Non-Resident Landlords – UK Tax Update
Non-Resident Landlords – A UK Tax Update In the face of continuing budgetary pressure on the UK Treasury, HM Revenue & Customs (HMRC) is continuing its drive to collect the right amount of tax owed by non-residents on UK property letting income. Income tax payable on UK property income If you are a non-resident of […]
Read moreTop 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
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.
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.
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).
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.
Budget 2017
On 8 March 2017, Philip Hammond gave his first Spring Budget as Chancellor. The main tax announcements out in this 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.
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.
Impact of Changes to Dividend Taxation
In recent times, running a business through a limited company has provided a significant tax saving over a sole trade, by allowing profits to be extracted from the business at similar rates of tax but with little or no charge to National Insurance Contributions (NICs).
UK Self Assessment Tax Return filing and penalties 2014/15
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 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 moreRemittance Basis Charge increase for Non Doms
Remittance Basis Charge Increase for Non-Domiciled The Remittance Basis Charge (RBC) is an annual tax charge paid by non-domiciled individuals who wish to continue claiming the remittance basis of taxation once they have been UK tax resident for a number of years. By claiming the remittance basis, non-UK sources of income/gain are only liable to […]
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 moreSelf Assessment Penalties for Tax Year Ended 5 April 2014
Self Assessment Penalties for Tax Year Ended 5 April 2014 Self-assessment tax returns (form SA100) for the year ended 5 April 2014 need to be submitted to H M Revenue & Customs (HMRC) no later 31 January 2015. The returns will need to be filed electronically as the date for submitting returns in paper copy […]
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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.
Tax on Lump Sum Payments from Foreign Pensions
The tax legislation regarding the UK tax treatment of payments of lump sums from foreign pensions and schemes relating to service have changed. Read about the changes from 6 April 2011.
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.
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 moreAnnual 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 moreProposed 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 moreUK 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 moreOsborne delivers UK Autumn Statement
Osborne Delivers UK Autumn Statement The Chancellor, George Osborne, delivered his Autumn Statement on Thursday 5 December. The main highlights are as follows: From 6 April 2015 onwards, capital gains made by non-residents on the sale of residential UK property will be liable to UK capital gains tax (CGT). This changes the principle that has […]
Read moreRemittance basis UK tax return filing for “non-doms”
Remittance Basis UK Tax Return Filing For “Non-Domiciled” People 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 domiciled individuals have to file their UK tax returns on the “arising basis”, reporting world-wide […]
Read moreNon-Resident Property Owners
Non-Resident Property Owners Reports in the media suggest that George Osborne will be announcing on 5 December 2013 during his pre-budget speech, changes to the rules on selling a property by non-resident property owners and individuals. The proposal appears to be a gesture designed to placate part of the coalition who have been seeking a […]
Read moreResearch 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 moreMain Residence Exemption – Update on Recent Court Cases
Main Residence Exemption: An Update on Recent Court Cases Individuals selling their only or main residence (“Principal Private Residence”) do not normally have to pay Capital Gains Tax (CGT) on any gain they make, provided the property has been occupied as their main/only residence throughout the period they have owned it. If for part of […]
Read moreResidential Landlord Campaign
Residential Landlord Campaign HM Revenue & Customs (HMRC) have announced a new campaign to allow landlords who owe tax, either through accidental error or deliberate evasion, to bring their tax affairs up to date and pay what they owe (including interest and penalties). The campaign is aimed broadly at all residential property landlords, irrespective of […]
Read 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 moreHigh Income Child Benefit Charge – Update
Update on High Income Child Benefit Charge HM Revenue & Customs’ (HMRC) have announced that they will be writing to around two million higher rate (40%) taxpayers, to remind them that if their income is over £50,000 and they or their partner received Child Benefit in 2012/13, they will need to complete a Self Assessment […]
Read moreCommonwealth 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 moreProperty Sales Campaign – Update
Property Sales Campaign – An Update Further to our previous articles on the subject, HM Revenue & Customs’ (HMRC) Property Sales Campaign is aimed at individuals selling second homes in the UK or abroad where capital gains tax (CGT) should be paid. It includes properties that were rented out and holiday homes. The 9 August […]
Read moreChoosing 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 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 moreInheritance Tax – couples with “mixed” domiciles
Inheritance Tax for Couples with “Mixed” Domiciles If you are non-domiciled, your UK tax affairs can be complex from many perspectives. One area where being non-domiciled could have been a distinct disadvantage in the past, was where a UK domiciled person gifted assets to their non-domiciled spouse/civil partner or left them assets on death. UK Inheritance […]
Read moreHMRC admit PAYE code problems
HM Revenue & Customs have admitted that thousands of employees have been issued with incorrect PAYE code numbers as a result of Real Time Information.
