The Employee Ownership Trust (EOT) was introduced by the Coalition Government in 2014 with the aim of promoting employee ownership in the UK, similar to the John Lewis model. The 2014 rules provide an incentive for owners to sell a controlling stake in their business.
Family Investment Companies
Companies are increasingly being used as a vehicle for family investments due to a low rate of tax (Corporation Tax is currently payable at just 19%) and the ability to use shares and directorship roles to keep control with certain family members, while allowing the whole family to benefit from income and capital growth.
Coronavirus Job Retention Scheme [Updated]
Further details have been announced about the new Coronavirus Job Retention Scheme, but the online service through which claims will be made is not yet available.
April 19 Loan Charge Repayment
The April 2019 loan charge was introduced to tackle tax avoidance using employer-funded third parties, but following an independent review, this measure has been significantly rolled back.
Changes To Off Payroll Working Rules Suspended
The introduction of changes to the UK off-payroll working rules for the private sector, which was set to take place on 6 April 2020, have been suspended for a year due to COVID-19, and will now be introduced from 6 April 2021.
Job Retention Scheme – Directors Update
The Government has clarified that company directors and office holders are eligible for furloughing under the COVID-19 Job Retention Scheme, but many small business owners are still receiving minimal assistance.
UK Tax Residence – COVID-19 Activity
The Chancellor of the Exchequer, Rishi Sunak, has written to the chair of the Treasury Select Committee to outline temporary changes to the Statutory Residence Test (SRT) for those coming to the country to work on COVID-19 related activity.
Directors and the Coronavirus Job Retention Scheme
The Coronavirus Job Retention Scheme allows employers to claim a grant to cover wages of furloughed employees, including directors, but dividend payments will not be covered.
UK Tax Residence – Impact Of Coronavirus
People are being prevented from travelling from the UK to other countries at present due to the Coronavirus epidemic. This could affect their UK tax residence status and therefore; their UK tax liabilities.
COVID-19 Summary of Available Assistance
COVID-19 is changing the way all of us live and work – Tax Innovations is changing its working practices too, but our services will not be interrupted. This article sets out the government’s current assistance package and an update on how to keep in contact with us.
Inheritance Tax Planning (IHT)
The new government has published its first post-Brexit budget and Inheritance Tax was not on the agenda. Given the current economic uncertainties, it seems that Inheritance Tax, rarely much of a priority for governments given that it invokes passionate feelings while in reality representing a small part of the total tax take, is unlikely to change for the foreseeable future.
Budget 2020 Highlights
On 11 March 2020, the new Chancellor outlined his first budget. The detailed budget documents set out the following notable tax changes.
Last Chance for Energy Efficient Capital Allowances?
From April 2020 the Enhanced Capital Allowances (ECAs) available on energy and water efficient assets will be withdrawn. Currently, 100% first-year allowances are available on these assets, and where the allowances create a loss, this can be converted into a payable tax credit from HMRC.
CGT Relief on Homes Slashed
The 2020 Finance Act is set to reduce the scope of the valuable Private Residence Relief (PRR), which prevents Capital Gains Tax (CGT) being charged when you sell your home. From 6 April 2020, the CGT payable on the sale of a residence may increase by up to £11,200 due to a restriction to PPR ‘Letting Relief’.
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.
Year-end personal tax planning tips 2018/19
The last day of the 2018-19 UK tax year (5 April 2019) is looming large and for those who seek to be tax efficient, it is time to examine ways of potentially mitigating 2018-19 personal tax liabilities via year-end planning reviews.
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.
Budget 2018 Summary
On 29 October 2018, the Chancellor set out his budget to Parliament, stating that austerity is "finally coming to an end" as the economic outlook improves, and appearing to spread some of the potential benefits around. The budget offered little in the way of significant overhaul, largely focussing on adjustments to existing reliefs, but what were the actual changes to the UK tax environment?
Top 10 Expat Tax Tips for Individuals Moving to the UK
The UK tax rules for non-domiciled individuals were thrown into confusion by the proposed reforms to apply from 6 April 2017 not being included in the Finance Act 2017, however, the Government has now confirmed that the Finance Bill due to be published in September 2017 will include the proposed reforms and that they will appl
Companies House and HMRC Scam Alert
Property Partnership Incorporation and SDLT
The government is clearly focused on directing private investment away from property and into areas that are more likely to stimulate economic growth, leading to a series of policies targeted against buy-to-let property owners.
Overseas Pension Changes 6 April 2017
HMRC have announced that the tax legislation regarding the UK tax treatment of the overseas pension scheme is changing from 6 April 2017.
