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
Income Tax Payable on UK Property Income HM Revenue & Customs (HMRC) continues to ramp up its effort to collect the right amount of tax owed by non-residents. Individuals that are non-residents of the UK and/or who have their “normal place of abode” outside the UK need to register with HMRC as non-resident landlords if they […]Read more
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
The 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 more
Election Pension Tax Planning
Election Pension Tax Planning With voting in the General Election under way today, taxpayers might want to act quickly to secure valuable tax reliefs on UK registered pension contributions. Many of the parties involved in the Election are openly proposing cuts in the amount of tax relief available for UK pension contributions, either by limiting […]Read more
Tax on separation and divorce
Tax on Separation and Divorce Unfortunately, marriage breakdown is a fact of life. This article is intended to provide some initial brief guidance on some of the tax implications on separation/divorce but of course there is no substitute for consultation with a fully qualified tax adviser because circumstances will always differ on a case by […]Read more
UK Self Assessment Tax Return filing and penalties
UK Self Assessment Tax Return Filing and Penalties 2014/15 Tax Returns The end of the UK tax year for 2014/15 was 5 April 2015 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 […]Read more
UK Property Sales: Capital Gains Tax for Non-Residents
UK Property Sales: Capital Gains Tax for Non-Residents From 6 April 2015 the sale of UK residential property by a non-resident expat will potentially be liable to UK capital gains tax. The new rules will not apply to capital gains relating to periods before 6 April 2015. Non-resident expat individuals will have three available options […]Read more
Death of the UK Tax Return for Expats?
Death of the UK Tax Return for Expats? The Chancellor may have indicated recently that “the death of the UK Tax Return” is likely over the coming years but as far as “Expats” are concerned, it seems inconceivable that they will not need to continue filing their annual UK Tax Return. For example, HM Revenue […]Read more
EFRBS 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 more
2015 Budget Summary
2015 Budget Summary Many of the provisions announced in Wednesday’s 2015 Budget have previously been trailed by the Treasury, for example via the autumn statement. The main highlights from what proved to be an unexciting Budget are summarised below. 2015 Budget Changes for Personal Tax The Personal Allowance will increase again over the coming years […]Read more
Top year end UK personal tax planning tips!
Top Year End UK Personal Tax Planning Tips! With the end of the 2014-15 UK tax year (5 April) looming into view and the UK Budget scheduled for 18 March, it is time to consider various year end UK personal tax planning tips that might make a difference in reducing your tax liabilities. Our top […]Read more
Changes to the Taxation of Share Awards for Expats
Changes to the Taxation of Share Awards for Expats The UK’s income tax and National Insurance Contributions (NIC) rules for the treatment of an internationally mobile employee (IME) receiving employment related securities (ERS) share awards will change from 6 April 2015. Income Tax The current rules for the income tax treatment of ERS received by […]Read more
SDLT 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 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
Annual 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 more
Employers: Do you know your staging date for automatic enrolment?
Employer Staging Date for Automatic Enrolment UK law requires all employers, including small (5-49 employees) and micro (1-4 employees), to provide a workplace pension and automatically enrol eligible staff – this is automatic enrolment. Each employer has a staging date by which they need to comply with the law. Research by the Pensions Regulator has […]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
HMRC Task Force Targets South West Property Owners
HMRC Task Force Targets South West Property Owners HM Revenue & Customs (HMRC) is turning its attention to those in the south-west of England and south Wales who sell and/or rent out properties. The HMRC task force will use data from the Valuation Office Agency (an executive agency of HMRC) to target tax dodgers and […]Read more
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”
Remittance Basis UK Tax Return Filing for “Non-Doms” The “remittance basis” of taxation is a special method of filing UK tax returns that is only open to non-domiciled individuals, or to “non-doms” as they are often referred to. UK Tax Return Filing for “Non-Doms” UK domiciled individuals have to file their UK tax returns on […]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
Inheritance 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 […]Read more
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 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 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.
