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Certax Fitzrovia - Small Business Accountants London
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Details included in the list of Deliberate Tax Defaulters

The list include details of taxpayers who’ve incurred a penalty because they’ve either:

deliberately provided one or more inaccurate documents to HM Revenue and Customs (HMRC)
deliberately failed to comply with an HMRC obligation
committed a VAT or excise wrongdoing
These deliberate acts have resulted in HMRC establishing an additional amount of tax of more than £25,000. HMRC will only publish the details where the taxpayer hasn’t made a full and immediate disclosure when HMRC started to investigate or prior to any investigation.

The list relates to deliberate defaulters who’ve been dealt with using civil proceedings. It doesn’t contain convicted tax criminals, who will have been found guilty of a criminal offence in open court and therefore the verdict and sentence is a matter of public record. In many cases where tax criminals have been successfully prosecuted, HMRC releases details of the case and those convicted in a press release.

Where the publication criteria have been met, the law allows HMRC to publish some or all of the following:

the name of the person who incurs the penalty including any trading name, previous name or pseudonym
the person’s address (or registered office, in the case of a company)
the nature of any business carried on by the person
the amount of the qualifying relevant penalty or penalties
the qualifying potential lost revenue (PLR) in relation to the qualifying relevant penalty, or the total of the qualifying PLR for all of the qualifying relevant penalties
the periods when the inaccuracy, failure or wrongdoing that gave rise to the qualifying relevant penalty or penalties occurred
any other details that HMRC considers necessary in order to make the person’s identity clear
The information for each entry will vary. The law only allows HMRC to publish the minimum amount of information required to provide a unique identification for the taxpayer. This will vary from case to case.

Dates and time periods

The format for time periods will vary. In some cases the deliberate defaults relate to a specific period of time - this varies from tax to tax. In other cases it’s a specific act on a specific day that constitutes the deliberate default and it is this date we publish.

Addresses

The address is the one associated with the published person at the time of the default. The address may refer to a business address or a home address. Where the default relates to a business, we’ll normally publish the address from which the business is and/or was operated, rather than the home address. We’ll publish home addresses (including registered offices for companies) where the default(s) relates to non-business taxes or where publishing a business address wouldn’t clearly identify the taxpayer.

The published address may refer to a business address or a home address and is the one associated with the published person at the time of default. The person may have become insolvent or may no longer be trading, there may now be an unrelated business trading from the address which has no connection to the published business. Including ‘formerly’ in the address line is to clarify that the published person is no longer trading from that address.

Details of the type of default

Legally, HMRC cannot explain the precise nature of the default, other than what is published within this list. There are strict rules about the information HMRC’s allowed to disclose.

The list doesn’t necessarily represent the full default of the taxpayer. HMRC doesn’t publish information about any penalties where the taxpayer has provided a full and immediate disclosure when HMRC starts to investigate, or prior to any investigation. Also, the information published here only includes information about one investigation. It doesn’t include any information about other defaults in the past. Nor does it include details of any penalties which have been incurred due to the person’s careless, rather than deliberate, behavior.

When the list is published, and for how long

A defaulter’s details will be held on HMRC’s website for a maximum of twelve months from the date they’re first published.

To ensure that new information is published promptly and that no information is published for longer than 12 months, HMRC will review the list on a regular basis. Usually this will mean that any changes will be made on a quarterly basis.

HMRC can only publish details about defaults that have occurred on or after 1 April 2010, or for tax periods starting on or after 1 April 2010.

How to avoid having your details published

Please contact HMRC immediately. Anyone involved in a compliance check has the opportunity to disclose errors to HMRC from the outset. Making an early disclosure and cooperating with the check to ensure it is resolved promptly helps to reduce the level of any penalty and the risk of publication.

You’ll be able to put your point of view as part of this process and there is a right of appeal to an independent tribunal against the tax and penalty decisions that determine whether or not your details will be published.

If you wait until HMRC investigates you, and don’t provide all the information it needs right at the start of the investigation, you run the risk of having your details published.

We can guide you through the whole process and find the best possible way to sort the concerns. Give us a call or drop us your inquiries at www.certaxlondon.co.uk

Source: HMRC
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R85 Form

What a R85 form does is that it informs the building societies and the banks that the interest on your accounts shouldn’t be taxed at all. This is because your income is less than the personal tax allowance for savings.
If your income is less than the tax-free allowance then you can use a R85 form. If you want to save yourself by paying tax on your building society and bank interest by completing and submitting the R85 form.
The personal tax allowance for 2017/18 is £11,500. This means that you get up to £11,500 tax free on your income. Anything over this then you will have to start to pay 20% tax.

