Some clients will be aware of the loaded question on the P35 employers annual return, "Are you a service company". Many feel a "yes" is a invitation for a IR35 inspection.
The legality and purpose of the question was always dubious, and when P35s were done on paper it was often worked around by simply not answering the question - and there was never any negative feedback / form rejection or similar from HMRC.
However all P35s now have to be filed online, and you have to give a answer.
A tax barrister, Keith Gordon, has challenged HMRC on this and guess what? They've admitted the question has no basis at law and you can answer no with out fear of penalty or incurring HMRCs wrath.
A good result by Keith, but, of course, it shouldn't be necessary!
Tuesday, 29 May 2012
New Beginnings
Another tax year begins, bringing with it new rates and allowances, and this year an extra little nugget. The phasing out of the age related allowances, a move which will start to effect pensioners in the 2013/14 tax year. To date, these allowances have meant that people who are 65 or over have been liable to tax on less of their income, but the complex administration has caused much distress and worry. Now, with the basic personal allowance steadily increasing bringing more people out of the tax system it has been possible to phase out the age related allowance. Politically we cannot comment but we can say that it will definitely simplify taxation for thousands of pensioners. No longer will people over 65 with incomes above a certain limit have to complete self assessment returns and cope with the complexities of tracking under and over payments, no longer will pensioners find themselves owing large amounts of money because the system has failed. The catch! Well, it may take a couple of years to phase out.
It works like this, if you are going to be 65 or 75 between 6th April 2012 and 5th April 2013 you will receive the age related allowance (ARA) lower rate £10,500 and higher rate £10660 respectively. The allowance will remain at this amount until the basic personal allowance catches up. If you are 65 after the 5th April 2013 you will not receive the ARA.
An example may make it clearer, if Mrs S becomes 65 on the 5th April 2013 she will receive £10,500 ARA, it will remain at £10,500 in the 2013/14 tax year, however if she had been born a day later and her 65th birthday falls on the 6th April 2013 she will remain on the basic personal allowance of £8105 for the 2012/13 tax year, rising to £9205 in the 2013/14 tax year. If dates are easier to follow you need to be born before 6th April 1948 to claim the lower ARA and before 6th April 1938 for the Higher ARA.
The main rates and allowances for 2012/13, subject to the Finance Bill being passed by Parliament later this year are as follows:
Basic Personal allowance - £8105
Age related allowance 65 to 74 - £10,500
Age related allowance 75 onwards - £10,660
Income level when ARA’s are restricted - £25,400
Income level when Basic personal allowance is restricted - £100,000
10% savings rate, limit above personal allowance - £2710
Basic rate of tax 20% - £0 to £34,370
Higher rate tax 40% - £34,371 to £150,000
Additional rate tax 50% - £150,001 and over
Married couples allowance (given at 10%, 3853 in tax code) - £7705
Now you have the figures it is a good idea to check your coding notices for 2012/13, check that you have one for each source of income and make sure you can account for all of the figures. If you agree, check that your employers/pension providers are using the code/s on your April payslip/s. If you disagree or things do not match, contact HMRC straight away on 0845 300 0627.
This article is by Tax Help for Older People registered charity no 1102276, offering free tax advice to older people on incomes below £17,000 a year. The Helpline number is 0845 601 3321 or geographical 01308 488066.
It works like this, if you are going to be 65 or 75 between 6th April 2012 and 5th April 2013 you will receive the age related allowance (ARA) lower rate £10,500 and higher rate £10660 respectively. The allowance will remain at this amount until the basic personal allowance catches up. If you are 65 after the 5th April 2013 you will not receive the ARA.
An example may make it clearer, if Mrs S becomes 65 on the 5th April 2013 she will receive £10,500 ARA, it will remain at £10,500 in the 2013/14 tax year, however if she had been born a day later and her 65th birthday falls on the 6th April 2013 she will remain on the basic personal allowance of £8105 for the 2012/13 tax year, rising to £9205 in the 2013/14 tax year. If dates are easier to follow you need to be born before 6th April 1948 to claim the lower ARA and before 6th April 1938 for the Higher ARA.
