IR35 Changes Loom for the Private Sector
On 6 April 2017, changes to the way that the taxation of workers’ services provided through intermediaries was implemented has had a huge impact for workers in the Public Sector. The Government now intends to roll out similar changes for the Private Sector, with effect from 6 April 2020.
Non-Resident CGT – April 2019 Changes
From 6 April 2019 the scope of UK CGT on non-residents is being extended to include all UK real estate property as well as to assets deriving at least 75% of their value from UK land.
Changes to Entrepreneurs Relief
Changes to Entrepreneurs Relief potentially threatened the availability of capital gains tax relief for owners of companies with alphabet share classes.
Companies House and HMRC Scam Alert
Companies House and HMRC Scam Alert For many years scammers have sent bulk emails pretending to be from H M Revenue & Customs (HMRC). The emails will normally involve a tax rebate or urgent problem which will require you to log into a false HMRC website and provide your bank details and tax reference. Other […]Read more
Impact of Changes to Dividend Taxation
In recent times, running a business through a limited company has provided a significant tax saving over a sole trade, by allowing profits to be extracted from the business at similar rates of tax but with little or no charge to National Insurance Contributions (NICs).
Greek Debt Crisis -Time to Pay Extended
The Chancellor has announced measures to support British businesses that are suffering due to the debt crisis in Greece.
Tax Avoidance Schemes: Too Good To Be True?
Tax Avoidance Schemes: Too Good To Be True? Tax avoidance has once again hit the headlines with news that the Employment Allowance is being used to help recruitment agencies avoid NICs altogether by using a host of limited companies, each employing 1 or 2 recruits. The Employment Allowance was introduced to relieve employers of their first […]Read more
Time is almost up for the EBT Settlement Opportunity
Time is almost up for the EBT Settlement Opportunity Employee Benefit Trusts (EBTs) were often used by companies seeking to reward employees without operating PAYE (Pay As You Earn)/National Insurance contributions by making payments through trusts and other intermediaries that favour the employees or their families. The arrangements usually sought to secure a Corporation Tax […]Read more
‘Tis Not The Season of Goodwill
Removal of a Beneficial Tax Treatment of Goodwill on Incorporation The Chancellor is clearly not in a seasonal mood this December and has introduced changes that remove a beneficial tax treatment of goodwill on incorporation. Despite the rhetoric of helping hard working taxpayers, the recent Autumn Statement removed a tax relief that allowed entrepreneurs who […]Read more
2014 Autumn Statement
2014 Autumn Statement Today’s Autumn Statement introduced a number of interesting changes and proposals including a long overdue review of Stamp Duty Land Tax (SDLT). From 4 December 2014, the old system of SDLT, applying one flat rate to the total value of a property, determined by reference to property value, will be replaced by […]Read more
The Benefits of Incorporating your Business
Incorporating Your Business and the Benefits Have you considered changing your profitable sole trade or partnership into a company? Doing so could save you a significant amount of tax. As a sole trader/partner, you are paying income tax on the profits of your business in full each year at up to 45%. In addition to […]Read more
Phasing of HMRC Penalties
Phasing of HMRC Penalties HMRC are staggering the start of new automatic in-year late payment and filing penalties. Some good news for employers with up to 49 employees. Having listened to customer feedback HMRC is staggering the start of the new automatic in-year late payment and filing penalties. This will give HMRC and employers more […]Read more
Tax Avoidance Schemes Facing Demands for Accelerated Payment of Disputed Tax
Tax Avoidance Schemes: Accelerated Payment of Disputed Tax HMRC have published a list of tax avoidance schemes that may be subject to the new accelerated payment rules. This means that HMRC may issue notices requiring users of schemes identified in this list to pay any disputed tax within 90 days, rather than once any investigation has […]Read more
Auto Enrolment Auto enrolment began in October 2012 with the largest businesses – those with more than 120,000 staff – starting first. As time goes on, smaller firms will start enrolling staff. Firms with fewer than 50 workers will begin enrolling their staff in June 2015 and all employers will eventually be obliged by law […]Read more
Qualifying Non-UK Pension Schemes (QNUPS)
Qualifying Non-UK Pension Schemes (QNUPS) are flexible retirement benefit schemes that provide alternative routes for individuals to plan for their future.
