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No more employers National Insurance (NI) for under 21’s

March 26, 2015 -

As of 6th April 2015 employers with employees aged under 21 years will no longer pay class 1 secondary national insurance in respect of those employees provided the earnings are below the upper earnings limit of £815 per week. The change in legislation was part of the Autumn statement of 2013 and is designed to encourage employers to employ youth, a sector of society that has been significantly affected by the recession that began in 2007.

Currently class 1 secondary national insurance would be payable by the employer at the rate of 13.8% above £156 per week and this will be the case for those over 21.

In practical terms it means that those businesses running their own payroll systems or tax advisers running payroll systems on behalf of clients must ensure that they identify employees under the age of 21 and apply the correct NI category letter to avoid paying too much National Insurance.

If you need any advice on Payroll Services or Taxation then please contact Park Lane Accountants on 01249 247160. We support entrepreneurs in Chippenham, Bath and the surrounding Wiltshire towns and villages and are friendly and approachable.

How to avoid a tax enquiry

February 4, 2015 -

So the filing deadline for self assessment tax returns has passed and accountants all over the land are recovering from the last minute rush. There is no doubt that January and the couple of months leading up to the deadline are the most stressful for tax payers and accountants alike.  It is however not as stressful as having the HMRC enquire into your tax return. If you want to know why we hit our deadlines and get some top tips on how to avoid the stress of an enquiry then please read on…..

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Property Taxes – Keep Good Records

October 3, 2014 -

Park Lane Accountants Chippenham offer practical advice regarding property taxes that will stand you in good stead and ensure that comply with your obligations. In this short blog we look at record keeping for property but the general advice applies to all aspects of running a business.

All UK- resident landlords are generally taxed on profits made wherever the properties are situated in the world. A record of income, expenses incurred and capital items purchased must be kept. Separate sets of records must be kept for “furnished holiday lettings” as these are taxed under different rules.

You need to keep the following:- Invoices, expense receipts, capital item receipts and rental statements. You also need to have past years income and expenditure accounts and your past years tax returns along with any bank statements. In order to plan for tax properly you should have a record of the purchase price of the property, the date it was purchased and any associated purchasing costs.  If as the landlord you have ever lived in the property or if it has been your main residence in the past then details of the dates etc should be kept to ensure that all of the relief available is claimed on sale.

If you do not keep adequate records then even if you have incurred expenses they may not be allowed.  You could also face a penalty of up to £3000 for failure to maintain adequate records for self assessment purposes.

You can find help at from various Landlord associations and websites or simply call us on 01249 247160 or email info@park-lane-accountants.co.uk

 

Park Lane Accountants Chippenham would be happy to help you prepare your self assessment tax returns and rental accounts.

HMRC – High Income Child Benefit Charge

September 8, 2014 -

It looks like HMRC are at it again !

We are aware that a number of letters have been received by tax payers in relation to High Income Child Benefit Charge.  If you are not aware, this was the coalitions policy of reducing or removing child benefit for those families where one of the parents earn over £50k per year. The charge starts at £50k and removes 1% the child benefit payable for each £100 of additional income and so removes 100% at an income of £60k.

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