Our office will close on December 23rd 2016 and will re-open on January 3rd 2017. We wish all our clients a very Merry Christmas and a Happy New Year.
A full time vacancy in our practice has occurred for a trainee accountant. No experience is necessary but an enthusiasm for learning and an interest in finance is essential.
We are a general practice, and as such, the role will allow the successful applicant to gain experience in all areas of accountancy, taxation, audit and an insight into businesses from a full range of sectors. A full study package will be provided.
Please send your CV to John Pache. We look forward to hearing from you.
From broken kitchen appliances, hungry pets and arguments that last five years – some people will stop at nothing to pass the blame for their tardy timekeeping.
1. My tax papers were left in the shed and the rat ate them
2. I’m not a paperwork-orientated person – I always relied on my sister to complete my returns but we have now fallen out
3. My accountant has been ill
4. My dog ate my tax return
5. I will be abroad on deadline day with no internet access so will be unable to file
6. My laptop broke, so did my washing machine
7. My niece had moved in – she made the house so untidy I could not find my log-in details to complete my return online
8. My husband ran over my laptop
9. I had an argument with my wife and went to Italy for 5 years
10. I had a cold which took a long time to go
The excuses were all used in unsuccessful appeals against HMRC penalties for late returns.
While HMRC will not accept spurious excuses when the vast majority hit the deadline and pay up what they owe, we recognise that a number of taxpayers may have difficulties completing their tax return on time. For instance, those affected by flooding at their premises, or their agents’ premises, will not be asked to pay a penalty if their return is submitted without unreasonable delay. The department has also opened a Tax Helpline to give practical help and advice to people affected by severe weather and flooding – 0800 904 7900.
Ruth Owen, HMRC Director General of Personal Tax, said:
“Untidy family members and hungry pets are very unlikely to be accepted as a legitimate excuse for completing your tax return late.
“We understand that life can be unpredictable and for those customers who have a genuine excuse for missing the 31 January deadline, such as the flooding, help is at hand. My advice would be to contact us through our helplines or online, as soon as possible. But for those who are trying to play the system, while the rest of us do the right thing, the message is clear: submit your tax return online by 31 January or face a fine. We’re here to help people in genuine distress, but not to act as a free lender to people who can’t meet their responsibilities to pay their tax.”
The deadline for sending 2014-15 tax returns to HMRC, and paying any tax owed, is 31 January 2016.
With just a week to go until the Self Assessment deadline, HM Revenue and Customs (HMRC) has revealed the top five most outrageous personal expenses claims included in 2013-14 Self Assessment tax returns.
The spurious expenses range from furnishing a new flat to the meagre cost of storing Mars Bars overnight in a fridge. Here’s the full list of bizarre expenses that some taxpayers have tried, and failed, to claim for:
1. The costs for storing Mars Bars overnight in a fridge
2. The cost of a pair of flip flops so I don’t have to walk barefoot between my work’s changing and shower rooms
3. The costs for my intimate waxing
4. I bought a second hand car to get me from home to work so I didn’t have to walk
5. I purchased my own flat, so I need to claim back the money I spent on the furniture.
There is now only one week left to submit your online tax return, and pay what you owe, to HMRC to avoid a £100 late return penalty.
Ruth Owen, HMRC Director General of Personal Tax, said: “There are a number of items and expenses that people can claim against, such as genuine business costs and items needed to do a job. But a painful beauty regime or the furniture for your own home are not items that every taxpayer in the country should be contributing towards.
“It’s wrong that a small minority of people expect the honest majority to subsidise their lifestyle and HMRC will never allow for these to be processed as genuine claims. With one week to go until the 31 January deadline it’s best to complete your tax return sooner rather than later. Our online service is quick and simple to use, with lots of helpful information – completing your tax return is easier than you think.”
We’re looking for:
A part time personal tax assistant
A part time vacancy has arisen in our personal tax department to work alongside our existing tax staff. A knowledge of all aspects of personal taxation, mainly to include the preparation of self assessment tax returns is preferred.
Trainee junior accountant
A full time vacancy in our practice has occurred for a trainee accountant. No experience is necessary but an enthusiasm for learning and an interest in finance is essential. A full study package will be provided.
Please send your CV to John Pache. We look forward to hearing from you.
New figures show callers have had to wait more than FIVE times longer to get through to HMRC tax helplines this year.
