June 2010 Newsletter

VAT - starting on the Flat Rate Scheme

As an incentive to new VAT registered businesses to consider using the Flat Rate Scheme, H M Revenue & Customs allow a 1% reduction in the flat rate percentage for your type of business for one year. This can be a significant benefit for newly registered traders. If your turnover including VAT is £117,500 in the first year the 1% will be worth a reduction in your VAT payments of £1,175.

Please note that this reduction is only available in the twelve months following registration for VAT. It is not available for the first twelve months you decide to convert to the Flat Rate Scheme if you are an existing VAT registered business. Unless - if say you registered for VAT on the 1 January 2010 and decided to apply to join the Flat Rate Scheme on the 1 April 2010, you could apply the 1% reduction in the rate applicable to your business until 31 December 2010; for the nine months until your first anniversary of registration is reached.

For smaller businesses who qualify for the lower flat rate percentages, the scheme can be cash flow positive. If you are about to register, or have recently registered for VAT and would like more information please call.

Tax Diary June/July 2010

1 June 2010 - Due date for corporation tax due for the year ended 31 August 2009.

19 June 2010 - PAYE and NIC deductions due for month ended 5 June 2010. (If you pay your tax electronically the due date is 22 June 2010)

19 June 2010 - Filing deadline for the CIS300 monthly return for the month ended 5 June 2010.

19 June 2010 - CIS tax deducted for the month ended 5 June 2010 is payable by today.

1 July 2010 - Due date for corporation tax due for the year ended 30 September 2009.

6 July 2010 - Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs.

6 July 2010 - Deadline for submission of new Tax Credit application for 2010-2011, if you want to secure a full years claim.

19 July 2010 - Pay Class 1A NICs (by the 22 July 2010 if paid electronically).

19 July 2010 - PAYE and NIC deductions due for month ended 5 July 2010. (If you pay your tax electronically the due date is 22 July 2010)

19 July 2010 - Filing deadline for the CIS300 monthly return for the month ended 5 July 2010.

19 July 2010 - CIS tax deducted for the month ended 5 July 2010 is payable by today.

DISCLAIMER - PLEASE NOTE: The ideas shared with you in this email are intended to inform rather than advise. Taxpayers circumstances do vary and if you feel that tax strategies we have outlined may be beneficial it is important that you contact us before implementation. If you do or do not take action as a result of reading this newsletter, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

DISCLAIMER - PLEASE NOTE: The ideas shared with you in this email are intended to inform rather than advise. Taxpayers circumstances do vary and if you feel that tax strategies we have outlined may be beneficial it is important that you contact us before implementation. If you do or do not take action as a result of reading this newsletter, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

PKB
87 Church Street, Crowthorne, Berkshire, RG45 7AW.
Telephone 01344 776225. Web site www.pkb.co.uk.
PKB is a partnership registered for VAT under reference 292 6520 47. Partners in the firm are membersof the Association of Chartered Certified Accountants (ACCA). This body has its headquarteres in the UK and the rules of professional conduct can be obtained from its web site.
PKB are authorised to act as statutory auditors by the ACCA.