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HAVE YOU DECLARED ALL OF YOUR CREDIT CARD SALES?

Where credit card sales have been omitted from business takings, HMRC are encouraging taxpayers to come forward and make a disclosure of the income that has been omitted to avoid incurring interest and penalties on top of the unpaid tax. As you may be aware HMRC now receive information from third parties such as banks and credit card companies and will then match that data with business accounts, and will then open detailed enquiries if the figures appear to be inconsistent. They can go back u...

December 4, 2016

SPLITTING THE INCOME OF MARRIED COUPLES

Where a married couple hold savings accounts and other investments in joint names, the income from those investments is split 50:50 for tax purposes, unless there is an election to allocate the income in accordance with their beneficial interests. This is particularly important where the couples' marginal tax rates are different now that there are different personal savings allowances. Where the husband pays tax at 40% and the wife is only a 20% basic rate taxpayer, there can be significant tax...

November 29, 2016

CHRISTMAS IS COMING! - NEW RULES FOR GIFTS TO STAFF

From 6 April 2016 new rules were introduced to allow employers to provide their directors and employees with certain "trivial" benefits in kind, tax-free. The new rules are a simplification measure so that certain benefits in kind will not need to be reported to HMRC, as well as being tax free for the employee. There are of course a number of conditions that need to be satisfied to qualify for the exemption . CONDITIONS FOR THE EXEMPTION TO APPLY: the cost of providing the benefit does not ...

November 24, 2016

VAT Implications of Employee Mileage Claims

Note that where employers reimburse their employees 45p per mile for using their own cars they are able to reclaim input VAT based on the amounts shown in the table. In the case of a 1600cc diesel car that would be 1.5 pence per mile. (9p x 20/120). Such a claim needs to be supported by a receipt from the filling station. ...

November 16, 2016

PAYING 20% INSTEAD OF 28% ON THE SALE OF PROPERTY

The latest Finance Act has retained the 28% CGT rate for sales of residential property, whereas the general rate was reduced to 20% for higher rate taxpayers. It has been suggested that it is possible to reduce the rate from 28% to 20% by deferring the gain temporarily into qualifying EIS company shares. The tax planning opportunity arises because reinvesting the property gain in Enterprise Investment Scheme (EIS) company shares defers the gain until the shares are sold when the gain com...

November 10, 2016

Changes to Farmers Averaging

From 2016/17 onwards farmers now have the option to smooth out their profits over two or five tax years as the result of a change in Finance Act 2016. Farmers' and market gardeners' profits often fluctuate wildly from one year to the next and the tax rules for many years have allowed them to average their profits in order to smooth out those fluctuations. It is expected that there could be even greater fluctuations as the result of changes to subsidies and support payments following Bri...

November 7, 2016

REPORTING TO HMRC EVERY QUARTER TO GO AHEAD IN 2018

The Government and HMRC remain committed to the "Making Tax Digital" project with more information being sent online to HM Revenue and Customs (HMRC) by employers, pension funds, banks and other institutions. The next big step will be the introduction of quarterly reporting of income and expenditure by businesses and landlords from 2018. HMRC are currently consulting on a number of proposals to make radical changes to facilitate the introduction of the new regime. We accountants have serious c...

November 2, 2016

Guidance for Employers

HMRC have issued their latest guidance to employers in the August edition of the Employer Bulletin. This publication, which is issued every two months, includes articles on: expenses and benefits in kind consultations HMRC Toolkits – helping to reduce errors Automatic penalties for late intermediary returns the Apprenticeship Levy and apprentices guidance on paying HMRC student loan deductions Automatic enrolment update National insurance contributions for employees over State Pensi...

October 30, 2016

Advisory fuel rates for company cars

New company car advisory fuel rates have been published which take effect from 1 September 2016. The guidance states: 'You can use the previous rates for up to one month from the date the new rates apply'. The rates only apply to employees using a company car. The advisory fuel rates for journeys undertaken on or after 1 September 2016 are: Engine size Petrol 1400cc or less 11p 1401cc - 2000cc 13p Over 2000cc 20p Engine size...

October 25, 2016

Government urged to delay the launch of Lifetime ISA

The government is being urged by both pension providers and banks to delay the April 2017 launch of the new Lifetime ISA as they are warning that they will not be ready to offer the savings product by this time. A new Lifetime ISA introduces a new type of savings account for adults under the age of 40. Individuals will be able to contribute up to £4,000 per year and receive a 25% bonus from the government. Funds, including the government bonus, can be used to buy a first home at any time from ...

October 23, 2016

Complain to HMRC - online

HMRC have always had complaints procedures and have extended these to now include an online form which can be used to make complaints about your self-assessment and PAYE. The guidance also includes other ways to complain. If you would like help with PAYE or self assessment issues please contact us. Internet link: GOV.UK guidance ...

October 18, 2016

HMRC genuine and phishing/bogus emails and calls

HMRC have issued an update of their guidance on how to recognise genuine HMRC contact be it via email or text. They have also issued a warning regarding two telephone scams that they are aware of. The details of the two phone scams are as follows: Taxpayers receive telephone calls claiming to be from HMRC requesting personal information in order to receive a tax refund, or to demand money for an unpaid tax bill. A recorded message is left, allegedly from HMRC, advising 'that HMRC are bring...

