HMRC Archives - Atkins & Co - Local Accountants

Spring Budget 2023

March 16, 2023 no comments in Blog, News by Raeane Atkins

A summary of the key announcements:

Personal tax

Pension tax relief

The amount that an individual can contribute to their pension pot tax free will be raised from £40,000 to £60,000 per annum from April 2023.
For those who are already drawing down on their pension, the total amount they can save tax free under the Money Purchase Annual Allowance is to be increased from £4,000 to £10,000 from April 2023.
The Lifetime Allowance of £1,073,100 to be abolished.

Business tax

Corporation tax

It was confirmed that the main corporation tax rate will increase from 19% to 25 from 1 April 2023.

Capital Allowances

The super-deduction regime will end 31 March 2023 and will be replaced from 1 April 2023 with ‘full expensing’ – 100% capital allowances for qualifying plant and machinery. This will last for three years, to 31 March 2026. The Government will also introduce 50% first year allowances for ‘special rate’ plant and machinery, including long life assets. These rules apply only for corporation tax purposes, and will not be available for businesses which are subject to income tax, unless they are below the Annual Investment Allowance threshold of £1m per annum.
It was also confirmed that the 100% first-year allowance for qualifying expenditure on electric vehicle charge-point equipment will be extended until 31 March 2025 for corporation tax, and 5 April 2025 for income tax.

Other taxation

Fuel duty will be frozen and a 5p reduction will be kept for another year.
Alcohol taxes will rise in line with inflation from August 2023 (with new reliefs for beer, cider and wine sold in pubs).
Tax on tobacco will increase by 2% above inflation, and 6% above inflation for hand-rolling tobacco.
Nuclear energy to be classed as environmentally sustainable for investment purposes.
£63m to help leisure centres with swimming pool heating costs, and invest to become more energy efficient.

Cost of living support

The Energy Price Guarantee for households will continue at the current rate for three further months to June 2023, limiting the typical household energy bill to £2,500 per annum. The Energy Bills Relief Scheme, which supports businesses and other non-domestic energy users, is to be replaced by the Energy Bills Discount Scheme through to 31 March 2024.

For a more executive summary, please visit HMRCs website –
https://www.gov.uk/government/publications/spring-budget-2023/spring-budget-2023-html

Are you getting seen off?

November 10, 2017 no comments in Blog by Debbie Atkins

We have seen a massive increase in clients coming to us with all sorts of tax problems, we wanted to post a guide on how to stay safe in unchartered waters and remain claim savvy!

Deed of Assignment – Some companies are operating a Deed of Assignment service – be very careful if you are signing up to this! A deed of trust instructs all proceeds to be sent directly to the company you have given authority to and these deeds can remain in place for a number of years. To revoke them you and the assigned company will need to write to HMRC, this can cause all sorts of problems. We have dealt with a number of situations where we have submitted the claim only for the clients refund to be sent to the company listed on the deed, be very careful what you are signing up to!
Tax Years being left open…..Ensure the company/Tax Agent you are dealing with has addressed ALL tax years that require a self- assessment tax return. We have seen cases where clients have had tax years left open resulting in horrendous penalties amounting to thousands. Make sure you are fully aware of which years you are claiming for.

Tax codes – Ensure your tax code has returned to normal following on from the refund process, if your refund is coded into your tax code this can disrupt your pay and tax and wipe out future refund claims. Look out for pay coding notices from HMRC and check your payslips!! If there are Job Expenses left in the code you will notice an increase in your pay and not be taxed as normal. If these job expenses are left the amount you will owe HMRC will escalate each month until they are removed fully. You may be left with a hefty liability and a considerably reduced Tax Code as HMRC apply an in year adjustment to recapture the underpaid tax.

Self – Assessment Tax Returns – Your claim for mileage relief traveling to a temporary work place is a Job Expense, this is done through self -assessment. Your Tax Agent should take care of this self -assessment when they square away your claim. You will need to instruct your agent if you are not claiming further as HMRC will expect a self -assessment tax return every year thereafter until they are instructed otherwise.
If you fail to notify HMRC and do not file a tax return before the deadline HMRC will apply late filing penalties which can escalate daily. Avoid this by ensuring your Tax Agent has fully removed you from Self- Assessment if you no longer need to claim mileage relief and have no other SA requirement.

Claiming uniform refunds – There are many companies out there claiming they can get you thousands of ££’s for relief on laundering your uniform. The long and the short of it is since 2014 for HM Forces personnel an in year adjustment should be made through your pay to reimburse this allowance the yearly allowance equates to £100 RAF, Army and Marine personal and £80 for Navy (lower due to facilities being available on board). Be careful you may end up owing the tax man!

Don’t get seen off, If you have issues following a recent mileage claim and would like some impartial advice, contact Admin@akinsandco.com or give us a call 01934 527888.

DWP announces extra support for armed forces spouses and civil partners to help protect their State Pension

April 19, 2016 no comments in Blog by Debbie Atkins

Image result for hmrc logo

A new armed forces National Insurance credit is available for spouses and civil partners who joined their partners on overseas postings.

Up to 20,000 armed forces spouses may be eligible for a new National Insurance credit if they have previously joined their partners on an overseas posting, ensuring that they don’t miss out on their State Pension.

People who have accompanied spouses and civil partners may have been unable to work while abroad, and therefore unable to make National Insurance contributions. Gaps in contributions can seriously reduce the amount of money people receive when they reach State Pension age. As the new State Pension is based on people’s own National Insurance record, the credit will give people the opportunity to cover contributions missed by periods spent abroad dating back to 1975.

Minister for Pensions, Baroness Ros Altmann said:

Our armed forces protect our country and it is only right that in turn, we help protect their partners’ ability to receive the full State Pension when they reach State Pension age.

