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HMRC Business Records Check: Are you prepared?
We alerted you to HMRC's intention to roll out a programme of BRCs in the second half of 2011. If your business is selected HMRC staff will visit your premises and ask for access to all your business records. If they feel that there is a significant failure to keep proper records penalties may be charged and they may raise additional queries. There are two things you can do to protect yourself:
- If you haven't done so already, sign up for The DNS online portal .Not only does it show your real-time accounts, lending DNS the opportunity to make the most of our tax planning expertise, it also reminds you of your due dates and tells you what you can take out and what you owe. It ensures your records are up to date.
- Take out DNS Tax Investigation insurance, which comes free with some of our packages.
Most importantly: if you receive notification from HMRC to say they intend doing a BRC on your business do not ignore the letter. If you're already part of the DNS online portal community, the chances are that they will be very lenient because they will see that you are taking your business records very seriously indeed.
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Director's Loan Account
Earlier this month we warned you of the implications of directors' loan accounts . We suggested that you take a look at the HMRC toolkit on this same subject. The gist was this:
- Keep an eye on the director's loan account and don't let it go above £5,000;
- If the account does go over £5,000 in the accounting year, calculate the level of interest payable and debit the director's account according thus avoiding filing a P11d.
- If the account is overdrawn more than 9 months then kindly delay submission of the accounts to avoid paying 25% tax.
Most importantly directors should not aim to settle the overdrawn's director account temporarily but settle it permanently |
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Paying your Child School Fees Tax Free
School fees can be an expensive extra to the household budget, and earlier this month, we alerted you to a way of saving thousands of pounds in school fees each year. How? Ask grandparents to purchase shares and gift them to your children and hold the shares in trust until your child is 18. Talk to your account manager today about setting this up. Read the article in full in our knowledgebase under tax tips and articles
Thank you all once again for your loyalty and business; please continue to
send us your referrals and take advantage of our incentive to do so. We hope you have a very happy and successful March.
Finally if you are interested to find out more about new product or a report on future of EBT and Tax Planning please email sumit on sumit@dnsassociates.co.uk or Benny on benny@dnsassociates.co.uk
Best Wishes
Sumit Agarwal
And DNS Team
PS: DNS tax team will be in touch in relation to Year ending 05 April 2011 Tax Return very soon.
PPS: Please co operate with Tax Credit team in case you are eligible for
.
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