Charging Capital Gains Tax on Non-UK Residents & UK Property
Non-UK Residents and UK Property Tax HMRC has published a consultation on the proposal that Capital Gains Tax will apply to non-residents for UK residential properties. It is proposed that these rules will come into play from April 2015. The consultation period is open until 20 June 2014. Whilst the main proposal to tax non-residents […]Read more
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
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
Employment Allowance: Up to £2,000 off your Class 1 NICs
Up to £2,000 off Class 1 Employment Allowance From 6 April 2014, eligible employers can claim the Employment Allowance and reduce their employer Class 1 National Insurance contributions (NICs) by up to £2000.00 each tax year. Employers can claim the Employment Allowance if they are a business or charity (including Community Amateur Sports Clubs) that […]Read more
Top 12 Year End Tax Planning Tips
Top 12 Year End Tax Planning Tips for 2014 With the end of the 2013-14 UK tax year (5 April) looming in to view and the UK Budget scheduled for 19 March, it is time to consider various year end planning that might make a difference in reducing your tax liabilities. Year End Tax Planning […]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
Proposed Changes to the Taxation of Dual Contracts
Proposed Changes to the Taxation of Dual Contracts Following the announcement in December’s Autumn Statement, the government has now published the draft legislation aimed at counteracting what it perceives as being the artificial use of dual contracts by non-domiciles (“non-doms”). The proposed new rules are aimed at preventing contrived arrangements by a small number of […]Read more
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
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
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
Swiss Assets and Accounts – HMRC Letters HM Revenue & Customs (HMRC) has started issuing letters to those UK resident individuals who have opted not to keep their Swiss investments secret, but to have the details disclosed to HMRC via the Swiss authorities. In doing this, the individuals avoid withholding tax on the Swiss assets […]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
Companies House and HMRC Scam Alert
Companies House and HMRC Scam Alert There has been an increase in scam phone calls over the last few weeks. One recent scam is focussed on small companies and involves an individual pretending to call from Companies House (CH) and asking for various details about the director and the CH online authentication codes. CH have […]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
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
Commonwealth Games – non-resident tax exemption
Commonwealth Games – Non-Resident Tax Exemption HM Revenue & Customs (HMRC) has a special team that monitors the tax affairs of sports people and entertainers who visit the UK to perform. Controversy has arisen in the past because stars such like Usain Bolt have avoided competing in the UK, as the UK seeks to tax […]Read more
HMRC Self Assessment Catch Up Opportunity
HMRC Self Assessment Tax Returns Catch Up Opportunity If you are late in submitting Self Assessment Tax Returns and worried about the implications of not having filed on time, HM Revenue & Customs (HMRC) are running a new disclosure campaign that might be of interest to you. If you come forward and file your Tax […]Read more
Directors 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 more
UK tax residents – beware of US LLCs!
UK Tax Residents – Beware of US LLCs! Here at Tax Innovations, we often get new clients who own business or personal financial interests outside the UK. For UK domiciled and UK resident individuals who file their UK tax returns on the “arising basis” i.e. who need to report world-wide income and gains, you would […]Read more
Update on HMRC offshore disclosure facilities
Update on HMRC Offshore Disclosure Facilities Individuals holding offshore assets over past years in Switzerland and Liechtenstein have various options for disclosing undeclared UK tax liabilities under either the UK/Swiss Tax Agreement or the Liechtenstein Disclosure Facility (LDF). Both these routes have proved lucrative for HM Revenue & Customs (HMRC), which has seen the UK […]Read more
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
The UK Statutory Residence Test is coming!
The UK Statutory Residence Test is Coming! With effect from 6 April 2013, your UK tax residence status will be determined using a new statutory test. These new rules replace a tangled web of guidelines, concessions, practices (and the odd bit of law!) which dictated how tax residence was previously determined. If you are currently […]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
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
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 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
Autumn Statement – Pension Update
Autumn Statement 2012 – Pension Update The Chancellor delivered his Autumn Statement on 5 December 2012 and announced the following headline measures relating to pensions: The Annual Allowance (“AA”) is to be reduced to £40,000 (from the 2014/15 year onwards). The Lifetime Allowance (“LTA”) is to be reduced to £1.25m (from the 2014/15 year onwards). […]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
UK Statutory Residence Test – Update
UK Statutory Residence Test – Update Draft legislation has been issued bringing the long awaited Statutory Residence Test (SRT) a step closer. After 18 months of consultation the draft law has not altered much from the previous proposed version of the rules but one welcome relaxation is that individuals claiming to be non-resident by virtue […]Read more
Tax Relief For Residential Mortgages
Tax Relief For Residential Mortgages If you have a property letting business, you may find that restructuring your borrowing between properties could have substantial tax benefits, even for your main residence. If you own a property other than your main residence, it may be that you are not maximising the amount of tax relief you […]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
The 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 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
Tax Return deadline date looms for paper Returns
Tax Return Deadline Date Looms for Paper Returns HM Revenue & Customs (HMRC) are reminding individuals to submit their paper Tax Returns for the 2011-12 year by 31 October 2012 to avoid automatic £100 penalties that will be levied if this deadline is not met. The £100 penalty will be charged even if a refund […]Read more
Pensions Auto Enrolment
Pensions Auto Enrolment The process of pension auto enrolment has begun. The process started with the biggest employers on 1 October 2012 and will be staggered over the next few years until 2018. The smallest employers begin auto-enrolment for their staff in January 2015. Contributions will start with employees paying in a minimum of 0.8% […]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
Liechtenstein Disclosure Facility Versus UK-Swiss Tax Agreement