October 15, 2016

Accounting standards and the tax implications of new UK GAAP

HMRC have updated their guidance on the tax implications of changes to the 'generally accepted accounting practice' used to prepare financial statements as many UK companies will be required to apply one of the EU-endorsed IFRS, FRS 101 or FRS 102 over the next few years. HMRC have stated that the purpose of these two papers is to assist companies who are thinking of choosing or have already chosen to apply either FRS 101 or FRS 102. The guidance includes an overview of the key accounting chang...

October 10, 2016

Government propose new sanctions for tax avoidance

The government has announced new proposals for sanctions for 'enablers and users of tax avoidance which is defeated by HMRC'. The consultation proposes a new penalty for those who enable tax avoidance and changes to the existing penalty legislation which applies to those who use avoidance. The proposals are to introduce 'sanctions for those who design, market or facilitate the use of tax avoidance arrangements which are defeated by HMRC and to change the way the existing penalty regime works f...

September 21, 2016

HMRC outline Making Tax Digital plans

HMRC have issued a series of consultation documents outlining further plans for the government's Making Tax Digital (MTD) initiative. HMRC have published six consultation documents on MTD. The six consultations set out detailed plans on how HMRC propose to make tax digital and to simplify the tax system. The consultations look at the following areas: How digital record keeping and regular updates will operate - this considers compulsory digital record-keeping and quarterly 'updates' to HMRC ...

September 19, 2016

Charity news

Annual returns The Charity Commission, which is the relevant body for charities registered in England and Wales, has announced that its latest annual return is now available and can be found on GOV.UK. All registered charities, in England and Wales, with an income of more than £10,000 and all Charitable Incorporated Organisations reporting on their financial years ending in 2016 must complete the online form within ten months of the end of their financial year. Part of the data submitted is us...

September 15, 2016

Working in hot temperatures

ACAS have some guidance on 'hot weather' working. The guidance confirms that: 'In the UK there is no maximum temperature that a workplace is allowed to be, rather advice from the Health & Safety Executive (HSE) states 'during working hours, the temperature in all workplaces inside buildings shall be reasonable'. What is reasonable depends on the type of work being done (manual, office, etc) and the type of workplace (kitchen, air conditioned office, etc). The HSE offers further guidance on ...

September 12, 2016

Updated student loan deduction guidance

HMRC have issued updated guidance to employers on how to deal with student loan deductions via the PAYE system. Employers should familiarise themselves with the guidance which has been updated to reflect the introduction of plan 2 loans which are repayable from a different threshold but at the same nine percent basis. With effect from the 2016/17 tax year there are two plan types for student loan repayments: plan 1 with a threshold of £17,495 (£1,457 a month or £336 per week) plan 2 with...

September 9, 2016

Latest ONS labour market statistics

The ONS has announced that in the three months from March to May 2016, the number of people in work increased. The number of unemployed people and the number of people not working and not seeking or available to work (economically inactive) fell. The statistics reveal that there were: 31.70 million people in work (176,000 more than for the three months to February 2016 and 624,000 more than for a year earlier). 23.19 million people working full-time (401,000 more than for a year earlier) 8.5...

September 7, 2016

HMRC latest ‘tax cheat’ targets

HMRC have launched a new taskforce to tackle wealthy tax cheats who are living beyond their means in Northern Ireland and expect the campaign to recover approximately £18 million. HMRC have announced that they are using Land Registry and Merchant Acquirer data to identify those with 'badges of wealth' such as large houses, aeroplanes, boats and undeclared offshore bank accounts which are not in keeping with the information they report to HMRC. HMRC's Ian McCafferty, Taskforce Lead, said: 'Ou...

September 2, 2016

TPR latest pensions auto enrolment awareness

According to the latest research by the TPR, based on surveys carried out between February and April 2016, the understanding amongst small employers of their duties under pensions auto enrolment saw a significant rise from 68% to 81%. Executive Director of Automatic Enrolment, Charles Counsell said: 'More than 9 in 10 small employers are now aware of automatic enrolment, and there is now almost universal engagement from business advisers helping their clients to carry out their duties. This i...

August 12, 2016

Residential property income and interest relief

The government has issued guidance and examples on the restriction of income tax relief for interest costs incurred by landlords of residential properties. The new rules, which are phased in from April 2017, only apply to residential properties and do not apply to companies or furnished holiday lettings. From April 2017 income tax relief will start to be restricted to the basic rate of tax. The restriction will be phased in over four years and therefore be fully in place by 2020/21. In the firs...

August 9, 2016

Labour Statistics

The latest ONS labour market statistics show a 55,000 rise in employment in the three months to April 2016. The Office for National Statistics has announced that: 'Between the 3 months to January 2016 and February to April 2016, the number of people in work increased, the number of unemployed people fell, and the number of people not working and not seeking or available to work (economically inactive) fell slightly. There were 31.59 million people in work, 55,000 more than for the 3 months to...

July 29, 2016

Holiday entitlement

Now is the time of year when many of us turn our thoughts to holidays and it is important to get holiday entitlement and holiday pay right. The GOV.UK calculator has recently been updated and can be found by using the following link. The acas website also includes useful guidance on calculating holiday and holiday pay entitlements. If you would like help with payroll matters please contact us. Internet link: GOV.UK calculator ...

July 27, 2016

Have you accessed your Personal Tax Account?

HMRC are advising employers that their employees may benefit from accessing their Personal Tax Account. These accounts allow taxpayers to view information about their tax affairs and advise HMRC online about changes that may affect the tax they pay. The services available through the Personal Tax Account include: checking income tax estimates and tax codes advising HMRC about changes affecting company cars using the online forms available to claim tax deductible work expenses or a tax refun...

July 23, 2016 Posts 1-25 of 42 | Page next
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