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Terry Cartwright's Articles in Taxes

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Tax on Income, Accounts Ledger Tax Revenue Services for Startups at Inland Revenue Tax on Income for startups. Small business tax revenue services for financial and accounting help on accounts ledger from the Inland Revenue Travel Expenses Tax Allowances, Car Mileage Rates and Subsistence Travel expenses car mileage rates meal cost subsistence allowance, daily tax allowances, meal allowance and Inland Revenue mileage car allowances HMRC, HM Revenue & Customs, Inland Revenue Importance of Accounting HM Revenue & Customs and inland revenue issues - putting the importance of accounting calculations accurately at the top of HMRC accounting ledger Registering and Advantages Filing Self Assessment Tax Return Online Every self employed business either submits a paper tax return early or files the tax return online after registering to file the self assessment tax return online which has advantages Sole Trader Basic Accounts Income and Expenditure Account A sole trader in the UK can operate a very basic accounting system. Provided supporting evidence is retained to show the basic accounts are realistic and the income and expenditure statement accurate for basic tax purposes sophisticated accountancy, debits and credits are not required. Basic accounts for sole traders do not require the production of a balance sheet. How Much is Tax on Income, Tax Percentage Rates and Income Returns The answer to how much is tax on income and the income tax percentage paid is dependent upon the status of the individual being employed, self employed or incorporated as a limited company. Employees pay income tax and national insurance under the paye system while self employed individuals submit self employed income returns and although they receive the same UK allowances they pay different national insurance. Inland Revenue P46 Tax Questions With Notes On Accepting The P46 Form A new employee without a P45 should be asked to complete a P46 form which the employer submits to HMRC. Inland Revenue P46 forms can be downloaded from the HMRC website and also submitted online. Completing the P46 solves a number of tax questions a new employer may have regarding the new employee status and is essential to ensure the PAYE records start off on a correct basis Paye P45 Form Tax Questions and New Employee P45 Forms Employers in the UK issue an employee that leaves with a P45 tax form stating details of that employment including the cumulative earnings and income tax paid to date. Not everything always go to plan resulting in a number of tax questions regarding the P45 form especially when a new employer may not have received the P45 form. Tax Inspectors Are Professionals But Not Unbeatable The vast majority of tax returns are not enquired into by HMRC and are accepted as reasonable. When HMRC investigate the tax return of a small business the inadequacies of the accounting, lack of knowledge by the enquired and professionalism by the tax inspector often results in a higher tax bill. Reduce Tax Bills In Uk By Knowing What To Claim Tax bills can be reduced if all allowable business expenses are included in costs and receipts retained as supporting evidence. While all business expenses can be claimed it would not be unusual for particularly inexperienced small businesses to fail to claim some business expenses due to uncertainty over what constitutes a valid business expense. New Self Employment Tax Returns In The UK HMRC published new self employment tax returns in April 2008 to replace the previous self assessment tax returns for self employed business in the UK. The self employment tax returns are applicable from the financial year ending 5 April 2007. Similar to the previous self assessment forms the new tax returns are in two versions, full and short returns, dependent upon the level of sales income. Employees Can Claim Tax Relief Using Their Vehicle For Work Employees in the UK who use their own vehicle for work can claim tax free expenses. If an employee keeps records of business journeys and the amounts paid by an employer the employee may also be entitled to receive mileage allowance relief in addition to those expenses for the past six years. Value Added Tax, Vat Schemes and Vat Thresholds Value Added Tax is a tax payable by any taxable person or business on sales income unless exempted or zero rated when the annual level of sales reaches the vat threshold limit, raised to £64,000 p.a. from 1st April 2007. Vat output tax is payable on total sales whether a business has registered for vat or not. Register for vat when the vat threshold is reached to enable vat input tax to be reclaimed and minimise vat liability with a vat scheme.