Harnett Accontants

Tag: tax tips

  • August Tax Q&a – Part 3

    Accountancy

    August Tax Q&a – Part 3

    Welcome to the third and final instalment of our August Tax Q&A from Harnett Accountants Wimbledon. Please contact us through our website with your question to have it appear in next months tax Q&A! Also you can . Additionally, you can keep reading our daily blogs.

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    Q. Until 31 May 2011 I was employed as loss adjuster for company A, and I drove 4,400 business miles in my own car for that company in 2011/12. I then joined rival company B, and drove a further 8,080 miles on business, also in my own car, by 5 April 2012. Both companies paid me 40p per mile for those business journeys. Can I claim anything extra on my tax return?

    A. Yes. The approved tax free mileage rate for 2011/12 was 45p per mile, for the first 10,000 business miles. However, this mileage threshold applies per employment. As you held two jobs with completely separate employers in the year, and drove less than 10,000 miles in each job, all your business mileage can be claimed at 45p per mile. You can claim £624 (5p x 12480 miles) on your tax return for 2011/12.

    Q. The company provides the sales reps with pay-as-you-go mobile phones, who purchase top-ups when they need them, claiming the cost back on expenses. Does the cost of the top-ups need to be included on the forms P11D for those employees? Does it make a difference if the employee bought the pay-as-you-go phone?

    A. Where the mobile phone is owned by the company and the contract is between the company and the telecoms provider, any top-ups purchased for that phone are tax free, as the provision of the phone is tax free. The cost of the vouchers does not have to be reported on the form P11D for each employee. Note this tax free treatment only applies to one phone per employee.

    If the phone was bought by, and thus owned by the employee, the top-up vouchers are taxable and need to be reported on the form P11D. The employee could claim a deduction on their tax return for the cost of business calls made with the top-up payments, but this would involve analysing all the calls made into business and non-business calls.

    Harnett Accountants Wimbledon

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with accounting and tax?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • Harnett Accountants Fulham Brings You This Report On Sipp’s

    Accountancy

    Harnett Accountants Fulham Brings You This Report On Sipp’s

    Two in three SIPP’s are being mismanaged or ignored according to this report from The Telegraph, brought to you by Harnett Accountants Fulham:

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    Self Invested Personal Pensions (Sipps) have been dubbed Self ‘Ignored’ Personal Pensions by Investec Wealth & Investment, after their new research showed that less than one in three investors feel they have the expertise to manage them properly.

    Significant numbers of investors are failing to maximise the potential of their Sipps with only 37pc of people saying they had enough time to devote them.

    The idea of managing one’s own pension can be initially appealing, but in reality, many people subsequently find they do not have the time or knowledge required to achieve maximum returns on their investments. As a result many are paying extra charges for the flexibility of a Sipp which they are not then using.

    Chris Aitken, spokesperson for Investec Wealth & Investment, said: “Managing a Sipp properly requires time, expertise and a strong understanding of market risk and appropriate set allocation. Unfortunately, for many people this is simply too difficult. We’d advise anyone who is concerned about having a ‘Self-Ignored Personal Pension’ to take professional advice.”

    The survey showed that just under half (45pc) of those self-managing their Sipps actually fully understand the charging structures from their providers., while 15pc of those who currently managed their own Sipp said they were likely to appoint an investment professional to do so within the next 12 months.

    Mr Aitken said: “This is a poor reflection of some Sipp providers and it’s also a call to action for investors to better understand what they are paying for, and whether or not their current plan represents good value and is the right product for them. Many Self ‘Ignored’ Personal Pension holders probably don’t fully understand the flexibility and power that a Sipp can provide.”

    What This Means For You

    Alternative and less costly choices to Sipps include company pension schemes and cheaper stakeholder or personal pension plans, both of which do not require investors to monitor holdings as frequently.

    Pension experts said that anyone saving for retirement should first of all maximise workplace pension schemes, particularly if their employer also paid into the plan. Although Sipps offer greater flexibility, many personal pension now offer a wide range of funds, sometimes at a fraction of the cost of a “full-Sipp” which also allows investors hold property, direct shareholdings, investment trusts and exchange traded funds.

