Beware sting in 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 one VAT return per year. This can ... read more
Give now pay later – what are the settlement rules?
The settlement rules are intended to prevent an individual from gaining a tax advantage by making arrangements that divert his or her income to another person who may be liable at a lower rate of tax ... read more
Company van use – the tax consequences
There are a number of tax consequences to be aware when employees are provided with company vans and fuel. A company van can be defined as a van made available to an employee by reason of their ... read more
CGT base cost uplift on death
Special rules apply to assets when they are passed to a beneficiary after the death of the benefactor. In some cases Inheritance Tax may be due on the transfer. However, there can also be a hidden ... read more
Tax exempt gifts paid out of income
Many taxpayers are aware that there is an annual Inheritance Tax exemption of £3,000 for gifts and this can be carried forward to the following tax year if not used to make a maximum gift of £6,000. ... read more
Can’t afford to pay your tax bill?
HMRC understands that taxpayers will sometimes experience difficulties with paying their tax bill and stress that taxpayers should make contact with them as soon as they realise that there is a ... read more
New advisory fuel rates published
Advisory fuel rates are intended to reflect actual average fuel costs and are updated quarterly. The rates can be used by employers who reimburse employees for business travel in their company cars or ... read more
New guidance published for employers on setting dress codes and sex discrimination
Following a joint report ("High heels and workplace dress codes") published by the House of Commons Women and Equalities Committee and Petitions Committee in January 2017, the Government Equalities ... read more
Responding to a County Court claim
It is important that any correspondence received from the County Court is dealt with promptly. This should include taking proper legal advice when appropriate.
Usually, a creditor asks the County ... read more
When might you be due a tax refund?
HMRC has issued helpful guidance that explains when you might be due a tax refund and how to make a claim.
According to HMRC you may be able to claim a refund if you:
are employed and had too ... read more
NMW and LW enforcement measures
A new press release has revealed that in 2017-18, HMRC investigators identified £15.6 million in back pay that is owed to over 200,000 of the UK’s lowest paid workers. This was an increase from £10.9 ... read more
More warnings to beware of bogus tax refund scams
Fraudsters are taking advantage of taxpayers who may be due a tax refund following the end of the 2017-18 tax year. HMRC is currently processing tax refunds, but the fraudsters are trying to get one ... read more
Pay and expenses for volunteers
There are many rewarding opportunities for volunteering available across the UK. It is a popular misconception that only young people volunteer, however, people of all ages volunteer for numerous ... read more
Can a builder charge 5% VAT for their services?
Whilst the majority of businesses charge VAT at the standard rate of 20% there are a number of different VAT rates and exemptions that businesses should be aware. There are actually three separate VAT ... read more
Pensions Regulator to seize assets
The Pensions Regulator (TPR) has announced that employers who refuse to pay workplace pension fines could have their assets seized to pay their debts.
TPR can issue fines to employers who fail to ... read more
Advance assurance for R&D tax claims
Advance Assurance for small companies that claim Research and Development (R&D) tax relief was introduced in November 2015. This measure makes it easier for small businesses investing in research ... read more
Are you making money from a hobby?
The 'badges of trade' tests whilst not conclusive are used by HMRC to help determine whether an activity is a proper economic / business activity or merely a money-making side line to a hobby. ... read more
When do you pay tax on lodger’s rents?
The rent-a-room scheme is a set of special rules designed to help homeowners who rent-a-room in their home within certain limits to pay no tax on the lodger’s rents. The limit increased to a generous ... read more
Progress made towards one-day cheque clearance
A new system that allows UK banks and building societies to scan cheques and clear them digitally rather than using the paper cheque for clearing is expected to be introduced from October 2018. The ... read more
Child Benefit claw-back
The High Income Child Benefit charge came into force in January 2013 and applies to taxpayers whose income exceeds £50,000 in a tax year and who are in receipt of child benefit. The charge claws back ... read more
Employers can claim back VAT from mileage claims
HMRC operates a simplification measure that allows businesses to claim back VAT from mileage claims using a standardised scale charge to value fuel costs for private use. The scale charge is a fixed ... read more
Stamp duty land tax for first time buyers
New figures published by the government have revealed that 69,000 first-time home buyers have benefited from the recent changes to the Stamp Duty Land Tax (SDLT) rules. Under rules that came into ... read more
Bid to tackle online VAT fraud
HMRC is continuing to pressure online marketplaces marketplace (such as eBay or Amazon) to tackle online VAT fraud. Online marketplaces are already accountable for VAT fraud committed by online ... read more
Scottish Limited Partnership reforms
The government has announced a new crackdown to close loopholes that have been exploited by those using Scottish Limited Partnerships (SLPs). SLPs and Limited Partnerships (LPs) are used by many ... read more
New laws to protect home address
New laws have come into effect (from 26 April 2018) to help tackle the problem of identity fraud and personal harm for company directors. The new laws, which were introduced into parliament on 22 ... read more
Enterprise zones – new maps published
Enterprise zones were first launched in 2011 and are specific geographic areas that provide various tax breaks and Government support. Businesses that set-up in enterprise zones can benefit from up to ... read more
More support for non-parental carers
The government has announced that Universal Credit and Child Tax Credit support is to be extended to families who look after children who might otherwise be in the care of the local authority.
