31st January Tax Return Deadline is Looming

The tax year runs from 6th April to 5th April the next year, and under self-assessment it is up to the individual taxpayer to calculate their own tax liability and pay the tax due by the due date. Most UK residents are taxed under PAYE and do not have to complete a Self Assessment tax return.
However, the following people usually have to complete one…
• Anyone who is self-employed;
• A company director;
• A trustee;
• Pensioners with an annual income of £100,000 or more;
• Employees or pensioners with an annual income from savings or investments of £10,000 or more;
• An employee or pensioner with untaxed annual income of £2,500 or more;
• A landlord who rents out property or land.
If you are unsure whether you need to complete one, please advisor@henderson-morgan.com for advice as it is your responsibility to notify chargeability to tax to HMRC
If you are required to complete a return, they are normally issued to you at the beginning of April each year. The basic return is 10 pages, but many sources of income require supplementary pages to be completed as well. Some people receive a short tax return of only 4 pages.As well as your income it deals with the allowances and reliefs that you can claim.
Paper returns have to be filed by 31 October following the end of the tax year and HMRC will calculate your liability for you. For online returns you have until 31 January following the end of the tax year to file the return. If you file the tax return online through the HMRC website the software will calculate your tax liability for you.
If the return isn’t filed by the due date, there is an automatic fine of £100, which is reduced to the level of tax due if that is less. There is a further £100 fine if your return is still outstanding six months later.
The method of payment usually involves two payments on account of your tax liability as follows…
• one on 31 January during the tax year and
• another on 31 July following the tax year.
These are based on the net income tax and Class 4 NIC liability of the previous tax year .
A final payment (or repayment) is due on 31 January following the tax year.
Thereafter, there is a 5% surcharge on any taxes that remain unpaid after 28 February, and a further 5% on taxes not paid after 31 July.
The payments on account are not required if…
• income tax and NIC liability for the previous year (net of tax deducted at source) is below £500 (doubled to £1000 from 2009/10 with first payment affected being 31 January 2010) or
• more than 80% of the income tax and NIC liability for the previous year was tax deducted at source.
You can also apply to have the payments on account reduced if you expect your liability for a tax year to be less than the previous year.
HMRC can correct a self assessment return within nine months of the return being filed in order to correct any obvious errors or mistakes in the return and an individual can amend their self assessment at any time within 12 months of the filing date.
By law you must keep all records in support of the tax return for at least 22 months after the end of the tax year, but if you are self-employed or have rented property the records must be kept for five years and ten months after the end of the tax year.
You can be fined up to £3,000 if you fail to maintain or retain adequate records to back the return.
Henderson Morgan can assist you with the completion of your self-assessment return, advise on payment of liabilities and deal with any enquiries into your return, and assist you to plan for tax more efficiently in the future. Please contact us at advisor@henderson-morgan.com for a free initial consultation.

Do you get great customer service from your offshore bank?

Exceptional customer service is an integral Henderson Morgan our customers are a vital asset to our business.
1. We know our customers are the boss
2. We Listen to our customers
3. We aim to identify and anticipate customer need
4. We aim to make our customers feel important and appreciated
5. We help customers understand Henderson Morgan
6. We Know how to apologize
7. We try to give more than our customers expected.
8. We ask for customer feedback.
And most importantly we appreciate the power of saying yes to our customers.

Henderson Morgan’s Premium International Account is a flexible offshore account for your-day to-day banking needs, and a convenient, secure and tax efficient way to manage your money.
• Multicurrency banking in GBP, Euro & USD
• Account opened in New Zealand a politically stable, regulated and safe jurisdiction

• Free Platinum MasterCard in GBP

• 24/7 internet banking

• Priority Pass to give you free access to airport lounges worldwide*

• Your own personal relationship manager

• Preferential interest rates on Henderson Morgan term deposits

• Reduced fees on HM Wealth Management to take make the most of the tax advantages of banking offshore


It is simple quick and easy to open an offshore account with Henderson Morgan online.

If you would like to open an offshore account or to discuss the whole range of Henderson Morgan products and services please contact our team on 0044 203 150 0923 or email advisor@henderson-morgan.com

Things to consider when buying a house abroad.

When considering the purchase of a property overseas, preparation is the key.

The first thing that should be established is the budget available. Deposits required, current and future exchange rates, total cost of finance, legal fees and tax obligations, should all be calculated before viewing any potential properties.

