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.
ATED: New Annual Tax Rules from 1 April 2016
ATED is an annual tax payable by companies and other non-natural persons that own UK residential properties. From 1 April 2016 onwards ATED will apply to properties valued at £500,000 or more, where it previously only applied to properties worth at least £1 million. The ATED valuation date is 1 April 2012 or the date the property was acquired if that was later.
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.
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
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
When 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 more
Capital 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 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
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
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
Retained 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 more
Taxation of UK Property Income
UK Property Income Taxation According to recent press reports, HM Revenue & Customs (HMRC) is once again ramping up its campaign against UK property landlords that it perceives are evading tax on rent from UK Property Income. HMRC plans to send 40,000 letters to UK buy-to-let owners that it believes may owe tax. The letters warn […]Read more
A New Dawn for the UK Pension Regime
UK Pension Regime: A New Age The dust has to a certain extent settled since the Government announced to everyone’s great surprise in the 2014 Budget that members of Defined Contribution (DC) UK pension plans would have far greater flexibility in accessing their pension savings on reaching age 55. Previously, it was necessary to buy […]Read more
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
Auto Enrolment Auto enrolment began in October 2012 with the largest businesses – those with more than 120,000 staff – starting first. As time goes on, smaller firms will start enrolling staff. Firms with fewer than 50 workers will begin enrolling their staff in June 2015 and all employers will eventually be obliged by law […]Read more
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
Five Reasons to Review Your Business Model
Five Reasons to Review Your Business Model Ahead of the new UK tax year this month there are a number of recent updates to tax legislation and accounting standards that make it a good time to review your business structure and plans. The changes coming into effect represent a combination of new incentives together with […]Read more
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.
Reviewing Offshore Expat Bank Accounts
Reviewing Offshore Expat Bank Accounts Many non-domiciled individuals that have come to work in the UK open offshore expat 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) for up to three years providing they […]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
Staggered Start to the Introduction of Real Time Information Penalties
HMRC: Staggered Start to the Introduction of Real Time Information Penalties The new automatic in-year Pay As You Earn penalties was due to start from April 2014. These would have been for late filing and late payment and in-year interest, charged on tax and National Insurance Contributions paid late during the year. Real Time Information […]Read more
Fee Protection Services 2014
Fee Protection Services 2014 (Please see ‘Fee Protection’ pages for up to date information) Our Tax Investigations Service is fully backed by an Insurance Policy, which we have taken out with Abbey Tax Protection. The Service covers the period 1st January to 31st December annually and we are able to make a claim in respect […]Read more
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
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
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
Non-Resident Landords Individuals that are UK tax residents and domiciled in the UK pay tax on their world-wide income and capital gains. (If you are UK tax resident but non-domiciled, you may be able avoid UK tax on your non-UK sources of income and gains if they are not remitted (brought) to the UK, although […]Read more
Choosing an Online Accounting System
Choosing an Online Accounting System Evolution of the web and the emergence of cloud-based data management have in recent years driven advances in online accounting. Underlying this has been the pace of change in the way businesses communicate and smoother integration between devices which have diminished operational barriers and initial hesitation to working in the […]Read more
Top 12 Year End Tax Planning Tips
Top 12 Year End Tax Planning Tips for 2013 With the end of the UK tax year (5 April) looming in to view and the UK Budget set for 20 March, it is time to consider various year end planning that might make a difference in reducing your tax liabilities. Issues to consider with Year […]Read more
Clampdown on tax evasion for expats in Spain
Clampdown on Tax Evasion for Expats in Spain Expats living in Spain who have undeclared offshore accounts could be targeted by the Spanish government as they clampdown on tax evasion. Hacienda, Spain’s tax authority, is according to reports, investigating any form of foreign investments or overseas pension income and it appears to be working closely […]Read more
Year End Tax Planning
With the end of the UK tax year (5 April) looming in to view; it is time to consider various year end tax planning that might make a difference in reducing your tax liabilities. Issues to consider include but are not limited to:
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 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
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.
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.
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.
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
£50,000 Non Domicile Charge
£50,000 Non Domicile Charge Non-domiciled individuals who have been tax resident in the UK for 7 out of the previous 9 years need to pay £30,000 to HMRC if they want to be taxed on the remittance basis and avoid being taxed on the entirety of their worldwide income and gains. The 23 March 2011 […]Read more