Thursday April 22, 2010

Dear Reader

What can we expect in the new tax year?

The sun is shining, flowers and trees are in bloom and planes are back in the sky. My sympathies with anyone affected by the travel disruption, we've had clients stuck far and wide and others unable to get away. Linda's daughter was stranded in Italy.

So we've started a new tax year, what can we expect? Firstly, personal allowances didn't rise - your tax free pay this year is the same as last. The new 50% tax band has kicked in with restrictions on personal allowances and pension tax relief for higher earners.

VAT returns for businesses with turnover in excess of £100K or new registered business must be filed online.

HMRC has introduced new penalties for late payment of PAYE & National Insurance and increased interest rates on these penalties. We expect further moves in this area due to the reduced revenues received from taxation through the recession.

In an age of progress, it's worth reflecting that you can no longer file an employer payroll return using magnetic media.....comforting.

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Did you set up a company in 2009-10?

A number of new start-ups began life during the 2009-10 ax year with their founders coming out of employment to commence the business. If this is you and you operate a limited company, then you need to be considering your tax free annual allowance and contributions towards the basic state pension through the implementation of payroll. Give me a call on 01865 821100 to learn more or click here for some additional background.

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Do you need to complete a tax return?

With the new tax year starting, thoughts turn to preparation of tax returns for 2009-10. Who needs to complete one? Here's a general guide:

- self employed busness owners

- a company director (irrespective of whether you earn any money from the business)

- if your annual income exceeds £100,000 per annum

- income from savings and investments in excess of £10,000 (this includes dividends)

- income from property in excess of £2500 (after allowable expenses)

If one of these applies to you, then you need to prepare a return. You can register by completing the form on our resouces page, click here.

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