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Archive for the 'Business Tax' Category


How will the 2016 Budget affect UK Businesses?

The UK’s 2016-2017 Budget was unveiled on 16 March. On the whole, British businesses welcomed the new measures outlined in this year’s Budget, as it was clear that the key changes were made in an attempt to stimulate the economy from bottom to top and to facilitate job creation while providing solid incentives for entrepreneurial activities nationwide. Approximately £24 billion have allocated to industry, agriculture, and employment, which have become top priorities given the crucial role that they play in driving economic growth in the country. This article provides an overview of how the new measures outlined in this year’s Budget will affect UK businesses.

UK Budget 2016: What large companies need to know

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Key Dates for Companies and Businesses in the USA – Federal Requirements and Deadlines for 2016

Companies that operate in the United States have a lot of dates to remember throughout the year. Federal deadlines are important in filing tax information, keeping up on employment notifications and making sure that self-employed individuals pay their estimated taxes each quarter. Missing a federal deadline could mean penalties, fines and possible tax consequences.

January 15, 2016

  • All 1040-ES 2015 fourth quarter payments must be submitted

February 1, 2016

  • People who chose not to pay their final 1040-ES payments on January 15, 2016 can file their full returns and not sustain a penalty
  • Businesses must issue all 1099 forms
  • Farm employers must file form 943 for Social Security and Medicare filings
  • All employers must file form 940 for 2015 unemployment taxes
  • Form 720 for fourth quarter of 2015 must be filed
  • Companies must file form 2290 for any vehicles that were first utilized in December 2015

February 16, 2016

  • Employees must file income tax exemption forms with employers

February 29, 2016

  • Businesses must file information returns for payments made in 2015
  • Form 1096 for payment of gambling winnings and copy A of form W-2G must be filed
  • All employers must file their W-3 and copy A forms for each W-2 issued in 2015
  • Large food and beverage employers must file form 8027 regarding tip income
  • Form 730 required for all wagers placed in January
  • Form 2290 required for all vehicles first put into service in January

March 15, 2016

  • All corporations must file a form 1120 for their annual return
  • Partnerships must distribute K-1 forms to all partners

March 31, 2016

  • All forms 1097, 1098, 1099, 3921, 3922 and W2-G must be filed electronically
  • Employers must file all W-2 forms electronically

Read more »



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What Businesses in the US Need To Know About Preparing For the Holidays

The Holiday season is often the busiest time of year for a lot of businesses. From shipping deadlines to taxable and non-taxable gift guidelines, there is a lot of  things to bear in mind to ensure that your business is ready for the Holidays.

Christmas 2015: Dates and Deadlines for US Businesses

Official Holiday Dates

In 2015, Christmas Day will be Friday, December 25th. The vast majority of businesses (with the exception of restaurant chains and some convenience stores) will be closed on Christmas Day, and many will operate a reduced schedule on Christmas Eve too. Banks will be closed across the United States, and some financial institutions will also close early on December 24th.

Holiday Shipping Deadlines

Every year, the United States Postal Service publishes its Holiday posting and shipping deadlines. Domestic letters and parcels sent via Standard Post service must be posted by December 15th if they are to arrive on December 24th at the latest. Letters and parcels sent within the United States using First Class mail service must be posted by December 19th. Domestic items sent via Priority Mail should be on their way by December 21st, whereas letters and parcels sent to US addresses using Priority Mail Express can be posted as late as December 23rd.

The following deadlines apply to items sent to military or diplomatic addresses:

  • November 7th for items sent via Standard Post
  • November 25th for items sent via Space Available Mail
  • December 3rd for items sent via Parcel Airlift Mail
  • December 10th for items sent via Priority Mail and First Class Mail
  • December 17th for items sent via Priority Mail Express – Military service

The deadlines for letters and parcels addressed to international destinations vary from country to country, with last shipping dates ranging between December 1st for First Class International mail to December 21st for items sent via Global Express Guaranteed. For a full list of international destinations and their applicable deadlines, please visit the USPS site at https://www.usps.com/holiday. Read more »



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Top Cities for Business: New York

As the world’s undisputed financial and commercial hub, New York is considered a prestigious location for businesses in all industry areas. Companies large and small choose to be base their businesses in this thriving US city, which serves as a springboard for further expansion. This article takes a look at some key figures that demonstrate how New York is a top choice for business and startups.