    Please contact us to arrange a free one hour no obligation consultation. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with property tax advice?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • Are You Paying Too Much Tax –

    Accountancy

    Are You Paying Too Much Tax –

    Are you paying too much tax unnecessarily? bring you this report published on the ‘This Is Money’ website:

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    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    Despite the ongoing financial strain being felt by millions, new figures have revealed that as a nation we will gift an eye-watering £12.6billion in unnecessary tax to the taxman this year.

    According to professional advice website Unbiased.co.uk in its annual Tax Action Report, on average £421 will be wasted per individual taxpayer this year.

    It highlights that over the last ten years, we have amassed a phenomenal tax waste mountain of £88.6billion.

    Of course, in theory the money is not entirely wasted as it goes to help fund the nation’s spending, but on a personal level this is cash we are simply pouring away.

    This year represents the second highest tax wastage figure in that time, only beaten by the £13.5billion waste Unbiased claims for last year.

    According to Unbiased, the biggest area of tax waste in 2012 is through tax credits, with £7.26billion being lost through people failing to claim their child tax credits, working tax credits and pension credits correctly.

    What This Means For You

    Failure to make use of tax relief on pension contributions is the second biggest area of tax wastage (more than £2.45 billion), followed by tax inefficient charitable donations (more than £997 million).

    Why not get in touch with to see if we can help you to be more efficient in either your personal or business taxes. We will arrange a free one hour no obligation consultation to discuss exactly how we maximise the efficiency of your tax payments and save you money. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with pension and retirement planning?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • – Gauke Rejects Calls For Rti Postponement

    Accountancy

    – Gauke Rejects Calls For Rti Postponement

    RTI PAYE scheme still on track for April 2013 according to this report from Accountancy Age, brought to you by Harnett Accountants Twickenham:

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    THE EXCHEQUER SECRETARY David Gauke has rejected calls for a postponement of the introduction of real-time information after the All-Party Parliamentary Commission raised concerns about the timetable and costs of the programme.

    The commission had been worried the investment costs and timescales were underestimated and expressed worries over whether RTI could guarantee real-time data was sustainably accurate.

    Gauke, though, was keen to emphasise that the scheme was “on time and on budget” and “strongly disagreed” with the report while Mark Holden, HM Revenue & Customs’ RTI programme director, said there was “a number of misunderstandings” in the report and that it “can’t hold any credibility”.

    RTI is set to supersede the current “1940s system” of paying employees currently in place and will see employers updating their PAYE records as and when changes occur, rather than at the end of every tax year.

    The taxman expects the system will reduce the burden on employers by £300m and will lead to a significant decrease in fraud and error.

    What Hmrc Says

    HMRC hopes to roll out RTI nationally from April 2013, with all employers taking part by October of the same year.

    Currently, the pilot has 500 employers – equating to 1.7m employees – with the scheme set to grow to 250,000 employers and 6m employees by April 2013.

    source: Accountancy Age

    If you need advice on the new RTI PAYE systems which will mandatory for all businesses from next year, please contact and we will arrange a free one hour, no obligation consultation to discuss exactly how we can assist your business, and help it to run in the most tax efficient way possible. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with accounting and tax?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • Half A Million Taxpayers Face Penalties –

    Accountancy

    Half A Million Taxpayers Face Penalties –

    Half a million self-assessment taxpayers receive late submission penalties according to this article published in Accountancy Age, brought to you by Harnett Accountants Twickenham:

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    “ABOUT HALF A MILLION self-assessment taxpayers who are still yet to file their 2010/11 tax returns are in line to receive additional penalty letters this week.

    The proportion of outstanding returns has nearly halved in 2012, down to 5.9%, compared to 10.7% last year, with 518,000 fewer penalties issued as a result and 273,000 taken out of self-assessment.

    Tardy taxpayers can expect a minimum penalty of £1,200, comprising the maximum £900 in daily non-filing penalties, and a further penalty of £300 or 5% of tax due – whichever is higher.

