On 30 October 2024, the UK received the first Budget from the Labour Party in 14 years, and the first ever from a female Chancellor. It was a Budget where many expected tax increases came to pass, whilst other feared changes did not materialise.

Tax Innovations have helped their client to successfully appeal to the First Tier Tribunal (FTT) to overturn PAYE determinations and penalties amounting to over £175k issued by HMRC.

With a cost-of-living crisis as a backdrop and a recession on the horizon, the new Chancellor, Kwasi Kwartang, delivered what is widely termed a mini budget on 23 September, although it lacked the forecasts from the office for Budget Responsibility that would usually accompany such an event.

HMRC have suspended the payment of certain R&D tax credits while it investigates some “irregular claims” for the tax credit.

This 2021 budget summary covers the key tax changes announced in the Chancellor’s speech and includes tables of the main rates and allowances.

Family Investment Companies are a flexible structure for inheritance tax planning.

There are still benefits to incorporating a property portfolio into a limited company, despite a proposed increase in the rate of corporation tax.

Under EU VAT rules applicable up until 1 July 2021, no import VAT had to be paid for commercial goods of a value up to €22. The new VAT e-commerce rules abolished this provision from 1 July 2021 and since that date, all commercial goods imported into the EU from the UK, are subject to VAT irrespective of their value. Registration with the IOSS may simplify the VAT position.

Self-assessment tax returns for 2019/2020 are due for submission by 31 January 2021, but HMRC has announced that late filing penalties will not be charged if the return is submitted online by 28 February 2021.

New measures, including the extension of the Furlough scheme, have been announced to provide support for businesses and employees during the new lockdown.

Employers can give employees non-cash benefits as part of their remuneration. The value of non-cash benefits provided to an employee is normally taxable, but there are tax-free non-cash benefits available.

The Employee Ownership Trust (EOT) was introduced by the Coalition Government in 2014 with the aim of promoting employee ownership in the UK, similar to the John Lewis model. The 2014 rules provide an incentive for owners to sell a controlling stake in their business.

The UK tax treatment of Salary Sacrifice schemes changed from 6 April 2017, removing the advantage of using such schemes for many benefits. As we approach the end of the transition period on 5 April 2021, we look at the ways in which a salary sacrifice scheme can still work to your advantage.

As the economy reopens, the Chancellor has announced temporary, targeted cuts in VAT and SDLT, along with a bonus for employers who rehire furloughed employees.

We discuss benefit in kind (BIK) and other business tax implications for company cars with car manufacturers moving to subscription-based models

Companies are increasingly being used as a vehicle for family investments due to a low rate of tax (Corporation Tax is currently payable at just 19%) and the ability to use shares and directorship roles to keep control with certain family members, while allowing the whole family to benefit from income and capital growth.

Further details have been announced about the new Coronavirus Job Retention Scheme, but the online service through which claims will be made is not yet available.

The April 2019 loan charge was introduced to tackle tax avoidance using employer-funded third parties, but following an independent review, this measure has been significantly rolled back.

The introduction of changes to the UK off-payroll working rules for the private sector, which was set to take place on 6 April 2020, have been suspended for a year due to COVID-19, and will now be introduced from 6 April 2021.

The Government has clarified that company directors and office holders are eligible for furloughing under the COVID-19 Job Retention Scheme, but many small business owners are still receiving minimal assistance.

The Chancellor of the Exchequer, Rishi Sunak, has written to the chair of the Treasury Select Committee to outline temporary changes to the Statutory Residence Test (SRT) for those coming to the country to work on COVID-19 related activity.

The Coronavirus Job Retention Scheme allows employers to claim a grant to cover wages of furloughed employees, including directors, but dividend payments will not be covered.  

People are being prevented from travelling from the UK to other countries at present due to the Coronavirus epidemic. This could affect their UK tax residence status and therefore; their UK tax liabilities.

COVID-19 is changing the way all of us live and work – Tax Innovations is changing its working practices too, but our services will not be interrupted. This article sets out the government’s current assistance package and an update on how to keep in contact with us.

The new government has published its first post-Brexit budget and Inheritance Tax was not on the agenda. Given the current economic uncertainties, it seems that Inheritance Tax, rarely much of a priority for governments given that it invokes passionate feelings while in reality representing a small part of the total tax take, is unlikely to change for the foreseeable future.

On 11 March 2020, the new Chancellor outlined his first budget. The detailed budget documents set out the following notable tax changes.

From April 2020 the Enhanced Capital Allowances (ECAs) available on energy and water efficient assets will be withdrawn. Currently, 100% first-year allowances are available on these assets, and where the allowances create a loss, this can be converted into a payable tax credit from HMRC.

The 2020 Finance Act is set to reduce the scope of the valuable Private Residence Relief (PRR), which prevents Capital Gains Tax (CGT) being charged when you sell your home. From 6 April 2020, the CGT payable on the sale of a residence may increase by up to £11,200 due to a restriction to PPR ‘Letting Relief’.

