Showing posts with label IRS Tax. Show all posts
Showing posts with label IRS Tax. Show all posts

Sunday, October 19, 2014

The new car tax system: Are you complying with the rules?

In case you hadn’t heard, October heralded the biggest change in the way we tax our vehicles for almost 100 years. As of now, the paper tax disc, which we have all become so used to, has been replaced forever as the DVLA opt for a more cost efficient, environmentally friendly and modern database.

car tax system

But as you rip-up your old disc for good (actually don’t do that, some are going for a fortune on ebay!) make sure you are complying with the new changes to the UK car tax system.

Here are a few things to remember...

1. Make sure you’re still paying your tax

Just because we no longer have to display the tax disc, cars, lorries and motorcycles still need to be taxed. It’s just that the information is kept by the DVLA, who can check to see who has paid, and more importantly, who hasn’t.

2. Choose how regularly you want to pay

The DVLA’s new digital database means motorists can now choose to pay by direct debit as well as deciding when they make their payments. Pay annually, every six months or monthly if you wish; all you have to do is visit the DVLA website or go to your local post office.

3. Don’t think the authorities can’t tell if you’ve paid your tax

Just because you no longer have to display a tax disc, it doesn’t mean the DVLA can’t tell if you’ve paid or not. Automatic number plate recognition (ANPR) cameras will be used to catch those who haven’t paid up and the police will also be able to cross reference registration numbers on the Police National Computer system and fine drivers up to £1000 if they haven’t made a payment and are subsequently committing a serious motoring offence.

4. Wait until your tax is not due just yet

If your tax is not due for renewal yet, don’t worry. You don’t need to do anything. You can even take your old tax disc off the windscreen. When it comes time to buy your road tax, you can renew it using the new system.

5. It’s different if you’re buying or selling a car

As of October 1st, if you buy a car, you’ll need to tax it yourself. This is because the system of transferring road tax with a vehicle once it has sold has now ended. If you sell your car, which still has tax remaining on it you must tell the DVLA, they will then give you a refund for any FULL MONTHS of tax you have remaining.

6. Foreign countries are aware of the changes

Though most European countries still require drivers to display some kind of disc or proof of road tax payment, UK cars will not need to show anything when driving abroad. However, the government assured drivers that all European authorities have been told about the new system.

7. Check the status of your tax online

You can look up the tax status of any vehicle by using DVLA’s Vehicle Enquiry System. Don’t worry, you will also still be sent a renewal reminder when your vehicle tax is due to expire. But in the meantime you can look-up the tax status of any vehicle by using DVLA’s Vehicle Enquiry System.

8. Still inform the DVLA if your car is off the road

If your vehicle is registered as off the road (SORN) you’ll already need to inform the DVLA in the same way that you always did. But it’s worth remembering you’ll automatically receive a refund under the new scheme, but only for any FULL months’ worth of tax that is unused.

Author Bio: Written by journalist, blogger, writer and now keen collector of old car tax discs Matthew Crist on behalf of Caddick Davies Solicitors, motoring defence specialists .

Wednesday, September 17, 2014

Death & Taxes – Are You Financially Ready To Die?

Daniel Defoe once famously said “Things as certain as Death and Taxes, can be more firmly believ’d” and while both are certain, we never consider the taxation surrounding death. Almost two thirds of adults in Britain have not written a will, and a quarter of us have never even thought about drafting one. Of those that have actually had a will written, one in ten has told nobody where it is.

This infographic explores the legal and financial side to death, explaining how to get your affairs in order, how best to plan for your funeral, and highlights interesting facts and figures surrounding the financial side of dying in the UK.

