Posts tagged ‘Treasury’

HMRC reveals that 7.65 million Self Assessment Tax Returns were filed online in time this year, with an overall  total of 9.45 million returns  submitted in time.

Record Numbers

90.4% of  taxpayers met the deadline – an increase of 4% on last year – the highest on-time filing result since HMRC was created.

The busiest day for online returns was 31 January, when HMRC  received nearly 445,000. The SA rush hour occurred between  4pm and  5pm on 31st January, when 37,460 returns – more than one every 6  seconds – were received by HMRC.

Penalties delayed

Although the 31st January deadline was unchanged, HMRC announced that no penalties would be issued for online returns received by midnight on 2nd February, due to industrial action at HMRC contact  centres.

David Gauke, Exchequer Secretary to the Treasury, said:

“I am pleased that the extension to the filing deadline prevented people from being unfairly penalised if they were unable to speak to HMRC on the 31st.”   This statement is inaccurate as the deadline was not extended, simply HMRC promised not to fine anyone on 1st and 2nd February.  By filing late, the period known as the “enquiry window” is affected in favour of HMRC.

He also said “I’m delighted so many people filed their tax returns online this year. The record number proves that it’s quick, easy and secure to do.”  I wonder if he has ever used the HMRC portal?

Baubles *Merry Christmas*Festive filing

Many took advantage of the Christmas holidays to wrap up their  returns this year, with 1,100 people filing online on Christmas Day;  3,512 on Boxing Day; 11,648 on New Year’s Eve; and 8,935 on New  Year’s Day.

Perhaps this is an indication of multi-cultural Briton?

 

Missed the fun?

The filing deadline has now passed and  anyone who hasn’t yet  filed their 2010/11 tax return must send it to HMRC as soon as  possible, as well as pay any outstanding tax due for the 2010/11 tax  year.

professional, approachable, timely advice

A new penalty regime is in force, so if you need help getting your tax affairs up to date call our Tax Managers, Heather Irvine or Jenna Gaylor as soon as possible to set up a free, no obligation meeting to discuss how we can assist you.

 

data source : HMRC press release

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

If you found this post interesting/useful please share it with your social network and/or bookmark it.  Also, your comments are always valued and will help me to write new posts that are relevant to readers of this blog.

 

The Dilnot Report offers little help

It was thought that the Dilnot Report might help to reduce the cost that individuals have to contribute to Residential Long Term Care, but very little seems to have changed since the last report on this subject.

It looks as if a lot of people will still have their homes sold for Residential Long Term Care unless they plan effectively for such an eventuality.

 

The Report in Summary

The Dilnot Report is some 86 pages long with a substantial amount of supporting documents, but in short, the commission is saying:

  • Personal Care Costs should be capped between £25,000 and £50,000 with Dilnot’s preference being £35,000
  • An individual requiring care should be expected to pay between £7,000 and £10,000 per annum for “hotel/living” costs
  • Means Test threshold, currently at £23,250 or more should be switched to a sliding scale from £14,250 to £100,000
  • Estate cost approximately £2 billion each year on current care costs.

Some responses to the report have been:the man in the street

  • Too expensive
  • Cannot be taken seriously
  • Dead on Arrival
  • Lukewarm response from The Treasury
  • Pensioners face 2 billion granny tax
  • George Osborne wants to “strangle the proposals”

What it really means

The present proposals would not make much difference, for example, to an elderly lady who goes into a residential care home for four years, before she dies, and has a property worth £200,000 which is sold for the Care Home Fees.

Calculating average Care Home Fees, Personal Care, Hotel Costs, under the new scheme (capping at £35,000 and hotel costs not exceeding £10,000, the family would get £125,000 after all bills are paid.  Under present rules they would also have had to pay the council’s costs, so would receive £92,000.

 

The problem is getting bigger as we get older

Many who have to consider Residential Care Home fees have worked hard all their lives, were brought up believing they should save and buy their own home.  The expectation being that the “state” would care for them in their old age, and they would be able
to provide for their children and grandchildren.  Over 20,000 homes were sold last year to meet Care Home Fees costs, and this is only going to increase with an ever-growing elderly population.

Protect your home with professional planning

With proper planning these costs can be reduced, provided you have a professionally drafted will which includes the appropriate trust.  Or alternatively by setting up a Life Time Property Protective Trust (LPPT) you would be able to protect your house
from being sold and ring-fence your assets if you so desire.

The purpose for establishing a LPPT are manfold, and some are:

  • No Probate fees on the value of the property/assets in the Trust
  • No claim against the Trust can be made upon your death
  • Protecting the family assets from potential bankruptcy of beneficiaries
  • Financial protection from relationship failure

A side effect of a LPPT is that your property/assets are protected from being taken to pay for your care.  The LPPT offers effective protection from care fees provided that at the time the assets were protected it was not reasonably foreseeable that you would need to go into care.

Guest Author: Eric S Britt. Will Writer and Estate Planning Practitioner. Affiliated Member of The Society of Will Writers  Call 01480 270114 or Email: eric.britt@collectivelegalsolutions.co.uk for a confidential, no obligation review of your circumstances.

The information provided in this blog illustrates my opinions and experiences, it does not constitute advice and I do not accept responsibility for any actions taken or refrained from as a result of reading this post.

If you found this post interesting/useful please share it with your social network and/or bookmark it.  Also, your comments are always valued and will help me to write new posts that are relevant to readers of this blog.