NEWSLETTER ARTICLES

 

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17-08-2017
When must you register for VAT?

When must you register for VAT?

The taxable turnover threshold, that determines whether businesses should be registered for VAT is currently £85,000. Businesses are required to register for VAT if they meet any of the following ... read more

17-08-2017
BPP holdings Supreme Court decision

BPP holdings Supreme Court decision

The Supreme Court has dismissed HMRC’s appeal in a long running case between the BPP Group of companies (who provide professional and academic education) and HMRC. The case initially centred on the ... read more

17-08-2017
What are overlap profits?

What are overlap profits?

The assessment of self-employed or partnership profits is relatively straight-forward if the accounting date, to which accounts are prepared, falls between 31 March and 5 April. However, year ends ... read more

17-08-2017
Dormant company obligations

Dormant company obligations

If a company has stopped trading and has no other income then HMRC should be informed that it’s dormant for Corporation Tax purposes. HMRC can also send a notification if they think a company is ... read more

17-08-2017
100% write down for qualifying capital expenditure

100% write down for qualifying capital expenditure

The Annual Investment Allowance (AIA) limit has changed significantly over the last number of years. However, the limit has been fixed at £200,000 for all qualifying expenditure on or after 1 January ... read more

17-08-2017
Choosing a company name

Choosing a company name

Companies House guidance sets out the main requirements for incorporating a company in the UK. The guidance entitled Incorporation and Names also provides advice on checking which names are acceptable ... read more

10-08-2017
What qualifies for 10% Entrepreneurs’ Relief?

What qualifies for 10% Entrepreneurs’ Relief?

Entrepreneurs' Relief applies to the sale of a business, shares in a trading company or an individual’s interest in a trading partnership. Where Entrepreneurs' Relief is available CGT of 10% is ... read more

10-08-2017
How to roll-over capital gains

How to roll-over capital gains

Business Asset Rollover Relief allows for the deferral of Capital Gains Tax (CGT) on gains when you sell or dispose of certain assets and use all or part of the proceeds to buy new assets. The relief ... read more

10-08-2017
Holiday lets occupancy rules

Holiday lets occupancy rules

The furnished holiday let (FHL) rules allow holiday lettings of properties that meet certain conditions to be treated as a trade for tax purposes. In order to qualify as a furnished holiday letting, ... read more

10-08-2017
Claiming back VAT on fuel

Claiming back VAT on fuel

HMRC offers a number of alternative methods for claiming back VAT on car fuel where there may be a mix of business and private mileage. They fall into a number of broad categories: Standard scale ... read more

10-08-2017
VAT capital goods scheme

VAT capital goods scheme

The VAT Capital Goods Scheme (CGS) adjusts the initial VAT recovery in respect of certain assets over either 5 or 10 year period. The scheme seeks to agree a fair and reasonable attribution of VAT to ... read more

10-08-2017
Carry back charitable contributions

Carry back charitable contributions

Donations to charities are a recognised way to benefit charities and certain tax payers. To facilitate these advantages, taxpayers must ensure they keep a proper record of all donations to back up ... read more

02-08-2017
The end of disincorporation relief?

The end of disincorporation relief?

Disincorporation involves the transfer of a business from a private limited company to a sole trader or partnership. Disincorporation relief was introduced from 1 April 2013 and is effectively a form ... read more

02-08-2017
Landlords, what expenses can you claim?

Landlords, what expenses can you claim?

It is important that landlords are aware of the expenses that can be deducted from their rental income. As a rule, these expenses must be wholly and exclusively for the purposes of renting out the ... read more

02-08-2017
VAT – what you cannot reclaim

VAT – what you cannot reclaim

Most VAT registered businesses are entitled to reclaim the VAT they incur on goods and services used by the business. This is known as input VAT. Some of the common areas where VAT cannot be ... read more

02-08-2017
Tax write downs for business cars

Tax write downs for business cars

Capital allowances allow businesses to secure tax relief for certain capital expenditure. Qualifying expenditure on cars must usually be allocated to one of two general pools of expenditure. Which ... read more

02-08-2017
Company purchase of own shares

Company purchase of own shares

As a general principle, when a company makes a purchase of its own shares, any payment in excess of the amount of capital originally subscribed for the shares is treated as a distribution (taxed as ... read more