Changes to the Taxation of QNUPS
HMRC is making changes to the taxation of Qualifying Non UK Pension Schemes (QNUPS) but, if structured correctly to provide for your future and that of your family, a QNUPS remains an attractive retirement planning opportunity.
EMI Scheme Renewed
On 15 May 2018, the EU reinstated State Aid Approval for the Enterprise Management Incentive (EMI) Scheme, which had lapsed on 6 April 2018. This means that EMI options granted to employees will once again receive a beneficial tax treatment.
UK Self Assessment Tax Return Filing and Penalties 2017/18
The end of the UK tax year for 2017/18 was 5 April 2018 and taxpayers need to consider completing and filing their Tax Returns for this year.
Tax Returns usually need to be filed with HM Revenue and Customs (HMRC) by 31 January following the end of the tax year if you file online (or by 31 October following the end of the tax year if you file a hard copy paper Tax Return).
New Offshore Bank Accounts for Expat Employees
Non-domiciled individuals that have come to work in the UK need to open offshore bank accounts outside the UK to take advantage of rules which exclude earnings from non-UK duties from being taxable in the UK. This relief is known as Overseas Workday Relief – or OWR - and in broad terms applies for up to three years providing employment earnings are paid outside the UK – offshore – and not remitted/brought to the UK.
Finance Act 2018 Enacted
On the 15th March 2018, the Finance Act 2018 received Royal Assent, bringing the third Finance Act of the 2017/18 period into force. We discuss the main items brought into force from the 6th April 2018.
EMI Scheme On Hold?
The Enterprise Management Incentive (EMI) Scheme is a popular scheme for smaller companies to provide their key employees with tax-advantaged share options, but delays in obtaining renewal of EU State Aid approval for the EMI scheme means that the benefits will be switched off for an unknown period.
2018 Spring Statement Update
As had been expected, the 2018 Spring Statement update did not include any major tax policy announcements; rather it provided a number of consultations that suggest potential legislative changes in the future. Read more about the areas set for exploration here.
Overseas Tax Disclosure Deadline Approaching
Taxpayers you should be aware of the overseas tax disclosure deadline approaching. Taxpayers who know or suspect that they have unpaid income tax, capital gains tax and inheritance tax relating to overseas assets, income or activities need to act before the deadline of 30 September 2018 to avoid incurring much higher penalties for non-compliance.
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.
Trust Registration Penalty Deadline Looms 2018
Deadlines for registration for the 2016/17 tax year have already passed, but the trust registration penalty deadline is now looming, on the 5th March 2018.
Disguised Remuneration Update – Loan Charge Enacted
Continuing HMRC’s long-running campaign against abusive tax avoidance, Finance (No. 2) Act 2017, which was enacted on 16 November 2017, contains legislation to create a one-off tax charge on loans from disguised remuneration (DR) schemes if those loans are not repaid by 5 April 2019.
Inheritance Tax Relief When Downsizing Your Home
From 6 April 2017, taxpayers have been entitled to an additional nil-rate inheritance tax (IHT) band, which applies to residences that are ‘closely inherited’ on the death of the donor.
Autumn Budget 2017
On 22 November 2017, Philip Hammond gave his first Autumn Budget as Chancellor. The main tax announcements are set out in Autumn Budget 2017.
HMRC Guidance Wrong on Directors Tax Returns
A Tax Tribunal has now agreed that HMRC’s view, and their published guidance on tax returns, is incorrect under the law.
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.
Finance Bill 2017 Update
Several widely trumpeted tax measures that were going to be introduced by the Government have belatedly been withdrawn from the draft Finance Bill 2017.
Offshore Bank Account Reviews
It is time for non-domiciled “Expat” individuals to consider their offshore banking arrangements if they wish to continue claiming Overseas Workday Relief on an efficient basis.
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.
On 8 March 2017, Philip Hammond gave his first Spring Budget as Chancellor. The main tax announcements out in this summary.
Deemed UK Domicile Reforms 2017
The Domicile Reforms means that those deemed UK domiciled from 6 April 2017 will pay UK tax on worldwide income/gains & not on the “remittance basis”.
Autumn Statement 2016
The Autumn Statement 2016 has significant implications for your finances and tax. So what does it mean for you? Read Tax Innovations Summary.
HMRC Telephone Scam Warning
HMRC are reporting that they are aware of a telephone scam where telephone calls have been received claiming to be from HMRC.
Brexit Tax Implications
On 23 June 2016 the majority of voters in the Referendum opted for the UK to leave the EU. Read what Brexit Tax Implications there may be for the future.
Changes Affecting all UK Limited Companies from 30 June 2016
From 30 June 2016, UK Limited Companies are required to submit a ‘Confirmation Statement’ and ‘Persons with Significant Control’ on the PSC Register.
