NEWSLETTER ARTICLES

 

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04-08-2022
Duty free limits if you are travelling abroad

Duty free limits if you are travelling abroad

Here is a reminder of any duty payable and tax-free allowances if travelling abroad this summer. If you are travelling from outside the UK and arriving home in Great Britain (England, Wales and ... read more

04-08-2022
Tax-free trivial benefits

Tax-free trivial benefits

There is a benefit in kind (BiK) trivial exemption that applies to small non-cash benefits like a bottle of wine, or a bouquet of flowers given occasionally to employees or any other BiK classed as ... read more

04-08-2022
Using Advisory Fuel rates

Using Advisory Fuel rates

The easiest way to ensure that no car-fuel benefit charge (for private journeys in a company car) is payable, is to use the advisory fuel rates published by HMRC to repay any private fuel costs to ... read more

04-08-2022
Scope of Trade

Scope of Trade

There is no statutory definition of ‘trade’. The only statutory reference to the term is that ‘trade’ includes a ‘venture in the nature of trade’. This absence of a formal definition decides if an ... read more

04-08-2022
Using the Annual Investment Allowance

Using the Annual Investment Allowance

The Annual Investment Allowance (AIA) is a generous tax relief that was first introduced in 2008. The AIA allows for the total amount of qualifying expenditure on plant and machinery to be deducted ... read more

04-08-2022
Miscellaneous income

Miscellaneous income

There are special rules known as the miscellaneous income sweep-up provisions that seek to charge tax on certain income. This unusual provision, which is broad in scope, catches income that would not ... read more

28-07-2022
Gifts with reservation

Gifts with reservation

The majority of 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 ... read more

28-07-2022
Tax relief on replacement of domestic items

Tax relief on replacement of domestic items

The replacement of domestic items relief has been in place since April 2016. The relief allows landlords the ability to claim tax relief when they replace movable furniture, furnishings, household ... read more

28-07-2022
Business records if self-employed

Business records if self-employed

If you are self-employed as a sole trader or as a partner in a business partnership, then you must keep suitable business records as well as separate personal records of your income. For tax ... read more

28-07-2022
Construction services taxed at VAT zero or 5% rate

Construction services taxed at VAT zero or 5% rate

Whilst most businesses in the UK charge VAT at the standard rate of 20%, there are a number of different VAT rates and exemptions that businesses should be aware of. In the UK, there are three ... read more

28-07-2022
Settlement legislation – non-trust settlements

Settlement legislation – non-trust settlements

The settlement legislation seeks to ensure that where a settlor has retained an interest in property that the income arising is treated as the settlor’s income for all tax purposes. A settlor can be ... read more

28-07-2022
Emergency tax codes

Emergency tax codes

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 and help employer’s work out how much tax to ... read more

21-07-2022
NIC threshold increased

NIC threshold increased

In the Spring Statement earlier this year, the then Chancellor, Rishi Sunak, announced an NIC tax-cut to take effect from 6 July 2022. This change sees the National Insurance threshold increased from ... read more

21-07-2022
Applying for Marriage Allowance

Applying for Marriage Allowance

The marriage allowance can be claimed by married couples and those in a civil partnership where a spouse or civil partner does not pay tax or does not pay tax above the basic rate threshold for Income ... read more

21-07-2022
Tax when you get your pension

Tax when you get your pension

There are special rules which allow individuals who have set up private pension scheme(s) to benefit from significant tax reliefs when saving for their retirement. There is no overall limit to the ... read more

21-07-2022
Qualifying for residence nil rate band

Qualifying for residence nil rate band

The Inheritance Tax residence nil rate band (RNRB) is a transferable allowance for married couples and civil partners (per person) when their main residence is passed down to a direct descendent such ... read more

21-07-2022
Non-resident company taxation

Non-resident company taxation

Non-resident companies with a trading business in the UK are liable to pay UK Corporation Tax on their profits made through a permanent establishment/branch or agency. If the non-resident company is ... read more

