If you have received compensation for mis-sold PPI it is likely to include an interest element calculated at 8% a year which is taxable. Depending on the type of organisation which refunded the PPI tax may have been deducted from the interest at source but in many cases the interest has been paid gross.
The deadline for filing your 2013/2014 Self-Assessment Tax Return online is at the end of this week; paper returns should have been filed in October 2014. If you, like thousands of other self-employed people, have left it to the last minute, here are my top tips for ensuring that you don’t leave anything out.
The latest HMRC taskforce is focused on property owners who are letting or have sold a second home and are not declaring the Income Tax on letting or the Capital Gains Tax on selling. This includes the renting out a room in your own home for more that £4,250 per annum (or £2,125 per annum if let jointly).
If you are just setting up your first business you’ll need to follow HMRC’s rules for tax and National Insurance. This is one of the jobs that needs doing early, before you get swept up by other demands such as earning a living!
HMRC’s second income campaign encourages anyone who is employed and may have a second income to “come clean” and make a voluntary disclosure. If you do not make the disclosure and HMRC finds out about the second income at a later date you could face higher penalties and criminal prosecution.
Apple Apps VAT Changes in Europe
If you are a registered iTunes Connect member you will have received an email yesterday about changes to VAT in Europe. From 01 January 2015 Apple will charge VAT on Apps at the rate relevant to the country the customer is in, rather than a flat rate throughout Europe.
What was in the Chancellor’s Autumn Statement for those SMEs we represent here at Black & White? Not a great deal, were you expecting much with the General Election only months away? But there were a few crumbs that could make business easier for some.