News
The Future of Tax investigations
June 2011
HMRC have the right to check a self assessment tax return and the record keeping of a business. Some of you might have experienced a tax investigation and will know how unpleasant these can be. In the past the emphasis has been on the tax payer to prove their income and expenditure and sometimes their personal spending. However in the future tax investigations by the revenue will have an emphasis on how the income and expenditure of a business are recorded. Especially where cash is involved. The days of taking your 'accounts' to the accountant in a plastic bag will be over! HMRC expect at least a cashbook to be kept, they expect sales invoices to be complete and sequentially numbered. They want to see a record of drawings. They want to know that businesses are keeping fit and proper records. Most businesses do but all businesses will have to in the future. If you are a business with a plastic bag full of receipts please come and see us for some free advice on how to keep your records properly!
Latest news from HMRC
June 2011
New campaigns targeting VAT defaulters, private tutors and e-marketplaces will be launched by HM Revenue & Customs (HMRC) over the next year.
HMRC will use cutting-edge tools such as “web robot” software to search the internet and find targeted information about specified people and companies. Using the software, the department can pinpoint more accurately people who have failed to pay the right tax. The “web robot”, used with the department’s Connect computer system, also helps find people who are trading without telling HMRC.
HMRC announced last month that a campaign targeting VAT rule-breakers trading above the £73,000 turnover threshold but who have not registered for VAT will be launched in the summer.
General important updates
May 2011
- The approved mileage rate is now 45p for the first 10,000 miles per year.
- HMRC now has the power to issue fines for PAYE paid late – the deadline is the 19th of each month.
- All year end P35s need to be submitted by 6th july.
- We now have the software to prepare 2010/11 income tax returns so you can start collecting your information for us.
- Look out for our new heroine – Tax Nanny coming soon to Twitter!
Tax return penalties
March 2011
From April 2011 if you don’t file your self assessment tax return or pay your tax on time the penalties you will pay are changing. HMRC are getting tougher, so please ensure you get all your paperwork to us in plenty of time to complete before the deadlines. The final deadline for submitting your self assessment tax returns is 31st January!
| One day late | Initial penalty of £100 (even if you have no tax to pay or if you have already paid the tax you owe). |
|---|---|
| Three months late | Automatic daily penalty of £10 per day, up to a maximum of £900. |
| Six months late | Further penalties, which are the greater of 5% of tax due or £300. |
| Twelve months late | Yet more penalties, which are the greater of 5% of tax due or £300. In particularly serious cases you face a higher penalty of up to 100% of the tax due. |
| Thirty days late | Initial penalty of 5% of the tax unpaid at that date. |
|---|---|
| Six months late | Further penalty of 5% of the tax that is still unpaid. |
| Twelve months late | Further penalty of 5% of the tax that is still unpaid. |
These penalties are additional to the interest you will be charged on all outstanding amounts, including unpaid penalties, until payment is received.
Eastwood Office
March 2011
As from 1st April there will be a member of our team at the Eastwood office on Tuesdays, Wednesdays and Thursdays each week. The address of our office is:
160c Nottingham Road
Eastwood
Nottingham
NG16 3GG
Expanding the business
November 2010
This year has been a very exciting one for L J Hanbury Ltd. In April we purchased a small practice in Eastwood called Matrix Accounting Ltd. The client base is all over the East Midlands with a veritable mix of businesses. We have kept on the Eastwood office which is at 160c Derby Road, Eastwood. This office is manned a few days each week. We have also expanded the staff team this year. Laura Froggatt joined us in July. She is a Chartered Certified Accountant with 10 years experience in practice. She is a very valuable addition to the staff team and we all are very pleased she has joined us.
Expanding the business is a difficult thing to do and I would like to express my sincere thanks to my fantastic staff team who have all worked really hard to make sure that this is a success. I would also like to thank all my clients for their continued loyalty to us. We appreciate it and will work hard to earn it!
Deadline for submission 2009
September 2009
Just a gentle reminder to all of you who complete a manual tax return. The deadline for submission is 31 October 2009. Please get your form to the HMRC before that date or better still bring the information into us to complete for you.
Treetops Hospice Ripple Appeal
August 2009
Local Chartered Certified accountants L J Hanbury Ltd have found a charitable way of dealing with late tax returns. L J Hanbury in Long Eaton asked clients who overshot the tax return deadlines to donate money to the Treetops Hospice Ripple appeal. In return the accountants would burn the midnight oil to ensure clients avoided penalties.
The Treetops Hospice appeal is raising funds for the new care centre at Treetops Hospice to provide specialist palliative care to people with life-limiting illnesses. Linda Hanbury, Managing Director of L J Hanbury Ltd said "I always wanted to help support Treetops Hospice as they help so many people"
Treetops Hospice spokesman said: "We are very grateful for the support of local companies and would welcome the opportunity to hear from anyone who would like to help us with the final challenge of raising £300,000 for the Treetops Hospice Ripple appeal."
Awarded Quality Check Mark from the ACCA
Last year we were awarded the prestigious Quality Check Mark from the ACCA. This is not presented very often and is a real honour. We were checked by an official from the ACCA. They checked the quality of the work, randomly selected files were inspected. They also checked the systems and standard of delivery to clients. We all feel very proud to have been allocated this award, as the ACCA's executive director of professional standards said: "the standards we set are high and it is a major achievement to secure this award, which reflects well on the calibre of staff and the services the firm offers to its clients."