Deadline Looms for Green Energy Tax Breaks
Green Energy Tax Breaks: Deadline Looms The 2014 Budget outlined forthcoming changes to the Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS) and Venture Capital Trust (VCT) Scheme that will take effect when the 2014 Finance Bill receives Royal Assent (expected July 2014). Investors in EIS, SEIS or VCT schemes receive income tax relief […]Read more
New Criminal Offence for Offshore Tax Evasion
New Criminal Offence for Offshore Tax Evasion The Government is to consult on plans under which HM Revenue and Customs (HMRC) will no longer need to prove that individuals with undeclared income from offshore sources intend to evade tax in order for a criminal conviction to apply. Concealing Cash and Assets Those that conceal cash […]Read more
Residential Properties Owned by Companies
HMRC has been attempting to discourage the ownership of residential properties through limited companies and have centred around three tax charges.
Five Reasons to Review Your Business Model
Five Reasons to Review Your Business Model Ahead of the new UK tax year this month there are a number of recent updates to tax legislation and accounting standards that make it a good time to review your business structure and plans. The changes coming into effect represent a combination of new incentives together with […]Read more
Spring Budget 2014
The Chancellor made his Budget Statement on 19 March 2014 and announced changes to Personal Tax, Pension, Business Tax, Property, and Employment.
Tax Innovations sponsors Portraits 14
Portraits 14 Sponsorship from Tax Innovations Tax Innovations is proud to announce that it will be supporting 3 of Britain’s most exciting talents as they display their artwork across four cultural venues in Jewry Street, Winchester; The Gallery and City Space (both in the Winchester Discovery Centre), the Jewry St Gallery (art cafe) and the […]Read more
Annual Tax Enveloped Dwellings (‘ATED’)
Residential Properties: Annual Tax Enveloped Dwellings (‘ATED’) From 1 April 2013, high-value residential properties owned through Limited Companies have been subjected to the ATED. Under transitional provisions, the first ATED Return covering the year from 1 April 2013 needed to be completed by 1 October 2013 and the liability paid by 31 October 2013. For […]Read more
HMRC Briefing on Offshore Tax Evasion
Offshore Tax Evasion: An HMRC Briefing HM Revenue & Customs (HMRC) have issued a briefing explaining the actions they have been carrying out to reduce offshore tax evasions, such as the use of non-UK bank accounts/investments to evade UK tax, and their latest campaign targeted at it. No Safe Havens HMRC say that significant progress has […]Read more
Staggered Start to the Introduction of Real Time Information Penalties
HMRC: Staggered Start to the Introduction of Real Time Information Penalties The new automatic in-year Pay As You Earn penalties was due to start from April 2014. These would have been for late filing and late payment and in-year interest, charged on tax and National Insurance Contributions paid late during the year. Real Time Information […]Read more
Fee Protection Services 2014
Fee Protection Services 2014 (Please see ‘Fee Protection’ pages for up to date information) Our Tax Investigations Service is fully backed by an Insurance Policy, which we have taken out with Abbey Tax Protection. The Service covers the period 1st January to 31st December annually and we are able to make a claim in respect […]Read more
UK Letting Income – Changes to “10% Wear and Tear” Rules
Wear and Tear Rules: Landlords Letting Income Changes Under an HM Revenue & Customs (HMRC) concession, up until 5 April 2013 landlords letting out furnished residential properties had the right to claim tax relief for the cost of items such as furniture, furnishings and white goods through either a “wear and tear allowance” or on […]Read more
Non-Resident Property Owners
Non-Resident Property Owners Reports in the media suggest that George Osborne will be announcing on 5 December 2013 during his pre-budget speech, changes to the rules on selling a property by non-resident property owners and individuals. The proposal appears to be a gesture designed to placate part of the coalition who have been seeking a […]Read more
Research and Development
Research and Development HMRC has recently released statistics showing that the scope of research and development claims submitted to HMRC has grown both in terms of the amount claimed and the variety of business making those claims. There has long been a popular perception that research and development relief was only available for traditional “white […]Read more
Employment Allowance From April 2014 a new Employment Allowance will be available for employers. This allowance is a flat deduction of £2,000 from the Employers National Insurance liability for every employer, regardless of the number of people they employ. The relief should be easy to administer and will be deducted over the course of the […]Read more
HMRC Ordered to Pay Legal Costs on VAT Appeal
A successful appeal by a taxpaying company against a VAT investigation and allegations of fraud have proven costly for HM Revenue & Customs (“HMRC”) which has been ordered to pay the company’s legal costs.
