News

Keyword(s):

11-06-2019
On your e-bike

On your e-bike

The Cycling Minister, Michael Ellis, has announced a number of changes to the Cycle to Work scheme in an announcement that was timed to coincide with Bike week. Bike week is an annual celebration to showcase cycling across the UK and runs from 8 – 16 June. The Cycle to Work scheme was introduced almost 20 years ago to help promote the use of healthy ways to commute to work using an environmentally friendly and more active mode of transport. This can also speed up commuting time and cut ... read more

11-06-2019
HMRC cancels penalties charged to 6,000 families

HMRC cancels penalties charged to 6,000 families

The High Income Child Benefit Charge (HICBC) was introduced in January 2013 and applies a charge to taxpayers whose income exceeds £50,000 in a tax year and who are in receipt of child benefit. The charge claws back the financial benefit of receiving child benefit either by reducing or removing the benefit entirely. HMRC has been reviewing a significant number of cases where a failure to notify penalty was issued for the tax years 2013-14, 2014-15, and 2015-16, to taxpayers who did not ... read more

11-06-2019
HMRC blocks phone fraudsters

HMRC blocks phone fraudsters

Fraudsters have been blocked from using HMRC’s most used helpline numbers after the introduction of new defensive controls. These fraudsters had been able to make calls to taxpayers across the UK which appeared to be coming from HMRC by mimicking helpline numbers. These fraudsters are usually operating as part of large criminal gangs with deep pockets and cutting-edge technological to target taxpayers. This scam worked as taxpayers would receive calls and, on checking the numbers online, ... read more

11-06-2019
Free television licences scrapped for over-75s

Free television licences scrapped for over-75s

The TV licence fee has not been payable by those aged 75 or over since 2001. During 2015, the government reached an agreement with the BBC as part of the last charter renewal that it will take on the cost of free television licences for over-75s by 31 May 2020 as part of the fee settlement. The BBC estimated that the change would have reduced their licence fee income by around £745m a year, a fifth of the BBC’s annual budget. The BBC board has now announced that following a ... read more

11-06-2019
Genuine HMRC messages

Genuine HMRC messages

HMRC has issued an updated version of their online guidance on Genuine HMRC contact and recognising phishing emails and texts. The guidance provides a current list of genuine messages from HMRC. This includes email messages, text messages and telephone contacts from HMRC. The latest updates on the list includes confirmation that HMRC is contacting some taxpayers by email who opened a Tax-Free Childcare account but no longer use it. The research will help HMRC to understand how best to support ... read more

11-06-2019
Free information about companies

Free information about companies

A surprising amount of free information about companies is available from Companies House. This is in line with the government’s commitment to free data and ensures that all publicly available digital data held on the UK register of companies is accessible free of charge. These records provide access to over 170 million digital records on companies and directors. They include: company information, for example registered address and date of incorporation current and resigned ... read more

11-06-2019
Employer owned property and sub-letting

Employer owned property and sub-letting

In some industries, employers provide accommodation to employees because this is required by the nature of the job. There are no tax charges in respect of the provision of living accommodation where it is necessary for the proper performance of the employee’s duties that he or she should reside in the accommodation, or the accommodation is provided for the better performance of the employee’s duties, and the employment is one of the kinds for which it is customary for employers ... read more

11-06-2019
Cashback schemes and tax

Cashback schemes and tax

Statement of Practice 4/97 sets out HMRC’s views on the correct treatment for tax purposes of commission, cashbacks and discounts. Cashbacks are taken to mean lump sums received by a customer as an inducement for entering into a transaction for the purchase of goods, investments or services and received as a direct consequence of having entered into that transaction. In general, an ordinary retail customer purchasing goods, investments or services at arm’s length will not be liable ... read more

11-06-2019
VAT reverse charge construction industry

VAT reverse charge construction industry

A change to the VAT rules first announced at Budget 2018, will come into effect from 1 October 2019. This change will make the supply of construction services between construction or building businesses subject to the domestic reverse charge. The reverse charge will only apply to supplies of specified construction services to other businesses in the construction sector. The introduction of this reverse charge targets fraud where VAT due to HMRC is never paid by a building subcontractor. New ... read more

