Bereavement leave for parents who lose a child
The Parental Bereavement (Leave and Pay) Bill has been published by the government. Although the Bill is a Private Members’ Bill, it has the full support of the government and therefore the Bill and ... read more
Managing staff experiencing mental ill health
Acas has launched new guidance to help employers manage staff who are experiencing mental health issues. The new guidance aims to help managers develop the right skills to support employees as well as ... read more
Is it a car or a van?
The First-Tier Tribunal recently heard three appeals that examined whether vehicles supplied to employees were vans or cars. The main appellant in this case was Coca-Cola European Partners GB Ltd ... read more
Non-residents selling UK home
A capital gains tax (CGT) charge on the sale of UK residential property by non-UK residents was introduced in April 2015.
A UK non-resident that sells UK residential property needs to deliver a ... read more
Overdrawn director’s loan account
An overdrawn director's loan account is created when a director (or other close family members) ‘borrows’ money from their company. Many companies, particularly 'close' private companies, pay for ... read more
HMRC to stop accepting personal credit cards
HMRC has confirmed that they will no longer accept payments with a personal credit card from 13 January 2018. This includes payments for income tax, PAYE, VAT and many other taxes. This is due to the ... read more
Inactive companies and Corporation Tax
There are a number of scenarios where HMRC would consider a company or organisation to be inactive for Corporation Tax (CT) purposes. This is a different categorisation to a 'dormant' company and ... read more
What is a 'K' tax code?
The letters in an employee’s tax code signify their entitlement (or not) to the annual tax free personal allowance. The tax codes are updated annually, or when an employee's circumstances change, and ... read more
Do you pay tax on assets or cash you inherit?
As a general rule, inheritance tax (IHT) is collected from a person’s estate when they die and can also be payable during a person’s lifetime on certain trusts and gifts. There is normally no tax to ... read more
Tax implications on divorce or separation
When a couple is separating or divorced it is unlikely that they are thinking about the tax implications. However, as the dust begins to settle it is important that the tax consequences of the ... read more
Land Registry property alert service
HM Land Registry's property alert service is a free (for up to 10 registered properties) service to help protect property from fraud. The counter-fraud security measure was introduced by the Land ... read more
Check your National Insurance record online
HMRC offers an online service to check your National Insurance record online. In order to use the service, you will need to have a Government Gateway account. If you don’t have an account, you can ... read more
Employing someone to work in your home
When you employ someone to work in your home, it is your responsibility to meet their employee's rights and deduct the correct amount of tax from their salary. This can include domestic staff such as ... read more
Capital allowances when you sell an asset
Capital allowances is the term used to describe the tax relief businesses can claim on certain capital expenditure and thereby reduce the amount of their taxable profits. Most ‘capital’ items, such as ... read more
Christmas party and other social events
In a recent newsletter we looked at the tax implications of giving Christmas gifts to your staff and the complications that can arise. In this newsletter, we will take a look at the tax breaks ... read more
Landlords’ finance charges restrictions
The government’s move to restrict the tax relief landlords receive on finance charges started to take effect from April this year. This is the first year that finance charges are being restricted. The ... read more
Self-Assessment e-filing deadline
As existing Self-Assessment tax filers will be aware, the deadline for online submission of your 2016-17 Self-Assessment tax return is 31 January 2018. This is also the date that the payment is due ... read more
Benefits and limitations of the VAT Flat Rate Scheme
The VAT Flat Rate scheme (FRS) has been designed to simplify the way a business accounts for VAT, and in so doing, reduces the administration costs of complying with the VAT legislation.
Using the ... read more
Self-employed - claim rate per mile for use of car
There are simplified arrangements in place for the self-employed (and some partnerships) to claim a fixed rate deduction for certain expenses where there is a mix of business and private use. The ... read more
Tax on foreign income
Income Tax is generally payable on taxable income received by individuals in the UK, including earnings from employment, earnings from self-employment, pensions income, interest on most savings, ... read more
How to make the most of tax losses
There are a number of tax reliefs available for self-employed taxpayers that make a loss carrying on their trade, profession or vocation (collectively referred to as a ‘trade’) and for their share of ... read more
How to pay self-assessment tax by adjusting your tax code
One of the less well-known ways of paying your self-assessment tax bill is to do so through your tax code.
This can only be done where all the following apply:
you owe a self-assessment balancing ... read more
Expenses and benefits: Christmas gifts
It is established practice that Christmas presents paid in cash to employees are almost invariably taxable as earnings. This view has been upheld by the courts on many occasions and can mean that a ... read more
VAT returns – correcting mistakes
There are special rules for correcting errors on VAT returns. The relevant rules depend on whether you need to:
Amend your VAT records if you discover they contain errors;
Correct errors on VAT ... read more
CGT annual tax-free allowances
There is an annual Capital Gains Tax (CGT) exemption for individuals (who live in the UK) as well as executors or personal representatives of a deceased person’s estate. The exemption is £11,300 for ... read more
What’s included in the charge to Stamp Duty Land Tax?