Health and Wellbeing Tax Plan
Health and Wellbeing Tax Plan HM Revenue & Customs (HMRC) have announced a new health & wellbeing tax plan campaign aimed at healthcare professionals (other than doctors and dentists) which are due to run from 7 October 2013 until 6 April 2014. Although not an exhaustive list, the campaign will target professionals working in the […]Read more
Main Residence Exemption – Update on Recent Court Cases
Main Residence Exemption: An Update on Recent Court Cases Individuals selling their only or main residence (“Principal Private Residence”) do not normally have to pay Capital Gains Tax (CGT) on any gain they make, provided the property has been occupied as their main/only residence throughout the period they have owned it. If for part of […]Read more
Residential Landlord Campaign
Residential Landlord Campaign HM Revenue & Customs (HMRC) have announced a new campaign to allow landlords who owe tax, either through accidental error or deliberate evasion, to bring their tax affairs up to date and pay what they owe (including interest and penalties). The campaign is aimed broadly at all residential property landlords, irrespective of […]Read more
Changes to IR35 for office-holders
Changes to IR35 for Office-Holders From 6 April 2013, a small change has been made to s49 ITEPA 2003, extending the “IR35” legislation from just covering employment arrangements that are disguised by the use of an intermediary to also cover similarly disguised office-holder relationships. Prior to 6 April 2013, most situations in which a person […]Read more
Small Business Accounts Simplified
Small Business Accounts Simplified The government has just announced new measures to ease accounting red tape for micro-businesses. Business Minister Jo Swinson outlined the government’s response to its consultation on implementing the European Union Micros Directive, published back in 2012 to encourage a drive to reduce small business regulation. Businesses meeting new “micro-entities” criteria will […]Read more
Business Mileage Expenditure
Business Mileage Expenditure Be Careful When Making Self-Employed Mileage Claims When claiming business mileage, a self-employed trader should be aware that the definition of mileage costs and business travel are not as simple as you may think. Method of Mileage Calculation There are two possible methods for self-employed individuals to calculate their allowable vehicle expenses. […]Read more
Property Sales Campaign – Update
Property Sales Campaign – An Update Further to our previous articles on the subject, HM Revenue & Customs’ (HMRC) Property Sales Campaign is aimed at individuals selling second homes in the UK or abroad where capital gains tax (CGT) should be paid. It includes properties that were rented out and holiday homes. The 9 August […]Read more
Choosing an Online Accounting System
Choosing an Online Accounting System Evolution of the web and the emergence of cloud-based data management have in recent years driven advances in online accounting. Underlying this has been the pace of change in the way businesses communicate and smoother integration between devices which have diminished operational barriers and initial hesitation to working in the […]Read more
Employee Share Schemes
Employee Share Schemes are designed to allow employees to acquire capital gains tax exempt shares in their employer company in exchange for surrendering certain employment rights.
RTI Starts This Weekend
Real Time Information – RTI – Starts This Weekend 6th April 2013 sees the biggest shake-up of the Pay As You Earn (PAYE) system in nearly 70 years. Employers will be required to move to a new way of reporting PAYE in real time, Real Time Information (RTI). The new system requires businesses to report […]Read more
Trail Commission Turn Around
If you hold an investment product, a recent clarification of HMRC’s position may lead to an income tax charge. Read more about Trail Commission.