Under ... read more
When you can or cannot change your company year-end
There are special rules in place 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 usually set by reference ... read more
Updated guidance on DBS criminal record checks
The Home Office and the Disclosure and Barring Service (DBS) have updated their guidance for employers on requesting DBS criminal record checks for potential employees. The updated guidance includes ... read more
Should you pay tax on money or goods you inherit?
The surprising answer to this question is usually no. This is because inheritance tax (IHT) is usually levied on a person’s estate when they die and can also be payable during a person’s lifetime on ... read more
How to claim or stop claiming the employment allowance
The employment allowance of £3,000 per year is available to most businesses and charities to be offset against their employers Class 1 NIC bill. The allowance can be claimed as part of the normal ... read more
Which car benefits are exempt from tax?
The tax benefits of driving a company car have been steadily reduced over many years. Most employers and employees are aware of the additional costs of providing company cars and the tax implications ... read more
Late filing of self-assessment tax returns
Taxpayers that have not yet filed their 2016-17 self-assessment returns, will have already been charged an automatic £100 penalty for late submission. The penalty applied from 1 February 2018 even if ... read more
Tax when your company gives to a charity
There are special rules in place when a limited company gives to charity. This can include, corporation tax relief for qualifying donations made to registered charities or community amateur sports ... read more
Simplified expenses for the self-employed
There are some simplified arrangements available to the self employed, and to some partnerships for claiming a fixed rate deduction for certain expenses where there is a mix of business and private ... read more
Work covered by the CIS scheme
The Construction Industry Scheme (CIS) is a set of special rules for tax and national insurance for those working in the construction industry. Businesses in the construction industry are known as ... read more
Small amounts of property and trading income
There are two separate £1,000 tax allowances for property and trading income that have been available to taxpayers since April 2017.
The £1,000 exemptions from tax apply to:
Taxpayers who make up ... read more
New lawful basis interactive guidance tool
The Information Commissioner's Office (ICO) has announced that it has produced a lawful basis interactive guidance tool to assist businesses in determining, which lawful basis is appropriate for their ... read more
Tax Diary May/June 2018
1 May 2018 - Due date for corporation tax due for the year ended 30 July 2017.
19 May 2018 - PAYE and NIC deductions due for month ended 5 May 2018. (If you pay your tax electronically the due date ... 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 2018. Claimants who do not renew on-time may have their payments stopped.
HMRC has ... read more
How much does Class 4 NIC cost?
There are currently two types of national insurance contributions (NICs) payable by most self-employed people. These are known as: Class 2 NICs, and Class 4 NICs.
Class 2 NICs are paid by all ... read more
Claiming for job related expenses
Employees who use their own money to buy things they need for their job, can sometimes claim tax relief for the associated costs. It is usually only possible to claim tax relief for the cost of items ... read more
Don’t forget to handout P60s
The deadline for employers to provide employees with a copy of their P60 form is by 31 May 2018. A P60 must be given to all employees that were on the payroll on the last day of the tax year – 5 April ... read more
What is a PET?
Most gifts made during a person’s life are not subject to tax at the time of the gift. These lifetime transfers are known as 'potentially exempt transfers' or 'PETs'. These gifts or transfers achieve ... read more
Non-resident landlord’s scheme
The Non-resident landlord (NRL) scheme is a special scheme for the UK rental income of non-resident landlords. This includes companies or trustees whose 'usual place of abode' is outside the UK. HMRC ... read more
Let property disclosure campaign
Landlords that receive letting income should notify HMRC by 5 October after the end of the tax year for which you start to receive that income. So, for the 2017-18 tax year that has just ended, HMRC ... read more
EMIs lose tax clearance under state aid
HMRC's recently published, and usually routine, Employment related securities bulletin contains an important announcement on the future of EMI share options. It transpires that the EU state aid ... read more
Reminder to submit details for Benefits in Kind
Employers are reminded that the deadline for submitting the 2017-18 forms P11D, P11D(b) and P9D is 6 July 2018. P11D forms are used to provide information to HMRC on all Benefits in Kind (BiKs), ... read more
Treatment of termination payments
With effect from 6 April 2018, employers will need to pay income tax and Class 1 national insurance contributions (NICs) on certain parts of termination payments made to employees whether or not these ... read more
Court rules on online filing penalties
The Construction Industry Scheme (CIS) is a set of special rules for tax and national insurance (NI) for those working in the construction industry. Businesses in the construction industry are known ... read more