If you start a new business between 22 June 2010 and 5 September 2013 in:

• Northern Ireland
• Scotland
• Wales

Any of these English regions:

- North East

- North West

- Yorkshire & Humber

- East Midlands

- West Midlands

- South West

The Regional Employer NICs Holiday for New Businesses scheme could save you up to  £5,000 for each new employee (up to 10, for the first 12 months).

Let us apply on your behalf.

Subject to consultation, new late filing and late payment penalties will take effect from 6 April 2011 for personal, trust and partnership tax returns.

The existing rule that a personal/trust late filing penalty would be the lower of £100 and the balance of tax due will be replaced.

Instead, HMRC’s proposed late filing penalty regime will include the following sanctions:
£100 penalty immediately after the due date for filing (whether or not the tax has been paid)
daily penalties of £10 per day for returns that are more than three months late, running for a maximum of 90 days;
penalties of 5% of tax due for the return period (or £300 if greater) for prolonged failures (over 6 months and again at 12 months);
higher penalty of 70% of the tax due where a person fails to submit a return for over 12 months and has deliberately withheld information necessary for HMRC to assess the tax due (100% penalty if deliberate with concealment).

The penalties/surcharges for late payment of any tax due will be:
penalty of 5% of the amount of tax unpaid, generally 1 month after the payment due date (or at the filing date of the relevant return); and further penalties of 5% of any amounts still unpaid at 6 months and 12 months; suspension of late payment penalties where the taxpayer agrees a time to pay arrangement (where a tax debt is paid over time) with HMRC.

The existing rule effectively caps a late filing penalty at the amount of tax unpaid at 31 January.

The change will apply to the 2010-11 tax return, which are due on 31 October 2011 if sent on paper and 31 January 2012 if filed online. Full details are available from an HMRC guide (PDF).

Promises “invasive” scrutiny of tax cheats

Those who have deliberately defaulted on their tax payments face up to five years’ detailed personal scrutiny, to ensure that they are complying with their tax obligations and have demonstrated a permanent change in their behaviour, HMRC has announced. Letters have been sent to 900 know tax cheats, as part of the new Managing Deliberate Defaulters (MDD) programme.

The level and term of monitoring will depend on the seriousness of the offence, but it is not envisaged that anyone will be released from the programme within two years. HMRC will continue to check that returns are filed on time and that any tax due is paid. There will also be regular reviews of deliberate defaulters’ tax affairs to check that any errors or failings have been put right.

The taxman warned evaders who fail to keep their tax affairs in order would face increasingly intrusive interventions and, if deliberate evasion continues, even criminal proceedings.

HMRC’s Steve Hickman, said: “Tax cheat check-ups will involve continued and close scrutiny – it is a real deterrent. If you are thinking about breaking the rules just remember, you could end up with HMRC on your back for five years.

If you get yourself put on this scheme, due to past misdemeanors, it is more important than ever to get professional help – if you are being monitored closely you need reassurance that you are not setting yourself up for more grief in the future. Ring me now, and arrange a meeting – it could help you sleep at night!

You may see the name Stalytax on your travels, I am using this name as it is easier for you to remember, and me to market. Its still me, at the same business, however.

Going to www.stalytax.co.uk on your web broswer will lead straight to this site, as if you had typed in woodfordco.co.uk

Thanks to the recession and the price of petrol, the price of large gas guzzlers has dropped through the floor. I just bought a big-engined car that was over £70K new for just £7K! Nice if you dont do the mileage, or have another (more economical) vehicle to do the serious miles.

But did you know, if you get one older than March 2001, you predate the CO2 emmisions legislation, and you logbook will give the emmisions as ZERO!!!

The rersult is cheap road tax, and the restriction on Capital Allowances, limiting them to 10% on high emmisions vehicles does not apply. Save tax (but not neccesarily the whale) – buy a V8!!

Are you paying VAT on your accountancy bill? Not here – as a small firm we trade under the VAT limit, so the VAT added to your bill is 0.00%!!!

As a business set up in the 1980′s under the original scheme, and with some clients who started the same way, we appreciate the boost the EAS can give to those about to start in business, but nervous about the prospect of living on fresh air at first.

The scheme will be launched in Merseyside this month, with a national rollout expected by autumn.

Under the scheme, unemployed people who can prove they have a robust business plan will receive allowances of £1,275 over six months. They will also be connected to volunteer mentors from local business communities who can assist with business planning and if their plans are strong enough, they may then receive a loan of up to £1,000 from Jobcentre Plus to cover start-up costs.

We can help you draw up that plan. While the precise requirements have not been announced yet, we can help you draw up a cash flow forecast, which will help you, banks and the government see whether your business plan is a viable one.

Ring for more information.

If you have to complete a Self Assessment Tax Return for 2009/10, you MUST get in touch with me as soon as possible. If you leave it until the last minute, you may be disappointed, as I cannot guarantee submission on time to late comers, though I will do my best to beat the deadline and avoid penalties.

The year which we need to complete accounts for will be for your usual year end, for the year which ENDS between the dates 6 April 2009 and 5 April 2010.

To avoid penalties, your return needs to be submitted online, and your tax paid by 31 January 2011.

Increase in the standard rate of VAT to 20 per cent

The standard rate of VAT is currently 17.5 per cent but will be increased to 20 per cent on 4 January 2011.

For any sales of standard-rated goods or services that you make on or after 4 January 2011 you must charge VAT at the 20 per cent rate. If you have a cash business and calculate your VAT using the VAT fraction you must use the VAT fraction of 1/6 on your standard-rated VAT inclusive sales from 4 January 2011.

The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions. Any sales you make at these rates are unaffected by this change.

If you have any queries, or are on a special trader’s scheme and don’t know what to do, contact us via the form on this website, or call me.

I am currently locked out of my email address (woodfordandco@gmail.com) – call me if you get anything untoward!!

Our new email address is stalytax@gmail.com, or contact us via the adress on the right, or the form on the ‘Contact Us’ page.