Liechtenstein Disclosure Facility Versus UK-Swiss Tax Agreement The UK/Swiss tax agreement signed on 6 October 2011 is expected to come into effect on 1 January 2013. This will leave Swiss bank and investment account holders that have not disclosed details to HM Revenue & Customs (HMRC) with a decision to make by May 2013. Unless […]Read more
New Tax Evasion Crackdown
New Tax Evasion Crackdown HM Revenue & Customs (HMRC) has launched a new crackdown with task forces set to focus on five areas of business seen by HMRC as high risk in terms of tax evasion. These new task forces are the latest part of an on-going campaign by HMRC to ensure correct tax compliance […]Read more
UK and US Governments sign FATCA agreement
UK and US Governments Sign FATCA Agreement The UK Government has this week signed an agreement with the USA to improve international tax compliance and implement FATCA (Foreign Account Tax Compliance Act). FATCA is designed to allow foreign bank account information to be exchanged internationally to tackle the perceived risk of tax evasion. The agreement […]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
Self Assessment taxation for expatriates
Self Assessment Taxation for Expatriates HM Revenue & Customs (HMRC) have an online tool which allows people with relatively straight forward tax affairs to in effect prepare and submit their annual Self Assessment tax return (SA100) via their website. For individuals with more complicated tax affairs, there are various supplementary pages covering specific tax areas […]Read more
Office of Tax Simplification (OTS) reports on unapproved share schemes
Office of Tax Simplification (OTS) reports on unapproved share schemes The Office of Tax Simplification was established in July 2010 to carry out reviews in order to provide independent and specialist advice to the Chancellor on ways to improve and simplify the UK’s tax system. Following an earlier report on tax-approved employee share schemes, the […]Read more
UK Statutory Residence Test (SRT) – July 2012
UK Statutory Residence Test (SRT) The UK Government has recently issued a summary of responses to last year’s consultation on a UK Statutory Residence Test (SRT). Please see our previous articles about the UK SRT: UK Statutory Residence Test and Non-Domiciled Reforms (23/06/11) Statutory Residence Test (SRT) (15/12/11) The Government remains committed to having a statutory test […]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
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 – 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 changes affect employee benefits
VAT Changes Affect Employee Benefits A new 20% VAT liability on many employee benefits came into force on 1 January 2012 as a result of a European Court of Justice decision. Benefits such as gym membership, subsidised meals at work and shopping vouchers are all affected. Employers must either charge the employee output tax based […]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.
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
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
Tax on PPI payments
Her Majesty’s Revenue and Customs (HMRC) has released advice notes regarding the taxation of interest on PPI compensation payments.
Record number of on-time taxpayers
A Record Number of On-Time Taxpayers Her Majesty’s Revenue and Customs (HMRC) has said that taxpayers meeting the filing deadlines on-time this year were the highest since HMRC was created. Some 9.4 million, or 90.4 per cent of taxpayers managed to file their 2010-2011 Tax Return on time and avoid incurring late filing penalties. This […]Read more
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
ESC C16: Voluntary Liquidation When a company goes into voluntary liquidation HM Revenue and Customs (HMRC) allows shareholders to receive the surplus assets of the company as a capital distribution instead of as a dividend. The advantage to receiving these often substantial sums as a capital distribution is that they are eligible for tax at […]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.
UK Statutory Residence Test (SRT) update
UK Statutory Residence Test (SRT) Update In June this year, we advised our clients that a Statutory Residence Test (SRT) was due to be introduced by the UK Government with effect from 6 April 21012. The proposed test was to be introduced to give individuals clear guidance and certainty in determining their UK tax residence […]Read more
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
Self Assessment Tax Returns We have already reminded our clients that new automatic penalties apply to late filed 2010-11 Tax Returns, even where no tax is owed at the filing date, 31st January 2012. Please don’t be caught out by the new rules and make sure you file on time! If you have not previously […]Read more
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 Launches Offshore Tax Unit
HMRC Launches Offshore Tax Unit HM revenue and customs (HMRC) has officially launched their new offshore tax unit targeting those with undeclared offshore income. Chief Secretary to the Treasury Danny Alexander announced in September that there would be an initial deployment of 100 offshore investigators tasked with identifying and pursuing those with undeclared offshore capital […]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
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
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.
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
The UK Investor Visa In March 2011 the Government introduced new visa rules as a way of attracting foreign entrepreneurs and investors. They call this the UK Investor Visa. New Rules The new rules enable investors that qualify for the UK investor visa to permanently settle in the UK a great deal faster than under […]Read more
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.
Pension Tax Relief Imbalances
Pension Tax Relief Imbalances Pension tax relief is being missed out on by some 35% workers, a study by Prudential has found. The survey of 1,600 working adults revealed that there will be a significant dependency on the state pension in years to come and that those that do contribute to a company or private […]Read more
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
“Amnesty” VAT ” Rule Breakers HM Revenue & Customs (HMRC ) have today issued a reminder to all unregistered individuals and businesses trading above the VAT registration threshold (VAT rule breakers) that they have until the 30th of September to come forward in return for a reduced penalty. The campaign to crack down on VAT rule breakers was formally […]Read more
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
PAYE Notices of Coding We would like to draw your attention to the new changes HMRC have made concerning PAYE notices of coding for 2011/2012. As agents, we no longer receive copies of your PAYE notices from the HMRC and so it is, therefore, important that in future these are forwarded to us on a […]Read more
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
Expat UK Tax Budget Changes Budget Changes The £50,000 non domicile charge in the 2011 budget begins in the 2012/2013 tax year. These budget changes could mean that you need to pay the £50,000 charge. Watch the video above to find out if you will be required to pay. To read more about the changes […]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