Ownership of Residential Property
Ownership of Residential Property If you own a company that holds property, you may have recently received a letter from HMRC warning you of the new Annual Residential Property Tax. This is a charge that is designed to counter tax avoidance through the use of limited companies and other “non-natural” entities to own residential properties. […]Read more
The Property Sales Campaign
The Property Sales Campaign HM Revenue & Customs (HMRC) have announced a new campaign to allow individuals who have sold property, either in the UK or abroad, and who have not told HMRC about it, to bring their tax affairs up to date. Such individuals may be liable to capital gains tax, and those expected […]Read more
Don’t get caught on the net by tax rebate phishing scam
Don’t Get Caught on The Net by Tax Rebate Phishing Scam HM Revenue and Customs (HMRC) have revealed that Taxpayers reported almost 80,000 tax rebate “phishing” emails last year, as they warn people not to fall victim to the email scams sent by fraudsters. The emails promise a tax refund in exchange for personal, credit […]Read more
Self-Employed Mileage Deductions
Self-Employed Mileage Deductions A recent tax case highlights the complexities of claiming for self-employed business travel. Self-employed mileage claims operate under the standard principle that expenses are allowed as a deduction against profits to the extent that they are incurred wholly and exclusively for the purpose of the self-employment. Normally this is taken to mean […]Read more
Cash Basis Scheme – Accounting Simplification
Cash Basis Scheme – Accounting Simplification A major accounting simplification could be on the way for small unincorporated businesses with the government having issued draft legislation – from the 2013/14 tax year onwards the proposals are to allow small self-employed businesses and partnerships to prepare accounts and their tax returns on a cash basis, bringing […]Read more
Relief for Capital Expenditure
Relief for Capital Expenditure Recent changes to the relief available under the Annual Investment Allowance offer opportunities to benefit from greatly accelerated tax relief for substantial capital expenditure. Capital Expenditure In simple terms, there are two types of expenditure that a business or company can incur: revenue expenditure which is of short term benefit to […]Read more
PAYE Attention: RTI is coming!
PAYE Attention: RTI is Coming! Below is a recent notification from HMRC. The full article can be viewed here. Employers are being urged by HM Revenue and Customs to get ready for major PAYE changes that come into effect in three months’ time. In April 2013 employers will have to start sending PAYE returns electronically, using […]Read more
Artificial Tax Schemes
Artificial Tax Schemes HMRC has made no secret of its intention to attack contrived tax avoidance schemes and recently published draft legislation highlights the speed with which HMRC now intends to attack these arrangements. New Tax Avoidance Scheme Within days of being notified of the existence of a new tax avoidance scheme HMRC published draft […]Read more
Changes to Charity Gift Aid Repayments
Changes to Charity Gift Aid Repayments HMRC is modernising the system for charity gift aid repayments from April 2013. The new system will be called Charities Online and will be based on the electronic submission of claims. This is the process through which charities claim payments from HMRC in relation to donations made through the […]Read more
Ownership of Residential Property
Ownership of Residential Property HMRC have been taking steps to increase the tax payable on residential property, worth over £2m that is owned by non-natural persons. Non-natural persons are companies, partnerships with corporate members and collective investment schemes. Trusts that own property directly are not caught by these rules. This process began on 21 March […]Read more
Tax Havens and Information Sharing
Tax Havens and Information Sharing Ian Gorst, Jersey’s chief minister has recently announced that Channel Island Authorities are currently in discussion with the UK government about a wide-ranging information-sharing agreement that is set to be announced in next week’s Chancellor’s Autumn Statement. It is anticipated that this new agreement will come into force in 2014 […]Read more
Real Time Information (RTI) – Getting Ready
Getting Ready for Real Time Information (RTI) HM Revenue & Customs (HMRC) have released information about their records recently saying that over 80 per cent of the data quality problems it encounters are the result of incorrect information supplied. Statistics and records held by HMRC, provided by UK companies, currently show that: 824 employees have […]Read more
Business Records Checks
Business Records Checks Last year HM Revenue & Customs (HMRC) devised and began testing a new compliance procedure – Business Records Checks (BRCs). The aim was to visit smaller businesses and identify those that are not keeping adequate records. However, professional bodies had serious concerns about the process, and in the face of these HMRC suspended […]Read more
Opening the Patent Box
Opening the Patent Box As part of a drive to both encourage investment in research and development and to discourage the practice of intellectual property being owned offshore, HM Revenue & Customs (HMRC) have announced the introduction of a new rate of tax for patent income received by companies, which they are calling the Patent […]Read more
