As summer holidays are looming for many there are still a few tax and financial issues to consider. Self-assessment tax payments due by the end of the month and its time to send in tax return details soon if you have not already done so, please see below for more details. We also cover below the need to watch your turnover if not VAT registered, the phasing out of paper bank notes and an update on the firm’s charity of the year.
Reminder 31 July tax payments
The second payment on account for self-assessment taxpayers is due by 31 July. You should have already received a reminder from HMRC of the amount due and how to pay. Clients unsure as to what to pay should contact us to confirm the amount due. Details of how to pay can be found at: https://bit.ly/3PgiSrS If your income fell in 2021-22 compared to the previous year or you will have difficulty paying the tax due at the end of July then see this article for further details: https://bit.ly/3uXMH8u
Have you started your tax return yet? Now that P60s and P11Ds should have been issued and other details e.g. interest , stockbroker reports etc sent out there should be nothing stopping you from gathering your tax return information. For further details on the information required for tax returns, please see our recent newsletter: https://bit.ly/3z971q1
Should you be VAT registered?
With rising inflation and recovery after Covid are you checking your turnover regularly? Alternatively would registration be beneficial? Most accounting software can cope with the calculation and filing of VAT returns. So the good news is, being obliged to register for VAT is not the time-consuming chore it used to be. For further details see: https://bit.ly/3IGyp1U
Warning! Paper £20 and £50 notes will cease to be legal tender at the end of September 2022
Do you hoarde cash? Paper £20 and £50 banknotes will cease to be legal tender after 30 September. If you keep cash reserves, it would be as well to check whether they include paper £20 and £50 banknotes and if they do use them or exchange them for new notes before the end of September. Although these paper banknotes our no longer legal tender they can still be exchanged for legal tender after 30 September see: https://bit.ly/2EUr9O6
Whilst reviewing physical cash, it would be as well to review bank accounts. With the rise of inflation this year the cost of holding cash is increasing, so there is more incentive to maximise returns on interest.
Building Better Futures International
We continue to support the work of the firm’s charity of the year, Building Better Futures International which works in Tamil Nadu, Southern India to help marginalised women living in rural villages by providing education and training to enable them to support themselves and their children. Training is provided for tailoring, hand loom weaving , animal husbandry as well as tuition centres for local children. This year a new training centre has been completed to provide training facilities.
We are planning a sponsored cycle ride in September to raise funds to maintain the training programs. For more information on the work of this charity see: https://bit.ly/3zd5ejN
For more information or to discuss any issues raised above please contact Simon Bell by phone on 01376 571358 or email [email protected] .Please feel free to forward this newsletter to any colleagues or friends who may be interested in it.
This newsletter is written in general terms and therefore cannot be relied on to cover specific situations; applications of the principles set out will depend on the particular circumstances involved and it is recommended that you take professional advice before acting or refraining from acting on any material in the newsletter.