31st January tax return reminder - don't get caught out by late return penalty

The deadline for filing annual self assessment tax returns is fast approaching. Those who have not yet sent in their 2010/11 tax return need to remember two things - the return must be submitted online and by the 31 January 2012.

Stewart, Fletcher & Barrett want to make their clients aware that sending a paper return – even before 31 January – will now result in a minimum £100 penalty, as will filing an online return after that date.

In summary, the following penalties could arise dependent upon when your tax return is actually filed with HM Revenue & Customs (HMRC).

1 day late	A fixed penalty of £100 (whether you owe tax or not)
3 months late	£10 for each following day up to a maximum of 90 days
6 months late	£300 or 5% of the tax due, whichever is the higher
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 addition to the above penalties, there will also be the following:

5% penalty of the tax you owe after 30 days
a further 5% of the tax you owe after six months
and a further 5% of the tax unpaid after 12 months

Taking all the above into account, these could result in a penalty totaling £1,600 after 12 months. This would be in addition to any tax liability outstanding for that period.

So, if you haven't yet submitted your tax return, Stewart, Fletcher & Barrett's advice is take action now!

SFB New Year's resolution for clients

Reviewing your business plan is the ideal way to start the new year and should be at the top of your New Year's resolution list. SFB can help you assess your business goals, review your company's performance and discuss any opportunities for tax efficiencies and improving your cash flow.

Please call your client manager or Emily Smith at SFB on 02476 384171 if you would like to discuss reviewing your business plan.

SFB team news

New recruits

Stewart, Fletcher & Barrett has recently expanded its team of staff.

Pictured (left to right): Rhian Palanganda, Cheryl Mann, Luke Jenkins, Emma Lloyd & Jo Tudge.

Jo Tudge has joined SFB as the new Outsourcing Manager. Jo will lead the book-keeping function within SFB, covering management accounts, credit control and payroll.

Cheryl Mann has been appointed as Marketing Manager. Cheryl will be responsible for SFB’s marketing strategy and will provide tailored marketing services for clients.

Rhian Palanganda and Luke Jenkins have joined SFB as Trainee Accountants adding to the team of bright young talent at the firm.

Emma Lloyd is the new face to welcome you to SFB. Emma has joined SFB as Admin Assistant and is based on reception at the Nuneaton office.

Continuous Professional Development

SFB are extremely proud of the 18 members of staff who are progressing with their accountancy and tax qualifications.

And finally...

SFB's Big Daddy

Congratulations to David Halkett (pictured right) who became a father for the first time on 1st December 2011. His son Archie Halkett weighed 7 pound 5 ounces.

Tax break plan not fully utilised

The Treasury has said more new firms could be taking advantage of a tax break for hiring new workers.

The plan, announced by George Osborne in his 2010 Budget, was designed to give up to 400,000 small businesses relief on national insurance payments for each of the first 10 staff hired.

But the Government has announced that just 10,000 companies had benefited from the move so far. Ministers said Revenue and Customs was striving to "increase this number".

The chancellor's initiative - offering tax breaks worth up to £5,000 for each worker employed - was designed to encourage job creation in the private sector at a time of big cutbacks in public sector employment.

If your new business is hiring workers and you would like help with maximising the tax break, please call Jo Tudge at SFB on 02476 384171.

Make the most of the Annual Investment Allowance

Stewart, Fletcher & Barrett are advising businesses to make the most of the current £100,000 tax-free Annual Investment Allowance before it reverts back to just £25,000!

Whatever your business, the Annual Investment Allowance is currently offering 100% tax relief on qualifying investments such as technology, machinery, furniture and business vehicles up to £100,000.

However, you need to invest soon as businesses have less than three months to plan and complete any capital investments that are likely to exceed the £25,000 threshold if they want maximum tax relief.

Although some tax relief will still be available on investments over £25,000 from April 2012, it will be less generous and more complex.

Businesses should also consider bringing forward any capital investment plans.

The exact amount of 100% allowances available depends on the accounting period end date of the business, so if you would like any advice regarding making the most of the Annual Investment Allowance, call Adam Bexon at SFB on 02476 384171.

Need forward thinking financial advice?

If you or your business need financial advice, look no further than our sister company SFB Wealth Management Ltd, part of the SFB Group of Companies. SFB Wealth Management Ltd provides a fresh and honest approach to finance advice.

The Wealth Management team are completely independent with no ties to fund managers, banks or insurance companies. Their vision of financial planning is to completely understand you and your objectives. The team will spend time getting to know you and will undertake a full and thorough review of your existing financial situation. They will then work with you to develop and implement a strategy to help you achieve your goals.

In terms of services, SFB Wealth Management Ltd provides the following:

Retirement Planning
Investments and Savings
Protecting your Family in the Event of Death or Illness
Protecting your Business in the Event of Death or Illness
Inheritance Tax Planning
Mortgage Advice

SFB Wealth Management Ltd has a transparent payment structure and promises that the only ongoing fees they receive for the services provided are those described in their schedule and agreed with you in advance. Any other payments will be rebated to you.

