|
New Junior ISA is launched |
|
Friday, 04 November 2011 11:18 |
|
An estimated six million children are now eligible for a new Junior ISA following the launch of the tax-free savings account on 1 November 2011.
The accounts have similar terms and conditions to an adult ISA, with investments available in cash or stocks and shares, up to an annual contribution limit of £3,600.
Accounts are owned by the child and funds are locked in until the child turns 18, although children will have the right to manage their accounts from age 16.
Junior ISAs are seen as a replacement for Child Trust Funds (CTFs) and are only available to children under the age of 18 who do not have a CTF.
While the government hopes the accounts will encourage more people to start saving, some experts say that many providers have yet to publish their rates.
Unlike the CTF, there will be no Government contributions into Junior ISAs.
‘The bad news is that there will be about six million children with CTFs who face being left in 'zombie' funds, trapped by providers who no longer feel they need to offer a competitive deal’.
If this is an area of investment you wish to discuss further or wish to review any other aspect of your financial planning, please contact Ian Finch at Martin Aitken Financial Services Ltd for further information.
Martin Aitken Financial Services is authorised and regulated by the Financial Services Authority. |
|
|
‘Millions of taxpayers’ set for rebate |
|
Thursday, 20 October 2011 10:50 |
As many as six million taxpayers will be entitled to a tax rebate in the coming months, with an average value of £400, HM Revenue & Customs (HMRC) has confirmed.
Meanwhile, a further one million people will be told that they owe tax to HMRC, with each underpayment averaging around £500-£600.
The revelation follows the identification of further discrepancies in tax and national insurance, which were highlighted by HMRC’s new computer system.
In 2010, over four million taxpayers were identified as being eligible for a refund, with payments averaging more than £1,400, while over one million people were told that they had underpaid their tax.
HMRC has confirmed that letters will be sent out to affected taxpayers in the coming months. The overpayments, which relate to the 2007/08 tax year or earlier, and include interest, will be settled by December 2012.
Taxpayers who owe money to HMRC will be able to spread their payments by means of an adjustment to their tax code.
We can advise on all aspects of tax and financial planning. Please contact us for further help and advice. |
|
Record number of fines issued to late filers |
|
Thursday, 13 October 2011 08:57 |
|
The number of fines issued for late Tax Returns has reached a record high, according to recent press reports.
A Freedom of Information request by the Daily Telegraph appears to suggest that HM Revenue & Customs (HMRC) has issued around one and a half million fines to late filers in the last year.
With the volume of penalties thought to have risen by 56% in five years, some experts have criticised the tax authority for 'churning out fines all too indiscriminately'.
However, a spokesperson for HMRC has refuted the claims. 'We want Tax Returns back not penalties, so nobody will receive a penalty where they file a Tax Return by the deadline or have a reasonable excuse for failing to do so,' he said. 'Penalties exist to encourage people to file on time.'
The findings come as HMRC prepares to introduce a new penalty regime for late Returns and late payments via Self Assessment.
Under the new system, the penalties for late Self Assessment Tax Returns are:
an initial £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is paid on time;
- after 3 months, additional daily penalties of £10 per day, up to a maximum of £900;
- after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater; and
- after 12 months, another 5% or £300 charge, whichever is greater.
- In serious cases, the penalty after 12 months can be up to 100% of the tax due.
New penalties for paying late are 5% of the tax unpaid at 30 days, at 6 months, and at 12 months.
Interest will also be charged on top of these penalties. The Tax Return deadlines remain unchanged – 31 October for paper and 31 January for online returns. The deadline for paying any tax due also remains the same at 31 January.
We can help you prepare your Tax Return for submission to HMRC – please phone 0141 272 0000 and ask for Richard Green or Tricia Halliday in our Tax Department. |
|
Tutors and coaches targeted in new tax campaign |
|
Tuesday, 11 October 2011 07:46 |
|
On 10 October HMRC confirmed that tutors, coaches and instructors who have not paid the full amount of tax due on all of their earnings are to be afforded the opportunity to settle via the Tax Catch up Plan (TCP).
The TCP is for people providing tuition of any kind, regardless of whether they have a teaching qualification. All involved in teaching academic subjects, fitness and dance, musical instruments, art and so on are expected to disclose untaxed income. They have until 31 March 2012 to come forward and tell HMRC about their outstanding tax for the years up to 5 April 2010, and pay what they owe.
HMRC is offering those who come forward by the deadline "the best possible terms for paying the tax owed" and where applicable a penalty "unlikely to be more than 20 per cent of the unpaid tax". It has warned that "those who wait for HMRC to come to them will find that they have to pay much higher penalties, or even face criminal prosecution. After 31 March, using information pulled together from different sources, HMRC will investigate those who have chosen not to come forward".
Anyone with any concern about this or any other tax matter should contact Richard Green or Tricia Halliday in or Tax Department immediately. |
|
HMRC extends Business Records Checks |
|
Thursday, 22 September 2011 13:31 |
On 22 September 2011 HM Revenue & Customs ("HMRC") announced an extension of its Business Records Checks programme.
Business Records Checks were piloted earlier this year . They involve checks on the adequacy of the business records of small and medium-sized enterprises.
HMRC claims that pilot checks undertaken earlier this year found that around 44 per cent of businesses visited had issues with their record-keeping, while around 12 per cent of those visited had seriously inadequate records. It plans to complete up to 12,000 checks by the end of the current financial year, with 20,000 provisionally planned for 2012/13.
Initially, HMRC will only levy a record-keeping penalty in the most extreme cases of poor record-keeping. In the longer-term, it intends to issue penalties of up to £3,000 for serious inadequacies in record-keeping.
Anyone with concerns about business records, or indeed any tax matter, should contact Tricia Halliday or Richard Green from our Tax Department immediately. |
|
|
|
|
|
|
Page 1 of 7 |