HMRC P800 Tax Calculations for 2012-13
HMRC P800 Tax Calculations for 2012-13 HM Revenue & Customs (HMRC) have started the automated end of year process for the 2012-13 tax year in which they issue automatic P800 tax calculations to reconcile the PAYE affairs of taxpayers who in theory have simple affairs. Tax Refunds and Further Tax HMRC estimate that about 3.5 million […]
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.
Penalties for Late Tax Returns
Penalties for Late Tax Returns Swingeing HM Revenue & Customs penalties kick in shortly for those individuals that have not yet filed their 2011-12 Self-Assessment Tax Returns. Self-Assessment Tax Returns Anyone whose 2011-12 Self Assessment Tax Return is more than three months late (i.e. not filed by 30 April 2013) will now be charged a […]
Read moreHMRC targets the wealthy
High Net Worth Individuals: HMRC Targets The Wealthy Figures released by HM Revenue & Customs (HMRC) have confirmed that the taxman is continuing to have success from enquiring into the tax return affairs of the UK’s richest, otherwise known as High Net Worth Individuals (HNWIs). HNWIs come from all walks of life and amongst others […]
Read moreTrail 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 moreThe Property Sales Campaign
The Property Sales Campaign HM Revenue & Customs (HMRC) have announced a new campaign to allow individuals who have sold property, either in the UK or abroad, and who have not told HMRC about it, to bring their tax affairs up to date. Such individuals may be liable to capital gains tax, and those expected […]
Read moreReviewing Offshore Expat Bank Accounts (NOR Tax Status)
Reviewing Offshore Expat Bank Accounts For NOR Individuals Many individuals with “Not Ordinarily Resident” (NOR) UK tax status, that have come to work in the UK temporarily, 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 (often known as “Overseas […]
Read moreDon’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 moreInheritance Tax on Holiday Lets
Inheritance Tax on Holiday Lets An HM Revenue & Customs (HMRC) Upper-tier Tribunal hearing a tax case involving the Inheritance Tax (IHT) treatment of a furnished holiday cottage has recently delivered a decision which will be of concern to owners of similar properties. There is a beneficial IHT tax relief called “Business Property Relief” (BPR) […]
Read moreUK and Isle of Man agree to share offshore bank account information
UK and Isle of Man agree to share offshore bank account information The UK Government announced on 19 February that it has agreed with the Isle of Man that it will automatically receive information on offshore bank accounts and investments held in the Isle of Man by UK taxpayers. This “automatic exchange” of information between […]
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 moreOwnership of Residential Property Tax Increase
Ownership of Residential Property Tax Increase 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 […]
Read moreReal Time Information (RTI) – Getting Ready
Getting Ready for Real Time Information (RTI) HM Revenue & Customs (HMRC) have released information about their records recently saying that over 80 per cent of the data quality problems it encounters are the result of incorrect information supplied. Statistics and records held by HMRC, provided by UK companies, currently show that: 824 employees have […]
Read moreGovernment considers pension tax relief options
Government Considers Pension Tax Relief Options Speculation is mounting that George Osborne may target the “better off” and reduce the amount of tax relief available on UK pension contributions, possibly from the date the Autumn Statement is made. An article on MoneyMarketing.co.uk provides more detail on this speculation. Pension Tax Currently, it is possible to make […]
Read moreHMRC targets South East rental property businesses
HMRC Targets South East Rental Property Businesses HM Revenue & Customs (HMRC) has since May 2011 been using various “task forces” to target perceived tax evasion amongst certain trades, sector and locations. The latest task force teams to be launched by HMRC will home in on those not paying the right amount of tax in […]
