Orange Genie News

Has your accountant failed to file your Self-Assessment return on time?

Were you given little or no notice of the amount of tax you owed on 31 January?

Do you feel your tax bill was too high and that your accountant should have given better tax planning advice?

If you area freelance contractor and you missed Friday’s filing deadline for your Self-Assessment return, it’s not too late to limit the damage. Any late return will now automatically attract a late filing penalty of £100, irrespective of the tax due but there is no reason for your penalties to increase.

Two thirds of investigations yielded a result for Her Majesty's Revenue and Customs.

HMRC conducted 5 times as many investigations into those it suspects of abusing the IR35 rules on tax and national insurance for contractors this year compared to last. There were 256 cases in 2012/13, compared to just 59 investigations into IR35 in the previous year. 
 
The IR35 rules were introduced by HMRC to target those falsely registering as self-employed for tax purposes. 
 

HMRC have revealed the ‘top ten oddest excuses’ for late tax returns. Among the reasons people have given for sending in their returns late include a self-employed builder who blamed the death of a goldfish and a woman who blamed a volcanic eruption.

The list is as follows:

1. My pet goldfish died (self-employed builder);
2. I had a run-in with a cow (Midlands farmer);
3. After seeing a volcanic eruption on the news, I couldn’t concentrate on anything else (London woman);
4. My wife won’t give me my mail (self-employed trader);

Most people are aware of the need to consider insurance for life’s unexpected and unwanted eventualities. As an employee, many will have been used to benefiting from protection provided by their employers : life cover and sickness pay, whilst others will have taken the personal step to arrange their own policies. Not all policies are equal and it is important to regularly review the protection in place to ensure it continues to offer you and your family the best chance of not experiencing financial difficulty should the worst ever happen.

Many skilled British workers choose the flexibility and freedom of being self-employed, where they take responsibility and control for their own working affairs, including ensuring that the correct tax is paid on their earnings.

This way of working also suits the needs of many organisations which rely on the flexible workforce as and when they need them, without having to make a financial commitment to employ workers on a full time basis.

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