TMC - Accountants and Business Advisers

Check your PAYE code!

We have had several clients who have received incorrect PAYE coding notices since their tax returns were submitted.

Some are simply incorrect because HMRC assumed that one-off sources of income would be continuing in future years and these are easily corrected.

However, of more concern is that some clients have had adjustments to codes to collect tax that they have already paid or are scheduled to pay under the self-assessment rules (half-yearly instalments in January and July), so if this hadn’t been spotted those clients would have paid their tax twice. We have not seen this type of error in previous years and it may be due to HMRC computers not picking up the right information.

Please check any notices of coding you receive and if you are in any way unsure, let us know.

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| 8th February 2014, 10:12:00 | Posted by Kevin Gamble

HMRC target 'health and wellbeing' professionals

HMRC are starting a campaign to get health and wellbeing professionals to vountarily disclose and undeclared income, in return for reduced penalties.

A similar campaign, 3 years ago, targeted doctors and dentists. HMRC have now set their sights on chripractors, physiotherapists, alternative medicine practitioners etc. If you receive one of these letters it infers that you have been underdeclaring income and that HMRC know about it. This is not the case – it is a generic letter. If HMRC had specific information, they would be raising an enquiry into your tax return.

If you are confidant that all your income has been correctly decalred you may safely ignore the letter.

More information can be found at www.gov.uk/voluntary-disclosure-health-wellbeing

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| 16th December 2013, 12:39:57 | Posted by Kevin Gamble

Brian Watkins Kilimanjaro challenge

We love to share good news stories and this is one of the best. Brian Watkins has been a client of TMC for nearly 15 years and we all think he’s a great bloke. However, this week, our opinion of him has risen far higher.

Brian has announced that he is going to climb Mount Kilimanjaro in the New Year to raise funds for the Multiple Sclerosis Society, a cause very close to his heart as his father suffered from the disease.

Whilst this would be a challenge to most of us, it is even more so to Brian, as a few months ago, just before his 60th birthday, he was diagnosed with prostate cancer. Thankfully its not the most aggresive type but still a shock to the system.

Brian estimates that the 20,000ft ascent will take 5 days, during which time he will be on his feet for 44 hours trekking for around 50 miles from base camp. The descent will then be a further 2 days walk.

He is now in training climbing Yorkshire’s highest peaks. Today he has just completed Pen-Y-Ghent – see the photo attached. Many of you, like me, will have done this hike and thought it a fairly tough day out. Kilimanjaro is over eight times as high, and the air will be very thin near the top. Puts the Dales in ...

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| 16th November 2013, 19:38:09 | Posted by Kevin Gamble

Don't be a twit with your tweets

Isn’t social networking wonderful? In seconds, you can tell your friends about your latest holiday, the new car, and how the kids are doing at school.

For the more business minded, you might post a blog on your website saying what a successful year you have had and, maybe, mentioning some great new clients.

But what if its not just your friends or business contacts who see this? It is believed that HMRC are now using online sources to find information about taxpayers.

Tweeting about the fabulous cruise, or how well little Johnny is doing at private school might not go down well with HMRC if you are trying to persuade them to give you time to pay your tax bill. And how about that great new contract you’ve blogged about on your website to tell the world how well you company is doing? Will HMRC believe your claim that you made losses?

Family members need to watch what they say as well. The innocent tweet that ‘dad is working away for a few weeks’ might not tie in with you telling HMRC you were unemployed!

Here at TMC, before we prepare a set of accounts we look at our clients websites to check that the information online matches what is presented to us in the accounting ...

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| 6th November 2013, 20:49:39 | Posted by Kevin Gamble

Business mileage and fuel allowances - more changes

HMRC have recently carried our their quarterly review of fuel prices, and from 1 September 2013 the revised rates you can claim if you are paying for fuel and using your vehicle for business purposes are:

Petrol engines:
Under 1400cc 15p per mile
1401 to 2000cc 18p per mile
over 2000cc 26p per mile

Diesel engines:
Under 1600cc 12p per mile
1601 to 2000cc 15p per mile
Over 2000cc 18p per mile

Also, remember that by special dispensation, HMRC allow a VAT registered business to claim VAT on the fuel allowances provided that you have retained sufficient fuel invoices to justify the claims.

We find that mileage and fuel allowances are the most misunderstood by employees and self-employed alike.

The mileage allowances for using your own vehicle on business are fixed at 45p for the first 10,000 business miles in a tax year, then 25p per mile for business miles over 10,000. Let us reiterate – this is only for business miles, and it is per tax year to 5 April, not your accounting year end. Also, you must keep a detailed log to prove the mileage claimed. The 45p and 25p rates include the fuel, and are not additional to it. (You can still claim back the VAT element of the fuel...

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| 28th September 2013, 12:34:54 | Posted by Kevin Gamble

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