The UK corporation tax relief for expenditure on Research and Development (R&D) is extremely generous, particularly for small and medium-sized enterprises (SMEs).

Entrepreneurs’ Relief has been the subject of recent changes including an extension to the length of the required qualification period and the introduction of a measure or protection for taxpayers who find that their shareholding has been diluted below the Entrepreneurs’ Relief threshold.

On 6 April 2017, changes to the way that the taxation of workers’ services provided through intermediaries was implemented has had a huge impact for workers in the Public Sector. The Government now intends to roll out similar changes for the Private Sector, with effect from 6 April 2020.

The last day of the 2018-19 UK tax year (5 April 2019) is looming large and for those who seek to be tax efficient, it is time to examine ways of potentially mitigating 2018-19 personal tax liabilities via year-end planning reviews.

From 6 April 2019 the scope of UK CGT on non-residents is being extended to include all UK real estate property as well as to assets deriving at least 75% of their value from UK land.

Changes to Entrepreneurs Relief potentially threatened the availability of capital gains tax relief for owners of companies with alphabet share classes.

On 29 October 2018, the Chancellor set out his budget to Parliament, stating that austerity is "finally coming to an end" as the economic outlook improves, and appearing to spread some of the potential benefits around. The budget offered little in the way of significant overhaul, largely focussing on adjustments to existing reliefs, but what were the actual changes to the UK tax environment?

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

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.

HMRC have announced that the tax legislation regarding the UK tax treatment of the overseas pension scheme is changing from 6 April 2017.

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.

On 15 May 2018, the EU reinstated State Aid Approval for the Enterprise Management Incentive (EMI) Scheme, which had lapsed on 6 April 2018. This means that EMI options granted to employees will once again receive a beneficial tax treatment.

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).

Non-domiciled individuals that have come to work in the UK need to open offshore bank accounts outside the UK to take advantage of rules which exclude earnings from non-UK duties from being taxable in the UK.  This relief is known as Overseas Workday Relief – or OWR - and in broad terms applies for up to three years providing employment earnings are paid outside the UK – offshore – and not remitted/brought to the UK.

On the 15th March 2018, the Finance Act 2018 received Royal Assent, bringing the third Finance Act of the 2017/18 period into force. We discuss the main items brought into force from the 6th April 2018.

The Enterprise Management Incentive (EMI) Scheme is a popular scheme for smaller companies to provide their key employees with tax-advantaged share options, but delays in obtaining renewal of EU State Aid approval for the EMI scheme means that the benefits will be switched off for an unknown period.

As had been expected, the 2018 Spring Statement update did not include any major tax policy announcements; rather it provided a number of consultations that suggest potential legislative changes in the future. Read more about the areas set for exploration here.

Taxpayers you should be aware of the overseas tax disclosure deadline approaching.  Taxpayers who know or suspect that they have unpaid income tax, capital gains tax and inheritance tax relating to overseas assets, income or activities need to act before the deadline of 30 September 2018 to avoid incurring much higher penalties for non-compliance.

Now that the deadline for submission of tax returns for the 2016/17 tax year has passed, it is time for this financial year's company remuneration planning. You need to consider the level of salary and dividends you may require from your limited company in the 2017/18 tax year, as this needs to be in place by 5 April 2018.

HMRC have introduced a restriction to the amount of mortgage interest relief that is available for property businesses. Even so, if you have a property letting business you may find that restructuring your borrowing between properties could still have substantial tax benefits.

If you have started your business outside the UK and are looking to expand into the UK market, there are a variety of structural and regulatory issues facing you. Read more to discover how Tax Innovations can help.

Deadlines for registration for the 2016/17 tax year have already passed, but the trust registration penalty deadline is now looming, on the 5th March 2018.

Continuing HMRC’s long-running campaign against abusive tax avoidance, Finance (No. 2) Act 2017, which was enacted on 16 November 2017, contains legislation to create a one-off tax charge on loans from disguised remuneration (DR) schemes if those loans are not repaid by 5 April 2019.

From 6 April 2017, taxpayers have been entitled to an additional nil-rate inheritance tax (IHT) band, which applies to residences that are ‘closely inherited’ on the death of the donor.

Changes to the way VAT on imports of goods from the EU is paid after Brexit could leave over 130,000 UK businesses out of pocket.

On 22 November 2017, Philip Hammond gave his first Autumn Budget as Chancellor. The main tax announcements are set out in Autumn Budget 2017.

A Tax Tribunal has now agreed that HMRC’s view, and their published guidance on tax returns, is incorrect under the law.

Following the election result 2017, many are still left in limbo regarding their current UK tax position, at least until the next Finance Bill is published.

Several widely trumpeted tax measures that were going to be introduced by the Government have belatedly been withdrawn from the draft Finance Bill 2017.

The VAT Flat Rate Scheme is an effective way of managing VAT reporting by being far more straightforward to operate than the standard VAT basis.