The main rates and allowances for 2012/13, subject to the Finance Bill being passed by Parliament later this year are as follows:
Basic Personal allowance - £8105
Age related allowance 65 to 74 - £10,500
Age related allowance 75 onwards - £10,660
Income level when ARA’s are restricted - £25,400
Income level when Basic personal allowance is restricted - £100,000
10% savings rate, limit above personal allowance - £2710
Basic rate of tax 20% - £0 to £34,370
Higher rate tax 40% - £34,371 to £150,000
Additional rate tax 50% - £150,001 and over
Married couples allowance (given at 10%, 3853 in tax code) - £7705
Now you have the figures it is a good idea to check your coding notices for 2012/13, check that you have one for each source of income and make sure you can account for all of the figures. If you agree, check that your employers/pension providers are using the code/s on your April payslip/s. If you disagree or things do not match, contact HMRC straight away on 0845 300 0627.
This article is by Tax Help for Older People registered charity no 1102276, offering free tax advice to older people on incomes below £17,000 a year. The Helpline number is 0845 601 3321 or geographical 01308 488066.
Wednesday, 23 May 2012
E-markets and auction sites
A reminder that HMRC have people selling on "E-markets", basically Ebay and Amazon, in their sights at the moment to check they are correctly registered for tax.
HMRC have served disclosure notices on E-Market operations recently requesting customer detail, and will be following up on the regular sellers.
Remember:
~ you only have to register for tax if you are trading - disposing of personal possessions doesn't count.
~ you can usually include your e-market turnover in the turnover of your regular business, but remember to declare for VAT etc.
~ irregular selling is unlikely to be a trade.
HMRC have served disclosure notices on E-Market operations recently requesting customer detail, and will be following up on the regular sellers.
Remember:
~ you only have to register for tax if you are trading - disposing of personal possessions doesn't count.
~ you can usually include your e-market turnover in the turnover of your regular business, but remember to declare for VAT etc.
~ irregular selling is unlikely to be a trade.
IR35 and Controlling Persons
In the 2012 budget there was mention of new provisions relating to "controlling persons" working through PSCs - this has been a political issue recently, re the public sector, and created a bit of noise around people possibly not paying "fair" tax.
HMRC have a consultation out today:
http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD1_032074
In a nutshell its proposing that:
~ controlling persons are defined as "someone who is able to shape the direction of the organisation having authority or responsibility for directing or controlling the major activities of the engaging organisation during the year. This would be someone who has managerial control over a significant proportion of the organisation’s employees and/or control over a significant proportion of the budget of the organisation"
~ that new legislation for such people will require that the engager stops tax and NI under PAYE as if the person was employed directly.
~ that this overrides IR35
~ Micro businesses are to be excluded from having to apply the rules (EU definition, less than 10 employees and balance sheet or turnover less than Eur2m)
Doubtless there will be some press coment about this, and speculation, but our initial assessment is its unlikely to impact on many of our clients.
HMRC have a consultation out today:
http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD1_032074
In a nutshell its proposing that:
~ controlling persons are defined as "someone who is able to shape the direction of the organisation having authority or responsibility for directing or controlling the major activities of the engaging organisation during the year. This would be someone who has managerial control over a significant proportion of the organisation’s employees and/or control over a significant proportion of the budget of the organisation"
~ that new legislation for such people will require that the engager stops tax and NI under PAYE as if the person was employed directly.
~ that this overrides IR35
~ Micro businesses are to be excluded from having to apply the rules (EU definition, less than 10 employees and balance sheet or turnover less than Eur2m)
Doubtless there will be some press coment about this, and speculation, but our initial assessment is its unlikely to impact on many of our clients.