Figures show that in March 2014 the average waiting time for a call to HMRC was under three minutes but by March 2015 this had increased to almost 15 minutes.
And at peak periods – like the run up to the end of the tax year – ten of thousands of people – almost one in four – gave up before getting the help they needed.
HMRC introduced a new phone system last year which meant it took staff longer to handle calls which led to fewer customer enquiries being answered each day. They also struggled to cope with letters because staff prioritised the backlog of phone calls.
When you are busy the last thing you want to do is to sit waiting for someone at HMRC to answer the phone – and you can avoid getting into call centre hell by using an accountants like Barter Durgan.
“Most of the time we can answer client’s questions without having to contact HMRC via the telephone,” says Barter Durgan’s John Pache. “However, if we do, we have our own dedicated agent lines with HMRC, so when we contact HMRC on your behalf we speak to the right people straight away.”
Thanks to their enviable reputation for efficiency and expertise Barter Durgan work with hundreds of businesses, organisations and individuals in Portsmouth, Southsea and across Hampshire. Contact Barter Durgan today by phone on: 02392 738311 or email John Pache pachej@barterdurgan.co.uk
If you submitted a self-assessment form in January, your second payment instalment is due on or before 31st July.
Filing your return means you’ll know how much you’ll need to pay, making it easier for you to plan ahead and put money aside.
Take a look at the following YouTube videos to find out about key dates regarding Self Assessment and details of how charges are calculated. Each is only a couple of minutes long.
Self Assessment: Tax return deadline dates (HMRC YouTube)
Self Assessment: Payment deadline dates (HMRC YouTube)
Self Assessment: Tax return late submission penalties (HMRC YouTube)
Self Assessment: Missed payment charges (HMRC YouTube)
Barter Durgan can help with all your tax and business support needs. Talk to us today.
Payments to tax informants have leaped by 50pc over the past year, figures obtained under a freedom of information request show, according to the Daily Telegraph.
In 2014/15 a record £600,000 was paid to people who had reported suspected tax dodges by calling HM Revenue & Customs’ (HMRC) confidential telephone hotline, with around 100,000 calls made.
A spokesman for HMRC said: “The majority of people who provide information to us do so without any expectation of a financial reward. Cash rewards are discretionary and based on what is brought in as a direct result of the information provided.
“We receive information from a wide variety of sources and it is always used to make sure everyone pays what they should.”
“It makes sense to get your tax return correct by using a qualified advisor for your own peace of mind, ”says Barter Durgan John Pache
The Chancellor George Osborne has today presented his Summer Budget to Parliament – here’s a summary of what was announced
1. Introducing a new National Living Wage of over £9 an hour by 2020
From April 2016, a new National Living Wage of £7.20 an hour for the over 25s will be introduced. This will rise to over £9 an hour by 2020.
2. The government will run a surplus in 2019-20
The deficit will be reduced by around 1% of GDP (the value of the economy as a whole) on average in each year, which is the same pace as over the last 5 years. This means a surplus (where more tax is raised than is spent) will be achieved in 2019-20, and debt will fall in every year. Included in this is:
- £12 billion by 2019-20 through welfare reforms
- £5 billion by 2019-20 from measures to tackle tax avoidance, planning, evasion, compliance, and imbalances in the tax system
Plans for the remaining savings will be set out in the autumn following the spending review.
3. The tax-free Personal Allowance will be increased from £10,600 in 2015-16 to £11,000 in April 2016
The tax-free Personal Allowance – the amount people earn before they have to start paying Income Tax – will increase to £11,000 in 2016-17.
Increases to the Personal Allowance since 2010, when it was £6,475, mean that a typical taxpayer will be £905 a year better off in 2016-17.
The government has an ambition to increase the Personal Allowance to £12,500 by 2020, and a law will be introduced so that once it reaches this level, people working 30 hours a week on the National Minimum Wage won’t pay Income Tax at all.
4. Protecting defence spending
The Ministry of Defence’s budget will rise by 0.5% (above inflation) each year to 2020-21. Up to an additional £1.5 billion a year will also be available by 2020-21 to fund increased spending on the military and intelligence agencies.
The government will meet the NATO pledge to spend 2% of national income on defence every year of this decade.