    The new penalty system was introduced in April 2011 in an attempt to boost the incentive to file on time and bring down the cost of chasing missing submissions.

    Penalties To Be Aware Of

    Anyone receiving a penalty can appeal if they feel they have reasonable grounds to do so, such as illness or bereavement.

    HM Revenue & Customs’ director-general of personal tax Stephen Banyard said: “We want the returns, not the penalties. This year, half a million more people have filed their return – which means we are issuing 44% fewer penalties.

    “Where someone has a reasonable excuse for not sending a return on time, we will waive the penalty. We also recognise that there will be some people within this group who don’t need to be in self-assessment, and we will be happy to remove them from the self-assessment system and cancel their penalty.”

    source: accountancy age

    If you need advice about self assessment tax returns, call to book an absolutely no obligation free consultation. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with self assessment tax returns?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • Harntt Accountants Kingston – Tax Efficient Company Cars

    Accountancy

    Harntt Accountants Kingston – Tax Efficient Company Cars

    have another great video tip to help reduce your taxes. Did you know that going green could help to save more than just the environment.

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    If you need advice about company cars, or anything tax related for you or your business, please contact us and we will arrange a free one hour no obligation consultation. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with accounting and tax?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • – Hmrc’s Tax Taskforces Revealed

    Accountancy

    – Hmrc’s Tax Taskforces Revealed

    brings you this insight from Accountancy Age into the new tax taskforces introduced by HMRC to clamp down on tax evasion:

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    IN RECENT MONTHS, the taxman has been doing its level best to be seen to be tackling those dodging their tax share.

    Part of HMRC’s myriad tools to achieve that has been its taskforces, which it says operate in “short, sharp bursts of activity” in targeted areas of the country and perceived high-risk industries.

    Since they were introduced in May, the taskforces have investigated stall-holders in London, taxi operators in Yorkshire and the east Midlands, restaurants across the Midlands and property rental businesses in East Anglia, the north east, Yorkshire and London, among others.

    The aim is to induce traders in the target industries and areas to voluntarily come forward and settle any outstanding tax liabilities they might have by generating publicity in the local area. Compliance checks are carried out, as well as announced and unannounced visits.

    There is an element of carrot and stick involved, too; generally, if someone comes forward, fully discloses and pays up, the matter is closed, whereas invasive investigations and potential criminal proceedings await those who continue to dodge their bills.

    At the time of writing, £50m is the target figure for the taskforces to bring in, with HMRC so far satisfied with the progress the initiative has made. Indeed, £20m is expected from the property sector alone.

    What This Means For You

    The Revenue says it will measure success through cash collected and “the number of sanctions imposed, from penalties and fines through to the number of prosecutions brought”. It is also hoped that the taskforces will be able to “change the behaviour of individual evaders who will in the future voluntarily meet their tax obligations as a result … and change the behaviour of people who might consider evading tax”.

    The budget for the taskforces is part of £900m the Treasury set aside for the taxman to tackle avoidance and evasion. How much of that went towards the taskforces, however, is not public knowledge.

    “It’s the sixty-four thousand dollar question for me and for ARC”, says Gareth Hills, president of the Association of Revenue & Customs (ARC), which represents professionals and senior management at HMRC.

    “We’ve never been able to tie down where that money’s gone in terms of where it’s been invested in the department.”

    With that money earmarked specifically to tackle evasion and avoidance, the Revenue has been keen to yield results against a background of cuts and criticism from the Public Accounts Committee after the National Audit Office found it wrote off £5.2bn in taxes last year.

    There were some 100,000 HMRC employees in 2004, deployed across the country. Today, the number is closer to 60,000 with another 15% of cuts – based mainly in London – to come in the next four years. And they now work according to sector instead of region.

    Important Points

    The move to sector-based specialisation is perfectly understandable, provided it is combined with local knowledge.

    “When investigators were investigating local businesses, they would have local knowledge,” says Phil Berwick, director at Pinsent Masons. “If you are looking at take-aways, for example, showing a different spread of results, then you might know there is one next to a cinema with more passing trade than one further down the high street. There are dangers [in a sector-based] approach if it’s not combined with local knowledge.”

