CIOT NI Branch AGM

At last evening's AGM for the Chartered Institute of Taxation, NI Branch, Brendan Morris stepped down as Chairman on the expiry of his two year term.   In his outgoing adress he said that it was a personal privilege to have served as Chairman and thanked his fellow Branch officers and committee members for their support during his term.  David Lynas was voted in as the new Chairman.   

Brendan wished David well and said "for the remainder of my term on this committee, I now look forward to supporting my successor by continuing the good work in making the NI Branch the success that it is"

All Island Tax Seminar

Brendan Morris as outgoing Chairman for the CIOT NI Branch is honoured to be hosting an All Island Tax Seminar to be held at the Crowne Plaza hotel in Dundalk on September 15th.   This seminar is a new initiative and is being held jointly with the Irish Taxation Institute.  It is also a unique opportunity to bring together tax professionals from north and south of the border.   Further details can be found on the pdf attached.

Self Assessment - 31 July payment - statement delays from HMRC

HM Revenue have acknowledged that they were late in sending out over 500,000 Self Assessment Statements which taxpayers required to make their 31 July instalments.    In some instances the statements arrived after 31 July.   

Where this has happended, taxpayers have now been given to 27 September to make their payment without late payment interest being applied.

Private Tutors are next in line

Following the HM Revenue & Customs recent Plumbers Tax Safe Plan which saw the arrest of five plumbers, HMRC is continuing its programme of campaigns designed to tackle particular trades and professions. According to HMRC’s campaigns timetable, private tutors will be the next to be targeted, starting in the Autumn, followed, in early 2012, by those using the internet to buy and sell goods and another campaign targeting other tradespeople.

Plumbers arrested by HM Revenue & Customs

HMRC said it had arrested five plumbers and was investigating about 600 others following its Plumbers Tax Safe Plan (PTSP) campaign, in which people in the industry were given until May 31 to put their tax affairs in order or face the consequences. Some of those involved owe up to £150,000.

"HMRC have had limited success with the numbers coming forward in the recent medical and plumbers disclosure opportunities, so they are getting tough with those who did not register or disclose," said Gary Ashford of the Chartered Institute of Taxation

"People should not underestimate the amount of data that HMRC is holding. What we are now seeing is HMRC starting to use that information. The net is tightening on those who break the law."

Do I need to File a tax Return??

As accountants and tax advisers we are often asked the question: "Do I need to file a tax return?"

If HMRC send a notice reminding you to fill in a Self Assessment Tax Return, you should do so.  But what happens if you are not presently reminded or required by HMRC to send in a return?

The following persons should notify HMRC that they need to submit a return even if HMRC are not presently asking them to do so:

• If you are, or become, self-employed (this includes being a member of a partnership)
• If you are a company director, a minister of religion or member of Lloyd’s

You are also required to send in a return if your income from the following sources exceeds:

• £10,000 or more income from savings and investments
• £2,500 or more income from untaxed savings and investments*
• £10,000 or more income from property (before deducting allowable expenses)
• £2,500 or more income from property (after deducting allowable expenses)

* Although there is no requirement to request a tax Return if your untaxed savings income is below £2,500, it is necessary that you advise HMRC to include the income as a deduction on your Notice of Coding

You are also required to file if you have:

• income from an annual trust or settlement income on which tax is still due (even if you’re only treated as receiving this income)
• income from the estate of a deceased person on which tax is still due

Other reasons:

• You are 65 and receive a reduced age related allowance
• You have any foreign income that is liable to UK taxation
• Your annual income is over £100,000
• You need to claim certain allowances or reliefs
• You have capital gains tax to pay
• You are a trustee
• If you have lived or worked abroad or you are not domiciled in the UK
• If you have untaxed income sources and are using personal allowances elsewhere

The above is quite a list, however, the responsibility for filing tax returns ultimately rests with the individual.

If you are in any doubt as to whether you should be filing a tax return, please contact BDM for guidance.

100% Tax Allowance is Only Short Term

Currently, purchases of qualifying plant and equipment can be written off against your taxable profits.

One method for obtaining tax relief is to utilise the Annual Investment Allowance (AIA) which for the 2011-12 tax year allows a write-off of upto £100,000 worth of qualifying expenditure.

However, from April 2012 the AIA will be reduced to £25,000.

If you are considering replacing old equipment or buying new qualifying equipment in the next 12 months, the timing of your purchase will likely have a big impact on your tax position.

Contact BDM for more details.