ROYAL MAIL INDUSTRIAL ACTION

Date Added: 26 October 2009

With the current uncertainty arising from the latest round of postal strikes, HM Revenue & Customs (HMRC) has issued guidance if you are still planning to post your Self Assessment tax return. It suggests that you allow plenty of time for the tax return to reach them before the 31 October deadline.

HMRC would like people to be aware that:

1. It's your responsibility to make sure that your return is received on time. For paper returns the deadline is Saturday 31 October.

2. You should consider filing online as you'll have longer to file your tax return - until 31 January 2010.

3. If you want to send your return on paper you can deliver it by hand to your nearest HMRC Office instead of posting it.

4. If you deliver your tax return by hand on Monday 2 November, normal arrangements will apply and you won't have to pay a late filing penalty.

5. If you still decide to post your return, send it to your tax office as soon as possible.

6. You won't have to pay a penalty if you miss the deadline because of the postal strike - providing you post your return before 31 October.

We would suggest that if you are going to rely on the post for meeting the filing deadline that you obtain a dated proof of posting.

PROPOSED WITHDRAWAL OF TAX BREAKS FOR CHILDCARE VOUCHERS

Date Added: 06 October 2009

At the 2009 Labour Party conference, Gordon Brown announced an extension of free nursery places to two year-olds.

But to fund this extension the Government is proposing to withdraw the tax and National Insurance (NIC) exemption on childcare vouchers provided by employers up to a value of £55 per week. For vouchers worth more than £55 a week, the excess is already liable to tax and both employers' and employees' NIC.

The new proposal to scrap these tax breaks applies to employees joining a voucher scheme from 2011, with existing recipients unaffected until April 2015, when the exemptions will be withdrawn completely.

With a General Election looming, it remains to be seen whether this proposal will come into force, but if you provide childcare vouchers or have been thinking about it, it would be worth reviewing your range of employee benefits in the light of this announcement.

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INTEREST RATE RISE FOR LATE TAX PAYMENTS

Date Added: 28 September 2009

HM Revenue & Customs (HMRC) is raising the rate of interest on late tax payments.

From 29 September the rate charged will increase from 2% above Bank of England base rate to 2.5% above base rate, making the rate 3%. This will apply to Income Tax, NIC and CGT Stamp Duty and Stamp Duty Reserve Tax and Corporation Tax.

For late payment of Inheritance Tax, the interest rate will rise from 0% to 3%, which could cause considerably higher costs for families who fail to pay IHT bills within six months of the of the end of the month in which their relative died.

Also from 29 September, HMRC is increasing the rate of interest it pays on tax repayments to 0.5% up from 0% in most cases.

OVER 50? GOOD NEWS!

Date Added: 25 September 2009

From 6 October over 50s can top up their tax-free ISAs - or at least that is the theory.

In his Spring Budget the Chancellor announced that people who are 50 or over before 5 April 2010 can increase their annual ISA savings allowance, up to a maximum total investment of £10,200. Up to £5,100 can be held in a cash ISA, with the balance held in stocks and shares.

For those with variable rate cash ISAs, you should be able to easily top up your savings account, although there have been media reports that some banks and building societies are not quite ready for the new regime.

Anyone who has opened a fixed rate cash ISA this tax year may find it more difficult to make the additional investment and may have to open an additional cash ISA to run alongside the existing product.

Speak to your savings provider for further information, but if ISAs form part of your investment strategy, don't miss out on this opportunity to boost your tax-free savings provision.

The increased ISA allowance will apply to all other investors from 6 April 2010.