Did you know you could be landed with a penalty if you fail to tell the Taxman when you become liable to pay tax? For example, when you become self-employed, or make a large capital gain. The deadline for declaring that you have income tax or capital gains tax (CGT) chargeable relating to the year to 5 April 2010, is 5 October 2010.
If you miss that deadline, the Taxman may send you a failure to notify penalty, which can be up to 100% of the tax due. However, if you pay all the tax due on time, which for income tax and CGT relating to the 2009/10 tax year, is by 31 January 2011, the penalty can be reduced to nil.
Where you have already received a self-assessment tax return form to complete for 2009/10 or a notice to file a self-assessment tax return online, your obligation to tell the Taxman is satisfied when you submit your tax return on time. But if you haven't got a tax return form, you need to ask the Taxman to set you up in the self-assessment system before 5 October 2010. We can help you with registration.
Once you are registered with the Tax Office, you should receive either a Tax Return form or a letter from the Taxman asking you file a Tax Return online. The form or letter will include your Unique Taxpayer Reference number (UTR). If you submit a Tax Return that does not include your personal UTR number it may be rejected, and any tax payments you make will not be promptly matched to your records.
Friday 22 October 2010
Thursday 21 October 2010
Mazuma win HSBC Start-up Stars Award!
We are delighted to announce that Mazuma have won the HSBC Start-up Stars 2010 award!
More than 250 leaders from the worlds of business, politics and the media gathered at the Dorchester Hotel on Monday 18th October 2010 for a glittering Gala Dinner to celebrate the 2010 HSBC Start-Up Stars Awards. The 2010 Start-Up Stars winners were announced on the night for the overall winner, the green award and the international award.
Head of business banking for HSBC, Huw Morgan, said: "Lucy and Sophie's story is a perfect demonstration of two entrepreneurs with a great idea, who then carried it through to create an impressive brand
From left to right: Dodo Juice (HSBC Green Award winner 2010), Mazuma (HSBC Start-Up Star 2010), Veritas (HSBC International Award winner 2010)
Business Secretary Vince Cable praised the 16 finalists competing for the top honours, saying: "The very best of British enterprise is represented at the HSBC Start-Up Stars Awards."
He added: "With the economy still facing significant problems and the state no longer able to spend its way to recovery we are more reliant than ever on enterprise and business to provide real growth and jobs for our economy. The dynamism, innovation and hard work of these SMEs will help drive Britain's economic recovery now and for the future and will demonstrate yet again that the UK is open for business."
We'd like to say a big thank you to all of our staff and clients across the UK who have helped make Mazuma what it is today, we wouldn't be where we are without you!
More than 250 leaders from the worlds of business, politics and the media gathered at the Dorchester Hotel on Monday 18th October 2010 for a glittering Gala Dinner to celebrate the 2010 HSBC Start-Up Stars Awards. The 2010 Start-Up Stars winners were announced on the night for the overall winner, the green award and the international award.
Head of business banking for HSBC, Huw Morgan, said: "Lucy and Sophie's story is a perfect demonstration of two entrepreneurs with a great idea, who then carried it through to create an impressive brand
From left to right: Dodo Juice (HSBC Green Award winner 2010), Mazuma (HSBC Start-Up Star 2010), Veritas (HSBC International Award winner 2010)
Business Secretary Vince Cable praised the 16 finalists competing for the top honours, saying: "The very best of British enterprise is represented at the HSBC Start-Up Stars Awards."
He added: "With the economy still facing significant problems and the state no longer able to spend its way to recovery we are more reliant than ever on enterprise and business to provide real growth and jobs for our economy. The dynamism, innovation and hard work of these SMEs will help drive Britain's economic recovery now and for the future and will demonstrate yet again that the UK is open for business."
We'd like to say a big thank you to all of our staff and clients across the UK who have helped make Mazuma what it is today, we wouldn't be where we are without you!
Tuesday 5 October 2010
PAYE 'Errors'
You have no doubt heard on the news about the PAYE 'errors' affecting millions of people this autumn. The underlying problem is not new - the PAYE system does not cope well with taxpayers who have income from more than one employment or pension during the year. Under or overpayments of tax arise, and when the Taxman gets round to reconciling the tax and allowances due on the two or more employments, he issues a tax computation (form P800) to the taxpayer.
Unfortunately the Taxman did not do his reconciliations for 2008/09 (and in many circumstances for earlier years), so there are now two years worth of forms P800 (2008/09 and 2009/10) on their way to up to 4.7 million taxpayers.