Mortgages can be pre-approved well in advance, and this could save both time and money. Many sellers will not accept an offer, unless it can be proven funding is in place or has been Pre-Approved. For the purchase of a re-sale property, the closing date will typically be set at 30-45 days after the signing of the sales contract, and some contracts may impose financial penalties for late closing/completion. Appointing a lawyer, who is qualified in local law, may pay dividends at this stage.
.
Exchange rates can greatly affect the cost of an overseas property purchase. Deposits and closing fees would normally be converted from your home currency to the currency of the country you are buying in.

Finally, tax which may be payable not only on income, but also on capital gains. Mortgage interest and other costs can usually be offset against this, however a tax advisor should be consulted, or you could employ the services of a local accountant.

Henderson Morgan can provide a comprehensive service to those thinking of buying abroad with excellent exchange rates, an premium account in GBP, US$ and Euro. Our bilingual mortgage team can secure a mortgage and our wealth management team can ensure your tax is managed effectively and efficiently.
We pride ourselves on exceptional customer service and your relationship manager will manage the process from start to finish to ensure a stress free purchase of a new home.

Contact us at advisor@henderson-morgan.com

Structured Tax Advice

Henderson Morgan offers guidance and advice in international tax structuring, tax management and offshore tax planning.

We can efficiently and precisely set out a strategy to mitigate your ongoing liability both locally and internationally, taking into account the bigger picture.

Our team solve your problems and using the complex international tax rules and regulations to your advantage
Please contact us at advisor@henderson-morgan.com for a free confidential discussion

Are you Resident or Non Resident?

If you are minded to leave the UK you do actually have to go!
Merely cutting the time you spend here is not enough. There is a very big difference between establishing that you have left the UK rather than simply maintaining an existing state of non residence.
In the recent case of Gaines-Cooper v Revenue and Customs Commissioners the Special Commissioners ruled that a different method of counting had to be used in order to give a more accurate picture. Rather than ignoring days of arrival and departure, nights spent in the UK should be the deciding factor in determining the amount of time spent in the UK.
Resident/Non resident status is a very complex matter and if you think you could be affected by the Gaines-Cooper ruling or need advice on non residency please contact our team at advisor@henderson-morgan.com

Things you should know about giving your home to your children

You are permitted to give your home to your children (or another beneficiary) at any time – even if you live in it.

BUT,

if your home and your estate are worth more than the Inheritance Tax threshold (£325,000 in tax year 2010/11) there will be tax implications.

UNLESS

You live for seven years after you have given your home as an outright gift to your children, irrespective of its value it will be exempt from Inheritance Tax. This is known as a potentially exempt transfer.

BUT

If you give your home to your children with conditions attached to it, or if you continue to benefit from the home yourself, this is known as a ‘gift with reservation of benefit’. In this case, the gift won’t be exempt from Inheritance Tax, even if you live for seven years afterwards.


MAYBE

Instead of gifting the property to your children, you could sell your home and gift them the proceeds from the sale. In this case, the gift won’t be included in your estate for Inheritance Tax purposes, as long as you live for seven years after you make the gift.

BUT

If you sell your home, give the money to your children and then move into their home, there could be Income Tax implications. You may be classed as ‘living in a pre-owned asset’ if you do not pay the market rent.

HOW ABOUT

If you give your home to your children and they then move in with you, the gift will be treated as a ‘gift with reservation of benefit’ and the home will still be subject to Inheritance Tax.
However, if you give half of your home to your children, they move in with you and you share bills jointly, the half that you give them won’t be treated as part of your estate for Inheritance Tax purposes as long as you live for seven years after making the gift.

Inheritance Tax is complex and can benefit from effective tax planning. Henderson Morgan’s wealth management team with our 20 years of experience can work with you and your family to plan your inheritance, contact our team today for a free confidential chat advisor@henderson-morgan.com

Cross Border Transactions & Tax

Cross Border transactions use to be the realm of large multinational companies, now many SME under take cross border transaction daily. It is a rapidly changing field and all businesses need to keep up to date with changes
On 22 December 2010 the European Court of Justice case number C-277/09 RBS Deutschland Holdings held that a taxpayer is not prohibited from exploiting the differences in national tax systems in a cross border transaction leading to a more favorable tax result, provided that the transactions in which the taxpayer is engaged are not entirely artificial and are not entered into for the sole purpose of avoiding taxes.
The Court acknowledge that taxes are a factor that is taken into consideration to determine the final form of a transaction, but when they are not the only factor and the transaction otherwise serves a legitimate business purpose, the final tax result should be respected event when it is predicated on an inconsistent tax treatment of the transaction under two different legal systems.
Keep on top of all these legislative changes can be a nightmare for SMEs so talk to one of our experiences team at Henderson Morgan to discuss your business need and see how we can help your business grow and develop email :email :advisor@henderson-morgan.com