FAQS for February 2014

February 2014

What can nurses claim for?
Q: I am a nurse and work for the NHS. What expenses am I able to claim for?

A: As a nurse you should be entitled to claim:

• £100 per annum for laundering your uniform (assuming you are responsible for cleaning your uniform)
• £12 per year for shoes where the wearing of a prescribed style is obligatory 
• £6 per year for stockings or tights, where the wearing of a prescribed style or colour is obligatory

You may claim a higher deduction for laundry expenses, but this will need to be supported by receipts.
For male nurses the reference to stockings and tights should be treated as including socks.
You should also be able to claim for any professional fees or subscriptions, such as to the Royal College of Nursing or the Nursing and Midwifery Council, but you should check these against HMRC’s list of approved organisations. 
To claim the expenses, you can use form P87 if they amount to less than £2,500 per annum (which is available on HMRC’s website) or alternatively, submit a tax return. You may also find that the professional bodies you have subscribed to have their own form to recover the expenses. 
Category: General Business

What happens to penalties when you cancel a tax return?
Q: HMRC issued a tax return for me but my circumstances have changed so I didn’t think it was required. I successfully asked for it to be cancelled, but what happens to the accompanying penalties?

A: In the past, HMRC was required to raise a penalty for a late tax return- although the taxpayer was able to appeal if they felt they had grounds.
However, from April 2012 taxpayers have been able to ask HMRC to cancel a return where they felt it was not required. Where HMRC are agree, any penalties linked to the return, were also cancelled.
But please note that this change only applies to tax returns for 2012/13 and onwards. However, it can apply to individual, partnership or trust returns.
Category: Tax Returns

Growth Vouchers - what is business advice?
Q: I have just started running my own business and I have been reading about these Growth Vouchers. I think my business meets all of the criteria- apart from I’m not sure what qualifies as "business advice". I used an accountant to prepare my accounts and tax return last year- does that mean I am not eligible?

A: At the end of January, the government will launch a £30 million research programme to test the value to small businesses of accessing professional advice. The subsidised business support will be delivered in the form of ‘Growth Vouchers’, enabling businesses to receive a 50% subsidy towards the cost of obtaining advice on 5 key topics that help businesses to grow.
As you quite-rightly stated, one of the criteria for the business is that they must not have had “business advice” in the last 3 years.
The Marketplace who is responsible for administering the Programme, also refer to “business advice” as “strategic advice”. If you have received day-to-day advice from an accountant, bookkeeper or solicitor on completing your annual business accounts, or understanding the legal/ regulatory requirements of running your business, you should still be eligible for the Programme.

Category: General Business

CIS tax refund for companies
Q: I own a small company in construction and some of our customers have been deducting CIS tax from our payments. How do I go about reclaiming this?


A: When a contractor pays your company “under deduction” (i.e. net of tax) for work, it must give your company a statement showing the full amount of the payment and the deduction that it has made from that payment.
You will need to enter these on your company's Employer Payment Summary (EPS) returns. The CIS deductions you have suffered will then be offset against the company’s PAYE liabilities for the year to date.
Limited companies that have an excess of CIS deductions, will not be able to claim a repayment of these until:

• The final Full Payment Submission (FPS) for the year has been submitted (due by 19 April each year where payments to employees are made in the period 6 March to 5 April)
• The company has paid all amounts due to HMRC for the tax year in their capacity as an employer/contractor
• The tax year in which the CIS deductions were made from the company has ended

Please note, you should not attempt to claim any CIS credits on the company's Corporation Tax return as you may incur a penalty.
Category: CIS

Consequences of late tax payments
Q: I am newly self-employed and have been rather unorganised this year. I just managed to get my 2012/13 tax return filed online on 31st January 2014, but I didn’t have enough cash put aside to settle my tax bill. What are the implications of late payment?

A: You will have interest to pay on anything you owe until HM Revenue & Customs (HMRC) receives your payment).
Furthermore, after a delay of 30 days, late payment penalties at 5% of the tax you owe will begin to apply. Additional late payment penalties will be added if the delay exceeds 6 months.
Please note, if you also registered for self assessment late (i.e. after 5th October 2013), you may also incur a Failue to Notify penalty. This will be 5% of any tax outstanding on 31st January 2014
Category: Tax Returns

Disclaimer – advice shared in this column is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this column, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.