It is going to take some weeks to issue all those forms, so you may not receive a letter immediately, if at all. If you normally complete a self-assessment tax return form you should not receive a form P800 as all your tax liabilities are reconciled on the self-assessment form.
If you do receive a form P800, don't panic. In most cases it will show a repayment of tax, which will be sent to you within a few weeks. You do not have to supply any further details to the Taxman to get this repayment. To avoid fraudulent scams, PLEASE DO NOT respond to emails or telephone calls asking for your bank details in connection with a tax repayment.
If the form P800 shows that you owe some tax, you won't have to pay anything immediately. Indeed, if you owe less than £300 in total for 2008/09 and 2009/10 that tax will be written off and you won't have anything to pay. If the tax due is less than £2,000 it will be collected through your 2011/12 PAYE, so the amount will be deducted from your monthly salary in the year to 6 April 2012. If the tax due is more than £2,000 the Tax Office will issue a separate payment request, and ask for payments to be made in 2011. However, if you will have difficulty in paying the amount due, whether this is more or less than £2000, you can ask to pay over an extended period of up to three years.
There is a possibility that you could avoid paying the tax due, where you can prove that the Taxman ignored information relating to your tax affairs for more than 12 months after the end of the tax year. This procedure is called Extra Statutory Concession A19, and you need to make a claim for this to apply.
Unfortunately the Taxman did not do his reconciliations for 2008/09 (and in many circumstances for earlier years), so there are now two years worth of forms P800 (2008/09 and 2009/10) on their way to up to 4.7 million taxpayers.
It is going to take some weeks to issue all those forms, so you may not receive a letter immediately, if at all. If you normally complete a self-assessment tax return form you should not receive a form P800 as all your tax liabilities are reconciled on the self-assessment form.
If you do receive a form P800, don't panic. In most cases it will show a repayment of tax, which will be sent to you within a few weeks. You do not have to supply any further details to the Taxman to get this repayment. To avoid fraudulent scams, PLEASE DO NOT respond to emails or telephone calls asking for your bank details in connection with a tax repayment.
If the form P800 shows that you owe some tax, you won't have to pay anything immediately. Indeed, if you owe less than £300 in total for 2008/09 and 2009/10 that tax will be written off and you won't have anything to pay. If the tax due is less than £2,000 it will be collected through your 2011/12 PAYE, so the amount will be deducted from your monthly salary in the year to 6 April 2012. If the tax due is more than £2,000 the Tax Office will issue a separate payment request, and ask for payments to be made in 2011. However, if you will have difficulty in paying the amount due, whether this is more or less than £2000, you can ask to pay over an extended period of up to three years.
There is a possibility that you could avoid paying the tax due, where you can prove that the Taxman ignored information relating to your tax affairs for more than 12 months after the end of the tax year. This procedure is called Extra Statutory Concession A19, and you need to make a claim for this to apply.
Monday 4 October 2010
National Minimum Wage Changes
In the current recession you may have been forced to freeze or even reduce wages. If your workers are low paid you must be careful that you continue to pay at least the national minimum wage rate (NMW).
The hourly NMW rates increased on 1 October 2010 and now apply to workers in the following age bands:
21 and over: £5.93
18-20: £4.92
16 and 17: £3.64
Apprentice rate: £2.50
The apprentice rate applies to apprentices aged under 19, or those aged 19 or more in the first year of their apprenticeship.
The Taxman can impose penalties of up to £5,000 if you do not pay the statutory NMW rate, and you may even be tried in the Crown Court for non-compliance with the NMW rate regulations, leading to an unlimited fine. You must also pay any arrears of wages owed (for the previous 6 years), based on the current NMW rate, not the rate in force when your employee was underpaid.
The hourly NMW rates increased on 1 October 2010 and now apply to workers in the following age bands:
21 and over: £5.93
18-20: £4.92
16 and 17: £3.64
Apprentice rate: £2.50
The apprentice rate applies to apprentices aged under 19, or those aged 19 or more in the first year of their apprenticeship.
The Taxman can impose penalties of up to £5,000 if you do not pay the statutory NMW rate, and you may even be tried in the Crown Court for non-compliance with the NMW rate regulations, leading to an unlimited fine. You must also pay any arrears of wages owed (for the previous 6 years), based on the current NMW rate, not the rate in force when your employee was underpaid.
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