Are we seeing the end of tax-free benefits?
There have been changes to the tax rules for certain Benefits in Kind which are provided as part of salary sacrifice schemes. These changes, which started coming into effect in April of this year, are ... read more
Gifts to a charity or your spouse
There is usually no Capital Gains Tax (CGT) to be paid on the gift of assets between married couples and civil partners. However, there is still a disposal that has taken place for CGT purposes, ... read more
How will your business be affected by Making Tax Digital?
The introduction of Making Tax Digital (MTD) will fundamentally change the way companies, the self-employed and landlords interact with HMRC. The new regime will require businesses and individuals to ... read more
Using your own car for business purposes
Employees who use their own car at work for business purposes can, under certain circumstances, be paid a tax-free allowance by their employers. This includes the use of their own van, motorcycle or ... read more
Should you be using the VAT Cash Accounting Scheme?
The VAT Cash Accounting Scheme (CAS) can offer important benefits to certain small businesses. Under the standard VAT accounting scheme, VAT is payable on sales whether or not the customer has paid ... read more
Are you claiming the NIC employment allowance?
For some time now, employers have been able to reduce their Class 1 NI contributions that relate to their employment of staff. The relevant relief, the employment allowance, is worth up to £3,000 per ... read more
DVLA car scam
The Driver & Vehicle Licensing Agency (DVLA) is warning the public of what appears to be a number of widespread scams targeting members of the public using emails, texts and telephone calls. These ... read more
Using the trivial benefits exemption
The trivial benefits in kind (BiK) regime came into effect in April 2016. This statutory exemption applies to small non-cash benefits like a bottle of wine or a bouquet of flowers given occasionally ... read more
The recent election result has certainly thrown the cat amongst the pigeons.
There are already indications that the Queen’s speech and the start of Brexit negotiations may be delayed, this mainly due ... read more
Benefits filing deadline approaching
Employers are reminded that the deadline for submitting the 2016-17 forms P11D, P11D(b) and P9D is 6 July 2017. P11D forms are used to provide information to HMRC on certain benefits and expenses that ... read more
VAT Flat Rate Scheme – limited cost traders
The VAT Flat Rate Scheme (FRS) was introduced to ease the process of calculating and submitting VAT returns for smaller businesses - the FRS is only available to businesses that expect their annual ... read more
Main Residence Nil Rate Band
The impact of Inheritance Tax has been reduced recently for families that own their own home. HMRC has introduced a new relief, the Inheritance Tax main residence nil-rate band (RNRB), which came into ... read more
Marginal rate of Income Tax
For high earning taxpayers the personal allowance is gradually reduced by £1 for every £2 of income over £100,000 irrespective of age. This creates an effective marginal rate of tax of around 60% for ... read more
EU Fourth Money Laundering Directive
The EU Fourth Money Laundering Directive which makes sweeping changes to combatting money laundering and terrorist financing across the EU will be implemented into UK law on 26 June 2017.
As a ... read more
Welsh land transaction tax
The new land transaction tax (LTT) which will replace the UK stamp duty land tax (SDLT) in Wales will be launched on 1 April 2018. The LTT legislation received Royal Assent on 24 May and is the first ... read more
Corporation Tax online filing
Company Tax returns have to be filed using the iXBRL data standard using either HMRC's own software or third-party commercial software. Businesses that use third-party commercial software should refer ... read more
Pension schemes newsletter
A new pension schemes newsletter has been published by HMRC. The latest edition of the newsletter includes details of the following topics:
Pension advice allowance. HMRC has been asked by pension ... read more
Insurance Premium Tax increase
Insurance Premium Tax (IPT) is a tax on general insurance premiums. There are two rates a standard rate of 12% and a higher rate of 20%. The higher rate applies where insurance is sold in relation to ... read more
VAT education exemption case
A complex VAT case that examined the VAT liability of restaurant meals provided to the public, and charges for concerts and other performances organised by students as part of their further education ... read more
Pensions regulator new enforcement action
Automatic enrolment into workplace pensions has been rolling out across the UK since 2012. It is expected that all employers will be part of the scheme by early 2018.
Employers failing to comply ... read more
Identifying phishing emails
HMRC publishes guidance on the subject of phishing and bogus emails. The document called Genuine HM Revenue and Customs contact and recognising phishing emails includes details of emails, letters, ... read more
Inheritance Tax on wedding gifts
The Institute of Chartered Accountants in England and Wales (ICAEW) has issued a timely reminder to anyone attending a wedding (or civil ceremony) this summer and planning to give a cash gift. The ... read more
Gift Aid donations
The Gift Aid scheme is available to all UK taxpayers. The charity or Community Amateur Sports Clubs (CASC) concerned can take a taxpayer’s donation and, provided all the qualifying conditions are met, ... read more
Advisory fuel rates for company cars
The latest advisory fuel rates became effective on 1 June 2017. Fuel rates are reviewed four times a year with changes taking effect on 1 March, 1 June, 1 September and 1 December. You can use the ... read more
Making a disclosure to HMRC
HMRC has updated their online guidance for individuals and companies who have a disclosure to make that isn’t covered by a current HMRC campaign or the Worldwide Disclosure Facility. The guidance is ... read more
Renewing tax credit claims
Families and individuals that receive tax credits should ensure that they renew their tax credit claims by 31 July 2017. Claimants who do not renew on-time may have their payments stopped.