5. Reforming the welfare system to make it more affordable
The welfare system will be reformed to make it fairer for taxpayers who pay for it, while continuing to support the most vulnerable. Changes include:
- working-age benefits, including tax credits and Local Housing Allowance, will be frozen for 4 years from 2016-17 (this doesn’t include Maternity Allowance, maternity pay, paternity pay and sick pay)
- the household benefit cap will be reduced to £20,000 (£23,000 in London)
- support through Child Tax Credit will be limited to 2 children for children born from April 2017
- those aged 18 to 21 who are on Universal Credit will have to apply for an apprenticeship or traineeship, gain work-based skills, or go on a work placement 6 months after the start of their claim
- rents for social housing will be reduced by 1% a year for 4 years, and tenants on higher incomes (over £40,000 in London and over £30,000 outside London) will be required to pay market rate, or near market rate, rents
6. Reforming dividend tax
The dividend tax credit (which reduces the amount of tax paid on income from shares) will be replaced by a new £5,000 tax-free dividend allowance for all taxpayers from April 2016. Tax rates on dividend income will be increased.
This simpler system will mean that only those with significant dividend income will pay more tax. Investors with modest income from shares will see either a tax cut or no change in the amount of tax they owe.
7. Taking the family home out of Inheritance Tax
Currently, Inheritance Tax is charged at 40% on estates over the tax-free allowance of £325,000 per person. Married couples and civil partners can pass any unused allowance on to one another.
From April 2017, each individual will be offered a family home allowance so they can pass their home on to their children or grandchildren tax-free after their death. This will be phased in from 2017-18.
The family home allowance will be added to the existing £325,000 Inheritance Tax threshold, meaning the total tax-free allowance for a surviving spouse or civil partner will be up to £1 million in 2020-21.
The allowance will be gradually withdrawn for estates worth more than £2 million.
8. The amount people with an income of more than £150,000 can pay tax-free into a pension will be reduced
Most people can contribute up to £40,000 a year to their pension tax-free. From April 2016, this amount will be reduced for individuals with incomes of over £150,000, including pension contributions.
9. The higher rate threshold will increase from £42,385 in 2015-16 to £43,000 in 2016-17
The amount people will have to earn before they pay tax at 40% will increase from £42,385 in 2015-16 to £43,000 in 2016-17.
10. Corporation Tax will be cut to 19% in 2017 and 18% in 2020
The main rate of Corporation Tax has already been cut from 28% in 2010 to 20%, in order to boost UK competitiveness. It will now fall further, from 20% to 19% in 2017, and then to 18% in 2020, benefiting over a million businesses.
11. The annual investment allowance will be set at its highest ever permanent level at £200,000
The annual investment allowance, which has previously been increased temporarily, will be set permanently at £200,000 from January 2016.
The allowance means businesses can deduct the full value of certain items, including equipment and machinery, up to a total value of £200,000 from their profits before tax. This helps them with cash flow because it means the full tax relief is given in the year items are purchased, rather than over several years.
This permanent increase will help businesses plan their spending on longer-term investments.
12. The Employment Allowance will increase by a further £1,000 to £3,000
Businesses will have their employer National Insurance bill cut by another £1,000 from April 2016, as the Employment Allowance rises from £2,000 to £3,000. The Employment Allowance gives businesses and charities a cut in the employer National Insurance they pay.
This means, next year, businesses will be able to employ 4 people full time on the National Living Wage and pay no National Insurance at all.
13. The standard rate of Insurance Premium Tax will increase to 9.5%
From November 2015 the standard rate of Insurance Premium Tax will be increased from 6% to 9.5%. Households’ insurance prices are falling and the standard rate remains lower than that of many other EU countries.
14. Clamping down on nuisance calls from claims management companies
The amount that can be charged by claims management companies – such as those that encourage claims for payment protection insurance (PPI) or personal injury insurance – will be capped, reducing nuisance calls to potential customers.
15. Restricting tax relief for wealthier landlords
Currently, individual landlords can deduct their costs – including mortgage interest – from their profits before they pay tax, giving them an advantage over other home buyers. Wealthier landlords receive tax relief at 40% and 45%. This tax relief will be restricted to 20% for all individuals by April 2020.
In addition, from April 2016, the ‘wear and tear allowance’, which allows landlords to reduce the tax they pay (regardless of whether they replace furnishings in their property) will also be replaced by a new system that only allows them to get tax relief when they replace furnishings.
16. Ending permanent non-dom status
Non-domiciled individuals (non-doms) live in the UK but consider their permanent home to be elsewhere. The UK rules allow non-doms to pay UK tax on their offshore income only when they bring it into the UK.