Non-Domiciled Rebasing for Capital Tax Gains: April 2017
The Non-Domiciled Capital Gains Tax Rebasing of the CGT cost leads to the possibility that only capital gains arising from foreign capital assets.
Capital Gains Tax Saving Opportunity
George Osborne’s recent deliverance of the 2016 Budget speech announced that the current higher rate of Capital Gains Tax (CGT) in April will see a reduction from 28% to 20%. The basic rate too will reduce from 18% to 10%. This will affect you if you are looking to sell assets which will realise a capital gain.
2016 Budget Summary
George Osborne gave his 2016 Budget speech to the House of Commons and Tax Innovations have created a clear, easy to digest summary of the documentation and what it will entail for tax in 2016.
Expats: Offshore Bank Account Reviews
Many non-domiciled individuals that have come to work in the UK open offshore bank accounts outside the UK to take advantage of rules which exclude earnings from non-UK duties from being taxable in the UK (known as Overseas Workday Relief – OWR) .
Year End Tax Planning for Non-Doms and Expats
There are always as number of factors for “expats” to consider whether this relates to non-domiciled individuals (“non-doms”) living/working in the UK or Brits leaving the UK and seeking to establish non-residence status.
Non-Domiciled Status and UK Tax Planning
A consultation has been launched by the Government regarding the stricter regime to be introduced for “non-doms” from April 2017.
US Limited Liability Companies (LLCs) – Swift Case
Following the UK Supreme Court’s decision in Anson v HMRC (the Swift case), HM Revenue & Customs (HMRC) has now published its view of the decision.
2014/15 UK Tax Return filing deadline and penalties
The 2014/15 UK tax year ended on 5 April 2015 and taxpayers need to consider completing and filing their Tax Returns for this year.
UK pension planning for the 2015/16 tax year
Pension contributions to a UK registered plan remain a highly tax-advantaged strategy with personal tax relief due at up to 60% depending on your income level, and tax-free growth within the pension fund once contributions have been made.
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.
UK Budget – UK tax treatment of “non-doms”
In his Budget on 8 July, the Chancellor announced major changes to the way non-domiciled individuals (“non-doms”) will be taxed in the UK from April 2017.
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.
Budget Newsflash – Changes to Non-Domiciled Rules
In his 2015 Summer Budget, the Chancellor has announced changes to the rules that determine an individual’s domicile status.
Income Tax Payable on UK Property Income
Tax Avoidance Schemes: Too Good To Be True?
The General Anti-Abuse Rules
Election Pension Tax Planning
Tax on separation and divorce
UK Self Assessment Tax Return filing and penalties 2014/15
UK Property Sales: Capital Gains Tax for Non-Residents
Death of the UK Tax Return for Expats?
EFRBS Settlement Opportunity Deadline Looms
2015 Budget Summary
Top year end UK personal tax planning tips 2014/15
Changes to the Taxation of Share Awards for Expats
SDLT Changes – Are They Enough?
2014 Autumn Statement
Annual Tax on Enveloped Dwellings Returns
Employers: Do you know your staging date for automatic enrolment?
Phasing of HMRC Penalties
HMRC Task Force Targets South West Property Owners
HMRC 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)
Remittance Basis UK Tax Return Filing for “Non-Doms”
Tax Avoidance Schemes Facing Demands for Accelerated Payment of Disputed Tax
Inheritance Tax on Trusts to Increase
Deadline Looms for Green Energy Tax Breaks
New Pooling Requirements Limit Capital Allowances Claims
New Criminal Offence for Offshore Tax Evasion
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.
Charging Capital Gains Tax on Non-UK Residents & UK Property
Impact of Budget for Expats
As the dust settles on the 2014 Budget delivered by the Chancellor last week here is a round up of some of the provisions for “expats” such as non residents and non domiciled individuals.
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
Annual Tax Enveloped Dwellings (‘ATED’)
Employment Allowance: Up to £2,000 off your Class 1 NICs
Top 12 Year End Tax Planning Tips
HMRC Briefing on Offshore Tax Evasion
Staggered Start to the Introduction of Real Time Information Penalties
Proposed Changes to the Taxation of Dual Contracts
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.
UK Letting Income – Changes to “10% Wear and Tear” Rules
HMRC Taskforce Targets South and South East
HMRC (HM Revenue & Customs) is ratcheting up its successful taskforce campaign by aiming at individuals and business in the South and South East of England that hide their wealth from the taxman.
Swiss assets and accounts – HMRC letters
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
Changes to IR35 for office-holders
Small Business Accounts Simplified
Business Mileage Expenditure
Commonwealth Games – non-resident tax exemption
HMRC Self Assessment Catch Up Opportunity
Directors Loan Accounts
UK tax residents – beware of US LLCs!