Read moreChild Benefit – Update on the New Rules
Child Benefit: Update on the New Rules HM Revenue & Customs (HMRC) will be sending out around one million letters this month to families who are likely to be affected by next year’s changes to Child Benefit. The letters outline how the new High Income Child Benefit Charge (HICBC) that takes effect on 07 January […]
Read moreBusiness Records Checks
Business Records Checks Last year HM Revenue & Customs (HMRC) devised and began testing a new compliance procedure – Business Records Checks (BRCs). The aim was to visit smaller businesses and identify those that are not keeping adequate records. However, professional bodies had serious concerns about the process, and in the face of these HMRC suspended […]
Read 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 moreHMRC holds HSBC Jersey Bank Accounts list
HMRC Holds HSBC Jersey Bank Accounts List Breaking news reported in the Daily Telegraph suggests that a list of over 4,300 people residing in the UK holding almost £700M in HSBC offshore accounts has been provided to HM Revenue & Customs (HMRC). The list, apparently furnished by a “whistle blower”, is said to include the […]
Read moreWidening of Audit Exemption
Widening of Audit Exemption Government promises to cut red tape for business are being honoured in the audit area which will lift a significant number of companies out of statutory audit regulation. The audit thresholds are being widened so they are in line with the limits determining company size – a simplification a long time […]
Read 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 moreIR35 Personal Service Companies
IR35 Personal Service Companies The House of Commons Public Accounts Committee has reported on the use of personal service companies and found that despite their widespread use in the BBC and other public sector organisations, HM Revenue & Customs (HMRC) has reduced its enquiries into these types of arrangements. It is ironic that HMRC’s efforts […]
Read moreAccounts & Tax Trainees Required
Accounts & Tax Trainees Required We are looking to recruit a trainee for each of our tax and accounts teams, providing essential services and support to our clients. Depending on your specialism, successful applicants will be supported through their training towards either AAT or ATT qualifications. Applicants need the following : a minimum of 2 […]
Read 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 moreTax Avoidance versus Tax Evasion
Tax Avoidance versus Tax Evasion There has been much public debate on the role of tax advisers recently and on the difference between legal tax avoidance and illegal tax evasion. It appears that for some the edges around these subjects have become blurred, but please follow the link below for a fact sheet published by […]
Read moreHMRC Campaigns Update
HMRC Campaigns Update HM Revenue and Customs (HMRC) have been running and will continue to launch campaigns to provide opportunities for individuals to voluntarily put their tax matters in order. Every HMRC campaign is aimed at a different group and has time limits for making notifications, disclosures and payment. Anyone who fails to respond within […]
Read moreNETHERLANDS – 30% Ruling – changes for 2012
Netherlands 30% Ruling Changes for 2012 From 2012 onwards, new restrictions apply on the 30% ruling – a tax break for “expats” working in the Netherlands. The 30% ruling in general means that 30% of your gross earnings may be exempt from Dutch taxation. This ruling makes the Netherlands a potentially attractive location to be […]
Read moreRevised guidance for modified PAYE/international assignees
As you may be aware HM Revenue & Customs are carrying out a major overhaul of how employers report details of their PAYE employees’ earnings & withholdings.
Touring Tax Expertise – Foreign Entertainers and Sports People
Touring artists, whether musicians, actors or sports people can have very busy life styles and incur many different expenses from travel costs and accommodation to expensive equipment and gear.
