If your liability on the personal tax return to 5th April 2009 exceeded £1,000, don’t forget that you may have a payment on account to make by the 31st July 2010.

HM Revenue & Customs should send you a statement of account soon confirming the amount due and providing details of how to settle the balance.  If not, please contact our Personal Tax Supervisor Dawn Mumbray (dawn@a4gsolutions.co.uk) who will be able to provide you with details of the latest payment instructions from HMRC.

If you have a balance due that you will be unable to settle due to financial difficulties, contact the Payment Support Helpline on 0845 302 1435 and HM Revenue & Customs may be able to agree a payment plan with you.  This must be done before the 31st July i.e. before the payment due date has been reached, and if a plan is agreed and adhered to, any late payment penalties that may be imposed under normal circumstances should be put on hold.

With the move to online filing for VAT returns, HM Revenue and Customs (HMRC) will no longer be issuing reminders about the filing deadline unless businesses specifically opt in to the email reminder service that they now provide.   

There have also been a few problems surrounding the move to online VAT.  Firstly, if you are going to set up a direct debit online to pay your VAT, you need to do so 7-10 working days before you submit your first VAT return, otherwise it will not become active and no payments will be allocated (only two mistakes or omissions are allowed before HM Revenue & Customs start to issue penalties so best to avoid them wherever possible).

Secondly there is the issue of whether your business should be VAT registered or not.  If, in the previous 12 months your business has a rolling turnover exceeding £70,000 or if it is likely to do so in the next 30 days you need to register for the first time. If you are already registered and your turnover exceeds £100,000 you are also required by HMRC to move over to online filing immediately. 

Fortnightly tip: