Income Tax Archives - Page 2 of 3

Jun 17 2022

Preparing For MTD For Income Tax

By admin HMRC, Income Tax, Making Tax Digital (MTD), Potts & Co Accountancy & Business Advice News, Property, VAT

The Making Tax Digital (MTD) rules currently only apply to businesses that submit VAT returns. Those traders need to keep their VAT records in a digital format and transmit their VAT return data directly from their digital records to HMRC using MTD-compatible software. From 6 April 2024 similar MTD rules…

Jun 13 2022

Reporting Employee Expenses

By admin Company Cars, Expenses, HMRC, Income Tax, P11D, Potts & Co Accountancy & Business Advice News

It is time to report the expenses and benefits provided to employees during the year to 5 April 2022. This reporting process is known as the P11D after the number of the relevant HMRC form although these days the report is normally a function within payroll software. HMRC has been…

Dec 18 2021

Paying Tax To Right Account

By admin Corporation Tax, HMRC, Income Tax, PAYE, Potts & Co Accountancy & Business Advice News, VAT

Your business probably pays several different taxes to HMRC: corporation tax or income tax; VAT; and PAYE all at different intervals. If the tax payment is not correctly accounted for by HMRC and set against the right tax account for your business an erroneous tax debt may arise. HMRC receives…

Nov 21 2021

Increases In Income Tax

By admin Budget Update, Dividends, HMRC, Income Tax, National Insurance, Potts & Co Accountancy & Business Advice News

The tax payable on dividends is set to rise from 7.5% to 8.75% for basic rate taxpayers from 6.4.22. Higher rate taxpayers will pay 33.75% on dividends and additional rate taxpayers must budget for dividend tax of 39.35%. These rates will apply to all dividends taken from all companies where…

Sep 07 2021

Check Your Tax Calculation

By admin Dividends, HMRC, Income Tax, P800, PAYE, Personal Tax, Potts & Co Accountancy & Business Advice News

Individuals who are taxed under PAYE and who do not complete an annual tax return may receive a tax calculation (on form P800) from HMRC covering the previous tax year. If you have received such a tax calculation, please check it carefully and send a copy to us to check…

Mar 19 2021

Frozen Bands & Allowances

By admin Budget Update, Capital Gains Tax, HMRC, Income Tax, National Insurance, Personal Tax, Potts & Co Accountancy & Business Advice News

Income tax and national insurance contribution rates have been frozen for 2021-22 and are likely to remain frozen until the end of this Parliament in 2024. By freezing the personal allowances and tax bands at their 2021-22 levels the Chancellor is causing the value of those allowances and bands to…

Dec 14 2020

Deferring Tax Due in 2021

By admin Capital Gains Tax, Covid-19, Income Tax, Personal Tax, Potts & Co Accountancy & Business Advice News

Many people will face some very big tax bills in January 2021 as the balance of income tax due for 2019 -20 on profits earned before the pandemic is due for payment. The income tax payable by 31 July 2020 was automatically deferred to 31 January 2021, which makes the…

Dec 13 2020

Nudging to Correct the Tax Return

By admin HMRC, Income Tax, Making Tax Digital (MTD), Potts & Co Accountancy & Business Advice News, Self Assessment

HMRC uses data from many sources such as banks, land registries, and Companies House to cross-check information reported on self assessment tax returns. If HMRC's computer finds a mismatch between the third party data and your 2018-19 tax return you may receive a letter asking you to review your return.…

Dec 10 2020

Report and Pay CGT in 30 Days

By admin Capital Gains Tax, HMRC, Income Tax, Personal Tax, Potts & Co Accountancy & Business Advice News

Capital gains tax (CGT ) is normally payable by 31 January following the tax year in which you sold the asset. This can give you up to an extra 22 months to hold on to the full proceeds. Sadly, the tax rules changed from 6 April 2020 and you must…

Jun 21 2020

CIS Repayments

By admin Construction Industry Scheme (CIS), Covid-19, HMRC, Income Tax, Potts & Co Accountancy & Business Advice News, VAT

Subcontractors registered in the construction industry scheme (CIS) will normally have tax deducted from their invoices by the companies they work for. At the end of the tax year that CIS tax needs to be tallied up and set against the subcontractor's own tax liability. In most years once business…

Income Tax