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Tax News

Current Hot Tax Topics include the following:

Making Tax Digital For what we know so far click here
Posted on 26 Feb 2017

Late 2015 Budget

Some fascinating stuff in this budget. At the time of writing (5 October 2015) it has not all passed into law, so not all the fine detail is available.

Dividends

Dividends will no longer carry a tax credit. This is designed (we imagine) to reduce the attractiveness of limited companies for business owners. The first 5,000 will be free of tax for many (how this will work is not yet available). In some cases the family operating a company may be better off if more than one person can utilise this 5,000.

Landlords

Landlords (but not incorporated landlords) of residential (but not commercial) property face a 20% restriction on interest paid. (The rule actually restricts the claim to the lower of rent received or interest paid at 20%). Where there is significant interest paid this can result in an enormous increase in tax liabilty resulting in large "losses" after tax. This is being introduced in steps, starting in the tax year 2017-18. For many landlords incorporating the business is likely to prove too expensive - SDLT (stamp duty) and capital gains tax. Sec 162 incorporation relief is possible if HMRC accept that the letting is a "business". Some might form a company to manage the business of letting, but this is unlikely to make a huge difference. Oddly, in this context SDLT does not apply to partnerships.

From April 2016 landlords will be able to claim again for 'renewals'. Renewals before 6 April 2016 will not attract tax relief. Renewals after 5 April 2016 will.

Source PTP Seminars & 2020 Innovation
Posted on 10 October 2015

Save 200 a Year? Transfer 10% of your personal allowance to your spouse? If you control your own company you may be able to save over 200 a year with minimum effort even though this claim was not designed for you. Call us for details.

Tax on Income and Gains Outside the UK HMRC publish the rules online, but it contains mistakes. Read it here. But contact us before relying on it.
Source Rebecca Benneyworth, Tax Faculty of the ICAEW - at http://www.ion.icaew.com/TaxFaculty/26820
Posted on 22 May 2013

RTI has arrived. If you need any help, please call us.
Posted on 2 May 2013

Universal Credit it looks like this tax credit will be almost impossible for a self-employed person to get. Click here.
Posted on 5 October 2012

HMRC Information Powers including search and seizure.
Source ICAEW Tax Faculty
Posted on 10 April 2012

Child Benefit will be withdrawn through an income tax charge from 7 January 2013 for households in which someone has an income over 50,000 a year. The charge will apply gradually if the income is between 50,000 and 60,000. Only households in which one individual has an income over 60,000 will no longer qualify for child benefit. This may change.
Source HSBC
Posted on 31 March 2012

New Penalties for submitting your tax return late.
Posted on 26 March 2012

2012-13 Tax Rates at a glance.
Posted on 25 March 2012

2012 Budget at a glance.
Posted on 25 March 2012

Childcare Vouchers can save you tax. Click for how.
Posted on 27 October 2010

Millions of us owe the taxman money The recent news that many millions of us have paid the wrong tax is neither news to us nor the disaster that the headlines suggest - for most people. In most cases it will be people in work who changed jobs who will have overpaid, and pensioners who have underpaid. Unless you are an affluent pensioner it is very likely that HMRC will waive the amount due on an 'individual basis', but they will not publish this as policy because they need to recover the unpaid tax from the handful of truly affluent pensioners who owe literally millions.
If you need help, give us a call.
Posted on 15 September 2010

Finality - when is your tax 'agreed' with the Revenue? New time limits for you to claim a refund or until the Revenue cannot enquire into your tax return. See Time Limits
Posted on 22 August 2010

Finance Bill Following the "emergency budget" the Finance Bill has been published. See http://www.hmrc.gov.uk/charter/charter.pdf
Posted on 2 July 2010

The new Pensions Tax Relief Anti-Forestalling Rules are painfully complex. But remember, you will not be affected if any one of the following apply: Your total pension contributions in the tax year did not exceed 20,000; You paid pension contributions regularly to 22 April 2009 and they have not increased; Your 'relevant income' is less than 130,000 in all the tax years 2007/08 to 2010/11 inclusive. And, even if none of these apply, the reduction in relief may not affect you. It is necessary to work through the detailed provisions to find out.
Posted on 24 May 2010
Source: TaxLine, a publication of The Tax Faculty of the ICAEW

See the new Tax Charter, here http://www.hmrc.gov.uk/charter/charter.pdf
Posted on 2 March 2010

Capital Gains Tax Rates to Increase Massively? This is the current rumour. Why would any political party keep the rate of capital gains tax at 18% (or 10%) after the next election when income tax rates will be as high as 60%.
Can you take advantage of the current rates? Ask us.
Posted on 9 October 2009