Tuesday, 22 May 2012
Easy Money - allowances that some employees miss
Do you use your own car for work, wear a uniform that you repair and clean yourself or have to buy your own specialist equipment like protective clothing? If yes read on, you may be able to claim tax relief. The form is simple and sometimes people can make a claim over the phone.
If you use your car for work you will probably be paid a mileage rate for doing so. If the amount you receive is below the tax free rates then you are allowed to claim back the difference between these rates and the amount you actually receive. What are the tax free rates I hear you ask? An employee can receive 45p per mile for the first 10,000 miles and 25p per mile thereafter without having to worry about tax. If more than £8000 is received in a tax year it becomes a taxable benefit and the employer should produce a form P11D at the end of the Tax year. An example will better explain how it works
Mrs H works as a carer and clocks up 24,000 miles a year. Her employer pays her 23p a mile and she hasn’t a clue if this taxable or not. She is allowed 10,000 miles at 45p and 14,000 miles at 25p, totaling £8000 tax free, but she only gets 23p x 24,000, or a total of £5520, and so she doesn’t have to worry about paying any more tax. But she can in fact claim tax relief on the difference between the two, which is £2480. This is known as mileage relief and if Mrs H is a basic rate taxpayer she can claim tax relief at 20%, worth £496 for the year or an extra £41 per month. Well worth the effort!
Had Mrs H been paid say, 35p a mile, for all of the 24,000 miles she would have received £8400 which is £400 over the tax free limit. In this case her employer would report the £400 to HMRC after the end of the tax year on form P11D and they would arrange to tax it, costing her £80.
The other tax reliefs that are worth knowing about are called flat rate expenses. If you work anywhere where you have to wear a uniform, or protective clothing that you repair and clean or replace yourself or you have to buy, maintain or replace specialist tools to do your work you will be entitled to them. The rates differ depending on the industry you are in and are calculated to cover what is typically spent each year by an employee in the different trades.
For example, Mrs H is expected to wear a uniform when she is working and which she is expected to look after. This means that she can ask HMRC for a flat rate expense of £60. It sounds really good, but in cash terms she will only receive the tax relief of £12 (£60 x 20%),, still enough to pay for the soap powder. Had Mrs H been a cabinet maker she would have been able to claim £140.
The first time you claim a flat rate expense you need to put it in writing to HMRC, you can use form P87. For future years and if the amount you are claiming is under £1000 you should be able to claim over the phone. If the claim is over £1000 but under £2500 you use form P87 and for claims over £2500 you have to be in Self Assessment.
This article is by Tax Help for Older People (operated by registered charity no 1102276), offering free tax advice to older people on incomes below £17,000 a year. The Helpline number is 0845 601 3321 or geographical 01308 488066
If you use your car for work you will probably be paid a mileage rate for doing so. If the amount you receive is below the tax free rates then you are allowed to claim back the difference between these rates and the amount you actually receive. What are the tax free rates I hear you ask? An employee can receive 45p per mile for the first 10,000 miles and 25p per mile thereafter without having to worry about tax. If more than £8000 is received in a tax year it becomes a taxable benefit and the employer should produce a form P11D at the end of the Tax year. An example will better explain how it works
Mrs H works as a carer and clocks up 24,000 miles a year. Her employer pays her 23p a mile and she hasn’t a clue if this taxable or not. She is allowed 10,000 miles at 45p and 14,000 miles at 25p, totaling £8000 tax free, but she only gets 23p x 24,000, or a total of £5520, and so she doesn’t have to worry about paying any more tax. But she can in fact claim tax relief on the difference between the two, which is £2480. This is known as mileage relief and if Mrs H is a basic rate taxpayer she can claim tax relief at 20%, worth £496 for the year or an extra £41 per month. Well worth the effort!
Had Mrs H been paid say, 35p a mile, for all of the 24,000 miles she would have received £8400 which is £400 over the tax free limit. In this case her employer would report the £400 to HMRC after the end of the tax year on form P11D and they would arrange to tax it, costing her £80.
