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
US LLCs – change in UK tax treatment
US LLCs: change in UK Tax Treatment The UK Supreme Court has recently issued a final judgement in the long running case of Anson v HMRC (the Swift case), which has been appealed several times but has finally been decided in the taxpayer’s favour. The ruling by the Supreme Court is that Anson is entitled to […]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
Time 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 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
Expats Need to Review Offshore Bank Accounts
Expats Need to Review Offshore Bank Accounts Many non-domiciled individuals that have come to work in the UK open offshore bank accounts outside the UK to take advantage of rules which exclude earnings from non-UK duties from being taxable in the UK (known as Overseas Workday Relief – OWR) for up to three years providing […]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
Remittance 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 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
The 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 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
UK Tax Returns for Expats, Non-Doms and US Citizens
Expats, Non-Doms and US Citizens UK Tax Returns The deadline for filing 2013/14 UK Tax Returns is fast approaching – 31 January 2015 – but there are good reasons for not leaving matters to the last minute, especially if you are an “expat”. Expat individuals such as non-residents and those that are non-domiciled have complex Tax […]Read more
Self 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 […]Read more
Pensions – 55% “Death Tax” Abolished
Pensions – 55% “Death Tax” Abolished The positive news keeps on arriving for people that have built up UK pension funds. Following on from recent announcements of favourable changes to the flexibility of pension plans, the Treasury has confirmed that the Government intends to alter the rules relating to tax charges that currently apply to […]Read more
UK Tax Returns for Non-Residents and Non-Doms
Non-Residents and Non-Doms UK Tax Returns The deadline for filing 2013/14 UK Tax Returns is 31 January 2015, but there are good reasons for not leaving matters to the last minute, especially if you are an “expat”. Expat individuals such as non-residents and those that are non-domiciled have complex Tax Return affairs that could involve gathering […]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
UK Tax Update for Non-Doms
Non-Doms UK Tax Update Non-Dom Status Non-UK domiciliaries (or “non-doms”) that are tax resident in the UK are subject to special and complex UK tax laws, enabling them to file their UK tax returns on the “remittance basis”. Filing on this basis rather than the “arising basis” (reporting world-wide income and gains), could prove beneficial […]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
UK Tax – Focus on Non-Resident Landlords
Non-Resident Landlords UK Tax With much speculation at present that the Government will no longer allow non-residents of the UK to claim the UK Personal Allowance (currently worth £10,000 per individual per UK tax year), it is worth considering the impact this will have on British expats (Non-Resident Landlords) who rent out UK properties. Just […]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
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)
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
Partnership Profit Allocation in Mixed Partnerships
Mixed Partnerships: Partnership Profit Allocation The profits of mixed partnerships are taxable on each partner as if it is their own trading income. This means that individuals who are members of a partnership are taxed on their profit share at income tax rates of up to 45%, while corporate partners will be taxed on their profit […]Read more
Non-residents – consultation on Personal Allowance
Non-Residents Personal Allowance: Consultation At present, certain non-resident individuals with UK sourced taxable income (such as property rental profit) will benefit from being able to claim the UK Personal Allowance (PA). This is the tax-free amount of income that can be received by an individual before tax starts to be charged. Personal Allowance The current PA […]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
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
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.
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
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.
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
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.
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
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
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.
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
Self Assessment Penalties for Tax Year Ended 5 April 2013
Self Assessment Penalties for Tax Year Ended 5 April 2013 Self-assessment tax returns (form SA100) for the year ended 5 April 2013 need to be submitted to H M Revenue & Customs (HMRC) no later 31 January 2014. The returns will need to be filed electronically as the date for submitting returns in paper copy […]Read more
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
Osborne 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 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 domiciled individuals have to file their UK tax returns on the “arising basis”, reporting world-wide income […]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.
Non-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 more
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
Research 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 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
Non-Resident Landlords – UK Tax Update
Non-Resident Landlords – A UK Tax Update HM Revenue & Customs (HMRC) have recently launched a campaign to collect tax they believe is owned by UK buy-to-let landlords not declaring their income. Please see our recent article for more details for non-resident landlords: http://www.taxinnovations.com/articles/residential-landlord-campaign HMRC Approach Tax Innovations can advise that we have recently been […]Read more
Main 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 more
Residential 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 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
High 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 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
Property 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 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
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
Inheritance 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 more
Top 10 tax tips for expats moving to the UK
Top 10 Tax Tips for Expats Moving to the UK The UK tax rules for expats moving to the UK can be extremely daunting but there are many tax and social security (National Insurance) planning opportunities if the right approach is taken and the correct professional advice is followed. Here we lay out our top 10 […]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
HMRC 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 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
How does the UK Statutory Residence Test (SRT) impact you?
How does the UK Statutory Residence Test (SRT) impact you? From 6 April 2013 there are a new set of rules that will determine your UK tax residence status, which in turn will decide how your income and capital gains are taxed in the UK. The old rules (click here for a link) were a recipe for […]Read more
Employee 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 more
HMRC 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 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
Trail 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 more
The 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 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
Reviewing Offshore Expat Bank Accounts
Reviewing Offshore Expat Bank Accounts 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 Work Days Relief”) […]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
Inheritance 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 more
UK 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 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
Relief 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 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
Ownership of Residential Property
Ownership of Residential Property 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 21 March […]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
Real 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 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
Government 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 more
HMRC 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 more
Child 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 more
Business 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 more
Opening 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 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
HMRC 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 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
Are you a Non-Resident Landlord?
Are you a Non-Resident Landlord? 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 specialist advice is recommended in this area due to the complexities in the UK tax law. Individuals […]Read more
Widening 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 more
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 more
IR35 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 more
Accounts & 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 more
VAT 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 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
Inheritance 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 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
Disproportionate 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 more
Tax 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 more
HMRC 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 more
NETHERLANDS – 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 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
Revised 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.
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
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 more
Tax 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 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
French 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 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
Millionaire 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 more
The 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 more
Beware 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 more
We 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 […]Read more
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 more
HMRC’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 more
Are 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 more
HMRC 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 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
Inheritance 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 more
Child 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 more
HMRC 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 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.
Increase 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 more
HMRC 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 more
UK – Swiss Tax Changes
UK: Swiss Tax Changes Germany and Switzerland have recently announced an increase to the rate of tax chargeable on undeclared accounts under their double tax agreement, and this change is likely to impact on UK based holders of Swiss bank accounts too. This is because a clause in the UK-Swiss treaty allows for the UK […]Read more
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 – 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 more
Online 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 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.
Decrease 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 more
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
Research & 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 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:
Expatriate 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 more
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 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
Statutory 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 more
Autumn Statement 2011
George Osborne the Chancellor of the Exchequer delivered his Autumn Statement on the 29th of November 2011.
HMRC 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 more
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
Modernising the personal tax system
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.
HMRC Targets Foreign Property Owners
HMRC Targets Foreign Property Owners HM Revenue and Customs (HMRC) are targeting taxpayers who have overseas holiday homes and offshore investment properties as part of the ‘HMRC Affluent Team’ initiative. HMRC Affluent Team The ‘HMRC Affluent Team’ was created to target the avoidance and evasion of tax by wealthy individuals and those owning land and property […]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.
Swiss 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 more
Swiss 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 more
EFRBS (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 […]Read more
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 more
UK Statutory Residence Test and Non-Domiciled Reforms
UK Government consults on new UK Statutory Residence Test and reforms for non-domiciled individuals 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. […]Read more
R&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 more
Britons 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 […]Read more
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.
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
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.
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 […]Read more
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
£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