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Latest or go to Topics at foot of page

New penalties for late tax returns and tax payments

For the returns currently being prepared, ie 2010/11 and future years the new penalties for late submission are as follows:

An immediate £100 fixed penalty, which will now apply even if there is no tax to pay, or if the tax due is paid on time;
After 3 months, an additional daily penalty of £10 per day, up to a maximum of £900;
After 6 months, a further penalty of 5 per cent of the tax due or £300, whichever is greater; and
After 12 months, another 5 per cent or £300 charge, whichever is greater. In serious cases, the penalty after 12 months can be up to 100 per cent of the tax due.

There is also a new late payment penalty of 5% on unpaid tax at:

30 days;
6 months; and
12 months.

Interest will also be charged on top of these penalties.

Full details on the HMRC link opposite

HMRC deadlines and penalties

Personal tax payments due 31 July 2011

Several clients have contacted us as they have yet to receive a payslip for the payment becoming due 31 July. It would appear that about half a million taxpayers will not receive these till after the payment deadline as HMRC have run out of paper! Those taxpayers will be given an extra 30 days grace to pay.

As many will know we are keen to promote paperless business but this takes things a little too far!

Budget 23 March 2011

Follow the links on the right to our budget report and 2011-12 tax tables or go to to

HMRC's Budget 2011 website

Budget report 2011

Tax rates 2011-12

iXBRLformatting for Limited Company accounts

From 1 April 2011 it will be mandatory for all Limited companies to submit their Corporation Tax returns, accounts and tax computations to HMRC online. We have been doing this for a couple of years now, but from the above date, accounts and computations have to be submitted in an electronic format, known as iXBRL.

iXBRL files incorporate electronic markers (tags) against key financial and business data enabling HMRC’s computers to read and interpret the documents, without human intervention. The data that has to be tagged in this way is determined by lists (taxonomies) published from time to time by HMRC.

Most tagging will be accomplished automatically by the software we use to prepare accounts, with the remainder requiring manual tagging by us.

As this is such a huge technological advance for all involved, HMRC have indicated that they will use a "soft landing" approach for the first two years, ie will use their discretion over errors and omissions, and will "only" require companies to apply up to 1,400 tags rather than the 4,000 appearing in their main taxonomy.

In the normal course of events this should all take place without clients noticing much however, as the directors remain ultimately responsible for submissions to the authorities, they should be aware of it. A link to HMRC's guidance PDF for UK businesses appears opposite.

ixbrl business guide

Finance Bill 2011 consultation December 2010

For details of what the government is planning for next year's budget, and even for the opportunity to tell them what you think, visit HM Treasury

For a not too pretty screen print of the proposed tax rates & allowances view the PDF opposite.

Proposed tax rates 2011/12

VAT change to standard rate 4 January 2011 - 20%

Here we go again, at least the VAT inclusive calculation will now be easy, ie 1/6th.

Click on the links opposite for the ACCA's guide (PDF) and HMRC's website. For Flat Rate users there are links on the HMRC page to new turnover thresholds and sector percentages.

ACCA's guide 20%VAT

HMRC - 20%VAT

Just when you thought you were safe; another budget! 22 June 2010

But this time it's an emergency! Follow the links on the right to our budget report and 2010-11 tax tables or go to to HMRC's Budget - 22 June 2010 webpage

Emergency budget report 2010

Tax tables (emergency) 2010/11

Budget 24 March 2010

Follow the links on the right to our budget report and 2010-11 tax tables or go to to

HMRC's Budget 2010 website

Budget report 2010

Tax rates 2010/11

VAT changes - 1 January 2010

All VAT registered businesses will be receiving a note of three changes taking place next year in respect of:

The reinstatement of the 17.5% VAT rate,

Filing VAT returns on line and

New rules on cross-border business, especially for service providers.

Essential reading on all can be found on HMRC's VAT website

GOING CONCERN ISSUES FOR COMPANIES - Directors' responsibilities

Directors have always been required to prepare accounts that give a "true & fair view" and, in the current economic climate, this will include careful consideration of any material circumstances that may cast doubt over the company's ability to continue to operate. In other words, is it correct to prepare the accounts on the assumption that the company is a "going concern"?

If the directors consider that there are material doubts, or that the figures presented may give that impression, then notes should be made in the accounts to explain the situation.

The assessment of the company's wellbeing must be for the year following the date on which the accounts are signed and the Financial Reporting Council (FRC) have recently issued two directives on the subject to directors. Links to both (in PDF format) appear opposite, the first will apply to the majority of our clients (ie small companies) and the second applies to all companies.

All directors are required to consider this.