HMRC has ... read more
Reminder to claim the marriage allowance
The marriage allowance came into force on 6 April 2015 and allows lower earning couples to share part of their personal tax-free allowance. The marriage allowance is available to married couples and ... read more
Lloyds bailout completed
The government has announced that all of the government’s shares in Lloyds acquired during the financial crisis have now been sold. The sale of the final tranche of shares in the Lloyds Banking Group ... read more
Using your own car for work
Under certain circumstances, an employee can be paid a tax-free allowance by their employers when using their own car, van, motorcycle or bike for work purposes.
It is important to note that this ... read more
Tax Diary June/July 2017
1 June 2017 - Due date for Corporation Tax due for the year ended 31 August 2016.
19 June 2017 - PAYE and NIC deductions due for month ended 5 June 2017. (If you pay your tax electronically the due ... read more
Employer deadline for providing P60s
The deadline for employers to provide employees with a copy of their P60 form is 31 May 2017. A P60 must be given to all employees that were on the payroll on the last day of the 2016-17 tax year (5 ... read more
G7 Finance Ministers meeting
The G7 is a forum of seven of the largest economies in the world. Italy currently presides over the group which comprises the UK, US, Germany, France, Italy, Canada and Japan. China, Brazil and India ... read more
Advance Assurance for R&D
Advance Assurance for Research and Development (R&D) tax relief claims is available to small companies making their first R&D claim. To be eligible, the companies must also have an annual ... read more
Agent authorisation form
The 64-8 form is the most commonly used form to authorise an agent, accountant or tax adviser to deal with HMRC on someone’s behalf. There are separate forms to authorise an agent to use the PAYE for ... read more
Diverted Profits Tax
The Diverted Profits Tax (DPT) came into force on 1 April 2015. The DPT is an anti-avoidance measure that targets large multinational businesses that the government deem to be using contrived and ... read more
IR35 and the public sector
The rules for individuals providing services to the public sector via an intermediary such as a personal service company (PSC) changed from April 2017. The new rules shift the responsibility for ... read more
Credit Card Sales Campaign
HMRC’s Credit Card Sales campaign continues to be available for individuals and businesses that accept credit and debit card payments and have not paid the right amount of tax due. The campaign offers ... read more
Default surcharge appeal
A recent First-tier Tribunal case examined an appeal by a taxpayer against a penalty for late submission of a VAT return for the quarter ending 30 June 2016 known as a default surcharge. A VAT default ... read more
Employee expenses consultation
The government announced a review of the taxation of employee expenses at Autumn Statement 2016. A consultation was launched earlier this year examining the use of Income Tax relief for employees’ ... read more
VAT grouping rules
There are special VAT rules that allow two or more corporate bodies to be treated as a single taxable person for VAT purposes known as a VAT group. The representative member accounts for any tax due ... read more
Inheritance Tax main residence nil-rate band
The new Inheritance Tax main residence nil-rate band (RNRB) came into effect on 6 April 2017. The RNRB is a new transferable allowance for married couples and civil partners (per person) when their ... read more
Replacement Domestic Item relief
The wear and tear allowance that allowed landlords to reduce the tax they paid on furnished property lets was withdrawn at the end of the 2015-16 tax year. The 10% deduction was available to landlords ... read more
Companies House - anti-money laundering changes
Companies House have announced that from 26 June 2017, changes will be made to UK anti-money laundering measures to help prevent money laundering and terrorist financing. The changes will increase the ... read more
Worldwide Disclosure Facility
The Worldwide Disclosure Facility (WDF) was launched in September 2016 and is open to anyone who wants to disclose a UK tax liability that relates wholly or partly to an offshore issue.
An offshore ... read more
Finance Bill receives Royal Assent
The Finance Bill 2017 officially known as Finance (No. 2) Bill received Royal Assent on 27 April 2017 following agreement by both Houses on the text of the Bill. The Bill is now an Act of Parliament ... read more
Criminal Finances Act
The Criminal Finances Bill received Royal Assent on 27 April 2017 and is now known as The Criminal Finances Act 2017. The new Act gives law enforcement agencies greater powers to recover the proceeds ... read more
Late filing of Self Assessment tax returns
Taxpayers that have not yet filed their 2015-16 Self Assessment returns will have already been charged an automatic £100 penalty for late submission. The penalty applied from 1 February 2017, even if ... read more
Lost your National Insurance number?
Taxpayers who have lost or forgotten their National Insurance number should first try and locate the number on paperwork such as their tax return, payslip or P60.
If the National Insurance number ... read more
Pre-election publications by HMRC
HMRC has announced via one of their blogs that readers will notice that communication will be much less than normal during the pre-election period which started at midnight on Friday 21 April and the ... read more
Initial launch of Tax-Free Childcare Scheme
The new Tax-Free Childcare Scheme (TFCS) is now available to the first tranche of working parents. The scheme has initially been made available to working parents of children that will be aged under 4 ... read more