The other tax reliefs that are worth knowing about are called flat rate expenses. If you work anywhere where you have to wear a uniform, or protective clothing that you repair and clean or replace yourself or you have to buy, maintain or replace specialist tools to do your work you will be entitled to them. The rates differ depending on the industry you are in and are calculated to cover what is typically spent each year by an employee in the different trades.
For example, Mrs H is expected to wear a uniform when she is working and which she is expected to look after. This means that she can ask HMRC for a flat rate expense of £60. It sounds really good, but in cash terms she will only receive the tax relief of £12 (£60 x 20%),, still enough to pay for the soap powder. Had Mrs H been a cabinet maker she would have been able to claim £140.
The first time you claim a flat rate expense you need to put it in writing to HMRC, you can use form P87. For future years and if the amount you are claiming is under £1000 you should be able to claim over the phone. If the claim is over £1000 but under £2500 you use form P87 and for claims over £2500 you have to be in Self Assessment.
This article is by Tax Help for Older People (operated by registered charity no 1102276), offering free tax advice to older people on incomes below £17,000 a year. The Helpline number is 0845 601 3321 or geographical 01308 488066
Thursday, 10 May 2012
New HMRC IR35 guidance (updated: 10 May 2012 - 14:15)
HMRC have published some new IR35 guidance today - running to 47 pages.
Its here: http://www.hmrc.gov.uk/ir35/guidance.pdf
We'll be analysing it over the next few days and letting clients know our thoughts.
As we understand it, it's nothing new, just clarification of HMRCs thinking - which, as the court cases and tribunals show, isn't always correct.
Update - 10th May 14:15
As suspected there is nothing materially new, nevertheless some interesting, but confusing, content.
~ There has been no change to the mechanics of IR35 viz legislation, case law or HMRC practice on how IR35 is considered.
~ What this document addresses is risk factors at an organisation wide level to see whether an entity is high/medium/low risk. IR35 itself is assessed on an engagement (contract) by engagement basis. The risk factors help HMRC, and the taxpayer, to assess whether engagements are likely to be caught - however low risk organisations could still have IR35 caught contracts, and a high risk doesn't automatically mean engagements are caught.
~ The risk factors codify issues that we already take into account for advising clients re IR35 and in contract reviews, and there is nothing unexpected in them. Strong emphasis is placed on factors like an organisation having premises, hiring staff / sub contract assistance and working on fixed price contracts. Weak emphasis is placed on what are often perceived on IR35 "get out of jail cards", eg a notional but unused right of substitution, PI cover. These later factors are useful but have always been considered weak indicators.
~ Contractors/ PSC users are advised to read the guidance as it gives some good indicators of the things you need to do to reduce risk. Although the guidance is primarily about the risk of IR35 applying or not, the points covered would also help tip the balance on a borderline case.
~ Confusingly having started by outlying these risk factors applying organisation wide, the guidance then goes into case studies at engagement level - explaining why certain engagements are IR35 caught, not caught or borderline. These case studies are worth reading to understand HMRC thinking - note though that HMRC's thinking may not agree with the courts / tribunals; HMRC have lost far more cases than they have won.
~ HMRC have indicated that IR35 compliance is going to be taking higher departmental priority in the future, and this guidance will be a first line filter for making sure inappropriate cases are not taken up. Contractors / PSC users are advised to bear this in mind and endeavour to meet as many of the tests as possible.
~ There is a useful article on HMRC's compliance / inspection plans on AccountingWeb http://www.accountingweb.co.uk/article/ir35-business-entity-tests-published/527241 - as awlays we strongly advise all clients to have insurance, either via our Fee Protection scheme, or via PCG membership, or similar - the cost / benefit / risk equation on this insurance is very good.
