Data from the Insolvency Service reveals today that personal insolvencies in England and Wales have dropped to their lowest level since 2008, despite the tough economic conditions.

Between October and December 2011, there were 28,973 individual insolvencies in England and Wales, a 5.6% decrease on the same period the previous year, and down from 30,219 in the third quarter.

Personal insolvencies in 2011 totalled 119,850, a decrease of 11% from 2010. This included:

• 41,845 bankruptcies, which were down 29% on 2010,
• 49,056 Individual Voluntary Arrangements (IVAs) – down 3% on 2010 – and
• 28,949 Debt Relief Orders (DROs), a 15% rise on the previous year.

Respected Thinktank predicts economy will shrink by 0.1% and urges investment in infrastructure to create jobs.

Statistics from the National Institute of Economic and Social Research (NIESR), released earlier today, show that the UK economy is set to enter recession in the first half of the year, shrinking by 0.1% during 2012 (following its 0.2% contraction in the final quarter of 2011).

However, NIESR predicts that it is not all doom and gloom and that the economy should bounce back and grow by about 2.3% in 2013. Simon Kirby from NIESR, comments: “That the economy is in poor shape is obvious. The … Continue Reading

All tax returns must be filed online by 31st January following the end of the financial year.

If you missed the tax return deadline, you’ll be charged an automatic £100 penalty.

If you fail to pay any tax owed, you will pay further penalties:

• Thirty days late - 5% of the tax you owe at that date
• Six months late – an additional 5% of the tax you owe at that date.
• Twelve months late – an additional 5% of the tax unpaid at that date.

You will have to pay interest on anything you owe at a rate determined by HMRC.

Don’t delay…

If you would like more information on … Continue Reading

5 April 2012 is the last day of the current tax year, and may well be the end of your accounting year too, so it’s a good time to do a bit of tax planning to make sure you’re maximising your profits.

Here are five ways to save on your tax bill:

• Buy a new company car. Company cars with CO2 emissions of over 160g/km will attract less tax relief from 1 April 2009 (for unincorporated businesses it is 6th April 2009), so you may want to acquire any new cars in this category before that date. You will also accelerate capital allowances … Continue Reading
  

In his 2010 Budget, George Osborne announced a tax break plan designed to give up to 400,000 small businesses outside the Greater South East relief of up to £5,000 on the national insurance payments for their first 10 staff.

But reports this month suggest fewer than 10,000 businesses have benefited from the initiative.

Speaking to the Press Association, a Treasury spokesman said:

“Over 10,000 businesses have already been helped by the scheme, with these employers benefiting by an estimated £6m. But more businesses could benefit and HMRC has been working to increase this number.”

Are you missing out? Speak to your accountant today, or call us on 01327 … Continue Reading

If you file annual self-assessment returns with HMRC, then you’ll know that once you declare what your income has been for the past financial year, you’ll be given a figure that reflects the tax owed on that sum.

Unless that sum is already covered by PAYE tax payments, or payments made earlier on account, you will required to clear it by making a ‘balancing payment’, which may also include capital gains tax and/or student loan repayments if applicable.

In most cases, the balancing payment must be made by January 31st after the end of the tax year in question so it is likely … Continue Reading

The deadline for filing your 2010/2011 tax return online is January 31st 2012 – are you prepared?

If you’ve never filed online before, you will need to register with HMRC’s self-assessment online service, at www.hmrc.gov.uk/sa.

Click ‘Register for Self Assessment Online’ in the top right hand corner, fill in your details and you’ll be sent an activation code which will be issued in the post. This can take a week or more, so if you haven’t already, now is the time to act! Anyone who fails to meet the 31 January deadline will be fined £100, regardless of whether or not any tax is … Continue Reading

If you’re self-employed, you will need to make an annual declaration of your incomings and outgoings to HM Revenue and Customs. This is known as a self-assessment tax return.

Your return will show your income (what you’ve earned) and capital gains (gross income) and allow a final figure to be produced stating the amount of income tax you are liable to pay.

Where can you get one?

Before you can file your self-assessment tax return, you will need to register with the HMRC by visiting http://www.hmrc.gov.uk/sa/register.htm. HMRC will then use the information you provide to set up a record for you.

You will … Continue Reading

According to a survey by insurance giant RSA and the Warwick Business School, 12% of SMEs said they had experienced difficulties obtaining finance over the past year.

Speaking to the Guardian, Tara Kneafsey, a director at RSA, said:

“Confidence is a critical factor for SMEs as we approach 2012 – confidence in knowing they are protected should the unexpected happen and confidence in having access to capital to maximise growth opportunities.”

“Our research suggests that this investment and support will increasingly be sought from private investors rather than banks in the coming years.”

If you’re struggling to get much needed financing for your business, one thing worth … Continue Reading

Are you a teacher that does private lessons? Or weekend lessons? You need to make sure you have the correct documentation for HMRC.

Getting on the wrong side of the tax system can create huge problems that are easy to avoid if you do everything right to start with. Check out our guide of what you need to do if you’re a private teacher.

• Keep a record of all your incomings – Private teachers/coaches tend to be paid cash in hand and this why HMRC is now targeting private teachers to make sure they are paying the right amount of tax.
• Keep your … Continue Reading