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DNS Associates April 2011Newsletter

 

In this issue
Contractor Wins IR35 Case
Changes to Personal Allowance
Company Cars
Registered Office Service
Contractors why Get less when you can get 85%
Why not Try our new Tools
Greetings!
  

 

As the weather gets warmer, so HMRC is getting hotter on late filing of self assessment tax returns and late payments. Beware! This new penalty regime will seriously affect your finances! Read the article  "New Penalty Regime - Ouch" for full details. Please rest assured that DNS will not let you fall foul of late-filing penalties, but in order that we can do so, please watch out for all requests about tax returns from the DNS Tax Team.

 

Read on, but first, here's some advice: 

  • If you're a contractor, use the DNS online accounting portal
  • If you're a sole trader, become a limited company; earn more, pay less tax! Read our article in the Knowledgebase; email or call DNS immediately and we'll take you through the process.
  • If your main income is through PAYE but you have other income as well, you need to fill in a self assessment tax return. Contact DNS now and we will help you avoid late filing and late payment of your tax return. Not only that, we'll look at all the ways you can minimise your tax liability.

  • If you're a director, you are required to file a tax return even if your income is nil. You need to contact us: read below, there are some changes about which you MUST be aware.

In this Issue we have loads of Exciting Stuff. Landmark Victory for IR35 Contractor, Changes to Personal allowances and how this will affect you, Company Cars or Personal Car, Registered office services and how they can help you build your image and Brand, Exciting new solution offering IR35 Contractors 85% returns and Finally tools for you to do your financial health check assessment. Keep reading and enjoy. 
Contractor Wins IR35 Case

 

An engineer, known as F, was working on a contract basis for Airbus UK through his own company, MBF Design Services. He appealed against HMRC's decision that his employment status for years 2001-2007 fell within IR35.

 

In April 2003, Airbus took on F and his company under a contract via intermediaries at an hourly rate that increased if he worked more than 35 hours a week. The tribunal noted that the "request for services" to which the contract related included a seven-day notice period and a stipulation that sub-standard service or attendance would give Airbus a legitimate claim to withhold payment. To Read full article click here.......... 

 

 

Changes to Personal Allowance

 

The increase in the 2011/2012 personal allowance takes it from £6,475 to £7,475. There is also an increase in the National Insurance threshold for employees (this includes directors). Directors and employees can now earn approx £600 per month without paying tax or National Insurance, which is a substantial increase from last year's threshold of £475. This means an additional £1,500 - saving basic rate taxpayers £300. For Higher Rate payer the higher Rate threshold has been reduced to £42475 from £43875 so they would suffer net loss of £480. On the whole government has taken from higher rate taxpayer and giving to basic rate earners.

 

Please note that there is an increase of 1% in Employee and Employer National Insurance Contributions.We will be making automatic changes to monthly wages of all the owner managed business who are on less than £600 per month to £600 per month, so do not be surprised looking at payslips. This will help in maximising tax savings to the extent of personal allowance.

 

Company Cars
  

Are you tempted? Read the article we sent you in November 2010 on Pool Car Exemption. It makes a good sense to buy a car through company if this is pool car. What more you can even buy a Ferrari if this is genuine pool car. Beware that any element of private usage if proven can result in very heavy tax burden. There have been number of cases where court has decided against taxpayers so please make sure there is no private usage of pool cars.

 

On the other hand very safe route is to go for Green Car or Hybrid Cars like Toyota Prius or Electric Cars. Additionally you can buy any car which has less than 95gm/Km Co2 emission. Even if these cars are fully used for private purpose the tax burden on Individual will be very low but company will save comparatively higher tax. On the whole its a great win win situation for company and director. Please check our article of July 2008 in DNS Archive which I am sure you will find very useful. If you are not sure please check with your account manager and I am sure they would love to help you out.

  

Registered Office Service
  
Why not give your business brand and image uplift with DNS Registered office service. You can have prestigious office as your registered office with further option to have meetings and telephone calls. This can give your business required support and image which you may be missing.
  
The service starts from as little as £20 per month. You have various packages to select from giving you good options. Unbelievably the full year costs are less than monthly rental you may pay to rent commercial office.
  
To read more about DNS registered office service please click here or get in touch with Sales Team and they should be happy to help.

 

Contrctors why get less than 85%
  

DNS continues to bring the most innovative and rewarding solutions for its clients and once again they have managed to come with something unique for its clients. Completely hassle free umbrella solution for contractors and returns of 85%.

 

To find out more details you can get in touch with me and I can provide further details. Please remember that this solution may not be suitable to all the Contractors and depending on your personal circumstances we may be able to judge your suitability.

 

To make it more exciting you can be entitled to some decent rewards for referring your friends and colleagues so please feel free to get more info about this simple hassle free high rewarding solution and do not miss on high payouts.

Some Exciting new Tools only for DNS clients
  
Have you ever been worried about new Business Records Check campaign being announced by HMRC. Why not try  Business Record Checker  and this lovely piece of tool will tell you how you stand in terms of qualigy of paperwork and your risk level. Additionally it gives guidance on what we can do to reduce our risk level.
 
At DNS we have not just developed one tool but 3 more additional tools. These are  

Each of these tools will help you generate some excellent reports which can be an eye opener and good learning curve and guide you on where you stand and what you can do to improve. These tools are commitment of DNS towards its customers that we will make sure that we leave nothing by chance for our clients. Just to reiterate most of our clients should be very well prepared on Business Records campaign but very few cash business or business with high turnover need extra care and caution.

 

On the precautionary side I would request all DNS customers who are not covered by DNS Tax Investigation cover should make it a top priority to cover them personally and their business. We have recently seen huge increase in number of investigations and enquiries into our client affairs. Luckily few of them have been covered under DNS Tax investigation cover. Please contact DNS Sales Team and find out how you can subscribe to DNS Tax Investigation Cover.

 

 

To Conclude this is one of the most lengthy newsletter I have written for some time. I know it may be quite a tedious task or may not be exciting to read full newsletter but I am bound by duty of care and keeping our customers informed. Though your feedback on how we can improve our newsletters would be greatly appreciated.

 

I wish you all the best for new Tax Year.

 

Yours sincerely

 

Sumit Agarwal

and DNS Team

 

PS: Please make sure that you send us your completed checklist for personal Tax Return at the earliest

 

PPS: Kindly do not delay the confirmation of P35 Return for filing. The due date is 19th May but our DNS internal deadline is 10th May. If we do not get confirmation within 7 days of you receiving the email we would assume that you are ok with the values and would go with submissions. 
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