Stamp Duty Land Tax
Stamp Duty Land Tax It is well known that HMRC are looking at ways to increase the tax paid on residential properties that are worth over £2 million and which are owned by non-natural persons. Broadly speaking, a non-natural person is a company or a partnership with a company as a partner. HMRC have already […]Read more
New Approach to HMRC Business Records Checks
HMRC Business Records Checks: What New Approaches? HM Revenue & Customs have introduced a fresh approach to Business Records Checks (BRC) from 1 November 2012. In summary, those taxpayers seen by HMRC as more likely to have poor records will be asked to have a call to complete a questionnaire so that HMRC can determine […]Read more
Stamp Duty Land Tax
Stamp Duty Land Tax Her Majesty’s Revenue & Customs (HMRC) have over a number of years, been looking at the various Stamp Duty Land Tax (SDLT) avoidance schemes and measures have been introduced to prevent such schemes from operating “under the radar”. Certain schemes avoided being notified to HMRC under the disclosure of tax avoidance schemes […]Read more
Widening of Audit Exemption
Widening of Audit Exemption Government promises to cut red tape for business are being honoured in the audit area which will lift a significant number of companies out of statutory audit regulation. The audit thresholds are being widened so they are in line with the limits determining company size – a simplification a long time […]Read more
Employee-Owner Contracts The Chancellor of the Exchequer, George Osborne has recently announced proposals for a new form of employment contract, known as employee-owner contracts, with reduced employment rights for employees. Reduced Employment Rights for Employees In exchange for surrendering protection from unfair dismissal, redundancy and time off for training amongst other things, employees will be […]Read more
Accounts & Tax Trainees Required
Accounts & Tax Trainees Required We are looking to recruit a trainee for each of our tax and accounts teams, providing essential services and support to our clients. Depending on your specialism, successful applicants will be supported through their training towards either AAT or ATT qualifications. Applicants need the following : a minimum of 2 […]Read more
VAT for property developers
VAT for Property Developers A property developer selling a residential new build is making a zero rated supply for VAT purposes and should be able to reclaim the costs of constructing that property. HM Revenue and Customs (HMRC) have limited the input VAT that can be reclaimed to exclude goods other than building materials that […]Read more
National Minimum Wage Changes
National Minimum Wage Changes From 1st October 2012 the National Minimum Wage (NMW) rates increase, the new rates are £6.19 – The main rate for workers aged 21 and over £4.98 – The 18-20 rate £3.68 – The 16-17 rate for workers above school leaving age but under 18 £2.65 – The apprentice rate, for apprentices […]Read more
Inheritance Tax and QNUPS
Inheritance Tax and QNUPS Although you should always invest in a Qualifying Non-UK Pension Scheme (QNUPS) because it is the right choice to meet your retirement needs, there are also tax benefits attached to the scheme. Having made the decision that a QNUPS is right for you, it would be sensible to make use of […]Read more
Disproportionate HMRC Penalties
Disproportionate HRMC Penalties A recent taxation article has highlighted a growing trend within HM Revenue & Customs (HMRC) to enforce the letter of the law even in cases where it is arguably not just or proportional to do so. An example of this behaviour is a current case concerning a Value Added Tax (VAT) registered […]Read more
Tax Avoidance versus Tax Evasion
Tax Avoidance versus Tax Evasion There has been much public debate on the role of tax advisers recently and on the difference between legal tax avoidance and illegal tax evasion. It appears that for some the edges around these subjects have become blurred, but please follow the link below for a fact sheet published by […]Read more
HMRC Campaigns Update
HMRC Campaigns Update HM Revenue and Customs (HMRC) have been running and will continue to launch campaigns to provide opportunities for individuals to voluntarily put their tax matters in order. Every HMRC campaign is aimed at a different group and has time limits for making notifications, disclosures and payment. Anyone who fails to respond within […]Read more
We are supporting ‘The Descent of The Shard’
Tax Innovations supporting ‘The Descent of The Shard’ On Monday 3rd September 2012 The Duke of York is leading ‘The Descent of The Shard’ and we are pleased to announce that we are supporting the event. The Shard is the highest building in Western Europe and the Duke of York along with a small group of […]Read more
HMRC Announces a Consultation Over the Tax Treatment of Life Insurance Policies
Consultation Over the Tax Treatment of Life Insurance Policies Under present UK tax rules it is possible for holders of life insurance policies issued by foreign insurers to claim a time-apportioned reduction in the level of the taxable gains to take into account periods when they were not UK tax resident during the life of […]Read more
Touring Tax Expertise – Foreign Entertainers and Sports People
Touring artists, whether musicians, actors or sports people can have very busy life styles and incur many different expenses from travel costs and accommodation to expensive equipment and gear.