We are recruiting – Accounts Assistant, AAT Level 3
We are recruiting – Accounts Assistant, AAT Level 3 Tax Innovations is a growing and ambitious business located in Winchester City centre, with plans to expand. We have been located in Winchester since 1996 and are looking to recruit an Accounts Assistant for our head office team. This is a full-time, key role in our […]
Read moreTax Innovations Ltd – Summer 2012 Newsletter
Tax Innovations Ltd: Summer 2012 Newsletter Introduction The British summer weather continues to disappoint and Andy Murray failed to win Wimbledon again, but at least we have the London Olympics to look forward to! It is also time for us to issue our seasonal update on some of the topical tax issues that may have […]
Read moreFrench to tax second holiday home owners
French to Tax Second Holiday Home Owners UK citizens who own homes in France will have to pay more tax under proposals announced this week by French President Francois Hollande. Approximately 200,000 Britons own second homes in many parts of France, particularly those serviced by budget airlines. Many UK citizens let out their holiday homes […]
Read moreMillionaire owes £469,000 in taxes for failing to disclose an offshore account
Failing to Disclose Offshore Accounts We recently posted articles on our website (see links below) about Britons who have their wealth held in undisclosed offshore bank accounts coming forward to pay their unpaid taxes and penalties. UK – Swiss Tax Changes HMRC estimate tax of £3bn to be raised from hidden Liechtenstein accounts A […]
Read moreThe IRS announces efforts to help “delinquent” US taxpayers living overseas
The IRS announces efforts to help “delinquent” US Taxpayers The Internal Revenue Service (IRS) has announced a plan to help Non-Resident US taxpayers overseas with their tax filing requirements and foreign retirement plan concerns. An IRS Commissioner spokesperson has said: “Today we are announcing a series of common-sense steps to help US citizens abroad get […]
Read moreBeware of Fake HMRC Tax Refund Emails
Beware of Fake HMRC Tax Refund Emails As you will know April saw the end to the tax year, and therefore HM Revenue & Customs (HMRC) have started sending out notifications about 2011/12 Tax Returns. However, among these genuine messages there are also fake emails being circulated that are asking individuals for their bank details. Although […]
Read moreWe are supporting the ‘Fat Boy Swim’ Charity Event
Tax Innovations are supporting the ‘Fat Boy Swim’ charity event We are delighted to announce that we are supporting the ‘Fat Boy Swim’ charity event. Three brothers are taking part in a charity swim from Southsea to Ryde to raise money for two charities. They wanted to give something back to the community. They decided […]
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Are you aware of the Real Time Information requirements?
Real Time Information Requirements We have recently joined the Real Time Information (RTI) Pilot which is the new system that is being introduced by HM Revenue and Customs (HMRC) to improve the Pay as You Earn (PAYE) process. The official launch date is April 2013 when most employers will join RTI but all employers will be […]
Read moreHMRC’s next campaign: The Tax Return Initiative
The Tax Return Initiative The Tax Return Initiative by HM Revenue & Customs (HMRC) will catch compliance failures, targeting the higher-rate taxpayers who should pay tax at 40% or 50% and who are required to complete a Self Assessment Tax Return for 2009/10 or earlier, but have not yet done so. Taking part in the […]
Read moreAre you thinking of selling your Olympic Torch?
Are you thinking of selling your Olympic Torch? HM Revenue and Customs (HMRC) have announced that there could be potential tax consequences that may be incurred from Olympic Torch sales. In total, 8,000 torchbearers will carry individual torches across the UK and they have all been offered the opportunity to purchase their torch at a […]
Read moreHMRC estimate tax of £3bn to be raised from hidden Liechtenstein accounts
Tax Raised from Hidden Liechtenstein Accounts Up to £3bn is set to be raised by 2016 from British taxpayers who have placed money in Liechtenstein, which is more than the £1bn that was initially expected. It is thought that 5,000 Britons have their wealth held in secret accounts in Liechtenstein, in some cases going back […]
Read moreInheritance Tax Overpayments
Inheritance Tax Overpayments Thousands of estates may have paid more Inheritance Tax (IHT) than they should have on residential property. Inheritance Tax, which is based on the market value of the deceased’s property at the time of death, can be reclaimed if the property sells for less than this value within four years. Research has found that […]
Read moreChild Benefit Payments to Parents are Changing
Child Benefit Payments to Parents are Changing The Institute of Chartered Accountants for England and Wales has told the Treasury that the forthcoming changes to child benefits to parents “is seriously flawed in principle and in practice”. From January 2013 any family with a parent earning more than £50,000 a year will lose a proportion […]
Read moreHMRC apologises after sending Self Assessment penalty notices in error
HMRC Apologises After Sending Self Assessment Penalty Notices in Error HM Revenue & Customs (HMRC) have recently sent out 12,000 daily penalty notices in error to people who had been told that they no longer needed to fill in Self Assessment Tax Returns. In the letter, it explained that to add to the long-standing fixed […]
