News
50% TAX IMPLICATIONS:
As of the 6th April 2010 the new 50% tax rate came into force, which applies to all income over £150,000. A less publicised change to the tax regime however, is that your personal allowance will reduce if your personal income is greater than £100,000 - and will reduce by £1 for every £2 of income above the limt, so that once you earn over £113,000 you have no personal allowance, pushing a proportion of your tax bill above a whopping 60%.
If you are currently earning this level of income, we would highly recommend reviewing your current tax and remuneration planning to see if it might be possible to mitigate your exposure to the new legislation.
If you would like to know more, call Andy Franklin on 020 8871 3047.
REVENUE FINES INCREASE:
Over the last few years, the Inland Revenue has become even more agressive in terms of using punitive fines and penalties on both late payments of tax, and also late filing of returns. Fines on late filing and payment of VAT can be as much as 15% of the liability, and unless there is an extremely compelling reason to mitigate this, once levied they rarely rescind them. From 6th April 2010 this now also applies to PAYE/NI returns, making it even more important to file and pay your monthly PAYE paying in slips on time.
For more details from the revenue website, click here
IXBRL FILING NOW MANDATORY:
The Revenue's push into online filing has entered it's next phase as of 1st April 2011. From this date all corporation tax returns and accounts will now have to be filed in their proprietary format, complete with tagging. Many firms believe this may increase the time taken to produce accounts, and therefore hit businesses with increased fees.
Companies house postponed their own move to mandatory online filing for another year however, after failing to finalise the formatting on abbreviated accounts, although this is expected to change in the next few years at the latest.