Economic overview

New York’s prosperous economy is characterised by its focus on diversity and innovation. This global business city has a healthy balance between public and private sector jobs and between small, medium, and large-sized companies. In 2015, the state’s GDP was estimated at $1.3 billion.

According to the Economist, New York ranks first in terms of its Global Competitiveness Index, and commercial think-tank Z/Yen lists the city as the number one global financial centre. A United Nations report shows that New York is second in the global prosperity index ratings, whereas the NYCEDC reports that the city’s innovation index is marked by a constant upward trend in six key areas: finance, R&D, human capital, intellectual property, entrepreneurship, and high-tech gross product. Federal Reserve data shows that job growth is slightly below the national average, although still well within an acceptable range at 1.8 per cent. As of March 2015, the local unemployment rate was 5.7 per cent.

Major industries

According to the latest data set released by the US Bureau of Labor Statistics, the most important industry sectors across the state of New York are education and health services, finance, trade, transportation and utilities, professional and business services, the public sector, leisure and hospitality. Read more »



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Registering your Business in the UK

Setting up a new business is an exciting process. For entrepreneurs dreaming of selling a new product or providing an innovative service, there are several steps they must take in order to lawfully register their business.

When setting a business, owners must first choose the structure of their new company. The structure of the company will affect how the business is registered and how it operates. Businesses are generally categorised as a sole trader, a limited company, or a business partnership. Sole traders are self-employed owners, while limited companies must have a registered office and at least one director in the UK. A business partnership is where partners share responsibility for running a company.

To register a business in the UK, a sole trader who is the only owner of the company and either works alone or employs staff must register for self-assessment tax with HM Revenue and Customs (HMRC). This means the owner or his/her accountant will calculate the applicable tax. Sole traders must have a National Insurance (NI) number. Sole traders can trade under their own name or choose a business name. Read more »



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Tax Deadlines for Businesses in the US for 2015

Every business has to pay taxes, but paying taxes can get complicated when you miss some of the important deadlines throughout the year. It is important to have a reliable resource you can use to help you keep an accurate calendar of tax due dates throughout 2015 to make sure that you avoid any penalties for late payments.

January 15, 2015

This is the deadline to file estimated payments for the fourth quarter of 2014 for self-employed individuals.

January 20, 2015

This the date when the IRS officially begins processing all of the corporate and individual returns it has received up to that point. This is not the deadline for filing your return.

February 2, 2015

This is the official deadline for W-2 and 1099 forms to be postmarked and mailed.

February 17, 2015

This is the final day of the month for employees to file their tax exemptions forms with their employers that determine how much is withheld from their paychecks for federal taxes. This is also the date where all 1099-B forms (income received through stock transactions) and 1099-S forms (income received from buying or selling real estate) must be issued for 2014 by responsible organizations.

February 28, 2015

By this date, all companies who utilize independent contractors must have their 1099 and 1096 forms for 2014 submitted to the IRS.

March 17, 2015

Any corporation that uses the calendar year as its fiscal year must have its corporate tax returns filed by this date. This is also the deadline date for corporations that do use the calendar year as their fiscal year to file for a six-month extension for their corporate returns.

April 15, 2015

This is a busy day on the tax calendar as it is the date for self-employed people to file estimated tax payments for the first quarter of 2015, the deadline for filing and paying all 2014 personal income taxes, and it is also the last day to file an amended return for the 2011 tax year. This is also the filing deadline for any taxpayer looking for a six-month extension to submitting their 2014 return. This is also the date that sole proprietors, LLCs, and partnerships must file their corporate taxes. Read more »



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Business Tax Changes for the USA 2015

Each new year means another new set of tax rules for businesses across the country. There are some major business tax changes for 2015 and then there are also some smaller ones that are still very important to note and implement.

