|MARTIN LEVIN & CO|
|Taxation Practitioners Accountants & Auditors||
Hours: 10am to 5pm Mon-Fri
0203 345 0192
|Previous Newsletters: 1997 1998 1999 2000 2001 2002 2003 2004 2005|
NEWSLETTER FOR AUTUMN 2006
Where’s the year gone? With nine months gone, it seems to have flown past.
Tax Changes – In past years, we have tried to avoid being political. However, it seems that the Press have not been as pronounced as in previous years. The Budget Speech was yet another instance of not a lot said, but shoals of Press Releases bringing in more proposed legislation than ever. We have all had to contend with a plethora of paperwork, and our clients have been mainly sheltered from this. Any specific items would be quickly circularised. One of the more notable proposals is that the filing of self-assessment tax returns is to be brought forward, and paper Tax Returns are to be abolished – in a couple of year’s time. For most of our clients, this should not be a problem, as they are not tardy taxpayers. Our record of filing most returns by early summer continues. Thanks to your co-operation this should continue. If you have not had your Return filed by now, please look at our Checklist and letter sent to you in April, and let us have the full information, quickly. Our high class service is best served by clients who are prompt, and provide accurate documentation.
Money laundering – we, like other professionals, are obliged to comply with this Act of Parliament. It came about following the terrorist attacks on New York’s Twin Towers on 11 September 2001, and the following period. If we find undeclared income or other items in clients’ affairs, even lateness of undeclared sources of income, we are obliged to report. We, ourselves, can face prosecution, or even imprisonment. What a fun world we live in.
The tax burden has increased substantially. The Press, and the Opposition, seem bemused. Too often both are silent. In September 2006, the figures showed that we were taxed to the tune of £60billion a year. Where’s it all gone? Where were the cries from Parliament’s Opposition? As accountants and tax advisers, we attend so many meetings, and lectures, to assist the business community in paying the minimum tax (and national insurance) required. As clients, your co-operation, and promptness has been so very much appreciated. Thank you.
Government problems: yet again, the problems highlighted in these Newsletters re-surfaced. Tax “Credits” again came in for bad publicity. This should not present a problem for our up to date clients. Filling in Student Grant forms are again a simple task for most of our clients as they have their Tax Returns prepared within a couple of months of HM Revenue & Customs issuing these, and so the figures can be easily extracted from Tax Return to Tax Credit Forms and/or Student Grants.
Tax Freedom Day – is the day that the Adam Smith Institute has decided, after which we have paid our taxes to the government and are allowed to keep our earnings. This year (2006) has shifted eerily to be June 3 – 3 days later than in 2005. This is the latest that it has been since 1988.
Inheritance Tax bites at a modest £285,000, and the number of estates paying this once voluntary tax has increased hugely since 1997. Care needs to be taken for tax-planning here, as it can come into conflict with long-term care fees. In our opinion, this is going to be huge bone of contention in the near future, as more elderly persons need to go into care homes, and the cost of nursing them is placed on the individual’s family rather than the “state”. Ask us for details on the plans currently available. A link in our Website to Long-term care fees gives some handy hints.
Technology – as in previous years, we urge you to let us have your E-mail addresses. Computers are so very affordable – and you get a tax “subsidy” on your business use.
The Web Site continues to attract over 8,000 “hits” a year. The busiest month was August 2006 with 1305 hits - strange that.