Friday 11th March 2011
  Taxation

  • Our service includes completion of the dreaded self-assessment Tax Return, for individuals, partnerships, trusts and companies.
  • Virtually all tax return work is completed on a fixed-price basis, and includes advice on forthcoming liabilities, checking HM Revenue and Customs statements, and sending out payslips.

In addition to dealing with these compliance matters, we are also able to advise on a range of tax planning measures to mitigate Direct tax and Indirect tax and Capital tax liabilities to ensure the Taxman's take is kept to the absolute minimum.

For further information on these services see

Frequently Asked Questions

When does my tax return have to be filed with HM Revenue and Customs?

A tax return needs to be submitted each year if you are an individual or partnership and needs to be submitted by 31 October if you choose to submit a paper return and 31 January if you are filing online – the information included on the return will be for the year to the previous 5 April and within 12 months of the financial year end for Companies with the information being in respect of the company’s financial year rather than for any specific tax year.

What will happen if my tax return is filed late?

An automatic £100 penalty will be raised for any return that is not filed in time for the filing deadline.  However if the outstanding tax transpires to be less then than this then the penalty will be reduced to the same amount.  A second £100 penalty is raised for any returns still outstanding 6 months after the due date.  In addition daily penalties of up to £60 per day may be charged where deemed appropriate.

For partnership returns the £100 penalties are per partner and cannot be reduced.  There are however no tax geared penalties for partnerships.

When do I need to notify Revenue and Customs if I set up a new business?

You should notify Revenue and Customs within 3 months of commencing self-employment to avoid a possible £100 penalty.

Why do I have to pay next year’s tax as well as this year’s tax each January?

In this situation what will have happened is that your profits or other untaxed income are higher than they were in the previous year hence your tax liability is higher.  As the two instalments of tax you make as payments on account are always based on your previous year’s tax liability, they will not have been large enough to settle your full liability in the previous January and July and therefore you need to pay the balance in the next January at the same time as making your first instalment for the following tax year.  Bear in mind that as the first instalment (and subsequently the second) for the new year is based on the now higher level of profits earned, it will be higher as a result than last year as well.  The situation works in reverse where profits are falling and you will find that your payments on account more than meet your liability leading to a repayment or a reduction in the next year’s instalment required.

Am I allowed to pay for entertaining through my business?

Yes but only staff entertaining can be used to reduce taxable income and there are limits on the amount.  Entertaining of customers, suppliers or other contacts is not allowable for income tax and also VAT on this type of expense should not be recovered by the business.

Do you offer a fixed quote for tax returns?

Yes.
We have systems in place which enable us to process Tax Returns in a cost effective way.
The agreed fee not only includes the preparation of the Return but also written reminders of when liabilities are due for payment.

For more information on taxation matters contact ...

Grahame Miller FCA, Partner grahame.miller@argentsaccountants.co.uk

Mark Johnstone MA, FCA, Partner mark.johnstone@argentsaccountants.co.uk