Read moreIncrease in UK Remittance Basis Charge from April 2012
Increase in UK Remittance Basis Charge The UK Remittance Basis Charge (RBC) applies to non-domiciled individuals who are UK tax resident for a number of years and wish to claim the “remittance basis” of taxation rather than the “arising basis” of taxation. Under the remittance basis, individuals pay UK tax only on non-UK income/gains remitted […]
Read moreHMRC penalties for Tax Returns outstanding at 1 May 2012
HMRC Penalties for Outstanding Tax Returns HM Revenue & Customs (HMRC) is urging anyone who has still not done their 2010/11 UK Self Assessment Tax Return to file it on-line before the end of April 2012, or be charged daily penalties from 1 May. Anyone whose Self Assessment Tax Return is more than three months […]
Read moreVAT – Benefits of the Flat Rate Scheme
VAT – Benefits of the Flat Rate Scheme The VAT Flat Rate Scheme celebrated its tenth anniversary on 1 April 2012. The Scheme has produced time and tax savings for many small businesses. The general principle of the scheme is that traders with taxable turnover of less than £150,000 do not reclaim input tax on […]
Read moreOnline VAT Filing Compulsory
Online VAT Filing Compulsory From 1 April 2012, all VAT-registered businesses will have to file their VAT Returns online. Businesses will need to register for HMRC’s VAT Online Service before filing their first online Return. It is important not to leave this until the last minute because it can take a few weeks to receive […]
Read moreDecrease in Non-Dom numbers in the UK
Decrease in Non-domiciled Numbers Evidence that the £30,000 annual Remittance Basis Charge (RBC) is impacting on the number of non-domiciled people who are residing in the UK has emerged. A request made under the Freedom of Information Act has confirmed that the number of “non-doms” fell by 16% in the first two years that the […]
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 moreExpatriate Tax Planning News
Expatriate Tax Planning Advice Many individuals with “Not Ordinarily Resident” (NOR) UK tax status, that have come to work in the UK temporarily, 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 providing they are not remitted/brought to the UK. This […]
Read moreNon-residence update
Non-residence update The Government’s proposed Statutory Residence Test has been delayed until April 2013 but it if you are considering becoming non-resident for UK tax purposes, one way of doing this is to work full-time abroad for more than one complete UK tax year. Therefore, individuals should bear in mind that it may be worth […]
Read moreStatutory Residence Test (SRT)
Statutory Residence Test (SRT) The Government has recently announced that the long awaited SRT will now be delayed and will not be introduced until April 2013. We are sending a separate communication to our clients alerting them to this, but please contact us if you have any doubts as to how this will impact your […]
Read moreHMRC targets electricians
HMRC Targets Electricians HM Revenue and Customs is planning to pursue electricians as the next step in its plan to crackdown on tax evasion. The ‘Electrician’s Tax Safe Plan’ (ETSP) will be launched in February 2012 and offer favourable terms to those voluntarily disclosing any unpaid taxes. Anybody that does not come forward will face […]
Read moreSwiss Tax deal shows there is no substitute for good advice.
Swiss Tax Deal Shows there is no Substitute for Good Advice Following a similar agreement with Lichtenstein in 2009, HMRC’s latest agreement with Switzerland proves that the net is closing on tax evaders. A potential £5 billion could be raised from the latest deal, which sees Swiss banks delivering an average of 35% of account interest […]
Read moreSwiss bank accounts hit by Tax Deal
Swiss Bank Accounts Hit by Tax Deal A deal between HMRC and the Swiss authorities was announced on Wednesday following a similar Swiss / German arrangement earlier this month. Whilst account holder anonymity will be maintained, from 2013 onwards the Swiss authorities will tax UK citizen account holders who have connected assets with undisclosed tax […]
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 […]
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Tax and National Insurance Integration
Tax and National Insurance Integration UK Government issues a call for evidence regarding the possible integration of the tax and National Insurance systems. Executive Summary The Government has several times in the past few years talked about the potential harmonisation of the income tax and National Insurance systems. It is now revisiting the issue and […]
Read moreUK Statutory Residence Test and Non-Domiciled Reforms
UK Statutory Residence Test and Non-Domiciled Reforms Executive summary A consultation document on the introduction of a statutory residence test to be used by individuals in determining their UK tax residence status was issued on 17 June 2011. It is proposed that the new test will apply from 6 April 2012 onwards. The test has three parts: […]
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 […]
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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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