Even if you have a tax accountant take care of your business taxes, it is important to know the business tax law changes so you can alter the way you collect information throughout the year. The more you know about the pending changes, the more you can help your tax accountant to maximize your deductions and save you money on your taxes.

Affordable Care Act

If your small business is below the 50-employee threshold for the tax implications of the Affordable Care Act, then your concerns in 2015 are no different than they were in 2014. But if you do have 50 employees or more, then the ACA could affect your taxes at the end of the year.

One of the changes that 2015 brings with the ACA is an increase in tax penalty for people who do not have coverage. Along with stiffer fines comes the requirement that employers offer adequate insurance for a reasonable price. A professional tax expert can explain to you exactly what constitutes adequate insurance and reasonable prices.

If you are planning an expansion in 2015 that will force you to hire more employees, then the ACA could become an issue for you in 2016. With the ACA, it is always best to plan at least one year in advance to avoid tax problems. Read more »



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Business Tax Changes for the UK 2015

You may have heard the news that the way VAT (Value Added Taxation) is charged to companies based in the UK is changing. Those earning revenue through online trading need to pay VAT to the EU member state where the customer lives, as opposed to the previous system where the company paid the VAT from the country they chose to supply the goods or services from.

It is worth deciding if your firm needs to make a note of any new requirements. The government introduced changes specifically applying to anyone supplying telecommunications, broadcasting products and e-services. Below is a short summary of what to look out for, courtesy of HM Treasury and Customs.

VAT Changes – new supply rules and the introduction of the VAT Mini One Stop Shop (MOSS)
The new VAT rules apply to UK businesses from 1 January 2015. Some compliance issues worth considering are:
• Compliance option 1 – the main compliance issue each business will need to ask itself, is does it want to register for VAT, separately, in each Europe member state. This applies if they have a consumer, or non-VAT registered customer that is resident in that state.
• Compliance option 2 – Businesses can choose to apply for the mini one-stop shop (MOSS) option, which means the scheme simplifies VAT responsibilities into customer groupings by EU member state.

Under either scheme, a business will need to know the individual EU VAT rates in each member state they are trading in, and the particular rules that apply there.

Businesses need to be aware they are subject to an audit from that member state.

Systems and Processes Will Change for Business Account-keeping and VAT
Businesses will need to identify exactly where their customers are located. For many, this will mean a complete overhaul of record keeping systems. How customers are managed, means improved technology systems, which can take hold of large amounts of data. Part of the process of doing business may mean a business needs to enable more server space, for example.

New ways of storing customer information, and the increased details needed, mean a business will need to get this checked out by a legal team. If working in a B2B environment, this could lead to needing to negotiate new trading terms with suppliers.

Ways of invoicing customers will need to change. Member state invoices need to be in the language of the customer’s country, and with the corresponding local taxation and VAT information clearly displayed.

Commercial Issues around Pricing
For a business, deciding how to apply VAT in the past would mean adding a percentage value wherever the VAT applies. Obviously, each product or service will attract a different percentage VAT addition, depending on where the customer lives.

Pricing can be applied on an individual member state level, known as dynamic pricing, yet a business will need a good technology algorithm to apply the variations needed for auto-calculations to be accurate every time. It may be the case, a business will need to think about their customers at the point-of-sale. Do they need to fill out a bit more information, and if so, do contact and order forms need adjustment?

Another option is to go for a blended rate, or universal pricing, which gives uneven margins, but to the business provides an acceptable level of profit. This may be the preferred method of pricing.

Issues over pricing may cause a business to relocate, if many customers are in a certain EU state where VAT is lower than their current location.

Click here for a list of Accounting Services in the UK.

Source: kpmg.com/uk/vat2015



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Key UK Tax Dates for Businesses 2015

Get the New Year off to a great start by organising your key UK tax dates in your diary for 2015.

