R&D Relief for SMEs
The UK corporation tax relief for expenditure on Research and Development (R&D) is extremely generous, particularly for small and medium-sized enterprises (SMEs).
Changes to Conditions for Entrepreneurs’ Relief
Entrepreneurs’ Relief has been the subject of recent changes including an extension to the length of the required qualification period and the introduction of a measure or protection for taxpayers who find that their shareholding has been diluted below the Entrepreneurs’ Relief threshold.
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.
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.
Tax Relief For Residential Mortgages
HMRC have introduced a restriction to the amount of mortgage interest relief that is available for property businesses. Even so, if you have a property letting business you may find that restructuring your borrowing between properties could still have substantial tax benefits.
Election Result Increases Tax Uncertainty
Following the election result 2017, many are still left in limbo regarding their current UK tax position, at least until the next Finance Bill is published.
National Insurance for the Self Employed
Plans to increase the main rate of National Insurance for self-employed individuals have been cancelled in a quick U-turn from the Chancellor.
HMRC Free to Access Taxpayer Bank Accounts
Despite a massive outcry last year against suggestions that HMRC should gain powers to collect tax debts directly from taxpayers’ bank accounts under the Direct Recovery of Debts (DRD) rules, it has recently been announced that HMRC intends to push forward regardless.
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.
Summer Budget 2015 – Key Points
With his summer Budget speech of 8 July 2015, Chancellor George Osborne has introduced significant changes to the UK tax system and set out the Conservatives plans to balance the budget by 2020.
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 moreThe General Anti-Abuse Rules
The General Anti-Abuse Rules The General Anti-Abuse Rules (GAAR) introduced by the 2013 Finance Act, together with Accelerated Payment Notices and Follower Notices introduced by the 2014 Finance Act, have changed the arena in which tax avoidance schemes work. Where a tax avoidance scheme has met all the legal requirements within the relevant legislation applying […]
Read moreEFRBS Settlement Opportunity Deadline Looms
EFRBS Settlement Opportunity Deadline Employer-Financed Retirement Benefits Schemes (EFRBS) for a while were a popular pension planning tool as they appeared to allow a Corporation Tax deduction for employer contributions to an EFRBS scheme on the basis that either (a) the contribution to the EFRBS or (b) a subsequent transfer to a second EFRBS is […]
Read moreTime 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 moreWhen to Register for VAT
When to Register for VAT VAT Registration When Should I Register? You may need to register for VAT, or you may be able to choose to register voluntarily if you are doing any of the following kinds of business in the UK: Supplying goods or services within the UK. If your turnover of VAT taxable […]
Read moreCapital Allowance and the Annual Investment Allowance
Capital Allowances – Are You Claiming All You Can? In general, capital expenditure is not allowed as a deduction when calculating the taxable profits of your business. Instead, relief for capital expenditure is given via capital allowances, which seek to give relief over the life of a qualifying asset by providing a tax deduction on […]
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 moreSDLT Changes – Are They Enough?
Stamp Duty Land Tax (SDLT) Changes The Chancellor’s Autumn Statement set out changes to Stamp Duty Land Tax (SDLT) that were introduced from midnight 4 December 2014. SDLT will now be charged on residential property at the rate applicable for each slice of the property value falling in each band, rather than the whole value […]
Read moreAnnual Tax on Enveloped Dwellings Returns
Relief for Annual Tax on Enveloped Dwellings The Annual Tax on Enveloped Dwellings (ATED) was introduced from 1 April 2013 and requires certain non-natural persons, such as companies, to pay an annual charge if they own UK residential property and the property was worth £2 million or over as at 1 April 2012 or at […]
Read moreThe 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 moreRetained Cash and Business Property Relief
Retained Cash and Business Property Relief A shareholding in an unquoted trading company is usually covered by Business Property Relief (BPR) and therefore not subject to Inheritance Tax, but the ability to claim this relief may be undermined by a commercial decision to retain surplus cash. HMRC are of the opinion that excess cash retained […]
Read moreHMRC to Force Accelerated Payment of Inheritance Tax
There has been recent press coverage of HMRC powers being used to force the accelerated payment of inheritance tax (IHT)
Partnership Profit Allocation in Mixed Partnerships
Mixed Partnerships: Partnership Profit Allocation The profits of mixed partnerships are taxable on each partner as if it is their own trading income. This means that individuals who are members of a partnership are taxed on their profit share at income tax rates of up to 45%, while corporate partners will be taxed on their profit […]
Read moreTax 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 moreInheritance Tax on Trusts to Increase
Inheritance Tax on Trusts to Increase On 6 June 2014, HMRC released proposals for changes to the way Inheritance Tax (IHT) on settlements (trusts) is calculated, which could significantly increase the IHT payable. In an effort to stop trusts from being established specifically to beat the new legislation, the changes will apply to any trust […]
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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 moreNew Pooling Requirements Limit Capital Allowances Claims
New Pooling Requirements Limit Capital Allowances Claims If you are planning on purchasing or selling a commercial property containing plant and machinery then you may be affected by the new rules regarding Capital Allowances (CAs) that has taken effect from 1 April 2014 for corporate taxpayers and from 6 April 2014 for income tax payers. […]
Read moreResidential 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.
HMRC EFRBS Settlement Opportunity
HMRC is currently sending letters to companies that have made contributions to Employer Financed Retirement Benefit Schemes (EFRBS) that outline an opportunity to settle the taxation treatment of these contributions under one of two possible treatments.
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 moreEmployer Allowance
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 moreChanges 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 moreBusiness 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 moreDirectors Loan Accounts
Directors Loan Accounts When a close company makes a loan to a participator (shareholder) which is outstanding at the accounting year end, HMRC charges the company to tax at 25% of the value of the outstanding loan. This is to discourage lending to directors (which is otherwise almost free from income tax) instead of taking […]
Read moreEmployee 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.
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 moreSelf-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 moreRelief 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 moreCapital Gains on Residential Property
Capital Gains on Residential Property It is commonly known that there is an exemption from capital gains tax for the sale by a person of their main residence. This rule is not quite as simple as it seems and a number of quirks exist that can help reduce your exposure to residential property tax. Private […]
Read moreArtificial 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 moreChanges 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 moreOwnership 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 moreTax 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 moreThe Media and Tax Avoidance
The Media and Tax Avoidance Tax avoidance is making headlines at the moment, be it celebrity involvement in off the shelf structures or multinational corporations paying surprisingly low amounts of corporation tax in the UK. This is a hugely emotive issue but it is also a highly technical one that is not always fairly or […]
Read moreOpening 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 moreEmployee-Owner Contracts
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 moreVAT 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 moreInheritance 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 moreDisproportionate 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 moreQualifying 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 moreUK – Swiss Tax Changes
UK: Swiss Tax Changes Germany and Switzerland have recently announced an increase to the rate of tax chargeable on undeclared accounts under their double tax agreement, and this change is likely to impact on UK based holders of Swiss bank accounts too. This is because a clause in the UK-Swiss treaty allows for the UK […]
Read moreResearch & 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 moreResearch 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 moreEFRBS (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 moreR&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 moreBritons 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 moreDo 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.
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 […]
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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 […]
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