By Max Clarke
An update on tax developments from Simon Massey, tax partner, Menzies LLP.
Tax before 28 February:
Please remember to pay all outstanding tax due for 2009/10 by 28 February; otherwise a 5% surcharge will be levied.
Employers and P11D:
Many employers dread completing the annual forms P11D. If they have a dispensation in place, they only need to record details of actual benefits and not all transactions between the employee and company. A small amount of effort ahead of 5 April will reduce the compliance and administrative burden significantly.
Budget and Capital Gains Tax:
The budget is about a month away. Whilst we have some draft law, it is far less than we normally expect. The missing area seems to be Capital Gains Tax. So if you are considering making a gain and can decide when it is triggered it could be best to take act now with the certainty of the present rules rather than postponing to next year when CGT rules may change.
New Pension Rules:
There has been lots of comment about the new pension rules. These are still provisional but mostly take effect after 5 April 2011. For those with income over 130,000 in the 2010/11 tax year (or the last two years) then the anti forestalling law remains to limit your pension contributions this year to 20,000 in most cases.