ESSENTIAL GUIDE TO MONEY: Fenland accountancy firm highlights changes around the corner at end of tax year
NICKIE Bantoft, of Bantoft & Co in Wisbech, highlights the financial requirements businesses face and the changes coming into force in the next few months.
WE have reached the end of January 2011 and the filing deadline for Self Assessment Returns for the year to April 5 2010.
We now move our focus to the requirements and changes around the corner for individuals and businesses at the end of this tax year.
With the end of the tax year approaching as employers you will need to file end of year P35s and issue employees with P60s. In addition all PAYE and National Insurance payments for the year must be settled.
Almost all employers are now required to file P35s online now and penalties may occur if you submit paper returns. Filing deadline is May 19.
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A welcome reduction in corporation tax from April 1 - small profit rate is reducing to 20 per cent and main rate reducing to 27 per cent.
Businesses are able to claim the AIA in respect of their expenditure on both general and “special rate” plant and machinery. The AIA is effectively a 100 per cent allowance that applies to qualifying expenditure up to an annual limit or cap.
The annual limit remains unchanged for the next tax year at �100,000. This is a great tax saver and we encourage you to use this.
The main changes that will affect all of us from April 6 are:
• Increase in personal allowance for under 65s from �6,475 to �7,475 (giving an extra �1,000 earnings before we start to pay tax).
• Rise in National Insurance threshold to �139 per week.
• On the downside – 40 per cent tax rate starts at �35,001 above the tax threshold (�2,400 lower than this tax year).
• All National Insurance rates increase by one per cent.
We aim to provide our clients with up to date and relevant advice on changes to give them the best possible tax advice.
We offer support and services in all these areas and if you have any questions or concerns about any of these items please feel free to call or email our friendly team.