NO SAFE HAVENS FOR OFFSHORE TAX CHEATS

HM Revenue and Customs (HMRC) confirmed today that it is working with the United States and Australian tax administrations (the IRS and ATO) on data which reveals extensive use of complex offshore structures to conceal assets by wealthy individuals and companies.

REAL-TIME REPORTING FOR PAYE

Employers are required to use real-time information to report payorll deductions before or when they make them from 6 April 2013, unless a different date is agreed. Our PAYE and Income Tax and National Insurance topics have further information.

SELF-ASSESSMENT TAX RETURN

We successfully filed on time the self-assessment tax returns of all our clients who had submitted their information to us by the 31st January 2013 deadline. A number of our clients are now receiving refunds of tax overpayments from H M Revenue & Customs.

If you would like help to prepare your next tax return, please contact us for a free consultation.

News from Martlet Partnership

18 March 2013

Drastic cut in Annual Investment Allowance

Tags:

Businesses which are contemplating capital expenditure on plant and machinery in excess of £25,000 per annum need to act sooner rather than later in order to make best use of the Annual Investment Allowance (AIA) which will reduce from its present level of £100,000 to just £25,000 per annum on 1 April 2012 for companies and 6 April 2012 for individuals and partnerships.

For businesses whose year end falls on the changeover date this is quite straightforward; a company whose year end is 31 March will receive an AIA of £100,000 for the year ended 31 March 2011 and £25,000 for the following year. For accounting periods of less than twelve months these amounts are proportionately reduced. Where the year end straddles the changeover the two rates of AIA are apportioned on a daily basis. For example, a company with a 30 September year end will receive an AIA of £62,534 for the accounting period ending on 30 September 2012 (£100,000 x 183/366 plus £25,000 x 183/365).

In order to qualify for plant and machinery capital allowances in a particular accounting period expenditure must be incurred in that period. Expenditure is regarded as incurred when there is an unconditional obligation to pay for the item, which means that provided the purchaser has taken delivery of the plant it is not necessary to bring it into use in the accounting period it is acquired. However, care should be taken with items not brought into use where there is a payment period of more than four months, as the amount qualifying for AIA will be restricted to the actual payments made.

It is important to remember the definition of plant and machinery for capital allowance purposes is wide and basically covers anything that is part of the apparatus used to carry on the business. In particular, plant and machinery includes integral features within a building such as electrical, heating, ventilation and water systems.

For more informatio, or to discuss the effect this may have on your business call us today on 01903 600555