Main changes for the new tax year include:-
Corporation tax main rate 26 %
Small profits rate 20%
Mileage rate for business miles 45p per mile for first 10,000
25p per mile for remaining miles in the tax year
Capital Gains Tax Annual Exemption £10,600
Entrepreneurs Relief Lifetime limit £10m
ISA allowance £10,680 (cash £5,340)
Personal Pension Tax Relief limited to £50,000 per annum gross contributions. (Conditions apply)
Sheffield named an Enterprise Zone - watch this space for more details
These are just a few of the many changes announced both in the budget and by other means.
Contact us for more details.
HMRC have announced a new tougher penalty regime for taxpayers who submit their self assessment tax returns after the normal deadline date.They will be charged £100 for late submission even if they are due to a refund of tax and the return is only one day late with further penalties of £10 per day for the first 90 days late - a possible £900 for a three month delay.
The longer the delay in submitting the return, the higher the penalty with a delay of twelve months resulting in a penalty of £1,600,alongside interest and surcharges on any tax paid late. Delays will be expensive from now on.
H M Revenue and Customs (HMRC) have announced that with efffect from 6 April 2012, all businesses,regardless of their turnover,will be required to submit their VAT returns online and make all payments of VAT electronically. Failure to do so will result in a penalty charge of between £100 and £400 per paper form dependent on the turnover of the business.
It is therefore extremely important that any business who has not yet signed up to complete VAT returns and pay their VAT online,do so without delay. Business already required to use the online system, will in future be penalised for failing to do so,with immediate effect.
The National Minimum Wage will be increased with effect from 1 October 2011 the following rates will apply :-
Workers aged 21 and over £6.08 per hour
Workers aged 18-20 £4.98 per hour
Workers aged 16-17 £3.68 per hour
There will now be a new savings vehicle for children with the introduction of the Junior ISA for children born before
1 September 2002 and after 3 January 2011. Children who already have a Child Trust Fund will not be eligible. More details will be announced but interested parents or families should contact a savings provider or financial adviser for options.Interest on such investments will be tax free.This new product could help in Inheritance Tax planning with grandparents being able to provide a nest egg for children.
The deadline for submitting a paper tax return was 31 October 2011. After that date tax returns may only be submitted online. Failure to do so will result in a penalty charge. The deadline for submitting an online tax return remains
31 January 2012, with penalties for late submission even if there is no tax to pay.
Compulsory pension schemes are just around the corner for some employers.In the next three years businesses involved will be contacted by The Pensions Regulator and obliged to set up a pension scheme. This is one obligation that cannot be ignored and will be costly, since employers will be required to contribute to the scheme for most employees.Employers need to look closely at the options available.
The level of income at which student loan repayments must commence will rise from £15,000 per annum to £15,795 per annum with effect from the beginning of the new tax year. This threshold will now be increased annually in line with the annual increase in the RPI. It is however calculated pro rata on a weekly or monthly basis in line with salary payments. The amount repayable each week or month will remain at 9% of income above the pro rated threshold.