    Gareth Hills does not recognise that problem, however, and is keen to stress the Revenue still has a “has a network of local offices across the UK”.

    “People shouldn’t think that because they do not fall within the businesses or locations targeted by the task forces that they will not be selected for enquiry. That’s not the case,” he says. “The taskforces target specific traders and businesses in specific areas where there’s an identified high risk of tax leakage. The nature of the traders and businesses subject to this approach are based on local knowledge in those locations to determine the riskiest areas.”

    With many of the investigations ongoing, and new ones potentially to come, it remains to be seen how successful the taskforces will be, especially given that cost-effectiveness cannot yet be measured. The real test will come when the financial year ends and vital figures become available.

    Source: Original Article

    Further Details

    If you need help or advice about tax and working out exactly how much you should be paying, please contact us and we will arrange a free one hour no obligation consultation. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with property tax advice?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • Harnett Accountants West London – Are You Neglecting Your Cash Flow?

    Accountancy

    Harnett Accountants West London – Are You Neglecting Your Cash Flow?

    Harnett Accountants West London brings you this report from accountancy age. It seems that many businesses are unwittingly acting as a bank for their clients, sending out late or incorrect invoices at the expense of their own cash flow security:

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    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    A RECENT CFO survey by Deloitte highlighted the importance of cost control and cash flow management. However, the dynamics of a competitive and fragile market has led many businesses to focus on prioritising growth opportunities and hoarding cash reserves to fund working capital, leaving cash flow as a secondary concern. As a result, delayed payments are leading many professional services organisations- those who bill clients for their time and services- to function often unwittingly, as a bank for their clients…

    source: original article

    Reliable cash flow is essential in order to be prepared for unexpected circumstances or to meet payment demands from creditors. If you need advice about making your business more efficient, and making sure that your cash flow is consistent and reliable, please contact Harnett Accountants West London and we will arrange a free one hour no obligation consultation. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with accounting and tax?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • – Vat Relief As Far Back As 1973!

    Accountancy

    – Vat Relief As Far Back As 1973!

    brings you this report from Accountancy Age. A new ruling means that VAT relief on bad debts can be claimed from as far back as 1973!

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    “A BILL running into billions of pounds could be on its way to the chancellor after an upper-tier tribunal ruled that VAT rebates can be claimed on bad debts for the period between 1973 and 1997.

    The case was brought by BT and GMAC, which is the finance arm of General Motors, and HM Revenue & Customs is likely to appeal the decision, reports the Daily Mail.

    BT stands to claim £92m as well as interest, while the total the exchequer could end up paying out could run into billions.”

    Source: original article

    If you need advice about claiming tax relief on bad debts, please contact and we will arrange a free one hour no obligation consultation. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with VAT returns and compliance?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.

  • – Government Figures Dont Add Up

    Accountancy

    – Government Figures Dont Add Up

    brings you this interesting article from the business section of the BBC News website. It seems that there is a disparity between the economic growth forecasts and the real published employment figures:

    💡
    Reviewed for 2026/27: All tax figures and HMRC rules in this article reflect current guidance for the 2026/27 tax year.

    Key Considerations

    “Here’s the statistic that Britain’s finest economic brains simply cannot explain: the number of people in work in the UK has risen by 201,000 in the three months to June, a period in which our national output is supposed to have shrunk, by 0.7%

    It’s good news that there are more people in work, and that unemployment has fallen by 46,000 in those months as well. But it’s not necessarily good news that collectively, as a nation, we seem to be needing to hire a lot more people, to make less stuff….”

    please contact and we will arrange a free one hour no obligation consultation. Also you can . Additionally, you can keep reading our daily blogs.

    📌 Important: Tax rules change regularly. Always verify current figures at gov.uk/hmrc or speak to a qualified accountant.
    📞
    Need help with accounting and tax?
    Harnett and Co are ICAEW chartered accountants in Kingston upon Thames, Surrey. We give clear, practical advice to businesses and individuals across West London and Surrey. Book a free consultation today.