21-07-2022
Entitlement to National Minimum Wage

Entitlement to National Minimum Wage

Employers must ensure they are paying staff the new National Minimum Wage (NMW) and National Living Wage (NLW) rates for the period from 1 April 2022 - 31 March 2023. The NLW is the minimum hourly ... read more

14-07-2022
Changes at HM Treasury

Changes at HM Treasury

Last week saw the resignation of the previous Chancellor Rishi Sunak from the Government. The previous Chancellor said he could no longer continue in his role in good conscience. The Prime Minister ... read more

14-07-2022
Tax gap remains at 5.1%

Tax gap remains at 5.1%

The tax gap for the 2020-21 tax year has been published and remains at 5.1%. This is the second lowest recorded percentage and remains unchanged from the previous 2019-20 tax year. The tax gap is ... read more

14-07-2022
Old style £20 and £50 notes

Old style £20 and £50 notes

The Bank of England will be withdrawing legal tender status of paper £20 and £50 banknotes after 30 September 2022. This means that if you have any old £20 or £50 notes you should use them or deposit ... read more

14-07-2022
Filing and paying company tax returns

Filing and paying company tax returns

If you have recently setup a new limited company or are thinking of doing so then one of the areas that you need to be aware of is the accounts and tax filing regime for companies. After the end of ... read more

14-07-2022
Furnished Holiday Lets and VAT

Furnished Holiday Lets and VAT

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. As an FHL is treated as a business, it ... read more

14-07-2022
Joining the MTD ITSA pilot

Joining the MTD ITSA pilot

Some businesses and agents are already keeping digital records and providing updates to HMRC as part of a live pilot to test and develop the Making Tax Digital (MTD) for Income Tax Self Assessment ... read more

12-07-2022
Tax Diary August/September 2022

Tax Diary August/September 2022

1 August 2022 - Due date for corporation tax due for the year ended 31 October 2021. 19 August 2022 - PAYE and NIC deductions due for month ended 5 August 2022. (If you pay your tax electronically ... read more

07-07-2022
Tax credits renewal deadline reminder

Tax credits renewal deadline reminder

31 July 2022 is the final day for families and individuals that receive tax credits to tell HMRC about any changes to their circumstances or income and to renew their tax credit. As in previous years, ... read more

07-07-2022
Childcare top-up to cover summer activities

Childcare top-up to cover summer activities

As the school holidays fast approach, many parents face having to organise extra school holiday childcare over the summer months. Working families can use the Tax-Free Childcare (TFC) scheme to help ... read more

07-07-2022
Pensions triple lock to be reinstated

Pensions triple lock to be reinstated

The triple lock guarantee on pensions that was suspended for the current 2022-23 tax year is to be restored from April 2023. In September 2021, the government announced that its triple lock guarantee ... read more

07-07-2022
Tax if living abroad and selling UK home

Tax if living abroad and selling UK home

One of the most often used and valuable of the Capital Gains Tax (CGT) exemptions arises on the sale of the family home. In general, there is no CGT to pay on a property that has been used as the main ... read more

07-07-2022
Standards for tax agents

Standards for tax agents

HMRC last published guidance on the standard for agents in January 2018 (updating the first set of standards published in February 2016). The standard applies to all tax agents who transact with HMRC ... read more

07-07-2022
National Insurance for company directors

National Insurance for company directors

Directors are classed as employees and pay National Insurance on annual income from salary and bonuses that exceeds the Primary Threshold. The annual threshold is pro-rated this year following the ... read more

30-06-2022
Potential tax demand scam

Potential tax demand scam

The Office of Tax Simplification (OTS) is a well-known organisation that provides independent advice to the government on simplifying the UK tax system. The OTS has issued a press release to warn of ... read more

30-06-2022
Concerns about tax repayment agents

Concerns about tax repayment agents

HMRC has launched a new consultation seeking views on proposed measures to address consumer protection issues for people who claim tax refunds through repayment agents. The 12-week consultation period ... read more

