Further to my earlier article where I considered the combined percentage rate of income tax and national insurance contributions for the tax years 2008/09 and 2009/10, I now include the relevant percentage and income ranges for the tax years 2010/11 and 2011/12.

This is a basic illustration showing the position for those under 65 years old receiving income evenly throughout the year with a basic personal allowance, no employee benefits or pension contributions and no savings or investment income.

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Please note the significant changes to the penalty regime on late filed tax returns for previously the cost of filing a tax return late would be only a couple of hundred pounds. However, from 6th April 2011 the amount of any penalty is no longer reduced by reason of an individual owing no tax or national insurance.

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With only nine months until the start of mandatory online filing of corporate tax returns (i.e. Forms CT600) it is now time for the smallest of companies and organisation to take stock of the situation. For those companies and organisations retaining the use an accountant very little will change – except that from 1 April 2011 all tax liabilities must be made electronically.

Unfortunately those most likely to be affected by the mandatory online filing are the very smallest of the ‘not for profit’ organisations who will shortly find themselves facing one more hurdle to jump in order to inform HM Revenue & Customs that they have nil tax to pay.

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This article looks at the dual tax rules that will exist for the next five years on cars held by companies and individuals following the recent alignment of tax rules with car Co2 emissions. It considers the impact on cars held on the balance sheets (i.e. purchased or on HP) and those lease financed, where they remain off the balance sheet, i.e. an operating lease.

The relevant date of commencement of the new rules is 1 April 2009 for companies and 6 April 2009 for individuals (i.e. the start of the 2009/10 tax year). The term “grandfathering” is tax speak for allowing the old ‘list price’ rules to continue to apply to cars held at and beyond the date of transition.

Welcome to another green stealth tax!

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To combat what is perceived as ‘false self employment’ in the construction industry the government is consulting on proposed changes to the CIS rules in an attempt to recover an estimated annual loss of £350 million in tax and national insurance contributions.

With a due consultation date of 12 October 2009, it remains unclear whether the proposal could become legislation in time for the start of the tax year 20010/11 – but this is still an unknown.

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