There are a variety of reasons why you can register to submit an R85 form:
• If you are supporting a saver who has reduced capacity of themselves
• If it is a child account when you are the parent or guardian of the child
• If you have Power of Attorney over an account
• Or if it through your account

The information that you will need to know on how to complete a R85 form. The first thing that you will need to do is calculate the total annual income amount that you earn. It’s not just your work income, it means if you get any rental income, annuities and interest from your investments and savings, taxable benefits and private and state pensions. This doesn’t include ISA’s.

You do not fill in the R85 forms if your total income figure is more than the current personal allowance. If your total income does fall below the personal allowance then you will need to fill in the R85 form for each account that you hold and submit them to your building society or bank.

What happens after sending of the R85 form
 Your financial institution may be able to get refunded to you if you have already paid a bit on tax on some of the interest in the current year
 You should receive gross interest payments in your building society and bank accounts

Give us a call or drop in your inquiries at www.certaxlondon.co.uk
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R85 Form

What a R85 form does is that it informs the building societies and the banks that the interest on your accounts shouldn’t be taxed at all. This is because your income is less than the personal tax allowance for savings.
If your income is less than the tax-free allowance then you can use a R85 form. If you want to save yourself by paying tax on your building society and bank interest by completing and submitting the R85 form.
The personal tax allowance for 2017/18 is £11,500. This means that you get up to £11,500 tax free on your income. Anything over this then you will have to start to pay 20% tax.

There are a variety of reasons why you can register to submit an R85 form:
• If you are supporting a saver who has reduced capacity of themselves
• If it is a child account when you are the parent or guardian of the child
• If you have Power of Attorney over an account
• Or if it through your account

The information that you will need to know on how to complete a R85 form. The first thing that you will need to do is calculate the total annual income amount that you earn. It’s not just your work income, it means if you get any rental income, annuities and interest from your investments and savings, taxable benefits and private and state pensions. This doesn’t include ISA’s.

You do not fill in the R85 forms if your total income figure is more than the current personal allowance. If your total income does fall below the personal allowance then you will need to fill in the R85 form for each account that you hold and submit them to your building society or bank.

What happens after sending of the R85 form
 Your financial institution may be able to get refunded to you if you have already paid a bit on tax on some of the interest in the current year
 You should receive gross interest payments in your building society and bank accounts

Give us a call or drop in your inquiries at www.certaxlondon.co.uk
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Additional Medicare Tax

If you didn’t know already, that you may be eligible for an Additional Medicare Tax if your income exceeds the limits that are in place. Any income that you get, this includes self-employment income, railroad retirements (RRTA) compensation and your normal wages, the Additional Medicare Tax is 0.9 percent of that income if it is more than the threshold amount. Depending on your status the threshold varies to you.

This table shows the threshold amount
Filing Status Threshold Amount
Qualifying widow(er) with dependent child £200,000
Head of household £200,000
Single £200,000
Married filing separately £125,000
Married filing jointly £250,000

To make sure you fall in the correct threshold, you will need to combine your self-employment and your normal wages. With self-employment, you do not consider a loss when you figure this tax. You will have to compare PRTA compensation separately to the threshold. Employers must withhold the Additional Medicare Tax from their wages or the compensation when paying more than the £200,000 threshold in the whole year, without regarding your threshold status, income that you may have from other sources or wages paid to you by another employer. Your employer does not combine the wages for married couples to determine whether to withhold Additional Medicare Tax.

Depending on your status and your other income, you may owe more tax than the amount withheld. If you do in that case, you should request additional income tax withholding using the Form W-4, Employees Withholding Allowance Certificate or make an estimated tax payments. If you haven’t paid enough estimated tax or if you had too little tax withheld, then you may owe an estimated tax penalty.

If you do owe tax then you will need to file a form (Form 8959) with your tax returns. With this you need to report any Additional Medicare Tax withheld by your employer on the Form 8959.

We are here to guide/support for any information required. Our watchword is commitment to your solutions, walk in to the office and one of our top team member shall be able to take any inquiries. You can also drop in your concerns at www.certaxlondon.co.uk
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Accounting Periods for Corporation Tax

Corporation tax is always charged using its own system of accounting periods. The tax accounting period starts as soon as the previous tax accounting period has just ended and when the company starts trading or acquires a source of income.

The tax accounting period ends as soon as at the company starts trading, at the end of an accounting period, the company is wound up or 12 months pass since the start of the period.

Your company tax return should cover your accounting period for the corporation tax. The accounting period for corporation tax can’t be longer than 12 months and is normally the same date and length of the financial year covered by your associations annual accounts or by your company. Your accounting period affects your deadline for paying Corporation Tax and sending a Company Tax Return.

