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New Blog for 2009

2009-01-05T15:41:00.000-08:00

Test Blog for Stuart.

Good luck Regards

Ashley

Acknowledged Web Solutions

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Simple steps and choices, which could help you get your finances into shape - and save you from paying too much tax.

2008-01-10T11:35:00.000-08:00

Check your tax coding:

The best and potentially most profitable tax resolution for any new tax year is "I will monitor my tax code". All employees, and many pensioners, should have a tax code.

It's the signal from the Inland Revenue to the employer of the tax allowances due to the employee; the Revenue send taxpayers their codes at least once a year and people really should check that it's correct.

All you need to do is review what's on your coding notice and query anything you don't understand.

Incorrect codes - and they often happen - means that the wrong amount of tax is being deducted.

A continued charge for a benefit you no longer have is a regular occurrence; those aged over 65 should always check that they have been given their higher age allowances.

The Revenue don't always spot 65th birthdays and being 65 at any time during the tax year qualifies you for the higher allowance.

Taxman's staff start voting on strike action.

2008-01-10T11:32:00.002-08:00

Workers at HM Revenue & Customs began voting today on whether to strike on 31 January, the self-assessment deadline.

The possibility of strike on the deadline has been put forward by the Public and Commercial Services Union in protest against planned job cuts in the department, the Daily Telegraph reports.

The department is looking to cut 12,500 posts by 2011, having achieved a similar number of cuts over the past three years.

Last year's strike saw more than 60% of staff vote in favour. The strike had little effect on last-minute tax filings.

'We employ some 83,000 people - down from 97,000 in 2005 - and there have been no compulsory redundancies in achieving this,' said an HMRC spokesman.

'We have told the department’s trade unions that we will continue to do everything we reasonably can to make sure this remains the case. We have invited the trade unions to talks and asked them to suspend their strike ballot whilst these talks take place.'

Check your tax code - you may be entitled to a refund

2008-01-10T11:32:00.001-08:00

Many taxpayers do not know they may be paying more tax than they should. Others may not be paying as much as they should and may not realise that they have a responsibility to let HMRC know.

John Cullinane, President of The Chartered Institute of Taxation (CIOT), says: “Those taxpayers who complete a self-assessment tax form are given an explicit opportunity to state how much tax they should pay. For everyone else the PAYE code is effectively their tax return - yet most UK taxpayers assume the PAYE code and coding notices are correct. This is like signing your tax return without reading it.”

The CIOT recommends that all PAYE taxpayers check their PAYE code and coding notices they receive against their own income and reliefs that may be available. There is information on the HMRC website about income that must be reported and reliefs that may be claimed. PAYE taxpayers should keep records of their income, the tax they have paid and check any communication HMRC send them.

In recent research undertaken on behalf of the CIOT, 47% of UK taxpayers polled said they never checked to see if their PAYE code is correct. 42% said they found it ‘very’ or ‘fairly’ difficult to understand if they are paying the right amount of tax.

John Cullinane adds: “The majority of people in the UK have most of their tax collected through PAYE. A December 2006 National Audit Office report indicated that HMRC estimated that last year taxpayers may have overpaid around £500 million via PAYE, and that £1 billion of tax may have been underpaid. They estimate that 5.7 million taxpayers may not be paying the right amount of tax. This is why the CIOT is bringing the issue to the public’s attention now. We agree with HMRC that it is vital for people to keep their tax records and also urge them to make sure they understand their tax code.”

For anyone struggling with their PAYE code, the CIOT recommends they first contact their local Tax Office.