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Job Opportunity

Date: 18/06/2014

One of our clients is looking for a friendly, positive and approachable Shop Manager for Leeds branch of a big nationwide franchise of cakes and related items.  

Main Duties:

To manage the day-to-day provision of cake designs and to exceed customers' expectations.

To develop the business and sales opportunities where possible.

Timing: From 11AM to 7PM. 6 days a week (Monday to Saturday)

Salary: Negotiable

Other Duties:

Responsible for the day-to-day operation of the shop

Recruit and train staff as necessary

Responsible to manage materials costs and minimise wastage

Supervise and lead the shop staff

Previous experience in a similar position

Good organisational & communication skills

Good knowledge of processes & procedures

 

Please send your CVs or any questions to info@careaccountants.co.uk. Please note that no information will be provided if you call our office.  


Do you know how to cash your £2000 Employment Allowance?

Date: 19/04/2014

Have you recently received a letter from Prime Minister, David Cameron, giving you a good news about Employment Allowance of £2000.  Prime Minister wrote that from 6 April 2014, almost all UK employers can reduce the amount of National Insurance contributions (NICs) they pay for their employees by up to £2,000.  The reduction is in employers’ contribution. Employees will keep paying the NIC as usual. It is being considered a significant move to get rid of tax on jobs.

Please click here to read the Prime Minister’s letter.

How to claim

Claiming Employment Allowance has been made very easy. You just have to click a relevant field in your payroll software.

Eligibility

Employment Allowance is for nearly all employers that pay Class 1 National Insurance contributions on their employees’ and directors’ earnings. This includes:

  • businesses
  • charities
  • community amateur sports clubs

Excluded Employers

You cannot claim the Employment Allowance, for example if you:

  • employ someone for personal, household or domestic work, such as a nanny, au pair, chauffeur, gardener, care support worker
  • already claim the allowance through a connected company or charity (see below)
  • are a public authority, this includes; local, district, town and parish councils
  • carry out functions either wholly or mainly of a public nature (unless you have charitable status), for example:
    • NHS services
    • General Practitioner services
    • the managing of housing stock owned by or for a local council
    • providing a meals on wheels service for a local council
    • refuse collection for a local council
    • prison services
    • collecting debt for a government department

You do not carry out a function of a public nature, if you are:

  • providing security and cleaning services for a public building, such as government or local council offices
  • supplying IT services for a government department or local council

Connected businesses

If a company has control of another company, or both companies are under the control of the same person or persons for example, companies linked in a group, these companies are connected. Where this is the case, you will only be entitled to one Employment Allowance to use against one PAYE scheme (regardless of how many PAYE schemes you operate). It is up to you to nominate which PAYE scheme to claim the allowance against. If your business controls a charity, they are not connected and you can claim the Employment Allowance for both the company and the charity.

 

Inheritance Tax in a Nutshell

Date: 05/03/2014

The two unavoidable certainties, i.e. death and taxes, will inevitably come together one day. But you can possibly avoid but definitely reduce the inheritance tax with proper planning.  Inheritance tax is often referred to as the ‘voluntary tax’, being easily reducible. Here is a small list of helpful facts:

1- The first step will be that HMRC will ask your executors to work out the value of your estate by adding up all your assets, including your home, your savings and investments (even individual savings accounts and any other tax-free savings accounts), valuables (such as jewellery, artwork, and cars), certain life insurance policies, and the value of any debts other people owe to you when you die.

2- But don’t worry anything you leave to your spouse or civil partner will be ignored for this inheritance tax calculation. Gifts between spouses and civil partners are totally exempt for inheritance tax purposes.

3- HMRC also looks back to the previous seven years and add the amount of certain gifts you made to others during the period to value of your estate.

4- For inheritance tax purposes all your assets are valued on the date you die or when you gave them away, not the date you bought or acquired them, or the date you included them in your will (assuming you have one).

5- Executors can deduct the following from the value of your estate:

  • Certain exemptions (such as donations to national galleries and museums, and gifts to housing associations)
  • Charitable donations (left in a will)
  • Costs of winding up your estate
  • Funeral costs

6- Once the executors have established the value of your estate, HMRC deducts the nil-rate band (£325,000 in 2012-13 and £329,000 in 2013/14 as proposed by the new Autumn Budget. For married couples or widows, the nil rate band is £650,000.

7- There is no tax payable on if the value of the estate is under nil-rate band. If the value of the estate is more than the nil-rate band, inheritance tax is payable at the flat rate of 40 per cent.

Inheritance Tax Calculator for single or divorced

Inheritance Tax Calculator

 

 

 

House Value (including 2nd property)

£

Household contents and Personal effects

£

Bank and Building Society Accounts

£

Stocks and Shares

£

Savings and Investments (including offshore, ISAs, endowments, etc.)

