SPA News Autumn 2012 - Shell UK

TiNA’S NEWS by Tina Gilchrist
State benefits
incapacity benefit – migration to
Employment and Support
Allowance (ESA) If you have been
receiving Incapacity Benefit that is
disregarded for tax purposes, there is
no provision for ESA to be non taxable.
This means that once you are transferred
to ESA, the benefit will become a taxable
benefit, and will no longer be
disregarded. The migration to ESA from
Incapacity Benefit will not affect anyone
who reaches state pension age before
6 April 2014.
Care home Fees – Capital Limits
The capital limits for residential care have
remained at the 2011/2012 limit of
£23,250 upper limit in England and
Northern Ireland, but have increased to
£23,250 in Wales and £24,750 in
Scotland. The lower limits have remained
at £14,250 in England & Northern Ireland
but have increased to £15,250 in
Scotland. There is no lower limit in Wales.
NhS-funded Nursing Care If you
are assessed as needing nursing care
in a care home, the NHS contribution
has remained at £108.70 in England
and Northern Ireland, and fixed at
£120.56 in Wales. In Scotland, if you
are 65 or over and assessed as requiring
personal care in a care home, you can
receive a fixed payment of £163 per
week, with a further payment of £74 if
you require nursing care (£237 per
week in total). If you are below 65 you
are only eligible to receive the payment
of £74 for nursing care.
Care home Fees – Client
Contribution To clarify a point on the
charging structure for people who enter
local authority residential care and who
are asked to make a contribution: even
if you have savings that are below the
lower Capital Limit, you will be expected
to contribute out of your income. Income
taken into account by the Local Authority
includes: State Pension, Pension Credit,
income related Employment and Support
Allowance, most Means Tested Benefits,
Occupational Pensions, Personal
Pensions and Annuity Income. If you are
one of a couple, the law does not allow
a joint charging assessment; only the
resident’s own income and capital affects
the assessment. Whatever your source(s)
of income, you will be left with no less
than the Personal Expenses Allowance
(PEA) of £23.50 per week in England,
Scotland and Northern Ireland, and
£24.00 per week in Wales, although
your Local Authority does have discretion
to allow more PEA in "special
circumstances". Any difference between
what you pay and the standard rate is
met by the Local Authority. If you choose
more expensive accommodation than
the Local Authority thinks you need, you
will be liable to pay the additional costs,
irrespective of income and capital.
Taxation
Tax Return initiative If HM Revenue
& Customs (HMRC) have sent you a Self
Assessment Tax Return or notice to
complete a tax return for the 2009/2010
tax year or earlier, and you have not yet
taken any action, HMRC are offering
you a quick and straight forward way
to bring your tax affairs up to date. There
is also a dedicated telephone helpline
to support you, Tel: 0845 601 8818
To take part in the Tax Return Initiative
you need to tell HMRC that you intend
to do so. You can do this by completing
an online form and sending it to HMRC
either electronically or by post. It only
takes a few minutes. You then need to
complete and submit your late tax
return(s) and pay what you owe (or
claim any repayment that might be due)
by 2 October 2012.
You can instantly submit your notification
form online to HMRC using the 'submit
by email' option in the form.
Alternatively, you can complete and
post your form to:
HM Revenue & Customs, Tax Return
Initiative Team, Holland House, 20 Oxford
Road, Bournemouth, Dorset BH8 8DZ
If you do not take advantage of this
initiative, and you submit the return and
pay what you owe later than 2 October,
you will have to pay a fine.
A reminder if you have received a paper
BENEVOLENcE
Self Assessment Tax Return for the
2011/2012 tax year, HMRC must
receive it by 31 October 2012
otherwise you will be liable for a
penalty. Online returns for the
2011/2012 tax year do not need to
be received until 31 January 2013.
New Tax helpline and Service for
the bereaved People who have
suffered bereavement and who need to
contact HM Revenue and Customs
(HMRC) will now find improved and
streamlined processes. The department
has created a dedicated telephone
helpline and address box for people
who need to contact HMRC about PAYE
and Self Assessment matters relating to
bereavement. Family members or
personal representatives who phone
HMRC about tax and bereavement will
also be able to speak to a dedicated
team of advisors.
HMRC has, in addition, simplified its
guidance and letters to customers to
make the process of dealing with tax
following bereavement more
straightforward. The main form used to
finalise the tax affairs of anyone who
has died, the R27, has also been
redesigned to make it easier to complete.
The Bereavement Helpline is 0845 300
0627, where callers will be able to select
option buttons to speak to a bereavement
tax adviser, 8am to 8pm, Monday to
Friday, and 8am to 4pm on Saturday.
The address for PAYE and Self
Assessment matters relating to
bereavement is:
HM Revenue & Customs, Pay As You
Earn & Self Assessment, PO Box 4000,
Cardiff CF14 8HR
general
Passport Fees The fee for a new
passport has reduced from £77.50 to
£72.50 from 3 September 2012. A
standard passport is 32 pages; if you are
a frequent traveller and need extra space
for visas, you can apply for a 48-page
passport; the fee for this has reduced from
£90.50 to £85.50. This is not available
for child applications. A reminder that
passports are free for those born on or
before 2 September 1929.
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