready made options, and you should use the Shipley account unless told otherwise. If the bank does not have the precise account details already on …

annual »

[15 Jul 2009 | No Comment | ]

It is the normal practice to collate a separate set of records for each separate property. We prepare individual summaries in the case of multiple properties and the figures are later combined only for the purposes of a personal tax return.
Bank/Finance House items

A copy of a loan interest paid certificate for the whole tax year.

If the lender cannot provide a certificate, please let us have an analysis of actual loan repayments made, clearly stating the different amounts for repayment of capital and payment of interest.

Income items
Records of all rents received. …

annual »

[10 Jul 2009 | No Comment | ]

Apply for a reduction
You can pay less tax! The self employed normally have to pay their income tax in two 50% instalments on 31 January and 31 July every year. The system is not perfect and is based on information that’s almost two years old. If you’ve had worse results than normal over the past twelve months or so, your tax bill should be less. So, why pay more?
You can apply for a reduced payment on account. In the right circumstances, that can mean a reduction to NIL.
NIL tax!
Is that …

annual, routine »

[24 Jun 2009 | No Comment | ]
Tax Return Checklist

The UK tax year runs from 6 Apr to 5 Apr . . .
So that we can keep track of your tax office and reference numbers, please let us have either:

Page one of your tax return; or
The “Notice to File”.

Student Loans

A copy of the Student Loan account showing the balance remaining on 5 Apr just gone.
Tell us if a new one has started since 5 Apr.
Tell us if an old one has been fully paid off since 5 Apr.

Is your Domicile outside the UK?
In tax law the word “domicile” …

annual »

[22 Jun 2009 | No Comment | ]

This is a checklist for annual cases. The quarterly accounts checklist is here if you need it.
Bank/Finance House Items

Copies of all business statements on current accounts, deposit accounts and loan accounts. Copies of all business statements on credit cards, commercial cards and PayPal accounts etc.

Loan agreements for any new loans taken out during the year, showing (a) a simple analysis between the loan capital and the interest due and (b) a schedule of payment dates including any variations in the first or the last payment.

Book Keeper’s Reports

Trial Balance

Draft Profit & …

annual »

[6 Apr 2009 | No Comment | ]

These days, both personal tax returns and corporation tax returns are generated by us using software which has been approved by HMRC.  The process includes the creation of a unique IR Mark which is established by applying a formula to the data in the return. This means that every tax return has a totally unique IR Mark.
We ask clients to check tax returns carefully to ensure that all income has been declared and that all allowances have been claimed. When you are satisfied that the return is correct and complete, …