If you would like to find out more, please call Vanessa Berry at SFB Wealth Management on 024 7638 4171 or visit our website - http://sfbwm.co.uk

Changes to Capital Allowances for Fixtures

From 1 April 2012, every commercial property transaction involving the transfer of capital allowances relating to fixtures MUST include an election relating to the value of the capital allowances. The vendor and acquirer must agree a figure for the capital allowances relating to fixtures within two years of the transfer.

In summary, this means that any business currently buying a property needs to ensure that the contract includes the necessary elections. Stewart, Fletcher and Barrett can assist in the transfer with the solicitor, to ensure that the elections are included and the maximum amount of tax relief is claimed.

Additionally, any business that currently owns a property needs to take action ASAP to secure capital allowances before the rules change at the end of March.

Stewart, Fletcher & Barrett has recently helped a client to make a retrospective claim. The reclassification of a building identified £66,000 as being fixtures and fittings. This enabled the client to claim a tax relief saving of around £4,000 per annum.

Businesses need to act before the 1st April 2012 to ensure they don't lose out, so please call Peter White at SFB on 02476 384171.

Deadline to reclaim income tax fast approaching

Anyone hoping to reclaim tax for the 2005/06 tax year should move fast – or risk losing it - as the deadline for submissions to HM Revenue & Customs (HMRC) ends on 31st January.

And taxpayers looking to recoup money from the 2006/07 tax year must do so by 31st March. Similarly, any overpaid tax from the 2007/08 tax year must be claimed by April 5.

It follows Alistair Darling’s changes to the tax deadlines introduced when he was chancellor in the 2008 Budget. Those in self-assessment had the four-year deadline imposed from April 2010. But those solely in the PAYE system, who have tax deducted only by an employer or a pension firm, were granted more time.

If you would like advice on reclaiming income tax, please call Sasha Wickham at SFB on 02476 384171.

HMRC to review Business Records Checks (BRC) plans

HM Revenue & Customs (HMRC) is reviewing its controversial Business Records Checks (BRC) project following heavy criticism of its approach from tax representative bodies, small business groups and MPs.

Piloted in Spring 2011, HMRC plans to check the paperwork of up to 20,000 small businesses and can issue fines of up to £3,000 if records are deemed to be below par.

If you are worried about failing a business records check, why not try out our free online business records checker here: http://www.sfb.uk.com/business-record-checker.htm

Forthcoming Business Exhibition - Business 2012

Stewart, Fletcher & Barrett would like to make its clients aware of the forthcoming Business 2012 event, which runs from the 18th - 20th March at The O2 in London.

The event is free to attend, with over 600 workshops seminars and exhibitors available to learn from and speak to for anyone serious about setting up or developing their business. Two of the UK’s best-known and most admired entrepreneurs, Sir Richard Branson and Lord Sugar have been confirmed as keynote speakers.

Speaking about Business 2012, Sir Richard Branson said:

"I can confirm that I will be at Business 2012, being interviewed live on stage and answering questions and tweets. No one has a monopoly on good ideas and events like this can open the door to greater connections and business opportunities: something we all need during these challenging times.”

Business 2012 is for people in the early stage of starting up as well as for established businesses. To help visitors tailor their visit and make the best use of their time, you can register as a Start Up, SME and Mid-Market business. To see the range of confirmed speakers and exhibitors and register for a free ticket, go to www.business2012.com

Business growth - thinking about exporting?

On the 10th November 2011, the Prime Minister launched a national initiative to boost the number of exporting SME's; setting a target of up to 100,000 companies over the next four or five years to begin exporting for the first time, or enter a new market.

An event is being held for key regional intermediaries and potential exporting SME's hosted by UK Trade & Investment (UKTI), on the 28th February at the International Convention Centre (ICC), Broad Street, Birmingham.

For more information, please visit www.regionalexportforgrowth.com

Complete your tax form early and win £100,000 cash prize

Workers who pay their tax bill early will have a chance of winning £100,000 in a plan by the Government to ease the pressure on HM Revenue & Customs (HMRC).

Anyone filing their self-assessment two months early would automatically have a shot at scooping the cash, as well as smaller prizes.

HMRC is currently forced to take on extra staff to deal with people missing the January 31 deadline. The spike in processing applications costs £1 million in additional IT spending alone.

Cabinet Office officials are currently drawing up a pilot of the competition scheme. Watch this space!

Beware of tax rebate scam

Stewart, Fletcher & Barrett would like to make you aware of a recent scam relating to tax rebate notifications.

HM Revenue & Customs (HRMC) will never send notifications of a tax rebate by email, or ask you to disclose personal or payment information by email. So, if you receive an email regarding this, please do not visit the the website contained within the email or disclose any personal or payment information.

A selection of fake email addresses used to distribute the tax rebate emails can be seen below:

Please remember, HMRC do not send emails using these email addresses.

Thank you for taking the time to read the SFB EZine.

With so much changing in the world of accountancy, we recognise that there may be topics of interest to our readers that we haven't included in this edition.

If there is a specific subject you would like to see featured in future editions, please contact Cheryl Mann at SFB on 02476 384171.

Stewart, Fletcher & Barrett
www.sfb.uk.com

Stewart, Fletcher & Barrett are business and tax accountants with offices in Warwickshire and Leicestershire.

The company offers accounts, taxation and business advice and support services and has vast experience in various trade sectors, including retail, manufacturing, healthcare, building and building services, and estate agents.

January 2012 EZine