Interesting use of Limited Company
I am confused, if the invoices are not paid by partnership to company then:- how does the company pays for its corporation tax liability? ...
P800 T issued when client under self-assessment
Oh yes got sveral of those last year. The worse thing was they were incorrect and some showed a refund when none was due.
This arises because the self-assessment IT system and the PAYE IT system are not set up so if a taxpayer register for SA the PAYE system is not automatically updated with this information. I have been told that this has to be done manually!!!!
quite often this comes to light when I call HMRC to amend a client's tax code and I quote the UTR rather than NI number. Apparently the two systems run in parrallel but do not meet unless told to do so.
An area which could be be improved and save costs.....
why can't they address and correct problems instead of coming up with "dumb ideas" like closing tax enquiry offices?
splitting up limited company
You may wish to look up guidance on HMRC's website. See Corporation Tax Manual. Link below:
CTM17250 - Distributions: demergers: introduction
If there are genuine commercial reasons this can be done quite easily. Recommend applying for clearance of the proposes transactions by making an application to HMRC.
VAn and Fuel rates
You can't pay an employee the approved mileage allowance (45p per mile) for using his employer's Van.
If the employee pays for the fuel himself and does not have a Benefit in kind as there is no private usage of vehicle apart from commuting, then he should obtain a VAT receipt when he fills up and obtain a refund from his employer by completing a normal expense claim form.
If the VAN belongs to the employee and he uses it for business travel then yes he can get 45p per business miles (up to 10,000 miles) and 25p per additional business miles from his employer. Again he needs to complete an expense claim form.
ESC A 19 & Self Assessment
Just don't give up. It has always astonished me that HMRC can claim that P14 are not information when they use the information on P14 toraise the P800T in the first place....
ESC A19 & Self-assessment
I have a case which has been dragging on since June last year re underpayment arising in 2008-09 & 2009-10 as a result of HMRC not using information disclosed on a P46 Car form submitted on time (In Dec 2008) by employer notifying a change of car to HMRC.. For the next three years they made a right mess of the tax codes and continued right up to 2011-12.
They have issuded P800T for earlier years and requested SA returns for 2010-11 & 2011-12. Client not represented at the time. Dealtw with TR 11 & 12 himself. They lost them!! He had to resend them 3 times before they processed them in July 2012. He found that he had underpaid tax in 2011 and overpaid tax in 2012. He asked for 2012 refund to be set off against 2011 and paid the balance in July 2012.They set off the refund but treated this as done on 31 January 2013????? and charged him late payments penalties/surcharges and interest as they said he had not paid within due dates??? We got involved and got those cancelled. The cheeky devils.They'll try anything...
To get back to ESC A19 application for earlier years this has been rejected twice, a review application has been rejected twice and a complaint has been rejected twice. But never mind we are now going to the adjudicator... We/I am not giving up.. Especially when HMRC agreed they messed up..
Their argument to refuse ESC A19 are :
"Mr xxxx could not possibly have believed that his tax records were correct because the tax that he owes was large enough for him to notice”. Our reply : Until the underpayment has been quantified (which was three years after end of 2008-09) how was taxpayer to know whether there was an underpayment and whether it was large enough to be noticeable??? Plus ESC A 19 does not specify an upper limit after which he does not apply.
“The code issued was 233L and your client would have a tax refund when this tax code would have been operated.” There could have been a number of reason a refund could be due, following the change of car. ...
Their arguments continue along the same line.. with more implied comments such as we know we messed up but we are still going to blame the taxpayer for our mistakes... and we are the government so we can do what we want.."
Lets hope the adjudicator is a fair and just person..
I could not have put I better myself. I would extend the kickiing out of hte country to all the politicians and so call public servants who are on the take in one form or another...
I don't feel very charitable towards any of them at present when I hear all the drivel they come up with in interviews and new laws just to get votes..
ESC A19 saga continues...
wel this is the second rejection I have had for the current case:-
1. They admit they got it wron and did not use the info on P46 cars and P11D
2. they are still saying that as they miss the fuel benefit and BIK re car replaced during the year the taxpayer should have known is Tax code was wrong as he went from a K code to .. L code.
3. He should have noticed and contacting them to tell them there was a problem
To cap it all they are saying that as ESC A19 does not apply they can go back 4 years.
I am really really gettinig fed up with their arogance and complete lack to respect for the tax payers and they dare to call them customers.. I would not dream of treating customers in that fashion.. I'd get my P45 pretty quick if I did..
I am now going for the complaint route...
What about the impact of the loss of child benefit on the mother's entitlement to pension credits for children under 12 years old she looks after?
What protection does your Child Benefit give you?
Your State Pension is based on the number of 'qualifying years' you build up during your working life. A qualifying year is one when you earn enough to pay National Insurance contributions. So if you're not working, or not earning enough to pay National Insurance contributions, your pension could suffer.
For each week that you get Child Benefit you could qualify for:
weekly National Insurance credits to protect your future entitlement to basic State Pensionweekly Earnings Factor credits to protect your future entitlement to the State Second Pension.
You can combine the weekly credits with National Insurance contributions and credits in order to build up a year of entitlement to the basic State Pension.
Your credits and contributions have to be made in the same tax year for you to combine them in this way.
Has anyone have thought about this??
What if they are not parents of child are not married but living together?
How will HMRC know about their income?
I suspect that they are going to launch an application form to for families to complete in order to establish who can claim CB>
What about changes in personal circumstances? Redundancy, Pay rises (we hope) or divorce or separation or even death in year? Will CB be recalcualted?
Is this going to follow the tax credts line and people will need to notify of changes or will they be ignored in the year the change takes place?
How will they recover overpayments?
So many questions, so few answers?
Whoever came up with this stupid policy should be handed his/her P45?
How come those who earn £100,000 or more only loose £1 of their personal allowance for every £2 exceeding the threshold and if they pay enough pension contributions or gift aid they can keep it all.
But the family with only one earner who happens to earn £1 more than the higher rate treshold loose all of the child benefit for that year. This does not make sense.
Lets contact all the employers and offer to renegociate their employees remuneration. How about offering tax free benefits? Increase in Pension contributions paid by employer for salary sacrifice to keep those who are border line below th Higher Rate Threshold..
As Tax adviser I intend to do all I can to advise our clients to ensure that they hang on to their Child Benefit without braking the rules of course.. but again what is going to happen to those who do not have repesentatio???