Hi everyone, I hope you had a good Halloween and Bonfire night and that those of you with children survived half term! I heard on the radio this morning that it is now less than 50 days until Christmas and whilst most of you will be busy doing the Christmas shopping we will be busy gearing up for our busiest time of the year. Personal tax returns are something which inevitably get put off until the last minute and now that we have passed 31 October 2014 you can no longer file paper returns so all remaining tax returns for the 2013/14 tax year must be filed online by 31 January 2015.
If you are not sure whether you need to file a personal tax return or not here are some general rules:
You must file a tax return if you are:
- A self-employed sole trader
- A partner in a business partnership
- A company director – one that is often forgotten!
- If you are employed but claiming expenses from employment of more than £2,500 per tax year
- If you have income from UK property or land
- If you have made any capital gains or losses during the year
- If your income is over £50,000 and you receive child benefit
- If you are retired and your income is over £100,000 per tax year
This is not an exhaustive list but covers the majority of cases.
One of the questions we get asked at this time of year is ‘How can I reduce my personal tax bill?’. One way is to make sure you claim all the relevant business expenses you are entitled to.
Everyone knows all the usual costs that can be claimed such as stationery, software, materials but here are some that are often missed –
- If you use a room in your home as an office, then you can claim a tax deductible allowance.
- Reasonable subsistence
- Certain items of clothing
- A business proportion of landline, mobile phone and internet costs
- Professional subscriptions
Please get in touch if you are unsure and need any advice as it is crucial to get your tax return right and this is where a good accountant is worth the money! We take out the stress and hassle of it and get the return filed on your behalf so please get in touch! Contact details below.
As a quick reminder for those of you suffering higher rate tax, don’t forget your charitable donations and personal pension contributions can help reduce your tax bill.
For those of you doing some tax planning for 2014/15 and with money to invest, why not take a look at some of the Enterprise Investment Schemes as there are generous tax deductions available providing you meet all of the eligibility criteria.
Party on the taxman!
We have just been planning our office Christmas party for next month and wanted to make sure that you are making the most of the tax breaks around staff entertainment.
Maintaining staff morale is important in creating a happy and efficient team and what better way to say thank you and show your appreciation for all their hard work than throwing a Christmas (or Summer) party for the whole office. You can spend a maximum of £150 per staff member plus a further £150 for their partners/guests as a fully tax deductible expense, that’s £300 per member of staff! The only condition is that ALL members of staff in the office must be invited. The benefit is a 20% saving on corporation tax.
Provided your don’t spend more than £150 over the whole year, per member of staff, and you allocate the expense to staff entertainment in your detailed profit and loss, then you could use some of the allowance for a Christmas party and the balance for a Summer BBQ! The £150 includes VAT and the cost of transport and/or overnight accommodation and the VAT is fully recoverable when paying for your staff.
Are you a one man band? If so, you don’t have to miss out, you can still take advantage of the £150 per head exemption as a member of staff and also £150 for your other half and enjoy the 20% tax saving!
So get organising that party and enjoy it all the more knowing that the taxman has subsidised it!
Movember!
Michael my business partner is growing a moustache for “Movember” to help raise awareness of men’s health in general particularly testicular and prostate cancer.
So if you are able to donate anything towards this great cause we would really appreciate it. Our target is £500 and if you are a UK taxpayer please do gift aid your donation. Every little helps!!
You can visit and donate on Michaels Movember page.
Follow us on Facebook or Twitter @timeaccounts for regular updates and a chance to vote for what style of moustache to grow!
He’s also filming the progress of his ‘tash’ in a Vine video!! Watch this space!
Important dates for your diary – As in my previous columns I wanted to set out some of the key dates coming up. Tax returns filed online have a deadline of 31 January 2015. Company accounts with a 28 February year end need to be filed at Companies House by 30 November or a £150 fine will be incurred for late filing! Quarter ended October VAT returns to be filed and paid by 7 December and October PAYE to be paid by 19 November.
I hope you found this article useful. Please remember to interact with me and let me know if you want anything covered in the next article.
My email address is hannah@timeaccounts.co.uk or you can follow my firm on Twitter @timeaccounts or visit our business Facebook page (Facebook/timeaccounts). Remember to like our page so you can keep on top of tax saving tips, deadlines and general Time Accounts updates.
Hope to catch you next month. New column coming Thursday 4 December!
Time Accounts t/a Time Business Services are a local Sussex based chartered accountancy practice dealing with all aspects of small, medium enterprises and their financial requirements, so just pick up the phone and call 01273 446595 or send us a call back request via our website Time Accounts and we’ll do the rest!
