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19-10-2017
Bereavement leave for parents who lose a child

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 its explanatory notes have been prepared by the government with the consent of the relevant MP. It is due to have its second reading in the House of Commons on 20 October 2017. The ... read more

18-10-2017
Managing staff experiencing mental ill health

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 to create a culture of well-being in the workplace. It includes advice on: spotting the signs of mental ill health talking to a team member that may be experiencing mental ill ... read more

18-10-2017
Is it a car or a van?

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 (Coca-Cola) who supplied vehicles to a number of their employees. Until 1997, Coca-Cola’s technicians had used estate cars but the amount of equipment that the employees needed would ... read more

18-10-2017
Non-residents selling UK home

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 non-resident capital gains tax (NRCGT) return within 30 days of selling a relevant property. When such a sale is made a NRCGT return must be submitted to HMRC within 30 days of the ... read more

18-10-2017
Overdrawn director’s loan account

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 personal expenses of directors using company funds. Where these payments do not form part of a director’s remuneration they are usually posted to the director’s loan account (DLA). ... read more

18-10-2017
HMRC to stop accepting personal credit cards

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 implementation of the EU second Payment Services Directive (PSDII). This legislation makes a number of reforms to the way payments by debit and credit cards, direct debit, credit ... read more

18-10-2017
Inactive companies and Corporation Tax

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 usually happens when a company has not commenced trading. A company, whilst not yet active for CT purposes, can still carry out activities (known as ‘pre-trading activities’) or ... read more

18-10-2017
What is a 'K' tax code?

What is a

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 help employers work out how much tax to deduct from an employee’s pay packet. The basic personal allowance for the tax year starting 6 April 2017 is £11,500 and the tax code for ... read more

11-10-2017
Do you pay tax on assets or cash you inherit?

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 be paid if the value of the estate is below the IHT nil rate threshold of £325,000. There is also a new IHT main residence nil-rate band (RNRB) that was introduced in April 2017. ... read more

11-10-2017
Tax implications on divorce or separation

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 break-up are given proper consideration. Whilst income tax does not automatically cause an issue for separating couples, as it is an individually assessed tax, there are other taxes ... read more

11-10-2017
Land Registry property alert service

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 Registry to monitor registered properties, where there is a concern that it might be subject to a fraudulent sale or mortgage. The property alert service can be used to monitor any ... read more

11-10-2017
Check your National Insurance record online

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 apply to set one up online. By signing in to the 'Check your National Insurance record' service you will also activate your personal tax account. The personal tax account can be ... read more

11-10-2017
Employing someone to work in your home

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 a nanny, housekeeper, gardener or carer. The rules are different if the person is self-employed or paid through an agency. If you employ anyone they must: have an employment ... read more

11-10-2017
Capital allowances when you sell an asset

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 equipment, vehicles, machinery etc, last for a reasonably long time and the tax rules do not allow you to automatically deduct the full cost of such items in one go. There are ... read more

04-10-2017
Christmas party and other social events

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 available for staff Christmas party or similar annual events. In general, the cost of a staff party or other annual entertainment is allowed as a deduction for tax purposes. However, ... read more

04-10-2017
Landlords’ finance charges restrictions

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 tax relief on mortgage costs used to buy investment properties is gradually being restricted to the basic rate of tax. Landlords of residential properties had benefited from ... read more

04-10-2017
Self-Assessment e-filing deadline

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 for the balance of any Self-Assessment liability for 2016-17, and the due date for any payment on account due for the current 2017-18 tax year. There are penalties for late ... read more

04-10-2017
Benefits and limitations of the VAT Flat Rate Scheme

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 FRS, you simply pay VAT as a fixed percentage of your VAT inclusive turnover. The actual percentage you use depends on your type of business. The amount of VAT you pay on your ... read more

04-10-2017
Self-employed - claim rate per mile for use of car

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 simplified expenses regime is not available to limited companies or business partnerships involving a limited company. The simplified expenses include a flat rate per mile claim for ... read more

04-10-2017
Tax on foreign income

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, dividend income, rental income and trust income. However, if you are resident in the UK you will also need to pay UK Income Tax on your foreign income, such as: wages if you work ... read more