We are recruiting – Accounts Assistant, AAT Level 3
We are recruiting – Accounts Assistant, AAT Level 3 Tax Innovations is a growing and ambitious business located in Winchester City centre, with plans to expand. We have been located in Winchester since 1996 and are looking to recruit an Accounts Assistant for our head office team. This is a full-time, key role in our […]Read more
Tax Innovations Ltd – Summer 2012 Newsletter
Tax Innovations Ltd: Summer 2012 Newsletter Introduction The British summer weather continues to disappoint and Andy Murray failed to win Wimbledon again, but at least we have the London Olympics to look forward to! It is also time for us to issue our seasonal update on some of the topical tax issues that may have […]Read more
Beware of Fake HMRC Tax Refund Emails
Beware of Fake HMRC Tax Refund Emails As you will know April saw the end to the tax year, and therefore HM Revenue & Customs (HMRC) have started sending out notifications about 2011/12 Tax Returns. However, among these genuine messages there are also fake emails being circulated that are asking individuals for their bank details. Although […]Read more
We are supporting the ‘Fat Boy Swim’ Charity Event
Tax Innovations are supporting the ‘Fat Boy Swim’ charity event We are delighted to announce that we are supporting the ‘Fat Boy Swim’ charity event. Three brothers are taking part in a charity swim from Southsea to Ryde to raise money for two charities. They wanted to give something back to the community. They decided […]Read more
Are you aware of the Real Time Information requirements?
Real Time Information Requirements We have recently joined the Real Time Information (RTI) Pilot which is the new system that is being introduced by HM Revenue and Customs (HMRC) to improve the Pay as You Earn (PAYE) process. The official launch date is April 2013 when most employers will join RTI but all employers will be […]Read more
We have joined the Real Time Information (RTI) Pilot
We have joined the Real Time Information (RTI) Pilot This is the new system that is being introduced by HM Revenue and Customs (HMRC). Most employers will join RTI in April 2013, when it is officially launched, and all employers will be using the service by October 2013. It has been designed to improve the […]Read more
We are looking to recruit an Accounts Apprentice
We are looking to recruit an Accounts Apprentice Tax Innovations is a growing and ambitious tax and accountancy advisory business. We are looking to recruit an accounts apprentice for our head office team in Winchester. This is a key role in our accounts team to provide essential services and support to our clients. There will […]Read more
Qualifying Non-UK Pension Schemes (QNUPS)
Qualifying Non-UK Pension Schemes (QNUPS) QNUPS On 13 February 2010 new UK legislation introduced the Qualifying Non-UK Pension Scheme or QNUPS in an attempt to clarify ambiguous aspects of the previous UK tax treatment. QNUPS are a flexible and tax efficient pension scheme that should be of great interest to individuals such as well-remunerated/executive employees […]Read more
VAT – HMRC penalising ‘Failure to Notify’ change of status cases
VAT – HMRC penalising ‘Failure to Notify’ change of status cases It seems that HMRC are applying the letter of the law and charging penalties in cases where there is a late notification of a change of legal entity. The law says that a person who becomes liable to register for VAT by virtue of […]Read more
VAT – Benefits of the Flat Rate Scheme
VAT – Benefits of the Flat Rate Scheme The VAT Flat Rate Scheme celebrated its tenth anniversary on 1 April 2012. The Scheme has produced time and tax savings for many small businesses. The general principle of the scheme is that traders with taxable turnover of less than £150,000 do not reclaim input tax on […]Read more
Online VAT Filing Compulsory
Online VAT Filing Compulsory From 1 April 2012, all VAT-registered businesses will have to file their VAT Returns online. Businesses will need to register for HMRC’s VAT Online Service before filing their first online Return. It is important not to leave this until the last minute because it can take a few weeks to receive […]Read more
VAT on sales of goods to non-VAT registered customers in the EU
VAT on Sales of Goods to Non-VAT Registered Customers in the EU UK VAT will be charged on sales of goods to non-VAT registered customers in the EU. Sales made to customers outside the EU will be zero-rated as an export. However, businesses must carefully monitor the level of sales made to non-VAT registered customers […]Read more
2012 Budget Alert
Our alert cuts through all the detail and the incomprehensible figures and gives you the headline issues from the Budget on 21 March 2012.
