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July Question and Answer Corner

Newsletter issue - July 07.

Q. I'm a driving instructor and operate through a limited company. The Taxman wants to tax me for using my instruction car and fuel as a taxable car benefit. I don't think that's fair as the car is necessary for my business. Is he right?

A. Essentially the Taxman is correct. If you use the instruction car for even one mile of a private journey, there will be an income tax charge. It is irrelevant whether the car is necessary for your business or not. Taxi drivers who run their businesses through limited companies have the same problem. If you can show that you make absolutely no personal use of the instruction car, perhaps because you use another car for all private journeys, the Taxman may be persuaded to treat the instruction vehicle as purely business. However, he may want to see an insurance policy that prohibits private use.

Q. My company has recently applied for gross payment status under the new CIS, but the application was rejected as the Taxman says my personal income tax was paid late for 2005/06. I sent the tax payment on 24 January 2007, so how can this have been late?

A. This is a problem with the new CIS computer system, as one late payment of income tax should not make your application for gross payment fail. The tax office also should have received your cheque before 31 January 2007, the deadline for that payment. Unfortunately your only option now is to appeal against the decision, although in this case the Taxman appears to be completely in the wrong.

Q. My husband has been seconded to the Dubai office of his company for six months, but I won't be joining him, as we don't want to disrupt our children's schooling. Do I need to tell the Taxman?

A. If you are claiming tax credits you do need to tell the Tax Credit Office as soon as possible. You will be counted as a single parent while your husband is away and your tax credits claim needs to be reassessed.

 

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All at Beauchamp Charles are very helpful, approachable and easy to talk to. They keep me informed with key dates; I can feel totally confident that I won't ever miss any deadlines! Whoever I deal with, always deal with matters professionally and efficiently and if they are unavailable they get back to me promptly.

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I have worked with Beauchamp Charles as our management accountants for over 20 years and have never received anything less than exceptional service. Their approach is both professional and personal. Finances and particularly tax strategies are a minefield for small businesses; Beauchamp Charles have in-depth knowledge of these area, which is comforting. They pay very close attention to our business activities and have provided financial strategies that have helped our company develop.

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We have used Beauchamp Charles since company formation back in 1998. Beauchamp Charles offers us a one to one service as they are small enough to offer this dedicated service and large enough to do the work and offer best advice. They get to know us as individuals and a business, always giving sound advice. Frederick Thomas Electrical are in a stronger place thanks to the service we get from them.

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We are a small business and had employed the same accountancy firm for many years. Two years ago we took the decision to switch to Beauchamp Charles after several othe local businesses recommended them very highly to us. We have not been disappointed with the service they have provided to us over these last two years.