- I don’t need to put my foreign income on my Tax Return, do I?
It depends! If you live in the UK and are Domiciled here, you are taxable in the UK on all your income and Gains, wherever it arises in the world. Failure to disclose offshore investments could result in penalties of 30% to 100% of the tax due and potentially criminal prosecution. If you believe that you may be affected by these matters, call Linda Manson at the office before H. M. Revenue & Customs calls you!
- I want my Company to pay me a dividend – can I just write myself a cheque?
No! Whilst you may be the sole Director and, indeed Shareholder, you still have to follow the appropriate procedure. A Company can only pay a dividend out of realised profits and you firstly have to have suitable evidence that such a profit exists. So long as it does, the Board of Directors can then pass a resolution to pay a dividend and finally, assuming you have sufficient cash at the bank, you can then draw a cheque. Don’t forget that you will also require a Dividend Voucher to evidence the transaction and the tax credit. Complicated? Not if you ask us to deal with the administration for you!
- I’ve been making Gift Aid donations to Charities and was aware that as I’m a tax-payer, they could claim back the tax on those donations, but do I get any tax relief?
When you make your donation to Charity, the Charity is able to claim the basic rate tax which you have, in effect, paid on that donation. If you are a basic-rate tax-payer, there is no further relief due, but if you are an higher-rate tax payer, you are able to claim the difference between the higher-rate of tax and the basic-rate of tax through your Self Assessment Tax Return.
- I’ve received an email which appears to come from H. M. Revenue & Customs suggesting that I’m due for a refund of tax. Is this genuine or a scam?
It is definitely a scam. H. M. Revenue & Customs are asking for suspicious emails to be forwarded to them at firstname.lastname@example.org and suggest that you delete them from your computer/mail account. Criminals have been using these emails to elicit from taxpayers their passwords and other information enabling them to access bank accounts and credit cards to defraud the system. The thieves have then also been filing fraudulent Tax Returns online, claiming refunds and diverting the funds to bogus accounts. So far, they have managed to steal over £1 million through this sophisticated hacking. H. M. Revenue & Customs would never contact you by email regarding such matters. If you’re ever in doubt, do contact us.