A few things are particularly worth noting from the case studies:
~ The emphasis placed on financial risk, the tests for "efficiency" (ability to improve profitability) and "client risk" (bad debt / non payment risk) being relevant here. These tests are used in the case studies regarding fixed price contracts compared to by-the-hour/day contracts. We've long said to clients in IR35 contract reviews that more emphasis needs to be placed on moving away from by-the-hour/day to fixed price, and its a surprise that this hasn't been taken up more as it is an easy win in improving your IR35 position. With some creative thought many by-the-hour/day contracts could be rewritten as fixed with a price adjustment/protection mechanism which protects both parties commercially but is more IR35 friendly.
~ The IR35 weakening effect of being engaged across a number of tasks as a general labour resource, compared to the stronger position of being engaged for a specific task / project.
~ Length of time / number of clients isn't a big issue - viz case study "Hamish" - outside IR35 despite only having one client in four years- and "Juanita", only borderline despite eight years with one client
Conclusion: there's nothing new here, but the content should be considered carefully by those potentially affected re IR35, and the risk factors and case studies considered. Contracts that are structured on a by-the-hour/day payment term and with little care given to definition of tasks / projects are more at risk than ever.
Its here: http://www.hmrc.gov.uk/ir35/guidance.pdf
We'll be analysing it over the next few days and letting clients know our thoughts.
As we understand it, it's nothing new, just clarification of HMRCs thinking - which, as the court cases and tribunals show, isn't always correct.
Update - 10th May 14:15
As suspected there is nothing materially new, nevertheless some interesting, but confusing, content.
~ There has been no change to the mechanics of IR35 viz legislation, case law or HMRC practice on how IR35 is considered.
~ What this document addresses is risk factors at an organisation wide level to see whether an entity is high/medium/low risk. IR35 itself is assessed on an engagement (contract) by engagement basis. The risk factors help HMRC, and the taxpayer, to assess whether engagements are likely to be caught - however low risk organisations could still have IR35 caught contracts, and a high risk doesn't automatically mean engagements are caught.
~ The risk factors codify issues that we already take into account for advising clients re IR35 and in contract reviews, and there is nothing unexpected in them. Strong emphasis is placed on factors like an organisation having premises, hiring staff / sub contract assistance and working on fixed price contracts. Weak emphasis is placed on what are often perceived on IR35 "get out of jail cards", eg a notional but unused right of substitution, PI cover. These later factors are useful but have always been considered weak indicators.
~ Contractors/ PSC users are advised to read the guidance as it gives some good indicators of the things you need to do to reduce risk. Although the guidance is primarily about the risk of IR35 applying or not, the points covered would also help tip the balance on a borderline case.
~ Confusingly having started by outlying these risk factors applying organisation wide, the guidance then goes into case studies at engagement level - explaining why certain engagements are IR35 caught, not caught or borderline. These case studies are worth reading to understand HMRC thinking - note though that HMRC's thinking may not agree with the courts / tribunals; HMRC have lost far more cases than they have won.
~ HMRC have indicated that IR35 compliance is going to be taking higher departmental priority in the future, and this guidance will be a first line filter for making sure inappropriate cases are not taken up. Contractors / PSC users are advised to bear this in mind and endeavour to meet as many of the tests as possible.
~ There is a useful article on HMRC's compliance / inspection plans on AccountingWeb http://www.accountingweb.co.uk/article/ir35-business-entity-tests-published/527241 - as awlays we strongly advise all clients to have insurance, either via our Fee Protection scheme, or via PCG membership, or similar - the cost / benefit / risk equation on this insurance is very good.
A few things are particularly worth noting from the case studies:
~ The emphasis placed on financial risk, the tests for "efficiency" (ability to improve profitability) and "client risk" (bad debt / non payment risk) being relevant here. These tests are used in the case studies regarding fixed price contracts compared to by-the-hour/day contracts. We've long said to clients in IR35 contract reviews that more emphasis needs to be placed on moving away from by-the-hour/day to fixed price, and its a surprise that this hasn't been taken up more as it is an easy win in improving your IR35 position. With some creative thought many by-the-hour/day contracts could be rewritten as fixed with a price adjustment/protection mechanism which protects both parties commercially but is more IR35 friendly.