30-06-2022
Claiming Child Trust Fund cash

Claiming Child Trust Fund cash

HMRC has published their latest statistics on Child Trust Funds which reveal that whilst 320,000 accounts have now matured, 175,000 funds that have matured remain unclaimed. If you turned 18 on or ... read more

30-06-2022
Corporation Tax - marginal relief from 1 April 2023

Corporation Tax - marginal relief from 1 April 2023

The Corporation Tax main rate will increase to 25% from 1 April 2023 for companies with profits over £250,000. A Small Profits Rate (SPR) of 19% will also be introduced from the same date for ... read more

30-06-2022
Taxpayers who return to the UK

Taxpayers who return to the UK

There are tax implications that you will need to consider if you previously left the UK to live abroad and are now either returning to live and work in the UK or are considering such a move. In most ... read more

30-06-2022
CGT during divorce or separation

CGT during divorce or separation

If you are part of a couple that is about to separate or divorce, apart from the emotional stress, there are also tax issues that can have significant implications. Whilst this is unlikely to be ... read more

23-06-2022
New deal for private renters

New deal for private renters

The government has announced their intention to fundamentally reform the private rented sector marking the biggest shake up of the private rented sector in 30 years. These measures are set to include ... read more

23-06-2022
Reform of Consumer Credit Act

Reform of Consumer Credit Act

The government has announced new plans to modernise consumer credit laws to cut costs for businesses and simplify rules for consumers. This will see major reforms to the Consumer Credit Act that ... read more

23-06-2022
Class 1A payment deadline

Class 1A payment deadline

Class 1A NICs are paid by employers in respect of most benefits in kind provided to employees such as a company car. There is no employee contribution payable. If you provided taxable benefits to ... read more

23-06-2022
Check employment status for tax

Check employment status for tax

The Check Employment Status for Tax (CEST) tool can be used to help ascertain if a worker should be classified as employed or self-employed for tax purposes in both the private and public sector. The ... read more

23-06-2022
Submitting CIS nil monthly returns

Submitting CIS nil monthly returns

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

23-06-2022
Notifying cessation of self-employment

Notifying cessation of self-employment

Any taxpayers that have ceased to be self-employed must notify HMRC of their change in status. There are a number of steps that must be followed if a taxpayer ceases trading as a sole trader or if ... read more

20-06-2022
Tax Diary July/August 2022

Tax Diary July/August 2022

1 July 2022 - Due date for corporation tax due for the year ended 30 September 2021. 6 July 2022 - Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A ... read more

16-06-2022
What is tax avoidance?

What is tax avoidance?

There is a distinction to be drawn between tax avoidance and tax evasion. Tax evasion is illegal and describes a situation where someone acts to deliberately evade tax. This could include deliberately ... read more

16-06-2022
Right to Buy home scheme extended

Right to Buy home scheme extended

The Right to Buy scheme has been available in various guises since it was first launched in the 1980s and following a relaunch in 2012. In essence the scheme gives qualifying social tenants the ... read more

16-06-2022
New grant opportunities for farmers

New grant opportunities for farmers

New grant opportunities to help farmers have been announced. The new grants will help farmers boost their businesses and add extra value to their produce. The Adding Value grant opened for ... read more

16-06-2022
Business Start Up Loans

Business Start Up Loans

Financing a new Start Up business is one of the most crucial aspects of helping a new venture to succeed. Obtaining finance for a new business can be an arduous process. For example, borrowing money ... read more

16-06-2022
Tax and duties on goods sent from abroad

Tax and duties on goods sent from abroad

There are special rules to ensure that goods sent from abroad are taxed appropriately and thus not disadvantage UK businesses supplying goods in the UK, for example, by having to compete with VAT free ... read more

16-06-2022
Changes in State Pension age

Changes in State Pension age

The State Pension age is currently 66 and two further increases are set out in legislation: a gradual rise to 67 for those born on or after April 1960; and a gradual rise to 68 between 2044 and 2046 ... read more