Tax Innovations – Spring 2012 Newsletter
Tax Innovations – Spring 2012 Newsletter The UK Budget, due to be delivered by the Chancellor on 21 March 2012, is eagerly awaited. Tensions in the Coalition Government have led to rumours that there may be radical alterations to parts of the UK tax system, but of course this is only speculation. Issues in the […]Read more
Research & Development (R&D) Relief Changes
Research & Development (R&D) Relief Changes HM Revenue & Customs have already announced three changes to Research & Development Relief which may make it beneficial to delay certain items of expenditure until after 1 April 2012. From this date the relief available for relevant expenditure is due to increase from 200% to 225%. This will […]Read more
HMRC Issue Fraudulent Email Warning
HM Revenue and Customs is warning taxpayers about fraud emails being sent out requesting credit or debit card details.
Capital Allowances: Annual Investment Allowance The Annual Investment Allowance (AIA) limit will remain at £100,000 for expenditure until 31 March 2012. For a business that is not incorporated and limited liability partnerships, this old limit of £100,000 applies until 5 April 2012. The AIA, which provides 100% upfront relief for qualifying plant and machinery expenditure, […]Read more
Autumn Statement 2011
George Osborne the Chancellor of the Exchequer delivered his Autumn Statement on the 29th of November 2011.
Independent study on general anti-avoidance rule (GAAR) published
The QC responsible for the independent study on general anti-avoidance has laid out his recommendation to the Government to introduce a narrowly focused general anti-avoidance rule (GAAR) to the UK tax system.
HMRC SA252 update
HMRC SA252 Letters Update HM Revenue & Customs (HMRC) have recently issued an update on the issue of “SA252 letters.” They have advised that they will be sending letters to basic and higher rate taxpayers in one bulk run and that all letters will be dated 19th November 2011, although they may not be received […]Read more
HMRC Criticised for Delays in Issuing Penalties
HMRC have been criticised for unfairly delaying of issuing penalties for late submission of P35 Employer Annual Returns for up to four months.
Research and Development (R&D) Relief – HMRC voluntary assurance pilot
Research and Development (R&D) Relief Her Majesty’s Revenue and Customs (HMRC) has announced a pilot system for making research and development (R&D) claims. The ‘voluntary advance assurance’ pilot is available for small companies with 50 or less employees who are about to make their first R&D claim. If the pilot is successful the scheme will […]Read more
HMRC warns of employing ‘A.N Other’
HM Revenue and Customs (HMRC) has urged employers to take greater care with their paperwork after receiving more than 500 employer returns for 2009/10 claiming to employ 'A.N Other'.
Centre for Policy Studies says Abolish 50p Tax Rate
Centre for Policy Studies says Abolish 50p Tax Rate Leading think tank The Centre for Policy Studies (CPS) has released a report saying that it believes the British economy needs to stimulate growth by cutting tax. The CPS report is titled “ADRENALIN NOW – funded, popular tax cuts to boost the economy” and states; “The […]Read more
HMRC warns against misuse of scholarship scheme
HM Revenue and Customs (HMRC) is warning businesses about the use of employee scholarships as a means of putting family members through college at the expense of the taxpayer.
EU Admits Tax on Bankers May Cost 50,000 City Jobs
EU Admits Tax on Bankers May Cost 50,000 City Jobs A European Union Commission assessing the effect of plans to levy a tax on bankers (financial trading) has admitted that the tax could cost tens of thousands of jobs. The Commission has put forward the forecast that as much 70% – 90% of derivative trades […]Read more
HMRC Targets Private Tutors and Coaches
HMRC Targets Private Tutors and Coaches HM Revenue and Customs (HMRC) has declared its intention to pursue private tutors and coaches for potential unpaid tax liabilities. Head of HMRC Campaigns Marian Wildon said: “Our campaigns are designed to ensure tax is paid so that the money is available to spend on public services used by […]Read more
UK is 4th highest EU tax payer
According to figures from KPMG, Britain's top earners are faced with the fourth highest income tax rate in the EU.