Update on HMRC offshore disclosure facilities
RTI Starts This Weekend
The UK Statutory Residence Test is coming!
Don’t get caught on the net by tax rebate phishing scam
Self-Employed Mileage Deductions
Cash Basis Scheme – Accounting Simplification
2013 March Budget Summary
The Chancellor made his Budget Statement on 20 March 2013 and announced Personal Tax, Employment Tax, Company Tax and Expat Tax.
Capital Gains on Residential Property
PAYE Attention: RTI is coming!
Artificial Tax Schemes
Autumn Statement – Pension Update
Changes to Charity Gift Aid Repayments
UK Statutory Residence Test – Update 2
Tax Havens and Information Sharing
The Media and Tax Avoidance
Stamp Duty Land Tax
New Approach to HMRC Business Records Checks
Stamp Duty Land Tax Grandfathering Changes
Tax Return deadline date looms for paper Returns
Pensions Auto Enrolment
National Minimum Wage Changes
Liechtenstein Disclosure Facility Versus UK-Swiss Tax Agreement
New Tax Evasion Crackdown
UK and US Governments sign FATCA agreement
We are supporting ‘The Descent of The Shard’
HMRC Announces a Consultation Over the Tax Treatment of Life Insurance Policies
Self Assessment taxation for expatriates
Office of Tax Simplification (OTS) reports on unapproved share schemes
UK Statutory Residence Test (SRT) – July 2012
We have joined the Real Time Information (RTI) Pilot
We are looking to recruit an Accounts Apprentice
Qualifying Non-UK Pension Schemes (QNUPS)
A busy year end – Employers 2011-12 PAYE deadlines!
The 2011-12 tax year ended on 5 April 2012 and employers are being reminded by HM Revenue & Customs (HMRC) to submit their annual PAYE P35 payroll Returns on time, or be liable to penalties.
VAT – HMRC penalising ‘Failure to Notify’ change of status cases
VAT changes affect employee benefits
VAT on sales of goods to non-VAT registered customers in the EU
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.
E-Traders Targeted by HMRC
This new campaign targets individuals who trade goods via e-marketplaces such as Ebay that have not disclosed the appropriate business trading income in their tax returns.
Tax Innovations – Spring 2012 Newsletter
Record number of on-time taxpayers
PAYE on Share-based payments
Payments made by an employer after an employee had ceased working for them used to be taxed at the basic rate of tax. This was altered so that currently, graduated rates of PAYE tax are applied depending on the level of payment made.
HMRC ESC C16
HMRC Issue Fraudulent Email Warning
HM Revenue and Customs is warning taxpayers about fraud emails being sent out requesting credit or debit card details.
UK Statutory Residence Test (SRT) update
Pensions Rules Changes
The Annual Allowance for making UK pension contributions remains at £50,000. However, with careful planning relating to “pension input periods” and the three years carry forward of unused Annual Allowances from previous years, it may be possible to receive tax relief in the current tax year on contributions well in excess of £50,000.
Self Assessment Tax Returns
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 Launches Offshore Tax Unit
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
Seafarers UK tax relief
HM Revenue and Customs (HMRC) has announced that they intend to extend the Seafarers' Earnings Deduction to European Economic Area (EEA)/European Union (EU) resident seafarers who have paid UK tax from 2011 - 12.
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'.
ISA limits increased for April 2012
HM Revenue and Customs has announced that from April 2012, the subscription limits for Individual Savings Accounts (ISAs) will increase to £11,280.
Employer National Insurance Holiday
The Employer National Insurance Holiday is the entitlement to a reduction in NIC's, dependent on meeting certain qualifying criteria.
Centre for Policy Studies says Abolish 50p Tax Rate
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
HMRC Targets Private Tutors and Coaches
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.
Her Majesty's Revenue and Customs (HMRC) are in the process of contacting up to 1.2 million people over the next three months to notify them that they underpaid their tax for the year 2010 - 2011.
The UK Investor Visa
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
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.
Pension Tax Relief Imbalances
Reminder for New Tax Return Penalties
Her Majesty's Revenue and Customs (HMRC) have sent out a reminder regarding the new penalty system for self-assessment returns that comes into effect for 2010/2011 and onwards.
VAT “Amnesty” Rule Breakers
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.
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.
PAYE Notices of Coding
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.
Expat UK Tax Budget Changes
Do you have an EFRBS or EBT?
- Property Partnership Incorporation and SDLT
- Tax Relief For Residential Mortgages
- Top 10 Expat Tax Tips for Individuals Moving to the UK
- Overseas Pension Changes 6 April 2017
- Changes to the Taxation of QNUPS