Permanent non-dom status will be abolished from April 2017. From that date, anyone who’s been resident in the UK for 15 of the past 20 years will be considered UK-domiciled for tax purposes.
17. Reforming the way banks are taxed
Following increasing bank profits, and to reflect changes in bank regulation, the government is:
- introducing a new 8% tax on banking sector profits from January 2016
- introducing a phased reduction in the rate of the Bank Levy (which is charged on banks’ balance sheets) from 0.21% to 0.1% between 2016 and 2021
- excluding UK banks’ overseas subsidiaries from the Bank Levy from January 2021
18. 3 million new apprenticeships
3 million new apprenticeships will be created by 2020, funded by a levy on large employers. Firms that are committed to training will be able to get back more than they put in.
19. £30 million of funding for Transport for the North
Cities and counties in the North will be given even more control over local transport. Transport for the North (TfN) will be supported by £30 million in funding over 3 years, and will have more responsibility for setting out policy and investments.
20. 30 hours of free childcare for 3 and 4 year olds
From September 2017, working families with 3 and 4 year olds will receive 30 hours of free childcare – an increase from the 15 hours they’re currently offered.
21. Student maintenance grants will be replaced with loans
From the 2016-17 academic year, cash support for new students will increase by £766 to £8,200 a year, the highest level ever for students from low-income households. New maintenance loan support will replace student grants. Loans will be paid back only when graduates earn above £21,000 a year.
22. Road tax will be reformed and the money raised spent on the road network
The road tax system will be revised to make it fairer and sustainable. From 2017, there will be a flat rate of £140 for most cars, except in the first year when tax will remain linked to the CO2 emissions that cars produce. Electric cars won’t pay any road tax at all and the most expensive cars will pay more.
Existing cars won’t be affected – no one will pay more for a car that they already own. The money brought in from road tax in England will be spent on England’s roads from 2020.
The government will extend the deadline for the first MOT of new cars and motorcycles from 3 years to 4 years.
23. Public sector pay will increase by 1%
Public sector pay will increase by 1% a year for 4 years from 2016-17.
24. Making sure individuals and businesses pay what they owe
The government will continue to clamp down on tax avoidance, planning and evasion, as well as increasing resources for HM Revenue and Customs (HMRC) so they can make sure people pay the tax that’s due. This includes:
- extra investment between now and 2020 for HMRC’s work on evasion and non-compliance
- tripling the number of criminal investigations HMRC can undertake into complex tax crime, concentrating on wealthy individuals and companies
- allowing HMRC to access more data to identify businesses that aren’t declaring or paying tax
- clamping down on the organised crime gangs behind the illicit trade in tobacco and alcohol
- stopping investment fund managers from using tax loopholes to avoid paying the correct amount of Capital Gains Tax on their profits from the fund (this is known as carried interest)
- making sure international companies pay tax on profits diverted from the UK
- introducing a ‘general anti-abuse rule’ penalty and tough new measures for serial avoiders, including publishing the names of people who repeatedly use failed tax avoidance schemes
Women are more likely than men to send in their tax return on time, an HM Revenue and Customs (HMRC) analysis has revealed.
For every 10,000 tax returns received last year by HMRC from men, 394 were after the relevant deadline – 31 October for paper submissions and 31 January for online returns. This compares to 358 late returns for every 10,000 received from women.
As well as a gender gap, HMRC’s analysis showed a significant difference in filing behaviour between age ranges. People aged 18 to 20 were the worst offenders, with 1,085 in every 10,000 filing late. At the other end of the scale, those aged 65 or over were the most punctual, with only 155 out of every 10,000 missing the deadline. HMRC’s analysis found that the older you are, the more likely you are to send in your tax return on time.
In terms of differences between workers in different industries, those in the agriculture, fishing and forestry industry are the star performers, with just 109 in every 10,000 filing late returns. Lawyers and accountants came second (219 late filers per 10,000), with health and social workers (262 per 10,000) in third place. Workers in the information and communication industries fared the worst (390 per 10,000), with administrative and support services not far behind (388 per 10,000) and the construction industry the next worst performing sector (352 per 10,000).
Across the United Kingdom, taxpayers in Northern Ireland were the most punctual (301 per 10,000), followed by those in Wales (346 per 10,000), England (374 per 10,000) and Scotland (391 per 10,000). The figure for the United Kingdom as a whole was 372 late filers per 10,000.
