1. Tax deadlines 31 st OctoberPaper returns 30 th DecemberOnline returns with tax paid through tax code if you owe <£3000 31 st JanuaryOnline returns + outstanding tax (balancing payment) & 1 st payment on account 31 st July2 nd payment on account © Glenda M. Shawley, The Training Pack 2013

2. Tax penalties: Late returns £100 fine (£100 each partner) even 1 day late 3 months late: £10 each following day to max £900 6 months late: Higher of £300 or 5% of tax due 12 months late: Higher of £300 or 5% of tax due © Glenda M. Shawley, The Training Pack 2013

3. Tax penalties: Late payments 30 days late: 5% of tax owed at that date 6 months late: Another 5% of tax owed at that date 12 months late: Another 5% of tax owed at that date Interest is also payable on outstanding tax N.B. Penalties dont apply to tax payable on account © Glenda M. Shawley, The Training Pack 2013

4. Tax rates Personal allowance 2012-2013 = £8105; 2013-14 £9440 (earn<£100,000) Basic rate 20% on £0-£34,370 (12/13) £0-£32,010 (13/14) of taxable income (after allowances) 40% £34.371- £150,000 (12/13); £32,011-£150,000 (13/14) taxable income 50% over £150,000 (12/13) 45% (13/14 © Glenda M. Shawley, The Training Pack 2013

5. Tax example 2012-13 Jos income after expenses £20315 Tax allowance £8105 taxable income £12210 Tax @ 20% = £2442 Tax on account for following year 50% of £2442 = £1221 Tax payable 31 st Jan = £3463 Class 4 National insurance 9% on profits between £7605 and £42475 = £1143.90 Payment due 31 st Jan = £4606.90 2 nd payment on account due 31 st July £1221 © Glenda M. Shawley, The Training Pack 2013

6. National Insurance 2012-13 Class 2 = £2.65 pw payable monthly or six monthly Small earnings exemption <£5595 : need certificate Class 4 = 9% profits £7,605 and £42,475 2% profits over £42,475 © Glenda M. Shawley, The Training Pack 2013

7. VAT Compulsory registration if sales in 12 months are £77,000+ Can register voluntarily if sales below threshold VAT returns and payments quarterly © Glenda M. Shawley, The Training Pack 2013