Once you have registered your company for corporation tax then you should get a letter from HM Revenue and Customs’ (HMRC) giving you the dates of your accounting period. If you notice that the date may be wrong then you will have to let HMRC know straight away. You could check your dates for the accounting period for corporation tax online if you just log onto HM Revenue and Customs online services.

You will need to check what to do if your accounting period is different to your financial year:
• When you restart your business
• If you stop trading and become dormant
• In your first year of business

If your accounts cover over 12 months or more then you must file 2 returns because your accounting period can only cover a 12-month period.
If your accounts are covering less than the 12-month accounting period then you need to log in to HMRC’s online service and follow the step by step guides in to enter the new dates for your accounting period before you can prepare your company tax return.

You will need to enter the new dates for your accounting period before you file your return if you use the accounting software to file your company tax return.

Give us a call for any guidance or support and one of our top assistant shall be available to consult the concern in the best or you can also drop in your inquiries at www.certaxlondon.co.uk
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P46 Form

If an employee doesn’t have a P45 then they will be given a P46. You would usually fill the P46 form in if you start a new job or if your last P45 is unavailable. It is important that you fill in the P46 form as this will help you pay the correct amount of income tax. Your employer will need to use an emergency tax code against your salary if you fail to complete the form or if you don’t have one.

Do I need a P46 tax form?
Here are the most common reasons why you will need a P46 form
 You are starting your first ever job
 You are starting your second job if you haven’t left your current employment
 You can’t provide your new employer with your previous P45 form

If you have lost or if your P45 is unavailable, when you are getting employed with your new job, your employer would need to provide you with a P46 form for you to fill in. It will be passed on to the tax office once you have signed and completed the form for the employer.
On the P46 form you will need to state the information to whether you are on the job seekers or making student loan repayments. You would need to give all the details that they ask for e.g. about your tax code and some basic personal information.
The difference between a P45 and P46 is that when leaving your job, you will be sent a P45 about your employment which you have just left and with a P46 is when you don’t have a P45 so you would have to fill out at your new job.

Give us a call or drop in your inquiries at www.certaxlondon.co.uk
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What is a CIS month return

CIS stands for Construction Industry Scheme. What CIS does is the contractor deducts money from a subcontractor’s payments and then passes it on to HMRC, HM Revenue and Customs. The deductions count as an advance payment towards the subcontractor’s tax and National Insurance. If you are the contractor then you must register to the Construction Industry Scheme. The people who are subcontractors wouldn’t have to register but the deductions will still be taken away from their payments at the higher ate if they are not registered. To regulate the payments made, monthly returns have to be filed with HMRC under CIS. Full records have to be kept for a minimum period of time so that HMRC can check payments at any time.
Who counts as a contractor or subcontractor. Register as a contractor if either:
• Your business doesn’t do construction work but you spend an average of more than £1 million a year on construction in any 3-year period
• You pay subcontractors for construction work

Work covered by CIS:
• Civil engineering work like bridges and roads
• A permanent or temporary building or structure
For the purpose of CIS, construction includes:
 Building work
 Cleaning the inside of buildings after construction work
 Demolition and dismantling
 Installing systems for heating, lighting, power, water and ventilation
 Preparing the site, eg laying foundations and providing access works
 Alterations, repairs and decorating
Exceptions
 Making materials used in construction including plant and machinery
 Working on construction sites that’s clearly not construction, eg site facilities or running a canteen
 Architecture and surveying
 Delivering materials
 Carpet fitting
 Scaffolding hire, (with no labour)

If no payments have been made the contractor would still have to submit a CIS return to HMRC every month. On the CIS returns each deductions and payments for the last month will be submitted to HMRC. If the contactor is not making payments to the subcontractor up to a period of 6 month then they would have to let HMRC know so that their given status is inactive. The contractor will need to make a note of the date when the inactive period ends if no returns have been submitted.

Walk in our office and one of our top consultant shall assist in the best of your interest or you can also drop in your inquiries at www.certaxlondon.co.uk
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Sole Trader