31 October deadline for paper tax returns
Her Majesty's Revenue and Customs (HMRC) today posted a reminder on their website saying that if you are submitting your paper tax returns for the 2010-11 tax year, it must be submitted by midnight on Monday 31st October 2011.
Big Four Auditors Face Anti-Competition Legislation Changes
Big Four Auditors Face Anti-Competition Legislation Changes Although early days as yet, a draft law set to be published by the EU Internal Market Commissioner Michel Barnier could see the big four global auditors being broken up in a plan to boost competition. The Big Four Auditors KPMG, Ernst & Young, Deloitte and PwC check […]Read more
Enterprise Investment Scheme Tax Reliefs to Rise
Enterprise Investment Scheme Tax Reliefs (EIS) are set to rise from 20% to 30%, with an increase in the annual investor limit doubling to £1M.
IR35 Tax System ‘completely unnecessary’
The Office for Tax Simplification has said that the difficulties caused by the IR35 tax system are 'completely unnecessary', following a freedom of information request.
Coalition must ditch 50p tax rate for growth – FT.com
An open letter from some twenty economists was published to in the Financial Times - Coalition must ditch 50p tax rate for growth - FT.com.
EFRBS (Employer Financed Retirement Benefits Scheme)
Employer Financed Retirement Benefit Schemes EFRBS (Employer Financed Retirement Benefit Schemes) remain hugely beneficial as employee benefit tools when provided as part of a bespoke, tailored tax structure, rather than as an off the shelf solution. The changes to the tax treatment of EFRBS means that some advantages were removed, but the benefits of an efficient tax […]Read more
R&D Tax Credits FAQ’s
R&D Tax Credits FAQ’s top How much can I claim? Am I an SME? Do I qualify for R&D tax credits? What Qualifies for R&D tax credits? How long does an R&D tax credit claim take? Can you work with our existing advisors? What will we have to do? Can I do this myself? How […]Read more
Britons are set to waste £1.3 billion in inheritance tax
Inheritance Tax Wastage According to a report by www.unbiased.co.uk Britons are set to waste £1.3 billion in inheritance tax this year. Unbiased.co.uk’s annual Tax Action Report reveals that UK taxpayers will waste nearly £1.3 billion this year due to poor inheritance tax (IHT) planning. This tax wastage is only set to increase further in the […]Read more
Do I qualify for R&D credits?
There are many rules regarding what is and can be eligible for research and development tax credits (R&D credits) and we specialise in identifying whether you can claim.
New Rules for Agency Workers
New rules come into force from October 2011 to align the treatment of agency workers with employees. This will mean that if you hire an agency worker, after a 12 week qualifying period agency workers will be entitled to the same pay and basic working conditions.
Enterprise Investment Schemes/Venture Capital Trusts
The rate of income tax relief given under the Enterprise Investment Scheme (EIS) will be increased from 20% to 30% with effect from 6 April 2011, subject to State aid approval.
Payroll Changes for 2011/12.
Payroll and PAYE changes are in effect for 2011 to 2012 with Tax and Accounts changes to tax and payroll thresholds. Basic rate tax is up.
Research and Development Tax Credit
Research and Development Tax Credit What is the Research and Development Tax Credit worth? From April 2011 a company incurring qualifying Research and Development tax credits (R&D) expenditure will be able to claim 200% of costs incurred. This means a company can receive £2 of tax credit or relief for every £1 spent. The result […]Read more
Do you have an EFRBS or EBT?
Do you have an Employer Funded Retirement Benefits Scheme or Employee Benefits Trusts? It has recently been widely reported that EFRBS (Employer Funded Retirement Benefits Schemes) and EBT’s (Employee Benefits Trusts) are no longer useful uk tax planning tools, following the release of draft legislation for Finance Act 2011. This is not the case as […]Read more