January 2015
Deadline for online submission of Self Assessment tax returns for tax year ended 5 April 2014.
Deadline for paying Self Assessment ‘balancing payments’ for tax year ended 5 April 2014.
Deadline for first Self Assessment payment on account for tax year ended 2015.

February 2015
No deadlines for NICs (National Insurance Contributions), PAYE (Pay as You Earn), or Self Assessment returns.

March 2015
As above – no deadlines.

April 2015 – July 2015 - for businesses with employees and a payroll.
If you are a business employer running payroll, you need to:
Report to HM Revenue and Customs (HMRC) on the previous tax year (which ends on 5 April) and give your employees a P60.
Prepare for the new tax year, which starts on 6 April.
Send your final payroll report of the year – by 5 April Read more »



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Key Dates for Companies and Businesses in the USA – Federal Requirements and Deadlines

 

The following is a calendar of key annual dates and federal deadlines for companies and corporations operating in the United States, including annual filing of company records and tax returns, company vehicles, employee benefits, pensions and trusts.

Deadline Description Notes
January 15, 2015 Deadline for estimated taxes of 4th quarter 2014
January 15, 2015 Deposit payroll tax for Dec. 2014 If monthly deposit rule applies
January 15, 2015 Pay the final instalment of 2014 estimated tax using Form 1040-ES Individuals
January 15, 2015 Pay estimated tax for 2014 using Form 1040-ES Farmers and fishermen
January 31, 2015 Distribute forms W-2 to employees Or closest business day that follows
January 31, 2015 Furnish statements per full-time employee Or closest business day that follows
February 2, 2015 Filers of Form 1099-G who report state or local income tax refunds, credits, or offsets must furnish the statements to recipients
February 2, 2015 Forms 940, 941, 943, 944, and/or 945 for 2014 If you did not deposit all taxes when due
February 2, 2015 Furnish Forms 1098, 1099, 3921, 3922, and W-2G information
February 2, 2015 The fair market value of SEP IRAs must be furnished to the participant
February 2, 2015 Trustees or issuers of traditional IRAs must furnish participants with a statement of the value of the participant’s account, and RMD if applicable
February 2, 2015 File Form 730 and pay the tax on wagers accepted in Dec. 2014
February 2, 2015 File Form 740 for 4th quarter of 2014
February 2, 2015 Deposit FUTA tax owed through Dec. 2014
February 2, 2015 File Form 2290 and pay tax for vehicles first used in Dec. 2014
February 2, 2015 File tax return If last est. tax was not paid on Jan. 15
February 10, 2015 Forms 940, 941, 943, 944, and/or 945 for 2014 If you deposited all required payments on time
February 17, 2015 File new Form W-4 If you claimed exemption from income tax withholding in 2014
February 17, 2015 Form 5
February 17, 2015 Forms SC 13G, SC 13G/A, 5, 13-F
February 17, 2015 Furnish statements for Forms 1099-B, 1099-S, and 1099-MISC
February 17, 2015 Deposit payroll tax for Jan. If monthly deposit rule applies
February 18, 2015 Begin withholding on employees who claimed exemption from withholding in 2014 but did not file a W-4 to continue withholding exemption in 2015.
February 28, 2015 Deadline to file using paper forms W-2 Or closest business day that follows
February 28, 2015 Form 1095-C for full-time employees Applicable Large Employers (ALE); March 21, 2015 if filed electronically
February 28, 2015 Form 1097-BTC To IRS; by 15th day of 2nd month after close of calendar month in which credit is allowed
February 28, 2015 Form 1098 $600+; To payer or borrower, due by January, 31, 2015