Monday, March 3, 2014

The New Tax Rate Update in 2014

The year 2013 has already been proved to be a very difficult year for the smaller enterprises and individual employees. The global recession has affected the economy of almost all countries, including that of the USA. The country has been on the verge of several economic downturns over the last few years, and this has forced the government to make amendments in the current tax rates and national obligations. The report of Fox Business states that the businesses that have not filled their tax files for the last two years were asked to pay all taxes with the new tax rate, and this added the tax pressure on them. For this reason, it is important for all small and giant enterprises to have their tax projection done at the earliest, so to determine their total and compound tax dues.

Tax Rate

Seeing the economic imbalance in the country, a number of governments have made changes in the tax calculating procedures. The ones who are earning more than $50,000 subject to an annual tax of 39.6%, while the one below this margin have to pay annual state tax of 35%. This tax is termed as the “Wage Tax”, and is different for the ones who run their private businesses. The report sheds light on the fact that the government has been quite unfair in the tax dealings with the elite group of the society, and has not taken into considerations the dark side of these amendments. A number of corporate agencies contribute in the economic welfare and programs of the country, and imposing higher taxes on these firms can very likely repel them to continue their funding and contribution.

An incentive that many Western governments have provided to the small and emerging enterprises can be described as a mere discount scheme. If a company is willing to pay 5 year taxes collectively by 2015, the company’s tax would be calculated based on the tax rate of 2014 and 2015. Thus, even if the tax increases next year, which is very likely, the company will not have to pay any additional compensatory money for that. However, the applicability of this scheme can be quite uncertain as small business would not have enough revenue deposit to pay taxes of 5 years in advance, and large enterprises are not given this benefit.

Joshua Reeves, CEO & Co-founder of Zen Payroll, speaks about online payroll system in his speech at the National Tax Bureau Conference. He sheds light to the fact that companies that update their employee data less frequently can be subjected to penalties, for the infringement of transparency policies. Financial liabilities and insurance dues of a company changes as its employee pool expands and fluctuates. He states that this information is important to be updated on a timely basis and the tax report should be modified on quarterly or bi-yearly basis to avoid any sort of tax penalties. For large enterprises with a huge employee database, this is a matter of high concern.

Author’s Bio: The author of this article is Rebecca Peterson. She has been an author of various home maintenance and decoration books. She has also been writing for various online magazine and blogs. She enjoys a large fellowship of people from around the globe that want to learn about the Tax Preparation Software and other Tax, Finance and Auditing related industries.

Friday, March 8, 2013

Know The Steps To Settle Your IRS Tax Debts

Dealing with Internal Revenue Services is a difficult task, especially if you owe a large amount of tax debt to them. But there are some ways to settle your tax issues. You can opt for tax debt management to get professional tax negotiation services. There are many solutions available for your tax debt problems. Instead of hiring a professional negotiator you can employ some of the common ways.


Here are Some of the Ways to Settle your IRS Tax Debts:

  1. Offer-in-Compromise: You can propose this settlement offer to the IRS if you fail to pay your taxes in full. When you settle your debt through offer in compromise then make an offer to pay what you can afford. The IRS will review your current financial situation and then decide to approve or decline your offer. This program will help you to save your interest along with the penalty charges on your outstanding balance and gives the opportunity to pay off your debts.
  2. Installment agreement: IRS often offers a repayment plan for the taxpayers, who fail to pay their taxes in a single payment. There are four types of installment plans offered according to the taxpayers’ requirement. Your tax amount, current income and ability to pay in future will determine whether Installment agreement or IRS payment plan will be effective for your tax issues. If you are unable to arrange an Offer in Compromise then Installment agreement can be a good alternative for you.
  3. Opt for a penalty removal: With the help of an automated process, penalty charges are levied on your tax debts that you owe to the IRS. But these penalties are often not accurate. If you find that incorrect penalty charges have been imposed on your taxes then you can request the IRS to remove the penalty fees. If you consult a tax specialist then he can guide you to eliminate the penalty charges on your owed amount. When the penalties are eliminated then the payable tax amount will be diminished and make it affordable for you to pay off.
If you are looking for a tax debt relief then the above mentioned tips will be help you settle your tax debt.