02-08-2017
Let property disclosure campaign

Let property disclosure campaign

HMRC’s Let Property Campaign provides landlords who have undeclared income from residential property lettings in the UK or abroad with an opportunity to regularise their affairs by disclosing any ... read more

01-08-2017
Supreme Court declares employment tribunal fees unlawful

Supreme Court declares employment tribunal fees unlawful

In R (on the application of Unison) v Lord Chancellor 2017, the Supreme Court has ruled that employment tribunal and Employment Appeal Tribunal (EAT) fees are unlawful and it has quashed the ... read more

28-07-2017
Tax Diary August/September 2017

1 August 2017 - Due date for Corporation Tax due for the year ended 31 October 2016. 19 August 2017 - PAYE and NIC deductions due for month ended 5 August 2017. (If you pay your tax electronically ... read more

27-07-2017
European Union (Withdrawal) Bill published

European Union (Withdrawal) Bill published

The government has published the European Union (Withdrawal) Bill 2017-19 and it has had its first reading in the House of Commons. The second reading is scheduled for 9 September 2017, following ... read more

26-07-2017
Credit card transaction charges to be banned

Credit card transaction charges to be banned

The EU second Payment Services Directive (PSDII) was approved by the European Parliament and European Council in December 2015 and seeks to widen the scope of the existing EU Payment Service Directive ... read more

26-07-2017
Directors, beware minimum wage legislation

Directors, beware minimum wage legislation

We have recently considered some of the issues surrounding various tax efficient strategies for paying director shareholders. One aspect of this complex area that we have not yet examined is whether ... read more

26-07-2017
The new State Pension

The new State Pension

The new State Pension is payable to those that reach the State Pension age on or after 6 April 2016. The full new State Pension is currently £159.55 per week and is payable to eligible women born on ... read more

26-07-2017
Who inherits if someone dies without a Will?

Who inherits if someone dies without a Will?

The intestacy rules that govern how assets are divided if someone dies without making a will changed from 1 October 2014. The changes do not affect people who die with less than £250,000 in assets but ... read more

26-07-2017
PAYE tax refunds and underpayments

PAYE tax refunds and underpayments

HMRC’s annual reconciliation of PAYE for the tax year 2016-17 is well under way. HMRC uses salary and pension information to calculate if the correct amount of tax has been paid. Where the incorrect ... read more

26-07-2017
Tax credit renewal final reminder

Tax credit renewal final reminder

This coming Monday (31 July) is the last day for families and individuals that receive tax credits to renew their tax credit. As in previous years, there is expected to be a huge last-minute rush and ... read more

26-07-2017
Tax free savings income

Tax free savings income

The Personal Savings Allowance (PSA) was launched on 6 April 2016. The allowance means that the first £1,000 interest on savings income for basic rate taxpayers is tax-free. For higher-rate taxpayers ... read more

20-07-2017
New Finance Bill to be published

New Finance Bill to be published

The government has confirmed that a new Finance Bill will be introduced as soon as possible after the summer recess. The House of Commons returns to Westminster on 5 September 2017. In a joint press ... read more

20-07-2017
Making Tax Digital – common sense prevails

Making Tax Digital – common sense prevails

A new timetable for the introduction of Making Tax Digital (MTD) has been announced. The new regime was due to start from April 2018, but was delayed by the snap general election earlier this year. ... read more

20-07-2017
Class 1 NICs zero rate band

Class 1 NICs zero rate band

Many director shareholders take a minimum salary and any balance of remuneration as dividends. This tends to reduce National Insurance Contributions (NICs), and in some cases Income Tax. The planning ... read more

20-07-2017
Employed or self-employed?

Employed or self-employed?

Working out whether you are an employee or self-employed can be a tricky business and HMRC’s view can sometimes be at odds with status defined under employment law. Clearly, although not always, ... read more

20-07-2017
Changes to deemed domicile rules

Changes to deemed domicile rules

In July 2015, the then Chancellor George Osborne announced a series of reforms to the non-domicile rules. The new rules were due to come into effect from April 2017, but were removed from the cut-back ... read more

20-07-2017
Gift Aid donations only available to taxpayers

Gift Aid donations only available to taxpayers

The Gift Aid scheme is available to all UK taxpayers, but in order to sign up to the Gift Aid scheme when you make a donation, you must be paying UK income tax. There are clear advantages for ... read more

13-07-2017
Rangers EBT kicked into touch

Rangers EBT kicked into touch

The Supreme Court has ruled in favour of HMRC over a long running tax avoidance case against a former incarnation of Rangers football club (now in liquidation). The case concerned a tax avoidance ... read more

13-07-2017
Future changes to Corporation Tax?