~ The IR35 weakening effect of being engaged across a number of tasks as a general labour resource, compared to the stronger position of being engaged for a specific task / project.
~ Length of time / number of clients isn't a big issue - viz case study "Hamish" - outside IR35 despite only having one client in four years- and "Juanita", only borderline despite eight years with one client
Conclusion: there's nothing new here, but the content should be considered carefully by those potentially affected re IR35, and the risk factors and case studies considered. Contracts that are structured on a by-the-hour/day payment term and with little care given to definition of tasks / projects are more at risk than ever.
Monday, 16 April 2012
Defined Contribution Occupational Pension Schemes - Short Service Lump Sums
Prior to 6th April 2012 it was possible to refund as a lump sum the non protected rights part of a short service occupational pension, one that has been running less than 2 years. Any protected rights part had to remain in the scheme until the normal retirement date.
These lump sums refund the contributions that you have paid into the scheme less a deduction for tax (not reclaimable for a non tax payer). There is no tax due on the refund.
Protected rights are the pension entitlements built up in an occupational scheme or Appropriate Personal Pension (APP) by the contracted out contributions in place of the SERPS & S2P. When a person is contracted out, part of their NICs is paid to their pension scheme rather than building as part of their second state pension (contacted in). These protected rights were kept separate from the main pension entitlement because restrictive rules applied when the pension payments commenced.
The pension rules are changing on 6th April 2012, meaning that it is now possible to refund a whole defined contribution occupational pension (but not an APP) as a lump sum and it is no longer necessary for the protected rights element to be held back in the scheme.
Schemes that have refunded lump sums prior to 6th April 2012 but have retained the protected rights part can now, if they wish, make secondary payments, where the scheme rules permit.
Some schemes have rules that prevent the protected rights being distributed. These rules would need to be amended before complete lump sums are distributed. Failure to do this would mean that the protected rights part of the lump sum could become liable to an unauthorised payment tax charge, basically another 20%. In such circumstances we should advise an enquirer to wait to claim the refund until their scheme has changed its rules to permit a full refund of both parts of the pension fund to be repaid, probably later this year.
These changes do not affect defined benefit (final salary) occupational pension schemes.
These lump sums are not to be confused with trivial commutation lumps sums, where a person has taken a lump sum of under £2000 from an occupational pension scheme.
This article is by TaxHelp for Older People (TOP) registered charity no 1102276, offering free tax advice to older people on incomes below £17,000 a year. The Helpline number is 0845 601 3321 or geographical 01308 488066
These lump sums refund the contributions that you have paid into the scheme less a deduction for tax (not reclaimable for a non tax payer). There is no tax due on the refund.
Protected rights are the pension entitlements built up in an occupational scheme or Appropriate Personal Pension (APP) by the contracted out contributions in place of the SERPS & S2P. When a person is contracted out, part of their NICs is paid to their pension scheme rather than building as part of their second state pension (contacted in). These protected rights were kept separate from the main pension entitlement because restrictive rules applied when the pension payments commenced.
The pension rules are changing on 6th April 2012, meaning that it is now possible to refund a whole defined contribution occupational pension (but not an APP) as a lump sum and it is no longer necessary for the protected rights element to be held back in the scheme.
Schemes that have refunded lump sums prior to 6th April 2012 but have retained the protected rights part can now, if they wish, make secondary payments, where the scheme rules permit.
Some schemes have rules that prevent the protected rights being distributed. These rules would need to be amended before complete lump sums are distributed. Failure to do this would mean that the protected rights part of the lump sum could become liable to an unauthorised payment tax charge, basically another 20%. In such circumstances we should advise an enquirer to wait to claim the refund until their scheme has changed its rules to permit a full refund of both parts of the pension fund to be repaid, probably later this year.
