Taxation Practitioners Accountants & Auditors   309 Chigwell Road
Woodford Green
Office Hours: 10am to 5pm Mon-Fri
  Tel 0203 345 0192

Mobile 0794-648-1209

Previous Newsletters:  1997   1998   1999   2000   2001   2003   2004   2005


Filing of self-assessment tax returns


A big thank you to our clients who managed to send us all all the documents requested on our Checklists. It was a bit of a struggle this year, as the Revenue had changed the way that Personal Pension Premiums were reported on the Return. This year we insisted on the production of certificates, as this was the quickest way to confirm the tax treatment. Unfortunately we had to “push” some clients to ensure that this essential item was sent to us. The same applied for Bank Interest Certificates as these showed the figures for Gross, Tax and Net – something that the TRIG form that we send out does not have the space for, and revealed interesting variances to the certificates. The motto is: use the checklists.

So, for the sixth successive year, most clients were aware of the July 31 instalment, and could budget for their future tax bills. The January " bunching" of liabilities is in point here.

Clients are thanked for their input on this. It has been a pleasure to be in a position to help clients so completely and quickly.

The Child Tax Credit is still proving a bit of a nightmare, and it is interesting to note that this is due to be phased out giving it a shelf-life of two years. Still that’s politics. Did we get the full details about your children that we drew your attention to on the checklists?

After 1 July, our time has been freed to attend to our other matters, such as the preparation of Financial Accounts with Accounting Dates ending April 30, May 31, etc. The early clients have always benefited by economical fees. Those clients who have still to send data in will of course still get the high service that we extend to all clients. They will not, however, benefit from the lower charge-out rate that the “early birds” have experienced.


Budget 2002 – The press have got on the bandwagon of publicising the fact that the self-employed can “convert” themselves into a limited liability company, and that profits up to £15,000 are “tax free”. Not quite. The rate of corporation tax is at Zero up to £10,000, for the next year. What will happen if the rate changes? The tax saving, at the moment, is by taking £10,000 in Dividends, and £4615 in Salary. Neither of which will incur a client writing a cheque out to the Treasury. However, the cost of compliance for a limited company will be greatly increased, although certainly not as much as the tax saved. The hidden extras lie in the fact that the sheer paperwork of a limited company is daunting to anyone not skilled in administration, etc. There are other factors, which we will explain on a more personal front if you contact us.


The Web Site was re-launched on the Ides of March 2002. The initial response has been overwhelming, with over 3,000 “hits” being registered in the first week. Ignore the current counter, hopefully that will be put to rights. If you haven’t visited the Website yet, please do so, and leave a message, with your E-Mail address. That information is incredibly useful for communicating with you in future.


Incoming Post - Again, please remember to put your name on the reverse of the incoming envelope. A return address would also help the Royal Mail. May we again remind you that we have no facilities for signing for incoming post, and no time will be spent on visits to the sorting office for such items, including letters that had insufficient stamps on them.


Telephone calls - (office hours, please) again please leave your telephone number if, when you call and get the answering machine. The machine does have a facility to “1471” all calls, and often these are returned twice a day, when I am away. Once again I, as the principal, have been assisting another practice in the locality extensively. However, this has not affected the high level of professional service offered to clients.


Saving schemes for six monthly tax bills - If you would refer to our "Helpful Guide" that was updated in December 1999, you will note that we recommended using a Bank/Building Society to save for these liabilities. With the current interest rates being so low, may we point you to a "gamble" on Premium Bonds? The capital is guaranteed, and you might even receive a tax-free win. I know – I did.