Partnerships A partnership is not a sham merely because it was set up to save tax. See the HMRC Inspectors' Manual at BIM 72065.
Can you reduce your tax bill by forming a partnership? Contact us for more.
Posted on 9 October 2009

Take millions out of your limited company and pay only 21% tax with an Employee Benefit Trust (EBT).'Mini' EBTs still seem to work. Take the money out of your company, pay the corporation tax (currently 21% for small companies), and pay no more tax? It is possible.
Ask us about it.
Posted on 9 October 2009

Save over £17,000 in tax next year (2010-11)? Income shifting (moving income to a spouse and saving tax at 60%, 50%, 40% or even 20%) is still alive and well.
Ask us about it. You can save real money in the right circumstances.
Posted on 9 October 2009

The Revenue have frightening new powers (from April 2009) This is an enormous change. More ...
Posted on 22 June 2009

Tax Rates and Allowances for 2009/10 www.icaew.com/index.cfm/route/134784/icaew_ga/en/Technical_and_Business_Topics/Tax_rates_and_allowances.
Posted on 9 May 2009

Tax and Your Mobile Phone or Blackberry the current position.
Source AccountingWeb.
Posted on 18 March 2009

Can't Pay Your Tax? Including income tax, VAT, corporation tax, and national insurance - contact the HMRC Business Payment Support Line on 0845 302 1435 - open Monday to Friday 8.00am to 8.00pm, and Saturday and Sunday from 8.00am to 4.00pm.
Or click http://www.hmrc.gov.uk/pbr2008/business-payment.htm
We have heard great things about this helpline. They are very helpful if you are having trouble paying your taxes.
Posted on 12 February 2009

100% Tax relief on Your Fixed Assets From April 2008 most items of plant will qualify for 100% tax relief in the year of purchase - the new Annual Investment Allowance allows you to invest up to £50,000 with a 100% tax claim per annum. To achieve the desired result, you must get advice from a suitably qualified person on this before you make any decisions.
Posted on 7 October 2008

The New Penalty Regime from April 2008 HMRC has a new penalty regime. See penalties.
Posted on 5 October 2008

Budget 2008 There was some interesting stuff in here. Give us a call if you would like to discuss it, see contact us. For an off-site summary, you could start at http://www.accountingweb.co.uk/budget/
Posted on 12 April 2008

Non Domicile Where do you stand, today? Should you be doing something? Draft legislation. See Residence and Domicile.
Posted on 11 March 2008

Income Shifting Will the proposed new legislation affect you? Call us for a free chat. See How to Contact Us.
Posted on 19 February 2008

HMRC gets bugging powers ... and will not need to seek external authorisation for any of its surveillance activities. How do you feel about that? Click for more.
Posted on 18 February 2008
Source AccountingWeb.

Taxman Given Intercept Go-ahead Visit Accountancy Age to read this at www.accountancyage.com/accountancyage/news/2209068/taxman-given-intercept-ahead-3811901.
Posted on 7 February 2008
Source Accountancy Age.

Residence and Domicile etc The changes are on the way. See provisional suggestions at Residence and domicile: Further details and new proposals.
Posted on 23 Jan 2008
Source AccountingWeb.

CIS Monthly Return Penalties - Amnesty Ends Contractors must make monthly returns even if the return is a 'nil' return. Penalties have not been levied, to date, but at 20 October 2007 a penalty will be levied for each outstanding return. Also, a lot of employers are forgetting to sign the forms.
Posted on 12 October 2007

Inheritance Tax nil band up to £1,000,000? George Osborne says Tories will raise the Inheritance Tax nil rate band to £1,000,000.
Posted on 2 October 2007

Tax Relief on £50,000? Consultation suggests that small businesses may benefit from an initial annual allowance of up to £50,000 - spent on assets (not cars). If you would like up to date details, please contact us.
Posted on 2 October 2007

600,000 Pensioners have been given the wrong tax code The problem covers periods going back to 1983. 420,000 have underpaid tax. 180,000 have overpaid tax. If this is causing you a problem, please contact us.
Posted on 5 September 2007
Source TAXline

Is Your Financial Adviser Regulated ? See www.fsa.gov.uk/pages/register to check if your financial adviser is regulated. In a recent case, a financial adviser conned his clients out of over £2 million to pay for his gambling. He had been unregulated since 1997.
Posted on 26 August 2007
Source Which?

