Approved mileage rates for personal cars

From 2011-12

First 10,000 business miles in the tax year Each business mile over 10,000 in the tax year
Cars and vans 45p 25p
Motor cycles 24p 24p
Bicycles 20p 20p

Company cars – advisory fuel rates from 1 June 2013

These rates apply to all journeys on or after 1 June 2013 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

Engine size Petrol LPG
1400cc or less 15p 10p
1401cc to 2000cc 17p 12p
Over 2000cc 25p 18p
Engine size Diesel
1600cc or less 12p
1601cc to 2000cc 14p
Over 2000cc 18p

 

How long do I have to file my company’s first accounts?

If you are filing your company’s first accounts and those accounts cover a period of more than 12 months, you must deliver them to Companies House:

  • within 21 months of the date of incorporation for private companies
  • within 18 months of the date of incorporation for public companies
  • 3 months from the accounting reference date, whichever is longer

The deadline for delivery to Companies House is calculated to the exact day.

For example, a private company incorporated on 1 January 2011 with an accounting reference date of 31 January has until midnight on 1 October 2012 (21 months from the date of incorporation) to deliver its accounts, not 31 October.

If the first accounts cover a period of 12 months or less, the normal times allowed for delivering accounts apply

Unless you are filing your company’s first accounts, the time normally allowed for delivering accounts to Companies House is:

  • 9 months from the accounting reference date for a private company
  • 6 months from the accounting reference date for a public company

Filing Accounts with HMRC

A UK Corporation Tax Return for a small limited company (preparing Companies Act or IAS individual accounts) includes form CT600, the accounts and the tax computation together with any accompanying information as required. This must be submitted to HMRC electronically. The accounts forming part of the return must be in iXBRL format.

iXBRL tagging of UK statutory financial statements has been required for tax purposes since 2011. It has been mandatory for organisations since accounting periods ending after 31 March 2010 and filing their tax return after 31 March 2011.

If the company chooses to file abbreviated accounts at Companies House, the full statutory accounts must be filed as part of the tax return.

A dormant company will not have to deliver a return unless it is sent a statutory notice to do so. In most cases, if HMRC has been notified that a company is dormant, no notice to deliver a return will be issued.

Directors’ loan accounts and Corporation Tax explained

If you’re a company director or ‘participator’ and take money out of your company that’s not a salary or a dividend – over and above any money you’ve put in – you’re classed as having received the benefit of a director’s loan.

If your director’s loan account is overdrawn, your company must pay tax on any amount you’ve not repaid by nine months after the end of your Corporation Tax accounting period.

If you’re a company director (or other participator of a close company) and take money out of the business over and above any money you’ve put in, and that money is not a salary, dividend or reimbursement for a business expense, then the money is not yours – it belongs to the company. You’ve received the benefit of a director’s loan from your ‘director’s loan account’.

You lend money to your company: director’s loan account in credit

If you lend your company money (for example by paying money into your company’s bank account as opposed to, say, buying shares) your director’s loan account is in credit.

You can draw some or all of this money out at any time. There are no tax implications for your Company Tax Return.

Your company lends money to you: director’s loan account in debit or overdrawn

If you take money out of your company’s bank account over and above money you’ve loaned to the company – and that money is not a salary or a dividend – then it’s a loan from the company to you. Your director’s loan account is overdrawn.

What income do I exclude from my flat rate turnover for VAT?

You exclude from your flat rate turnover:

  • private income, for example income from shares
  • bank interest
  • the proceeds from the sale of goods you own but which have not been used in your business
  • non-business income and any supplies outside the scope of UK VAT, and
  • sales of capital expenditure goods on which you have claimed input tax

What do I include in my Flat Rate Turnover for VAT?

Your flat rate turnover is all the supplies your business makes, including VAT. This means all of the following:

  • the VAT inclusive sales and takings for standard rate, zero rate and reduced rate supplies
  • the value of exempt income, such as any rent or lottery commission
  • supplies of capital expenditure goods, unless they are supplies on which VAT has to be calculated outside the flat rate scheme
  • the value of any despatches to other Member States of the EC if you are making intra EC supplies

Note: as exempt and zero rate supplies are included in your flat rate turnover you apply the flat rate percentage to the exempt and zero rate turnover. You may pay more VAT by being on the scheme if these supplies are a larger proportion of your business turnover than the average for your trade sector.

Vat deadlines

Deadlines for submitting your VAT Return

You must submit your return so that HMRC receives it by the due date.

This deadline is shown on your online return and is normally one calendar month and seven days after the end of your VAT period.

Vat period ending

Deadline for online submission

31 January 2013 7 March 2013
28 February 2013 7 April 2013
31 March 2013 7 May 2013
30 April 2013 7 June 2013
31 May 2013 7 July 2013
30 June 2013 7 August 2013
31 July 2013 7 September 2013
31 August 2013 7 October 2013
30 September 2013 7 November 2013
31 October 2013 7 December 2013
30 November 2013 7 January 2014
31 December 2013 7 February 2014

 

Deadlines for paying your VAT

If you pay by online Direct Debit, HMRC will collect payment from your nominated bank account a further three bank working days after the due date for your return. This means that online VAT Direct Debit offers you more time to pay than any other method.

Overlap profits on commencement of trade

A business commences on 1 October 2012. The first accounts are made up for 12 months to 30 September 2013 and show a profit of £45,000.

The basis periods for the first 3 tax years are:

 

2012-2013 Year 1 1 October 2012 to 5 April 2013
2013-2014 Year 2 12 months to 30 September 2013
2014-2015 Year 3 12 months to 30 September 2014

If the profits for 2012-2013 are computed by an apportionment using the number of days in the relevant periods, the taxable profit for 2012-13 is £45,000 x 187/365 = £23,054.

Claims to reduce or cancel self-assessment payments on account

The payments on account required for any tax year are calculated by reference to the tax liability for the preceding year.  For those taxpayers whose tax liability is relatively constant from year to year this method of calculation ensures that the payments on account required approximate to the additional tax required over and above any tax deducted at source during the year.

However, it is always possible that a taxpayer’s circumstances change significantly from one year to the next.  In such circumstances, it is possible that the payments on account, as originally calculated, eventually result in a net over-payment of tax for the year.

In order to avoid over-payments of tax a taxpayer may make a claim to reduce or cancel the payments on account.  Claims are required to ensure that HMRC does not commence recovery proceedings to enforce payment for tax that will have to be repaid at the balancing payment date.