February 28, 2015 Form 1098-C To donor 30 days from date of sale/contribution; $500+ gross proceeds
February 28, 2015 Transmittal on Form 1094-C for all returns in the given calendar year Applicable Large Employers (ALE); March 21, 2015 if filed electronically
March 2, 2015 File Forms 1097, 1098, 1099, 3921, 3922, or W-2G on paper
March 2, 2015 File Form W-3 with Copy A of all Forms W-2 issued for 2014
March 2, 2015 File Form 8027 Large food or beverage establishments
March 2, 2015 File Form 730 and pay the tax on wagers accepted in Jan.
March 2, 2015 File Form 2290 and pay tax for vehicles first used in Jan.
March 2, 2015 File Form 1040 and pay any tax due Farmers and fishermen
March 15, 2015 Form 1042-S
March 16, 2015 Forms 1120, 1120A, 1120S for 2014
March 16, 2015 File Form 1120 for calendar year and pay any tax due or file Form 7004 for 6-month extension and deposit est. tax Corporations
March 16, 2015 Deposit payroll tax for Feb. If monthly deposit rule applies
March 16, 2015 File Form 1120S and pay any tax due S Corporations
March 16, 2015 Furnish Schedule K-1 to each shareholder S Corporations
March 16, 2015 File Form 2553 to elect S Corporation status beginning w/ calendar year 2015 S Corporations
March 16, 2015 Furnish Sch. K-1 (Form 1065-B) to each partner Electing Large Partnerships
March 31, 2015 Deadline to file using Business Services Online Or closest business day that follows
March 31, 2015 File Forms 1097, 1098, 1099, 3921, 3922, or W-2G electronically
March 31, 2015 Form 10-K
March 31, 2015 File Form 2290 and pay tax for vehicles first used in Feb.
March 31, 2015 File Form 730 and pay the tax on wagers accepted in Feb.
April 1, 2015 Form NT 10-K
April 15, 2015 1st quarter estimated taxes
April 15, 2015 Deadline for contributions to traditional IRA, Roth IRA, Health Savings Account, SEP-IRA or solo 401(k) Extension can be requested for SEP-IRA or solo 401(k)
April 15, 2015 Form 1041 or 7004
April 15, 2015 Form 1065 or 7004
April 15, 2015 Form Late 10-K
April 15, 2015 File Form 1040, 1040A, or 1040EZ. For automatic extension, file Form 4868 and pay 1st installment of 2015 estimated tax Individuals
April 15, 2015 File Form 1065-B calendar year return Electing Large Partnerships
April 30, 2015 Coverdell ESA contribution information must be furnished to the beneficiary
April 30, 2015 Filers of Form 5498-ESA must furnish the required statement
April 30, 2015 Proxy Statement or Form 10-K/A, Form 20-F
April 30, 2015 File Form 941 for the 1st quarter
April 30, 2015 File Form 720 for the 1st quarter
April 30, 2015 File Form 730 and pay the tax on wagers accepted in Mar.
April 30, 2015 File Form 2290 and pay tax for vehicles first used in Mar.
April 30, 2015 Deposit FUTA tax owed through Mar. If more than $500
May 1, 2015 Form NT 20-F
May 11, 2015 File Form 941 for the 1st quarter If you timely deposited all required payments
May 15, 2015 Form 990 or 8868
May 15, 2015 Forms 10-Q, 13-F, Late 20-F
May 15, 2015 Deposit payroll tax for Apr. If monthly deposit rule applies
May 18, 2015 Form NT 10-Q
May 20, 2015 Form Late 10-Q
May 31, 2015 Forms 5498, 5498-ESA, 5498-SA
June 1, 2015 File Form 1096 with Forms 5498, 5498-ESA, and 5498-SA
June 1, 2015 Traditional IRA, Roth IRA, SEP, or SIMPLE contribution information must be furnished to the participant
June 1, 2015 File Form 730 and pay the tax on wagers accepted in Apr.
June 1, 2015 File Form 2290 and pay tax for vehicles first used in Apr.
June 15, 2015 2nd quarter estimated taxes
June 15, 2015 Deposit payroll tax for May If monthly deposit rule applies
June 15, 2015 Deposit 2nd installment of 2015 estimated tax Corporations
June 15, 2015 Individuals outside US file Form 1040
