The Tax Preparation Blog

Archive for the ‘UK taxes’ Category

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Question: If I have earned literally no money in a financial year, am I liable for a £100 late filing penalty? (UK)?

In 2005 I set up an illustration company whilst at university. It was just so everything would be above board if I got work through clients.

To date, I have never earned over £1000 a year from this business, and in fact, in the last financial year (April 2006 to April 2007) I did not recieve a single commision.

Last year, due to being hospitalised over the january deadline my forms weren’t completed untill February. However, I was not liable for a £100 fine as I did not earn enough money to pay any tax.

It looks to be the same again this year – Except I have absolutely no money whatsoever and ergo have no tax to pay. I now have to file my tax returns online. If they are not completed by 31st January 2009 will I be fined £100? or will it be like last year where I didn’t earn enough to recieve the fine?

If you provide an answer I would appreciate you providing your source.

Answer: You will initially be charged this penalty if no Return received by tax office on 01/02/09. You should appeal on the grounds on no tax due. When you do file, if there is no tax due the penalty is wiped out.
You still have to file your Tax Return, and the penalty will not be cancelled until you do.

Astarra and the case of the missing $118 million

It reads like an airport spy novel: an unsolved murder in a Tokyo red-light district, exotic tax havens around the world, and thousands of defrauded investors in Britain.

The Week in 60 Seconds

Question: What is the best online Canadian tax return software to use if I’ve got foreign income to report?

I’m about to do my 2007 Canadian tax return and I want to do it and file it online.
However, I have UK income to report and would be really grateful for some advice on which is the best software (that I can download online) to use that allows me to do that easily.

I need to do a return for my husband and me and his income is more than $25,000 so I know I’ll have to pay for the software – just don’t want to pay too much.

I’d prefer software that lets you input answers in a questionnaire style format rather than direct onto the return as I really don’t have much of an idea how to fill it in.

Thanks in advance for any help!
Thanks for suggestion – problem is I don’t have anywhere to go ask – I live out in the sticks and don’t get to the ‘big smoke’ very often.

So, web-based answers very much appreciated!

Thanks

Answer: I use Quick Tax Pro. I believe you can get a cheaper version of this that will do what ou want it to do. Go to a retail outlet like Staples, Future Shop, Wal-Mart and ask them. You can ask them for an idea which one you should be using and then you can go to the website and download the desired program. If you are going to ask for some information probably you should skip Wal-Mart. My experience is that their sales reps are not up on all the latest information regarding this software.
Good hunting.

Philip Hammond: You Ask The Questions

Do you believe in low taxes? And fair taxes? In which case, what’s your opposition to the Lib Dem policy of taking people earning under £10,000 out of income tax? Felicity Bovington, Chester

Tax Advice : Contractor tax advice

Nick Robinson

Why the attempt to topple Gordon Brown has failed

Contractor no sick pay? Become an employee of Tarpon Ltd

Question: Have worked abroad, tax questions…?

I was working in Asia from September 2007-September 2008. I returned to the UK in September and have been working in the UK until now. I will move away again at the beginning of March and plan to live away permanently.

I was unaware of P85, P86 forms and never filled any in. Am I liable to pay tax on what I earned between September 2007-September 2008 even though I was abroad and will have been out of the country for more that 183 days in the tax years April 07-08 and April 08-09?

Answer: You remained resident in the Uk for tax purposes whilst you were abroad from Sept 07 to 08. Unless you are absent from the UK for a complete tax year (6 April to 5 April), you are resident and liable to tax on your worldwide income. You will get credit for any opverseas tax paid in that time.
Your period of absence from March 2009 will count as another period of absence and if you are out of the UK until at least 5/4/10, you will be non resident and not liable to Uk taxd on your overseas earnings.

Gold “Set to Break Higher” as UK Inflation Jumps, Eurozone Faces “No Good Solution” to Greek Deficit

THE PRICE OF GOLD slipped against the US and UK currencies on Tuesday but rose to a one-week high for Euro investors as the single currency fell on a series of poor data.

GAMBLER GORDON BROWN THE TAXconMAN ELECTION Crisis 2008/9/10 2 TRILLION UK DEBT! judep22 BEATLES

Shipper Roundtable: 2010: A Space Odyssey

If this were a movie, we’d call it “What Shippers Want.” As the first decade of the new millennium wound down, The Journal of Commerce hosted its 2nd Annual Shippers Roundtable to take the pulse of the shipping community responsible for filling the ships, trains, trucks and planes serving the far-flung and not so far-flung markets of the world.

Help! New to contracting? All your questions answered?