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The Collector Wants Your Money!

Newsletter issue - September 07.

Tax demands are never welcome, but sometimes they come out of the blue. If you have received an unexpected tax demand, don't panic. The Taxman does get his calculations wrong, even in the most straightforward of cases, so please ask us to check that the amount demanded is correct.

Once you know the tax due is correct, you need to work out how and when you are going to pay it. Look carefully at the tax statement; it may be asking for the tax to be paid at some point in the future and to cover more than one tax year. Income tax and capital gains tax for 2006/07 will be due on 31 January 2008, with an on-account payment due on the same date for 2007/08. Where the tax demanded for 2006/07 was due to a one-off jump in your income, you can ask for the estimated tax payment for 2007/08 to be reduced, perhaps to nil.

Where you owe less than £2,000, the tax can be collected through your PAYE coding for 2008/09. This will spread the tax payment over a whole year, so will be far less painful. You can ring the Taxman and ask him to adjust your PAYE code number, or we can do that for you.

If the tax is due immediately, such as late paid PAYE or corporation tax, don't put-off dealing with the demand, as the consequences of not paying the Taxman can be pretty serious. If you are registered under the CIS to receive payments without deduction of tax, paying any tax late could mean you lose your gross payment status. That could seriously hit your cash flow.

When you receive a letter from the local Collector of Taxes (now called Recovery Office) you need to respond quickly, as these guys have a short fuse. If you really can't pay all the tax due at once you can negotiate for time to pay, but that will usually mean presenting a list of your assets and liabilities to prove you do not have the funds. If you ignore letters from the Collector you could soon find bailiffs on your doorstep ready to seize your goods, including your car.

The Taxman can also take you to court for non-payment of tax, either to the local Magistrates for relatively small debts or to the County Court. If you lose the case you could be made bankrupt.

 

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Choice Events Limited

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.