A sole trader is known as a person who is the main owner of the business. They an entitled to keep all of the profits because it is their business after all of the tax has been paid. But with being the only one in charge the would be the ones who are responsible for the loses that the business could make.
Becoming a sole trader is one of the most popular option and that 3 quarters of all British business are sole traders. And if you want to become a sole trader then it is really easy to register as one. You will need to phone the HMRC helpline for the newly self-employed. You will be asked the normal questions like your full name, date of birth, your address, telephone number, national insurance number, business starting date, the business name and what type of business and whether you are a sole trader or working with a partner. You can also register online or completing the HMRC form.
You would need to make sure that you do register as self-employed or otherwise you would soon enough get a fine. You must register within 3 months of starting your business or otherwise your business could risk you a £100 fine. To stop that happening you should register straight away.
Being a sole trader can cause you some financial risks and the only one to be for blame is yourself. You should set yourself up a limited business as if you can’t control the company’s finances and get into debt then they can only take your assets of the business away from you, nothing else.
Its better being a sold trader as it is cheaper than being a limited company. It requires more administrative effort when it comes to tax whereas reregistering as a sold trader costs nothing.
If you think that being a sole trader means being on your own then you’re wrong. You can still employ people to work for you. If you do decide to employ people then you must collect National Insurance and Income tax from them to pay towards HMRC. If you do this then you will need to start up payroll.
As all businesses should do is that you would need to keep detailed financial records of your sales and expenses. You should keep all receipts and invoices/bills. This will help you to fill in you tax returns.

Please drop in your inquiries at www.certaxlondon.co.uk
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Tax Refund

If you are owed for a tax return then to claim it, you would have to do it online if your P800 tax calculations letter says you can get it that way.
You might be able to get a tax refund if you have paid too much tax on any pension payments, if you have stopped working, if you have bought a life annuity, if you are employed and had too much tax taken from your pay or if you have sent a tax return and paid too much tax. You can also reclaim tax if you have been paid on saving interest if you are on a low income, if you live in one country and have income in another or if you have used your own money for your job (this includes work clothing or fuel to get to work.

Pension

If you have a private pension then your provider may pay you back automatically if you have paid too much tax on your pension. If your provider for the pension does not pay you back automatically then HM Revenue and Customs will post you a P800 tax calculation and this is normally sent by the end of September. If your P800 says that you will get a cheque from HMRC then you will have to wait within 14 days to receive it. And if you are owed tax from more than 1 year then you will get one single cheque with the while amount. If your P800 says that you can get refunded online then you should claim it that way.

Stopped Work

If you get any of the following then you will not get the tax refund straight away:
 Carer’s Allowance
 Jobseeker’s Allowance
 Incapacity Benefit, only if you have been getting it for more than 28 weeks
 Employment and Support Allowance
Give the Jobcentre plus parts 2 and 3 of your p45. If you have overpaid tax, you may get a refund either when you start a new job or at the end of the tax year.
If you having been working for less than 4 weeks and you are due a refund then you will get one through your wages from your new jobs so you can’t claim for the refund it will be given to you.


Bought a Life Annuity

A life annuity is something that you have bought and you can claim for a refund if you have overpaid tax on the income. A life annuity is a guaranteed income for life. You would usually pay some tax automatically on life payments at a rate of 20%. But if you don’t need to pay income Tax because you don’t earn more than your personal allowance then you can reclaim the tax our have overpaid and ask to get tax-free income from your life annuity.

Please drop in your inquiries at www.certaxlondon.co.uk and one of our top consultants shall respond promptly.
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Tax on savings interest

With your savings, you can always earn interest. Depending on how much there is in your account, the higher the amount the more interest you can get on it. And some saving you may be taxed on it but most people don’t get taxed. Your allowance for earning tax free interest are from the following:
 Starting rate for saving – depending on your other income
 Personal Saving Allowance – depending on your Income tax band
 Personal Allowance

Starting rate for savings
Any money that you save up to £5,000 then that is within the 0% tax rate band. This is your starting rate for savings. The more you earn from other income such as your pension or your normal wages then the less your starting rate for your saving will be. If any of your other income is over £16,500 then you are not eligible for the starting rate for savings. If any of your other income is £16,500 or less than your starting rate for saving is £5,000 maximum. If you start going over your Personal Allowance reduces your starting rate for savings by £1.

Personal Saving Allowance
depending on which Income tax rate you all in then you could get up to £1,000 interests tax free.
Income Tax band Tax-free Savings income
Basic rate £1,000
Higher rate £500
Additional rate £0

Personal Allowance
you can earn interest tax free with your personal allowance if you haven’t used it all on your pension, wages or other income.

If you go over your allowances then you will have to pay any tax on the interest at your usual rate of income. HMRC will change your tax code and you will pay your tax automatically if you are employed or have a pension.
Savings covered by your allowance
Your allowance applies to interest from:
 Unit trusts, investment trusts and open-ended investment companies
 Bank and building society accounts
 Peer-to-peer lending
 Savings and credit union accounts
Your allowance also applies to interest from:
 Life annuity payments
 Some life insurance contracts
 Government or company bonds
Savings already in tax free accounts like National Savings and Investment accounts and some Individual Savings Accounts don’t count towards your allowance.

Drop us your inquiries at www.certaxlondon.co.uk

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