Wyatts

Wrapping up the year

We have arrived at that time of year when we notice that the seasons have changed. The leaves are falling, there is a chill in the air and the nights are drawing in. . . its time to wrap up your tax affairs for 2012.

No need to feel overwhelmed. That paperwork is not the mountain you think it will be. Organise the information for your Tax Return methodically and you can be ready to file early. It will certainly be a real weight off your mind.

Dont hibernate and ignore the tax return deadlines.

This year has been fraught with economic ups and downs. The future feels uncertain for us all and it is time to make sensible plans to build your nest egg. We work with recommended Financial Advisers to help you plan your future.

Drop us a line at office@wyatts.uk.com Let us help you avoid the new Tax Penalties from HMR&C. As we told you in the New Year Tax Letter, HMR&C have introduced a range of punishing penalties for late filing.

Penalties for missing the tax return deadline Length of delay 1 day 3 months late Penalty you will have to pay A fixed penalty of 100. This now applies even if you have no tax to pay or have already paid the tax you owe. 10 for each following day - up to a 90 day maximum of 900. This is as well as the fixed penalty above. 300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above 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. These are as well as the penalties above.

3 months 6 months late 6 months 12 months late Over 12 months late

Its a spooky time of year but why not chase away the demons and beat the tax deadline. It could be to your advantage to file early, you may be due a tax rebate.

Get this task out of your life for another year, and sleep easy knowing your affairs are in order.

Deadlines for your diary

31st October - deadline for Self-Assessment 2012 if filing a paper return 31st January final filing deadline for SATR 2012 filing on line 31st January 1st Income Tax Payment on Account for 2012-2013 30th April - PAYE year end April 2013 19th May - P35 & P14D filing deadline 30th May - P60's to be issued to employees 19th July - P11d Submission deadline 31st July 2nd Income Tax Payment on Account for 2012 - 2013

Tax Facts & Tax Rates

* Tax Free Personal Allowance rises to 8,105 for tax year 12/13 * Personal Allowance Income limit unchanged at 100,000 * Class 2 Self-Employed NI rates increased by 15p per week * Upper rate Income Tax threshold at 150,000 lowered to 45p for 13/14 * Corporation Tax rate for Smaller Entities unchanged to 20% * Main Rate Corporation Tax lowered to 24% * Corporate Entrepreneurial relief lifetime limit unchanged at 5m * Tax relief on pension allowance at 50,000 * Lifetime allowance for pension payments reduced to 1,500,000 * Capital Gains tax at 18% * CGT Threshold at 10,600 * VAT remains at - 20% * VAT threshold at 77,000 * Inheritance Tax Threshold unchanged at 325,000 still frozen until 2015 * ISA cash investment increased to 5,640 * ISA overall investment increased to 11,280 * Stamp duty relief unchanged for purchases up to 150,000

If you would like to discuss any changes proposed by the Finance Bill and their implications for you, please contact your accounting team who will be happy to assist. Write to the person you wish to speak to @wyatts.uk.com

Payments on Account
We are often asked how the payments on account system works. For the tax year 2011-12 (ending on 5 April 2012) you must pay all the tax you owe by 31 January 2013. By 31st January, you must also pay the first of two 'payments on account' for the coming year. This squirrels away your tax for next year so payment wont be so challenging. Payments on account are part payments towards your next years tax bill. 31st July is the deadline for making your second payment on account for the following tax year leaving a clear path for you to walk towards a golden year ahead.

From all the team at Wyatts We have changed our email addresses here at Wyatts. Just put the name of the person you need to contact followed by @wyatts.uk.com You can also visit us at www.wyatts.uk.com. Contact our general email address at office@wyatts.uk.com or write to any of the team individually for specific assistance.

Were here to help you wrap up your tax affairs