Tax liability Archives | Taxfile

Basis Reform and Spreading

Taxfile — Tue, 02 Jan 2024 15:56:32 +0000

As of April 6, 2023, the Self-Assessment (SA) for income tax has undergone a significant transformation, known as Basis Period Reform. This change aims to align the taxation of business profits with the standard April-April tax year, rather than any other accounting periods that may have been required by the taxpayer.

While the transition to the new basis period has introduced certain complexities, it also presents opportunities for businesses to manage their tax liabilities more effectively. One such opportunity lies in the spreading of tax arising from transitional profits.

Transitional profits refer to the profits that arise from the transition between the old and new basis periods. These profits can be spread over

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Received a ‘P800 tax calculation’ from HRMC in the post?

Mark — Wed, 19 Aug 2015 15:53:38 +0000

If you have paid either too much or too little tax during the financial year, HMRC will send you a ‘P800 Tax Calculation’ some time between now and October 2015. If you’ve paid too much tax If you’ve paid too much tax then you will receive a cheque for the overpayment within 2 weeks of […]

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New HMRC Service to Replace Closing Enquiry Centres

Mark — Tue, 24 Jun 2014 12:15:38 +0000

Her Majesty’s Revenue & Customs (‘HMRC’) have now completed a 7 month pilot scheme, held across the North East of England, whereby they closed existing HMRC Enquiry Centres and instead offered those requiring extra help with tax-related issues assistance in a different, more tailored way. With the pilot scheme now complete and deemed a success, […]

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The Shocking Truth about Tax on the Poor

Mark — Fri, 20 Jun 2014 10:29:50 +0000

Have you ever wondered how much of one’s total income is taken up in tax? And I don’t mean just Income Tax. I mean in ALL taxes paid by ordinary taxpayers throughout the course of a year. Such a figure would need to take into account National Insurance (income tax in all but name, some […]

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HMRC’s ‘Direct Recovery’ of owed tax – straight from your bank account!

Mark — Thu, 15 May 2014 10:50:46 +0000

Part of the Chancellor’s recent Budget included plans to recover tax owed to the Treasury direct from the debtor’s bank account — all done directly and without a Court Order being necessary. This has been criticised widely but HMRC says that only 17,000 people in the UK per year would fall into this potential scenario […]

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(Time Sensitive): Tax Year End Changes for Pension Allowances

Mark — Wed, 19 Feb 2014 14:30:58 +0000

The start of the new Tax Year on 6 April 2014 – just 6½ weeks away at time of writing – will see two very important changes in relation to pensions allowances. The first change will affect the ‘Annual Allowance’ (or ‘AA’) which is the annual limit on pension savings attracting tax relief. This limit […]

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It’s official: thousands are on the wrong tax code!

Mark — Thu, 30 Jan 2014 14:10:19 +0000

With the tax return deadline being only hours away (midnight 31 January 2014) there is still time to get professional help if you need it – particularly because HMRC often get it wrong according to new research by UHY Hacker Young. In just one example, HMRC sent a tax bill to a pensioner which demanded […]

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Payments on account towards 2009/10

Taxfile — Sat, 05 Sep 2009 16:00:00 +0000

Payments on account are normally required from any taxpayer who is assessed to income tax, of any amount, for the preceding tax year (HM Revenue and Customs). These payments are due by the end January and July each year. You will be asked to make two payments on account for the current tax year if […]

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Corporation Tax (CT)

Taxfile — Sat, 09 Feb 2008 11:09:00 +0000

The fourth largest source of government revenues is Corporation Tax, charged on the profits and chargeable gains of companies. The main rate band is 30%, which is levied on taxable income above £1.5m. The small companies rate of 19% is charged on the first £300,000 of profits where profits are between £50,000 and £1,500,000. Profits […]

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