£

Other Assets (car, boat, Life Assurance not under trust etc.

£

Assets Sub Total

£

Subtract Debts (mortgages, other loans etc.)

£

Subtract Nil Rate Band

£325,000

Approximately  Net Estate Size

£

IHT x 40%                                               Total

£

For married couples or widow, the nil rate band will be £650,000.

This is Inheritance Tax in a nutshell. If you need any further help, simply contact us on 0113-2488181 or email us at info@careaccountants.co.uk.


Missed the Tax Return Deadline? Don’t Panic

Date: 25/02/2014

There are 10 million self-assessment taxpayers in the UK and most of them have submitted their returns on time i.e. on 31 January 2014. There are still over one million returns left to be filed. If yours is one of them, don’t panic. Although you might have already received a £100 penalty from HMRC, but no further penalties will be charged for late filing until 30 April 2014 when the return is three months overdue.

This should give you sufficient time to get your affairs in order. It is worth noting that HMRC will charge daily penalties of £10 for a further three months, up to a maximum of £900. If your return is still outstanding after six months you will face an additional charge of 5% of the outstanding tax or £300, whichever is higher. This is repeated up until the return is twelve months overdue, with possible extra penalties of up to 100% of the tax due if HMRC believes there has been a deliberate attempt to conceal information. It is explained in the table below:

Length of Delay Penalty you will have to Pay
1 day late A penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.
3 months late £10 for each following day - up to a 90 day maximum of £900. This is as well as the fixed penalty above.
6 months late £300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
12 months late £300 or 5% of the tax due, whichever is the higher.
In serious cases you may be asked to pay up to 100% of the tax due instead. In some cases the penalties can be even higher than this.
These are as well as the penalties above.

 

HMRC will charge penalties on late payment of tax as well. Failing to pay tax within 30 days of the due date could see you charged a penalty of 5% of the outstanding amount. Further 5% penalties are then charged when the payment is six and 12 months overdue. It is explained in the table below:

Length of Delay Penalty you will have to Pay
30 days late 5% of the tax you owe at that date.
6 months late 5% of the tax you owe at that date. This is as well as the 5% above.
12 months late 5% of the tax unpaid at that date. This as well as the two 5% penalties above

HMRC will also charge daily interest at a rate of 3% per annum on any outstanding amounts. Incentive is strong to file as soon as possible. If you file in the next two weeks, you can limit any fines to £100, but putting it off will see the penalties and interest increase quickly from as soon as the start of March. It is also important to remember that even if you have no tax to pay, failing to send in your return could result in a penalty of up to £1,600. The sooner the return is filed and your tax paid, the less any penalty will be. And if you’ve already filed your return, now is the perfect time to start getting your records ready for next year’s return!

Appealing against a late filing penalty

Late filing penalties can be cancelled if you have a ‘reasonable excuse’ for filing late. Please note that you should file your tax return before making your appeal against the late filing penalties. Initially you make your appeal to HMRC. The appeal should normally be made within 30 days of the penalty notice being issued, but HMRC may consider late appeals. If HMRC does not allow your late appeal, you can apply to the Tax Tribunal to have your appeal allowed. Appeals need to be made in writing and this may be done using form SA 370. Form 371, accessible from the same page, should be used for partnership late filing penalty appeals. HMRC expects you to file the tax return as soon as you are able to do so – within 14 days of the end of the special circumstances which caused you to file late. If HMRC rejects your appeal you can ask HMRC to review the decision. The review will be carried out by a different HMRC official. You should consider asking for a review if you missed out significant information on your initial appeal letter. Failing this you may appeal to the First Tier Tribunal (Tax).

Reasonable excuse

If HMRC, or the Tribunal, accept that you have a “reasonable excuse”, the entire penalty is cancelled. Points to consider are: The ‘reasonable excuse’ must continue throughout the period from the missed filing date until shortly before you actually file the return. This means that it may be accepted that you may have a ‘reasonable excuse’ for some, but not all, of the penalties charged. HMRC takes a narrow view of what is a ‘reasonable excuse’. HMRC’s view can be found at http://www.hmrc.gov.uk/sa/appeals-decisions.htm#e The tribunal may, in some cases, take a wider view of what is reasonable. For example, the tribunal may accept that you had a reasonable excuse if you relied on your accountant, and it was reasonable to expect that your accountant would file on time, and you did all you could to ensure this. But this will not apply if your accountant has previously been unreliable – for example if returns for previous years were filed late by your accountant. If you registered for on-line filing by 31 January 2014, but did not get your access code in time to file before the deadline, and filed your 2012-13 return using HMRC’s free software by 15 February 2014, this should count as a reasonable excuse.