June 15, 2015 Pay 2nd instalment of 2015 estimated tax Individuals
June 29, 2015 Form 11-K
June 30, 2015 FinCEN Form 114
June 30, 2015 Form NT 11-K
June 30, 2015 File Form 730 and pay the tax on wagers accepted in May
June 30, 2015 File Form 2290 and pay tax for vehicles first used in May
July 1, 2015 File Form 11-C to register and pay annual tax
July 14, 2015 Form Late 11-K
July 15, 2015 Deposit payroll tax for June If monthly deposit rule applies
July 31, 2015 File Form 720 for the 2nd quarter
July 31, 2015 File Form 730 and pay the tax on wagers accepted in Jun.
July 31, 2015 File Form 2290 and pay tax for vehicles first used in Jun.
July 31, 2015 Deposit FUTA tax owed through June If more than $500
July 31, 2015 File Form 941 for the 2nd quarter
July 31, 2015 File Form 5500 or 5500-EZ for calendar year 2014 employee benefit plan
August 10, 2015 File Form 941 for the 2nd quarter If you timely deposited all required payments
August 14, 2015 Forms 10-Q, 13-F
August 17, 2015 Form NT 10-Q
August 17, 2015 Deposit payroll tax for July If monthly deposit rule applies
August 19, 2015 Form Late 10-Q
August 31, 2015 File Form 730 and pay the tax on wagers accepted in June
August 31, 2015 File Form 2290 and pay tax for vehicles first used in June
September 15, 2015 3rd quarter estimated taxes
September 15, 2015 Form 1041 If extension was requested
September 15, 2015 Form 1065 If extension was requested
September 15, 2015 Forms 1120, 1120A, 1120S for 2014 If extension was requested
September 15, 2015 Pay 3rd instalment of 2015 estimated tax Individuals
September 15, 2015 File Form 1065 if you timely requested a 5-mo. extension Partnerships
September 15, 2015 File calendar year Form 1120 or 1120-S if you timely requested a 6-mo. extension Corporations
September 15, 2015 Deposit 3rd instalment of 2015 estimated tax Corporations
September 15, 2015 Deposit payroll tax for Aug. If monthly deposit rule applies
September 30, 2015 File Form 730 and pay the tax on wagers accepted in Aug.
September 30, 2015 File Form 2290 and pay tax for vehicles first used in Aug.
October 1, 2015 SIMPLE-IRA for self-employed persons or small employers
October 15, 2015 Deadline for SEP-IRA or solo 401(k) If extension was requested
October 15, 2015 Deposit payroll tax for Sept. If monthly deposit rule applies
October 15, 2015 File Form 1040, 1040A, or 1040EZ if you timely request a 6-mo. extension
October 15, 2015 File Form 1065-B if you timely requested a 6-mo. extension
October 15, 2015 File Form 5500 if you requested an extension on Form 5558
November 2, 2015 File Form 720 for the 3rd quarter
November 2, 2015 File Form 730 and pay the tax on wagers accepted in Sept.
November 2, 2015 File Form 2290 and pay tax for vehicles first used in Sept.
November 2, 2015 File Form 941 for the 3rd quarter
November 2, 2015 Deposit FUTA tax owed through Sept. If more than $500
November 10, 2015 File Form 941 for the 3rd quarter If you timely deposited all required payments
November 16, 2015 Forms 10-Q, 13-F
November 16, 2015 Deposit payroll tax for Oct. If monthly deposit rule applies
November 17, 2015 Form NT 10-Q
November 23, 2015 Form Late 10-Q
November 30, 2015 File Form 730 and pay the tax on wagers accepted in Oct.
November 30, 2015 File Form 2290 and pay tax for vehicles first used in Oct.
December 10, 2015 Deposit 4th instalment of 2015 estimated tax Corporations
December 10, 2015 Deposit payroll tax for Nov. If monthly deposit rule applies
December 31, 2015 Deadline for setting up solo 401(k) for self-employed persons
December 31, 2015 File Form 730 and pay the tax on wagers accepted in Nov.
December 31, 2015 File Form 2290 and pay tax for vehicles first used in Nov.


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