As an employee you can claim tax relief for expenses incurred in doing your job, for example business mileage, cycling on business, hotels, meals, business phone calls, in fact anything as long as its business related
If your claim is less than £2500 you can make your claim using Form P87 http://www.hmrc.gov.uk/forms/p87.pdf if its more than £2500 you will need to complete a Self Assessment Return (you need to phone HMRC to request a Self Assessment Return – contact details below), if you know your UTR number you can register and file your Self Assessment Return on line.
Help and advice for customers completing their tax return and supplementary pages, or who need general advice about Self Assessment
Please have your Unique Taxpayer Reference number with you when you phone
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Closed Sundays, Christmas Day, Boxing Day and New Year’s Day
Many employers pay their employees expenses for business mileage, but often the amount they pay is below the HMRC approved rates shown below.
If your employer pays at rates below the HMRC Approved Rates you can claim tax relief on the difference, this can add up to a lot of money particularly for site based staff who can count travel to temporary places of work as business travel or for workers who’s place of work is their home.
You can claim the tax relief via your self assessment return or by writing to HMRC.
Cash Accounting is a VAT scheme and it will improve your cashflow if your customers pay more slowly than you pay your suppliers and other costs. For example if your clients pay on 60 to 90 day terms and you pay suppliers on 30 days then VAT Cash Accounting should work in your favour. When you use Cash Accounting you pay VAT based on money received and money paid (so you exclude customers who havent paid).
You can use the Cash Accounting Scheme if your estimated VAT taxable turnover during the next tax year is not more than £1.35 million.
Once you start to use cash accounting, you can continue to do so until your VAT taxable turnover reaches £1.6 million.
You can use Cash Accounting with other VAT Schemes, for example the Flat Rate Scheme.
You do not need to complete an application form or advise HM Revenue & Customs (HMRC) to start using the Cash Accounting Scheme.
You can start using the Cash Accounting Scheme at the beginning of any VAT period if you are already registered for VAT
As part of the Autumn Statement, the George Osborne annouced:
From April 2012, anyone investing up to £100,000 in a new start-up business will be eligible for income tax relief of 50%. In 2012, any tax on capital gains invested in such businesses will also be waived.
Its will soon be Christmas and its definitely party season, did you know that you can spend £150 per head per year on parties and functions and its not a taxable benefit to the employee and you can reclaim the VAT on entertaining employees.
All companies spending at least £10,000 in their accounting year on qualifying R&D are entitled to claim a deduction when calculating their taxable profits of:
175% of qualifying expenditure for SMEs in respect of expenditure incurred on or after 1 August 2008 rising to 200% from April 2011 and 225% from April 2012, subject to EU approval under the State aid rule
130% of qualifying expenditure for larger companies until 31 March 2008
Under this scheme, for a limited period and subject to meeting certain conditions, new businesses may qualify for a deduction of up to £5,000 from the employer NICs that would normally be due – for each of the first ten employees they take on.
The National Insurance contributions (NICs) holiday is available to new businesses that start up during the period from 22 June 2010 to 5 September 2013.
The types of business that may be able to apply for the holiday are:
a sole trader, company or partnership that begins to carry on a trade, profession or vocation
a property business or investment business
a new trading charity whether or not it is carrying out activities with a view to profit
Managed Service Companies do not qualify for the holiday.
If you have recently started a new business its well worth finding out if it will qualify.