It is that time of the year again when the annual round of year end reminders appears in the financial pages. I would like to highlight just 3 matters:

1. For employers (Limited companies and Sole Proprietors / Partnerships) P11d’s are going to have to be completed. The emphasis must be on accuracy as the taxman is finding from their compliance visits that there are huge returns as invariably there are errors in preparing these forms (assuming that they are actually prepared and not ignored.) Such errors can result in aggravation, penalties and interest.

Chestnut errors are:

• Incorrect identifi cation of benefi ts in kind and expenses and so incorrect payments of Class 1 and Class 1A national Insurance
• Incorrect treatment of overdrawn director’s loan accounts
• Entertaining reimbursed for all expenditure and not just in relation to the business
• Motor expense logs not being kept.
• Inappropriate claims for travel and subsistence – especially between home and work.

2. For clients who are benefi ciaries under trusts – especially foreign trusts – changes in the rules require certain actions to be taken before April 5th this year.

3. Non-domiciled but UK tax residents need to consider their position in relation to remittances or face the annual tax charge.

In respect of these ad hoc items – and if advice is required on any other matters relating to year end tax planning then please call my office to make a convenient appointment.