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Renew your Tax Credits by 31 July 2012

Posted by: edwinsmith on June 29th, 2012

By the end of June 2012 everyone that had made a claim for tax credits in the tax year 2011/12 should have received a renewals pack.

If you don’t get your renewal pack by the end of June then you should contact the tax credit helpline. You can’t get a renewal pack online.

The renewal pack may include an Annual Review notice (TC603R) or an Annual Declaration form (TC602D or TC603D2) together with the Annual Review notice.

Annual Declaration form

If you've been sent an Annual Declaration (TC603D or TC603D2) and don't renew, the following will happen:

  • your payments will stop
  • you will have to pay back any overpayment from both the previous tax year and from the start of the new tax year
  • you'll get a statement from the Tax Credit Office about your tax credits payments
  • you have a further 30 days to provide the information asked for in the renewal pack
  • you will usually have to make a new tax credits claim if you don't provide the information   within 30 days

Annual Review Notice 

If you only receive an annual review notice then your claim will be renewed automatically but you will still need to tell the Tax Credit office straightaway if:

  • you have had any changes in circumstances
  • your income is different to what's shown in the Annual Review notice
  • there are mistakes or details missing from the notice


Tax credit claims should be renewed by 31 July 2012 and for further details see HM Revenue & Customs: Renewing your tax credits claim - the basics 

If you require any assistance regarding your tax credit renewal please contact us

Filed under: Tax

Basic PAYE tools update June 2012

Posted by: edwinsmith on June 20th, 2012

An update has been issued for the Basic PAYE tools 2012 package which is produced by HMRC.

Regular users of the Basic PAYE tools software should have the software set up to automatically check for updates and so no action is necessary as the software will prompt you to download the update when you next use the software. If you have automatic updates switched off, you can still check for updates manually - select 'Options' then 'Automatic Update Settings' then 'Check for Updates now'.

If you have not used the software for some time, then previous versions may need to be installed first and a data transfer may be required.

New users can download the software from the HMRC website.

For additional assistance please contact us.

Filed under: PAYE, Tax

Selling your Olympic Torch and the tax implications

Posted by: edwinsmith on June 15th, 2012

If you were lucky enough to be chosen to be a torch bearer, then you may be interested to hear the tax implications of selling your Olympic torch.

If you sell your Olympic torch for more than £6,000 then the disposal will be treated as a chargeable gain. Therefore, you may need to pay capital gains tax (CGT) depending on whether you have any other gains in the tax year. The personal exemption limit for capital gains for 2012/13 is £10,600.

If the torch is sold for less than £6,000 then you will not be chargeable to CGT on your proceeds and as long as the disposal is not considered as part of a trade then there will be no other tax implications. Generally people who sell a few personal items for cash are not considered as trading. However if it was considered part of a trade then the profit on the disposal would be charged to income tax rather that CGT.

Charity implications

If you do incur CGT on the disposal of your torch then there is no exemption from CGT even if you donate the money you receive on selling the torch to charity. Depending on your tax circumstances donations of money to charities under gift aid will enable the charity to reclaim £25 from HMRC for every £100 donated.

If you give the torch to charity for them to keep or sell themselves then there is no charge to CGT.

For full details on tax implications see HM Revenue & Customs: Selling your Olympic torch.

Please contact us for further advice.

Filed under: Tax

Revised advisory fuel rates 1 June 2012

Posted by: edwinsmith on June 7th, 2012

H.M. Revenue and Customs (HMRC) have published the latest advisory fuel rates relating to mileage payments for business travel in company cars. These are as follows: 

Engine size Petrol LPG
1400cc or less 15p 11p
1401cc to 2000cc 18p 13p
Over 2000cc 26p 19p
Engine size Diesel  
1600cc or less 12p  
1401cc to 2000cc 15p  
Over 2000cc 18p  

The changes this quarter is the increase of 1p per mile in LPG for all engines sizes  and reductions of 1p in diesel for engines sizes of 1600cc or less and over 2000cc.

The new rates will be effective from 1 June 2012. However for the first month employers may continue to use the previously published rates if they choose to.

These rates will be reviewed again in August 2012 and any changes made will be effective from 1 September 2012.  The revised fuel rates will be published on the fuel rates page on the HMRC website when they are released.

Advisory fuel rates can be used to calculate the following:

  • Reimbursement to employees of fuel used for business travel in a company car
  • Repayment by employees of fuel used for personal travel in a company car
  • Allowable input VAT on business mileage claims

A more detailed explanation of the use of these rates is on the HMRC website.

The rates applying for earlier periods are also on the HMRC website.

If you have any questions regarding the use of advisory fuel rates or mileage payments please contact us.

Filed under: PAYE, Tax, VAT