Future changes to Corporation Tax?

The Office of Tax Simplification (OTS) provides independent advice to the government on simplifying the UK tax system, with the objective of reducing compliance burdens on both businesses and ... read more

13-07-2017
Online filing exclusions for 2016-17

Online filing exclusions for 2016-17

HMRC’s list of exclusions from online filing for 2016-17 continues to multiply. The list of exclusions has been updated with the publication of version 4.0 of the document. There are now a total of 32 ... read more

13-07-2017
VAT relief on building a new home

VAT relief on building a new home

The VAT DIY Housebuilders scheme is a special scheme that enables homeowners building a home to benefit from the special VAT rules that allow the qualifying construction costs of new homes and certain ... read more

13-07-2017
Furnished holiday lettings

Furnished holiday lettings

The furnished holiday let (FHL) rules allow holiday lettings of properties that meet certain conditions to be treated as a trade for some specific tax purposes. Individuals, partnerships, trustees and ... read more

13-07-2017
Rent-a-room scheme

Rent-a-room scheme

The rent-a-room scheme is a set of special rules designed to help homeowners who rent-a-room in their home. The limit increased to a generous £7,500 from 6 April 2016, after remaining stagnant for ... read more

06-07-2017
No benefits but still need to file a form?

No benefits but still need to file a form?

As many of our readers will be aware, new payroll legislation on the treatment of certain business expenses and benefits came into effect from 6 April 2016. One of the main changes was the removal of ... read more

06-07-2017
Directors may not have to file a tax return

Directors may not have to file a tax return

A recent First Tier Tribunal case examined whether a company director had an obligation to submit a Self Assessment tax return without receiving a notice to file. The taxpayer in question appealed ... read more

06-07-2017
Taxman and the shed

Taxman and the shed

One of the most often used and valuable of the Capital Gains Tax (CGT) exemptions covers the sale of the family home. In general, there is no CGT payable on the sale of a property which has been used ... read more

06-07-2017
Bricklayer turned accountant is jailed

Bricklayer turned accountant is jailed

An Essex based financial adviser has admitted tax fraud and has been jailed for five years. He set himself up as tax adviser despite having no financial qualifications. He had previously worked as a ... read more

06-07-2017
NMW and LW penalties for non-compliance

NMW and LW penalties for non-compliance

There are penalties for employers who don’t pay staff what they are legally entitled to under the National Minimum Wage (NMW) and National Living Wage (NLW) rates. Employers who have paid a worker ... read more

06-07-2017
Tax-free loans to employees

Tax-free loans to employees

Employees can obtain a tax-free benefit when provided with an employment-related cheap or interest-free loan. The most common is where the combined outstanding loan value to an employee is less than ... read more

28-06-2017
What is the best way to extract funds from your company?

What is the best way to extract funds from your company?

Director shareholders are wont to ensure that they pay the lowest amount of tax and NIC consistent with their obligations under the relevant legislation. For many years, director shareholders have ... read more

28-06-2017
Implementing a Cycle to Work Scheme

Implementing a Cycle to Work Scheme

The Cycle to Work scheme was introduced in 1999 to help promote a healthy commute to work. The scheme allows employers to provide (technically loan) bicycles and cyclists’ safety equipment to ... read more

28-06-2017
Tax-free employee suggestion schemes

Tax-free employee suggestion schemes

Do you have an employee suggestion scheme in place? There are still commercial and tax advantages to setting up such a arrangement. HMRC offers two tax-free award schemes that can be made available to ... read more

28-06-2017
Swapping salary for pension benefits

Swapping salary for pension benefits

Employers and employees may have noticed that HMRC has clamped down on the tax and NIC benefits of some aspects of salary sacrifice schemes. The changes are being rolled out gradually from April 2017, ... read more