Appeals to the First Tier Tribunal

If HMRC turns down your appeal, even after a review, you can ask for the appeal to be heard by the Finance and Tax Tribunals, First Tier Tribunal (Tax). This can be done at an oral hearing or on paper – but the taxpayer always has the right to appear and be heard. You can find out more about the First Tier Tribunal (Tax), and download an appeal form from their website at http://www.justice.gov.uk/tribunals/tax/appeals

 

Non-residents and UK Properties

Date: 10/02/2014

Capital Gain Tax (CGT) will be charged on future gains realised by non-residents on the sale of their residential property in the UK. It has long been an anomaly that a non-resident pays no CGT on UK assets.

A consultation document will be published on how best to introduce this change in early 2014. It is just future gains that will be taxed and not historical gains.

For more information, contact us at:

Care Accountancy Ltd

188 A Roundhay Road

Leeds

LS8 5PL

Tele: 0113 248 8181

Fax: 0113 249 4902

Email: info@careaccountants.co.uk

 

Tax Return Deadline is Fast Approaching

Date: 25/01/2014

Deadline to file your tax return is fast approaching- why wait till last minute to file your return and risk late filing fee or penalties.

Penalties:

1: You will be charged a penalty, even if you do not owe any tax.
2: If you miss the filing dates of 31 January 2013 (for on-line submission), you will be charges a penalty of £100 (this will not be refunded, even if no tax is owing)
3: If you are three months late, you will be charged an automatic daily penalty of £10 per day, up to a maximum of £900
4: If you are six months late there will be a penalty of £300 (or 5% of the tax owing if this is greater)
5: If you are 12 months late, you will be charged another £300 (or 5% of the tax owing if this is greater). In exceptional circumstances a higher penalty of up to 100% of the tax due is possible

Penalties for late payment

1: 5% of tax unpaid after 30 days
2: Another 5% of tax unpaid after 6 months
3: Another 5% of tax unpaid after 12 months
There is more information about this on the HMRC website at www.hmrc.gov.uk/sa/deadlines-penalties.htm

At Care Accountancy Ltd we are committed at providing highest quality of professional services at affordable rates.

Contact us now at:

Care Accountancy Ltd

188 A Roundhay Road

Leeds

LS8 5PL

Tele: 0113 248 8181

Fax: 0113 249 4902

Email: info@careaccountants.co.uk

 

Universal Credit System and Income Tax

Date: 01/01/2014

Universal Credit is a new system introduced by the government in order to ensure greater fairness to the welfare system. The early introduction of Universal Credit has begun in the Greater Manchester and Cheshire areas whereas it will be operational nationwide in October this year. Universal Credit is more convenient compared to old system and provides a single monthly payment if you are on a low income or out of work. The system will also be beneficial for both self employed and employers. Between April 2013 and the end of 2017, Universal Credit will replace:

  • Income-based Jobseeker's Allowance
  • Income-based Employment and Support Allowance
  • Income Support
  • Working Tax Credit
  • Child Tax Credit
  • Child Tax Credit

Why Work is more advantageous under Universal Credit System?

Unlike the current system, your benefits under Universal Credit won't suddenly be taken away because you have started work. The payment under Universal Credit will gradually be reduced as your take home pay increases. Additionally, Universal Credit system gives you freedom to work extra hours whether in a full or Part-time job. By combining in work and out of work benefits Universal Credit removes the financial risk of taking-up a job.

Universal Credit is paid monthly, directly into the account you have chosen. Separate rules have been devised for couples and adults living in the same house who claim Universal Credit.

Universal Credit and employers

Universal Credit is introducing Real Time Information (RTI) Pay as You Earn (PAYE) to help employers manage their Payrolls. Your employer shall report to HMRC the changes in your work hours. Consequently, Universal Credit will adjust payments according to information provided. This gives the employer and employee more work flexibility and removes the risk of the benefits being stopped. Many employers have already started to use RTI PAYE and many other are taking advice from the firms like Care Accountancy to get full benefits of the new system.

Universal Credit and self employed

There are several benefits that a self employed can claim with the Universal Credit. Universal Credit replaces these benefits and will support self employed people in the best way to ensure they become financially independent.

Universal Credit provides a 12 month start-up period for businesses less than 12 months old. During this 12 month period, the minimum income floor will not apply so that an entrepreneur can solely focus on the business. Moreover, entrepreneur will receive payment from Universal Credit like any other employee. However, the reporting requirements are strict and failing to report earnings to Universal Credit in 7 days will result in Universal Credit payment being suspended.

Under the new system self employed will have to prove its eligibility in order to get benefits from Universal Credit System. In order to completely understand the system you can contact Care Accountancy for the advice on the following address:
188a Roundhay Road, Leeds, LS8 5PL
T: 0113 248 8181 / 248 8182
Email: info@careaccountants.co.uk