These changes do not affect defined benefit (final salary) occupational pension schemes.
These lump sums are not to be confused with trivial commutation lumps sums, where a person has taken a lump sum of under £2000 from an occupational pension scheme.
This article is by TaxHelp for Older People (TOP) registered charity no 1102276, offering free tax advice to older people on incomes below £17,000 a year. The Helpline number is 0845 601 3321 or geographical 01308 488066
Thursday, 12 April 2012
Selling on E-Bay
HMRC have come up with another disclosure facility - amnesty by any other name - this time for e-market traders. Anyone that regularly sells on sites such as e-bay may be classified as traders. If this is you, you have between 14 March and 14 June to advise HMRC that you want to take part in this disclosure. You then have until 14 September to come forward with the relevant details, i.e. the profit and the tax due thereon, and to make payment in full. By coming forward at this stage you will have either no penalty for late notification/payment or a maximum of 10% of the tax due.
After 14 September, HMRC will be investigating those that have failed to respond, having trawled the various sites for those individuals they believe may be trading.
There is a Youtube video available at www.lexisurl.com/ytemkt that gives some guidance on whether you could be classified as trading. However, if you think this may be you, please contact a member of staff at Garbetts, rather than going direct to HMRC.
After 14 September, HMRC will be investigating those that have failed to respond, having trawled the various sites for those individuals they believe may be trading.
There is a Youtube video available at www.lexisurl.com/ytemkt that gives some guidance on whether you could be classified as trading. However, if you think this may be you, please contact a member of staff at Garbetts, rather than going direct to HMRC.
Tuesday, 10 April 2012
What the Chancellor doesn't know
Funny thing politics...
BBC news are carrying two reports today, one about Tax avoidance: The most common schemes and one over Osborne 'shock' at rich tax ploys.
Probably the most surprising thing about these reports is how mundane and simple the suggestions are - they are not for the über rich- they are straight forward tax mitigation strategies that should be contemplated by anyone with sufficient disposable income. It does make you wonder how in touch with reality our elected leaders - or the journalists reporting on them - are.
Meanwhile the left and the right are squaring up to each other over the comparative personal tax rates of Boris Johnson v Ken Livingstone. A left wing blog is suggesting average tax rate of 40% for Boris v 35% for Ken, whereas a right wing blog is suggesting 45% v 14% - I suppose there are a few conclusions from this, none of them startling:
~ never trust a politician
~ never trust a journalist or professional blogger
~ a good accountant is a worthwhile investment - no one disputes Ken is paying less, and why is Boris channelling so much income outside of a corporate structure?
BBC news are carrying two reports today, one about Tax avoidance: The most common schemes and one over Osborne 'shock' at rich tax ploys.
Probably the most surprising thing about these reports is how mundane and simple the suggestions are - they are not for the über rich- they are straight forward tax mitigation strategies that should be contemplated by anyone with sufficient disposable income. It does make you wonder how in touch with reality our elected leaders - or the journalists reporting on them - are.
Meanwhile the left and the right are squaring up to each other over the comparative personal tax rates of Boris Johnson v Ken Livingstone. A left wing blog is suggesting average tax rate of 40% for Boris v 35% for Ken, whereas a right wing blog is suggesting 45% v 14% - I suppose there are a few conclusions from this, none of them startling:
~ never trust a politician
~ never trust a journalist or professional blogger
~ a good accountant is a worthwhile investment - no one disputes Ken is paying less, and why is Boris channelling so much income outside of a corporate structure?
Tuesday, 3 April 2012
2012-13 PSC ACCOUNTS FORMAT WORKBOOK
The 2012-13 PSC accounts format workbook is now available as a download at:
http://www.garbetts.com/download/PSCaccountsformat.xls
A large part of the PSC guidance notes have also been updated to take account of the latest budget news.
http://www.garbetts.com/download/PSCaccountsformat.xls
A large part of the PSC guidance notes have also been updated to take account of the latest budget news.
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