This new credit will help ensure people who choose to support their partners abroad don’t miss out on a good State Pension.

Defence Secretary Michael Fallon said:

We are making sure that military spouses and partners who spend time based overseas get the State Pension they deserve.

This is the latest step under the armed forces covenant to ensure that service personnel and their families are treated fairly.

The new credit has been taken forward under the armed forces covenant, which states that members of the armed forces and their families should receive fair treatment from the nation which they serve.

On 6 April 2010, the government introduced a National Insurance credit for which an accompanying spouse or civil partner on an overseas posting can apply. Applications must be made by the end of the tax year following the one in which the posting ends. It is still possible to apply for this credit which may also help if the spouse or civil partner wants to claim a working age benefit.

The new credit

The new credit covers the years spent abroad from 6 April 1975 onwards and counts towards the new State Pension.

For information about the new credit and how to apply, visit www.gov.uk/dwp/ni-credits-armed-forces-partners

Is your Tax Return scaring you?

October 26, 2015 no comments in Blog by Debbie Atkins

Finding your self-assessment tax returns scary? Atkins and Co can save you time, stress and maybe even money!

More people than ever have to file one – The record for the number of online returns, set last year when 7.93 million people filed over the internet, was also broken, as 8.48 million were sent online to HM Revenue and Customs (HMRC). This represents 84.5% of all returns received – a record-breaking percentage.With around 10.74 million 2012 to 2013 tax returns due by 31 January, this means 93.4% met the deadlines – 31 October for paper and 31 January for online. This is the highest percentage of on-time returns ever recorded.
Do it on time – HMRC takes a dim view of people who can’t be bothered to stick to their deadlines. A life-threatening illness or the recent death of a partner are accepted as valid excuses; the dog eating your train receipts is not. If you file your return late, you’re automatically subjected to a £100 fine. If your return is more than three months late, you’re fined an additional £10 per day, up to a maximum of £900. And if you twiddle your thumbs for a whole year, you’ll be fined another £300 or 5 per cent of the tax due, whichever is higher. The deadline for paper tax returns is 31^st October, the deadline for online returns 31^st January.
If you’re self-employed, you can claim lots of things against tax – If you work from home, you can claim a proportion of costs such as lighting, heating, mortgage interest and cleaning. You can also claim for business trips and a proportion of running costs for a car also those with more than one income, and high-income parents who received Child Benefit after 7 January 2013.
Don’t get carried away – You can’t, however, claim for life insurance, home extensions, travel between home and the workplace or a 1^st class plane ticket to Bali in which you spent the first five minutes idly scribbling a business plan on the back of the cocktail menu.
Talk to HMRC – Despite their scary advertising campaign, HMRC tend to be jolly friendly, as long are you’re trying to do the right thing. And don’t forget that you can apply to reduce any payments on your account if you expect to earn less this year than last. You can also carry forward losses from one year to another
Thinking about getting an accountant – Atkins & Co provides a personalised service and we understand that each business and individual is very different and has unique concerns, responsibilities and ambitions. As we always aim to get to know our clients personally, we can tailor the services to suit their own specific needs. We provide high level accountancy and tax advice whilst conveying it to you in a straight forward easy to understand language. As registered ‘Chartered Accountants’, we are fully regulated by the ICAEW (Institute of Chartered Accountants in England and Wales), you can be reassured of the quality of the service and advice given.

Our specialist military tax and accountancy experience has been acquired from many years and with the family connections to the military – you know you are in safe hands. Rest assured we are well versed in the ‘lingo’ and will go the extra mile to make sure that you feel at ease. We always take the time to explain things in a way you can understand, this is something we pride ourselves on. Every client is important to us.

HMRC EMAIL SCAM

October 5, 2015 no comments in Blog by Debbie Atkins

We have recently received many emails asking if HMRC have been sending out “Refund Forms” by email… The answer is NO!!
It’s actually a Phishing Scam!
Please think twice before giving your bank details online! This may look like a genuine HMRC form…

For more information, please click the picture above…

DON’T GET CAUGHT OUT!
Don’t give out private information (such as bank details or passwords), reply to text messages, download attachments or click on any links in emails if you’re not sure if they’re genuine.

If in doubt Ask Atkins, contact us admin@atkinsandco.com or call in office hours 01934 527888.

Ask Atkins: Landlords! HMRC are closing in on your undeclared Rental Income!

April 20, 2015 no comments in Blog by Debbie Atkins

The Revenue is on the trail of £550m missing tax and is urging landlords to come clean or risk higher penalties.
Don’t get caught out by the following common rental income misconceptions:

I’m in the armed forces, so we don’t need to declare our rental profits…
Wrong – you do still need to declare them.

I don’t need to declare my rental profits as I only rent my house out because I’m drafted overseas…
Wrong – you still need to declare them.

I don’t make a profit, so I don’t need to tell HMRC…
But are you making a profit in the eyes of the tax man! If you have a repayment mortgage then it is quite likely you are actually making a profit. And if you are genuinely making a loss then it is in your advantage to report this to HMRC.

My Wife / Partner doesn’t need to declare it because I have…
Wrong – if a property is jointly owned you each need to declare your share of the income.

HMRC are running a Let Property Campaign to encourage landlords to come clean and tell them about their rental property before they track you down.
HMRC can contact letting agents for a list of landlords, scrutinise ‘property to rent’ websites/ newspapers and they already hold information on those who receive tenants housing benefit directly and those who have used the Deposit Protection Schemes, so if you are a landlord then act now.
It will be in your best interest to volunteer the information than if you try to ignore it and HMRC catch up with you!

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