Contractors with subcontractors A reminder: verification is not an employment status check. Verification and employment status are not the same. Being on the list as verified is not evidence that HMRC is granting guaranteed self employment status.
Posted on 19 August 2007

Arctic Systems The full text of the judgement can be found on the House of Lords website at: http://www.publications.parliament.uk/pa/ld200607/ldjudgmt/jd070725/jones.pdf
Posted on 5 September 2007

Arctic Systems On the 25 July the House of Lords judgement was in favour of the taxpayers in Jone v Garnett [2007]. On 26 July HM Treasury announced that legislation will be introduced to reverse the effect of the decision.
Posted on 19 August 2007

Offshore Bank Account? Want to take advantage of the HMRC 10% Incentive? Give us a ring. The deadlines are very tight.
Posted on 18 May 2007

Undeclared Tax Liability? Want to take advantage of the HMRC 10% Incentive? This applies to many situations, not just the highly publicised Offshore Accounts. Give us a ring. The deadlines are very tight.
Posted on 18 May 2007

Use of Home by the self employed. HMRC new guidance is here.
Posted on 23 January 2007
Source AccountingWeb.

CIS Deduction Rate now 20% ... from April 2007 the new rates of CIS deduction are to be 20% (currently 18%), and 30% for unregistered contractors (as expected).
Posted on 23 January 2007

Composite Companies ... Managed service companies – first in the firing line! Time to think?
Posted on 2 January 2007
Source AccountingWeb.

eBay traders reminded over registering with the Revenue (HMRC) ... don't get caught by the £100 penalty.
Posted on 2 December 2006
Source AccountingWeb 2006.

Company Vans, again. Should you pay tax on your company van? www.hmrc.gov.uk/vans/van-facts.htm
Posted on 13 November 2006

The New Construction Industry Scheme - New Guidance from HMRC - www.hmrc.gov.uk/new-cis/new_guidance.htm

Childcare Vouchers - Warning: it is possible for some employees to be worse off by taking vouchers. The figures need to be looked at in each case. The interaction of childcare vouchers with tax credits can be hideously complex. Considerations include whether they are taken as part of a salary sacrifice scheme, the employees tax credit position, and their marginal rate of income tax. See some examples at www.litrg.org.uk/news/index.cfm?id=354
Source TAXline September 2006.
Posted on 10 November 2006

Use of Home HMRC to issue guidance on use of home claims for the self-employed.
Posted on 6 October 2006

Tax Efficient Childcare: from 6 April 2005 employers will be able to pay up to £50 a week tax and NIC free to employees to meet the costs of childcare for children up to the age of £15. For more details, please contact us.
Posted 18 September 2005

Company Van Changes: escaping tax and paying tax on a company van.
Posted 18 September 2005

Civil partnerships: Same-sex couples have the chance from 5 December 2005 to register a civil partnership. Good news and tax-traps.
Posted 12 September 2005

Arctic Systems: Tax Faculty calls for clarity: or Settlements or Sec.660. If you have a limited company you must read this.
Posted 25 May 2005

Tax Credit Errors: The Chartered Institute of Taxation has reminded tax credits claimants that they may be able to keep overpaid credits that the Inland Revenue seeks to recover.
Posted 16 September 2004

A few notes on the recent budget.
Posted 26 March 2004

More prosecutions for tax credit fraudsters.
Posted 15 February 2004

Good news for Adult Placement Carers. A new non-statutory tax relief for those who care in their homes for vulnerable adults.
Posted 14 February 2004

Working from home? Tribunal makes working from home less taxing. Plus, Revenue guidelines to expenses & benefits for homeworkers.
Posted 6 February 2004

Tax Cheats: thinking about divorce? Beware, your lawyer may have to turn you in.
Posted 29 October 2003

Your Mobile Phone: If your employer pays the bill will you get this benefit tax free? Check this out! If you get it wrong you won't benefit. This includes people who control their own company, which in turn employs them. (Something for nothing if you control your own company?)
Posted 15 October 2003

Innocent businesses to suffer under VAT fraud crackdown.

NIC increase of 1%. How to claw the money back, a joke.

You Can Run, But You Can't Hide! A woman in Perth, Western Australia, received a tax demand from the (UK) Inland Revenue for £1.04. The postage on the envelope amounted to £1.12.
Source The Daily Telegraph, March 2003.

100% capital allowances on your next new car. April 2002.

Get A FREE Pension! Definitely worth a browse. It's not often that you appear to be able to get something for nothing.

The Right to Know. 24 October 2001.

Check out our money-back price guarantee.

Funny? A case was reported of an actress in a meeting with a tax inspector. When the inspector showed her a piece of paper containing incriminating evidence, the actress asked if it was the only copy. Foolishly the inspector replied that it was. The actress then promptly snatched the item and ate it!
Source:TaxZone

 
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