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NewsBusiness Advisors And Tax Specialists
Issue 13 Spring 2013
C
S
PAYROLL - RTI PENALTIES
Full story....... p2
LENTELLS RAISE MONEY FOR LOCAL CHARITY
Full story....... page3
HMRC TARGETS SECOND HOMES
Full story....... p4
CHANGES TO PENSIONS – BE PREPARED
Full story....... p2
National Insurance Payments CutIn a move aimed to help small businesses and boost job creation the Chancellor announced the introduction of the
about 450,000 small businesses, one third of all employers, will pay no employers’ NI at all. The Chancellor went on to say, “For the person who’s set up their own business
barrier will be removed”. The Employment Allowance will also apply to charities and sports clubs.
Further reduction in Corporation Tax
of corporation tax that businesses will have to pay from 21% to 20% from April 2015. The current main rate of
to 21% from April 2014.
Increase to Income Tax Personal Allowance
Pensions
previously anticipated.
ChildcareTax-free childcare vouchers will be introduced, worth up
Autumn 2015.
Social CareA cap on social care costs will be introduced in 2017
Motorists
in kind continue to increase. The Chancellor also announced
extend the 100 per cent allowance (FYA) for expenditure incurred on cars with low carbon dioxide emissions and
Review of PartnershipsThe Government announced plans to consult on major
which could force LLPs to pay national insurance for partners who are currently classed as self-employed but are technically employees. The consultation will also examine the misuse
2013 BUDGET – AN OVERVIEWAs George Osborne delivered his fourth Budget we identify some of the Chancellor’s key announcements.
2 Lentells News
From 1 April 2013, unincorporated small businesses will be able
to account for their income and expenditure on a cash basis.
Unincorporated businesses cover sole traders and partnerships. Limited companies are not included in the scheme.
need to account for income and expenses as they are incurred. This is known as accrual
small businesses.
The new system will allow small businesses to report income in the period it was
more complex businesses. The Government
quicker and easier for small businesses to account for their income and expenditure.
Small businesses that are unincorporated
now choose which system to use, it is not
scheme your income turnover can increase to
CASH ACCOUNTING INTRODUCED FOR SMALL BUSINESSES
PAYE REAL TIME INFORMATION – PENALTIESHMRC have published details of the penalties for late and inaccurate returns submitted via the new Real Time Information (RTI) system which comes into effect for the majority of employers in April 2013.
their employees’ PAYE payments online on or before each pay day, as opposed to after the end of each tax year as was previously the case.
2014. In the meantime the current penalty process will continue to apply at the end of the year, with a penalty issued if the relevant information is not up to
would normally have been liable to a penalty.
No penalties will be incurred for inaccurate in-year
FPS of the year.
is only a temporary stay of execution to allow for adjustment to the new system; as from April 2014 automated late payment penalties will be
current late payment penalties to ensure they can
will also be introduced.
will apply each month and will depend on returns
one un-penalised default each year, after which all subsequent defaults will attract a penalty. Penalties
If you have any queries about the imminent introduction of RTI and the implications it has for your company please contact Rose Richards,
C
CHANGES TO PENSIONS – PLAN AHEAD FOR AUTO ENROLMENT
members of staff.
workplace pension and make a contribution to it.
reviewed every year)
The amount to be invested will be increased
1% in tax relief.
Last October saw the biggest pensions shake up in a generation with the introduction of Auto Enrolment.
Workforce Staging Date
50-249 employees
49 employees or less
New employers (established after April 2012)
way off for smaller companies it is essential to start
18 months away you should already have been
currently have.
may be that the scheme you currently have in place can be adapted for auto enrolment, or you may need to set up a new one.
You are required by law to write to all workers
Failure to comply
Aut oduction of intrw saaw October Last
S TO NGEACH
olment.to Enrshakpensions biggest the
ALS – PNOISEN O P
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INGTNOU
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Lentells News2
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it is not ,, it is not m to use
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.ukells.co
y plea mpanTI and the implications it has of R RTI and the implications it has
y que an
ase contact Rose Richards, and the implications it has
ies about the imminent er
Lsupport of the Taunton and Somerset Music,
year will witness an ambitious schedule of
CHARITY FOCUS
Lentells support local Arts Festival
and held at Taunton School in February.
Children’s Society.
Lentells raise money for local charities
Lentells News 3
P
CHANGES TO CHILD BENEFIT
who have an income of over £60,000, are being reminded to opt out of receiving payments before 28 March in order to avoid paying a new charge by self-assessment tax return.
Those who have already opted out do not need to take any further action, but those who
INCREASE IN ANNUAL INVESTMENT ALLOWANCE
The AIA allows businesses to claim an allowance on capital expenditure on most plant and
2014. AIA offers tax relief at 100 per cent on
The maximum you can deduct from your taxable
notes which say that this is a temporary increase
1 January 2015.The allowance is allocated based on the date of expenditure and the allowance for
It is important to check that any planned investment in capital equipment falls within
In his November 2012 Autumn Statement, the Chancellor announced a temporary ten-fold increase in the Annual Investment Allowance (AIA).
and cars.
Typical examples of plant or machinery include:
equipment
machinery
apportion the investment over subsequent years.
a StIn
NI
ease old incry ten-f fold incrtemporar the Chancellor an atement,, the Chancellor announced
2012 ember vNohis
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ypical examples o TTypical examples of plant or machiner
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Spring 2013
4 Lentells News
To receive weekly news updates and detailed
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HOW TO CONTACT US
Chard
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Chard Business Park, Chard,
Somerset TA20 1FA
Telephone: 01460 64441
E-mail: [email protected]
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E-mail: [email protected]
Taunton
Bindon Road, Taunton, Somerset TA2 6BJ
E-mail: [email protected]
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50 Fore Street, Seaton,
Telephone: 01297 20584
Email: [email protected]
Payroll DepartmentTelephone: 01460 68700
Email: [email protected]
audit work in the UK and Ireland and
business activities by the Institute of
the Financial Services and Markets Act 2000 but we are able, in certain circumstances, to offer a limited
clients because we are members of the Institute of Chartered
services if they are an incidental part of the professional services we
S
REGISTER for FREE
A
sessions;
All the workshops will last for ½ a day with a maximum
software-services
Glyn Rhodes on 01460 68700 or email [email protected]
Payroll Training and Support
support can be provided with review of your payroll
reports and, where appropriate, an in depth review of your employee data.
01460 68700 or email [email protected]
LENTELLS EXPAND IT AND SOFTWARE SERVICESWe are expanding our existing training initiatives with the introduction of additional software training workshops for 2013 as well as offering one to one training with a range of support services.
HMRC TARGETS SECOND HOMES
Normally when an individual sells their main home,
additional properties, such as holiday homes or
(CGT) liability.
5 April 2012, and this has not been reported to
the late payment of tax. Failure to disclose such sales may lead to penalties in the future of up to 100% of the tax.
holiday property, may also lead to enquiries in other areas, such as the non-declaration of rental income.
There are complex rules to work out the capital
individual tax free allowance per person. Essentially,
for any tax relief and personal allowance available, tax is normally payable at 18% or 28%.
HMRC have launched yet another targeted campaign, this time on the sale of second homes. e launched vHMRC ha av
y when an individual sells their main homemallNor
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Chard Busi
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elephone:TTelephone:
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[email protected] 68700 or email pa
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