Bereavement leave for parents who lose a child
The Parental Bereavement (Leave and Pay) Bill has been published by the government. Although the Bill is a Private Members’ Bill, it has the full support of the government and therefore the Bill and its explanatory notes have been prepared by the government with the consent of the relevant MP. It is due to have its second reading in the House of Commons on 20 October 2017.
The Bill provides a right for employed parents to be absent from work for two weeks following the death of a child under ... read more
Managing staff experiencing mental ill health
Acas has launched new guidance to help employers manage staff who are experiencing mental health issues. The new guidance aims to help managers develop the right skills to support employees as well as to create a culture of well-being in the workplace. It includes advice on:
spotting the signs of mental ill health
talking to a team member that may be experiencing mental ill health
supporting a team member during periods of mental ill health
helping a team member return to work.
The ... read more
Is it a car or a van?
The First-Tier Tribunal recently heard three appeals that examined whether vehicles supplied to employees were vans or cars. The main appellant in this case was Coca-Cola European Partners GB Ltd (Coca-Cola) who supplied vehicles to a number of their employees.
Until 1997, Coca-Cola’s technicians had used estate cars but the amount of equipment that the employees needed would no longer fit in an estate car and Coca-Cola moved to supplying a choice of three different types of vans to its ... read more
Non-residents selling UK home
A capital gains tax (CGT) charge on the sale of UK residential property by non-UK residents was introduced in April 2015.
A UK non-resident that sells UK residential property needs to deliver a non-resident capital gains tax (NRCGT) return within 30 days of selling a relevant property. When such a sale is made a NRCGT return must be submitted to HMRC within 30 days of the conveyance of the property. The return must be made whether or not there is any NRCGT to be paid, if there is a loss on the ... read more
Overdrawn director’s loan account
An overdrawn director's loan account is created when a director (or other close family members) ‘borrows’ money from their company. Many companies, particularly 'close' private companies, pay for personal expenses of directors using company funds. Where these payments do not form part of a director’s remuneration they are usually posted to the director’s loan account (DLA).
The DLA can represent cash drawn by a director and payment of other personal bills and expenses.
Whilst it is quite ... read more
HMRC to stop accepting personal credit cards
HMRC has confirmed that they will no longer accept payments with a personal credit card from 13 January 2018. This includes payments for income tax, PAYE, VAT and many other taxes. This is due to the implementation of the EU second Payment Services Directive (PSDII). This legislation makes a number of reforms to the way payments by debit and credit cards, direct debit, credit transfers, standing orders and other digital payments are made.
One of the main changes as a result of this new ... read more
Inactive companies and Corporation Tax
There are a number of scenarios where HMRC would consider a company or organisation to be inactive for Corporation Tax (CT) purposes. This is a different categorisation to a 'dormant' company and usually happens when a company has not commenced trading.
A company, whilst not yet active for CT purposes, can still carry out activities (known as ‘pre-trading activities’) or incur costs (known as ‘pre-trading expenditure’).
HMRC’s guidance states that activities or expenditure that are not ... read more
What is a 'K' tax code?
The letters in an employee’s tax code signify their entitlement (or not) to the annual tax free personal allowance. The tax codes are updated annually, or when an employee's circumstances change, and help employers work out how much tax to deduct from an employee’s pay packet.
The basic personal allowance for the tax year starting 6 April 2017 is £11,500 and the tax code for an employee entitled to the standard tax-free Personal Allowance 1150L. This is the most common tax code and is used ... read more
Do you pay tax on assets or cash you inherit?
As a general rule, inheritance tax (IHT) is collected from a person’s estate when they die and can also be payable during a person’s lifetime on certain trusts and gifts. There is normally no tax to be paid if the value of the estate is below the IHT nil rate threshold of £325,000. There is also a new IHT main residence nil-rate band (RNRB) that was introduced in April 2017. The RNRB will ultimately allow for a £175,000 per person transferable allowance for married couples and civil partners ... read more
Tax implications on divorce or separation
When a couple is separating or divorced it is unlikely that they are thinking about the tax implications. However, as the dust begins to settle it is important that the tax consequences of the break-up are given proper consideration.
Whilst income tax does not automatically cause an issue for separating couples, as it is an individually assessed tax, there are other taxes that should be examined. For example, when a couple are together there is no capital gains tax (CGT) payable on assets ... read more
Land Registry property alert service
HM Land Registry's property alert service is a free (for up to 10 registered properties) service to help protect property from fraud. The counter-fraud security measure was introduced by the Land Registry to monitor registered properties, where there is a concern that it might be subject to a fraudulent sale or mortgage.
The property alert service can be used to monitor any property in England or Wales that is registered with the Land Registry. Once registered, owners or other interested ... read more
Check your National Insurance record online
HMRC offers an online service to check your National Insurance record online. In order to use the service, you will need to have a Government Gateway account. If you don’t have an account, you can apply to set one up online.
By signing in to the 'Check your National Insurance record' service you will also activate your personal tax account. The personal tax account can be used to complete a variety of tasks, from updating an address, managing your child benefit and completing your self ... read more
Employing someone to work in your home
When you employ someone to work in your home, it is your responsibility to meet their employee's rights and deduct the correct amount of tax from their salary. This can include domestic staff such as a nanny, housekeeper, gardener or carer. The rules are different if the person is self-employed or paid through an agency.
If you employ anyone they must:
have an employment contract
be given payslips
work no more than the maximum hours allowed per week
be paid at least the national minimum ... read more
Capital allowances when you sell an asset
Capital allowances is the term used to describe the tax relief businesses can claim on certain capital expenditure and thereby reduce the amount of their taxable profits. Most ‘capital’ items, such as equipment, vehicles, machinery etc, last for a reasonably long time and the tax rules do not allow you to automatically deduct the full cost of such items in one go. There are different rules that apply to different types of capital expenditure such as 100% First-Year Allowances (FYA) for certain ... read more
Christmas party and other social events
In a recent newsletter we looked at the tax implications of giving Christmas gifts to your staff and the complications that can arise. In this newsletter, we will take a look at the tax breaks available for staff Christmas party or similar annual events.
In general, the cost of a staff party or other annual entertainment is allowed as a deduction for tax purposes. However, there are some important criteria that must be followed to ensure that there will be no taxable benefit charged to ... read more