04-06-2019
Working past retirement age

Working past retirement age

There are many taxpayers who have reached the State Pension age and continue to work. In most cases they no longer need to pay any National Insurance Contributions (NICs). At State Pension age, the requirement to pay Class 1 and Class 2 NICs on employed or self-employed earnings ceases. However, you will remain liable to pay any NICs that were due to be paid on earnings before you reached the State Pension age. If you continue working, you usually need to provide your employer with proof of ... read more

04-06-2019
Working from home allowance

Working from home allowance

If you are self-employed and running a business from your home, there are simplified arrangements available for claiming a fixed rate deduction for certain expenses where there is a mix of business and private use. The simplified expenses rules are not available to limited companies or business partnerships involving a limited company. The use of the flat rate expenses for business work carried out from your home will eliminate tedious calculations based on the proportion of personal to ... read more

04-06-2019
Working tax credits you could claim

Working tax credits you could claim

The Working Tax Credit (WTC) is designed to help taxpayers on low incomes by providing top-up payments and includes those who do not have children. There are extra amounts available for qualifying childcare expenses and working households in which someone has a disability. The basic amount of WTC is £1,960 a year and is always included for qualifying applicants. There are also payments that may be available for couples or for those with certain disabilities. In order to satisfy the rules ... read more

04-06-2019
New crackdown on funeral plans

New crackdown on funeral plans

The government has announced new plans to crackdown on high pressure and bullying tactics to sell pre paid funeral plans. These tactics are often used to target those who are old and vulnerable and unaware exactly what they are buying. In some cases, the funeral plans are sold with misleading promises and to maximise the salesperson's commission. Demand for funeral plans has grown significantly over recent years and last year over 177,000 plans were sold and cost on average between ... read more

04-06-2019
What records must a VAT trader keep?

What records must a VAT trader keep?

There are distinct rules that VAT registered businesses must follow when keeping VAT records. This includes keeping proper business and accounting records, a separate VAT account as well as copies of all VAT invoices received and issued. There is no requirement to issue a VAT invoice for retail supplies to unregistered businesses unless requested by the customer. A simplified VAT invoice can be used for supplies of up to £250. There are also specific situations where a VAT invoice does ... read more

04-06-2019
IHT and foreign property

IHT and foreign property

If a permanent home (domicile) is in the UK then any foreign situated property owned at date of death will be chargeable to Inheritance Tax. The site of an asset is usually the place where the asset in question is considered to be located for legal purposes. The site of immovable property is the place or country where the property is situated. Certain assets are excluded from the charge to Inheritance Tax if the taxpayer was not domiciled in the UK at the date of the transfer, regardless of ... read more

04-06-2019
Non-resident company liability to Corporation Tax

Non-resident company liability to Corporation Tax

Under the current rules non-resident companies with a trading business in the UK are liable to pay UK Corporation Tax on their profits made through a permanent establishment/branch or agency. This includes trading income and any income from property or rights used by, or held by or for, the permanent establishment/branch or agency (except dividends or other distributions received from companies resident in the UK) as well as certain chargeable gains falling within TCGA92/S10B. There are a ... read more

04-06-2019
New advisory fuel rates published

New advisory fuel rates published

Advisory fuel rates are intended to reflect actual average fuel costs and are updated quarterly. The rates can be used by employers who reimburse employees for business travel in their company cars or where employees are required to repay the cost of fuel used for private travel. HMRC accepts there is no taxable profit and no Class 1A National Insurance on reimbursed travel expenses where employers pay a rate per mile for business travel no higher than the published advisory fuel ... read more

28-05-2019
Tax Diary June/July 2019

Tax Diary June/July 2019

1 June 2019 - Due date for Corporation Tax due for the year ended 31 August 2018. 19 June 2019 - PAYE and NIC deductions due for month ended 5 June 2019. (If you pay your tax electronically the due date is 22 June 2019) 19 June 2019 - Filing deadline for the CIS300 monthly return for the month ended 5 June 2019. 19 June 2019 - CIS tax deducted for the month ended 5 June 2019 is payable by today. 1 July 2019 - Due date for Corporation Tax due for the year ended 30 September 2018. 6 July ... read more