It is time for non-domiciled “Expat” individuals to consider their offshore banking arrangements if they wish to continue claiming Overseas Workday Relief on an efficient basis.

Plans to increase the main rate of National Insurance for self-employed individuals have been cancelled in a quick U-turn from the Chancellor.

Without a strategy in place it is easy to find yourself with no options for Inheritance Tax mitigation just when you need it the most, and an unnecessary 40% Inheritance Tax liability.

On 8 March 2017, Philip Hammond gave his first Spring Budget as Chancellor. The main tax announcements out in this summary.

The Domicile Reforms means that those deemed UK domiciled from 6 April 2017 will pay UK tax on worldwide income/gains & not on the “remittance basis”.

The Autumn Statement 2016 has significant implications for your finances and tax. So what does it mean for you? Read Tax Innovations Summary.

HMRC are reporting that they are aware of a telephone scam where telephone calls have been received claiming to be from HMRC. 

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.

From 30 June 2016, UK Limited Companies are required to submit a ‘Confirmation Statement’ and ‘Persons with Significant Control’ on the PSC Register.

The Non-Domiciled Capital Gains Tax Rebasing of the CGT cost leads to the possibility that only capital gains arising from foreign capital assets.

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.

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.

UK domiciled individuals have to file their UK tax returns on the “arising basis,” reporting worldwide income and gains. The remittance basis is available to UK residents that are non-UK domiciled (often called “non-doms”) which means that UK tax is paid on foreign and overseas income or gain but only if remitted (brought) to the UK.

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.

There are always as number of factors for “expats” to consider whether this relates to non-domiciled individuals (“non-doms”) living/working in the UK or Brits leaving the UK and seeking to establish non-residence status. 

The last day of the 2015-16 UK tax year (5 April 2016) is fast approaching and the UK Budget is taking place on 16 March 2016.

A consultation has been launched by the Government regarding the stricter regime to be introduced for “non-doms” from April 2017.

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.

The 2014/15 UK tax year ended on 5 April 2015 and taxpayers need to consider completing and filing their Tax Returns for this year.

Pension contributions to a UK registered plan remain a highly tax-advantaged strategy with personal tax relief due at up to 60% depending on your income level, and tax-free growth within the pension fund once contributions have been made.

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).

Despite a massive outcry last year against suggestions that HMRC should gain powers to collect tax debts directly from taxpayers’ bank accounts under the Direct Recovery of Debts (DRD) rules, it has recently been announced that HMRC intends to push forward regardless.

The Chancellor has announced measures to support British businesses that are suffering due to the debt crisis in Greece.

In his Budget on 8 July, the Chancellor announced major changes to the way non-domiciled individuals (“non-doms”) will be taxed in the UK from April 2017.

With his summer Budget speech of 8 July 2015, Chancellor George Osborne has introduced significant changes to the UK tax system and set out the Conservatives plans to balance the budget by 2020.

In his 2015 Summer Budget, the Chancellor has announced changes to the rules that determine an individual’s domicile status.

There has been recent press coverage of HMRC powers being used to force the accelerated payment of inheritance tax (IHT)

Qualifying Non-UK Pension Schemes (QNUPS) are flexible retirement benefit schemes that provide alternative routes for individuals to plan for their future.

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.

HMRC has been attempting to discourage the ownership of residential properties through limited companies and have centred around three tax charges.

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.

The Chancellor made his Budget Statement on 19 March 2014 and announced changes to Personal Tax, Pension, Business Tax, Property, and Employment.

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.

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.

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.

HM Revenue & Customs have admitted that thousands of employees have been issued with incorrect PAYE code numbers as a result of Real Time Information.

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.

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.

The Chancellor made his Budget Statement on 20 March 2013 and announced Personal Tax, Employment Tax, Company Tax and Expat Tax.

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 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.

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.

Our alert cuts through all the detail and the incomprehensible figures and gives you the headline issues from the Budget on 21 March 2012.

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.

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:

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.

HM Revenue and Customs is warning taxpayers about fraud emails being sent out requesting credit or debit card details.

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.

George Osborne the Chancellor of the Exchequer delivered his Autumn Statement on the 29th of November 2011.

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 have been criticised for unfairly delaying of issuing penalties for late submission of P35 Employer Annual Returns for up to four months.

The publication 'Modernising Administration of the Person Tax System' details ideas of how personal taxes can be made more visible to individuals and invites professionals and taxpayers to submit their views on a number of questions about the subjects mentioned below.

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.

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'.

HM Revenue and Customs has announced that from April 2012, the subscription limits for Individual Savings Accounts (ISAs) will increase to £11,280.

The Employer National Insurance Holiday is the entitlement to a reduction in NIC's, dependent on meeting certain qualifying criteria.

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.

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.

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.

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.

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.

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.

An open letter from some twenty economists was published to in the Financial Times - Coalition must ditch 50p tax rate for growth - FT.com.

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 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.

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.

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.