Monthly Archives for November, 2011

Key Dates…

November 23, 2011
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Key dates in the financial calendar..
  • 19 December 2011
  • PAYE and NIC due for the month ended 5th January 2012.
  • CIS return must be submitted for the month ended 5th January 2012
  • 19 January 2012
  • PAYE and NIC due for the month ended 5th February 2012.
  • CIS return must be submitted for the month ended 5th February 2012
  • 31 January 2012
  • 2011 Self Assessment Tax Returns due to be submitted.
  • Balancing payment of 2011 Tax Return due together with the 1st Payment on Account for the 2012 tax liability.


Electronic payment of PAYE & NIC extends the due date to the 22nd of the month.


HMRC targeting restaurants for investigation

November 23, 2011
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This is the next major sector that HMRC have stated they are going to target for tax enquiries.

Areas they are likely to examine include:-

§ Recording of cash sales and purchases

§ Gross profit rate – fluctuations from previous years

§ Tips – how are they recorded; allocated amongst staff; and are they being taxed

§ Chefs – are they being treated correctly as employees, rather than self-employed

§ Electricity and gas costs – of these are significantly increasing HMRC would expect to see a corresponding increase in takings

§ Costs incurred on a packaging, cartons, containers etc – again a large increase in these costs would normally be associated with a large increase in sales

PAYE Penalty Regime

November 23, 2011
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HMRC are now starting to issue the first penalties under the new regime which was introduced for tax year 2010/11.<br/><br/>If you have monthly PAYE and NIC liabilities these must be paid by the 19th of each month or the 22nd if paid electronically.

If only one PAYE amount is paid late in a particular tax year then no penalty will be charged. However, after that, penalties start to be charged automatically as follows:

  • If payments are late between two and four times in a tax year, the penalty charge is 1%
  • If payments are late between five and seven times in a tax year, the penalty charge is 2%
  • If payments are late between eight and ten times in a tax year, the penalty charge is 3%
  • If payments are late eleven or more times in a tax year, the penalty charge is 4%


We would encourage everyone to make the payments online if possible as it means that the payments can be traced and cannot be disputed by HMRC

Capital Allowances/ Annual Investment Allowance

November 23, 2011
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The Annual Investment Allowance (AIA) which had previously been £100,000 is reducing to £25,000 per annum from 1st April 2012.Therefore, it is tax efficient to ensure, if possible, that any major items of plant and machinery which you are planning to buy are bought prior to 31st March 2012. This applies to all businesses regardless of when your accounting year ends.