There have been many changes to the way stamp duty land tax (SDLT) and equivalent regional taxes are charged in recent years. This has included changes to the way in which SDLT is calculated for ... read more
Tax Diary October/November 2017
1 October 2017 - Due date for Corporation Tax due for the year ended 31 December 2016.
19 October 2017 - PAYE and NIC deductions due for month ended 5 October 2017. (If you pay your tax ... read more
Pension money purchase allowance reduction 2017-18
One of the measures announced in the March 2017 Budget was the reduction in the annual Money Purchase Allowance (MPAA) from £10,000 to £4,000. This measure was subsequently dropped from the ... read more
Tax relief for electric vehicle charging points
In last year’s Autumn Statement, the Chancellor announced a new capital allowance for electric vehicle charging points. Capital allowances is the term used to describe the allowances which allow ... read more
When is a car a van for VAT reclaim purposes?
In most cases a business is unable to reclaim the VAT charged when they purchase a car. However, there are different rules for other types of commercial vehicles and in most cases VAT can be reclaimed ... read more
Reimbursing employer for benefits in kind
It has been confirmed that the promised legislation to allow employees to reimburse their employers for benefits provided, and thereby avoiding a tax charge, will be included in the second Finance ... read more
Changing your company’s year end
There are special rules which limit the ability to change a company’s year end date. A company’s year end date is also known as its ‘accounting reference date’ and is historically set by reference to ... read more
Closing down a limited company
There are a number of reasons why a limited company may no longer be required and can be shut down. The limited company structure is no longer suitable as:
being incorporated is not the best ... read more
New Data Protection Bill introduced to Parliament
Following the Statement of Intent published in August 2017, the new Data Protection Bill has now been introduced to Parliament and it had its first reading in the House of Lords on 13 September 2017. ... read more
Date announced for Autumn Budget 2017
The Chancellor has announced that the Autumn Budget 2017 will be held on Wednesday, 22 November 2017. The announcement was made on the GOV.UK website and included a video message from the Chancellor, ... read more
Reduction in dividend allowance confirmed
Now that the second Finance Bill of 2017 has been published, we finally have confirmation that a number of measures announced earlier this year are to be included on the statute books. These measures ... read more
Making Tax Digital
The new timetable for the introduction of Making Tax Digital (MTD) has been confirmed with the publication of the second Finance Bill. The MTD regime was originally due to start from April 2018. ... read more
Card transaction disclosures
HMRC’s Card Transaction Programme is a disclosure opportunity for businesses that accept card payments and have not paid the right amount of tax due. The disclosure opportunity has been widened to ... read more
VAT Annual Accounting scheme
The VAT annual accounting scheme is open to most businesses with a turnover of up to £1.35m per year. The main benefits of the scheme include the requirement to file only one VAT return per year. ... read more
Paying wages for the first time?
There are a myriad of rules that new businesses must follow when they start employing staff for the first time. A full examination of the rules is beyond the scope of this article however we wanted to ... read more
Landlord’s Replacement Domestic Items 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
New Finance Bill published
Before the summer recess, the government confirmed that a new Finance Bill would be introduced as soon as possible after the summer recess. The House of Commons returned to Westminster on 5 September ... read more
Update child benefit and child tax credit details
Taxpayers in receipt of child benefit and child tax credits payments should be aware that HMRC can stop making payments on the 31 August following a child’s 16th Birthday.
HMRC has issued a press ... read more
HMRC accepts changes to R & D claims
HMRC recently announced a deadline for accepting amended claims for Research and Development (R&D) tax credits. This specific opportunity relates to claims to include eligible reimbursed employee ... read more
Auto-enrolment penalties sky-rocket
Automatic enrolment for workplace pensions was instigated to encourage employees to start making provision for their retirement with employers also contributing to make a larger pension pot.
The ... read more
Self-employed NIC increase
Class 2 National Insurance Contributions (NICs) are currently paid by self-employed taxpayers and members of partnerships if their annual profits exceed £6,025. Class 2 NICs are payable at a flat ... read more
What are VAT records and how long should you keep them?
There are distinct rules that VAT registered businesses must follow regarding retention of VAT records.
a record of sales and purchases, and
a separate VAT account.
Generally, ... read more
Tax relief and goodwill
Goodwill is usually defined as the ‘extra’ value attributable to a business over and above its tangible assets.
In the vast majority of cases, when a business is sold a significant proportion of the ... read more
Corporate governance reforms announced
The government has issued its response to its consultation which started in November 2016 on corporate governance reform. Its response document sets out proposals for a “world-leading package” of ... read more
VAT – beware the default surcharge
A default surcharge is a penalty levied on businesses that submit late VAT returns. VAT registered businesses are required by law to submit their returns and make sure that payment of the VAT due has ... read more