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making tax digital
HMRC

Making Tax Digital for Income Tax

Making Tax Digital (MTD) is set to be introduced from 6 April 2024 for Income Tax Self-Assessment. From this date, self-employed workers and landlords with an annual income above £10,000 will need to follow the new MTD rules.   The new Making Tax Digital rules for Income Tax were originally proposed for April 2023 however,

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tax avoidance HMRC investigation
HMRC

HMRC to investigate ‘Pandora Papers’ for tax avoidance in the UK

Tax avoidance concerns have been raised following the biggest document leak to date.   The ‘Pandora Papers’ include 12 million documents revealing offshore deals and investments of current and former world leaders, politicians, business leaders, and celebrities who have used tax avoidance schemes to hide their wealth. A number of high-profile individuals are included in

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register for self-assessment
Capital Gains Tax

Register for self-assessment before 5 October deadline

If you have made capital gains within the last tax year (6 April 2020 – 5 April 2021) and you are not already registered for self-assessment, you must register on or before 5 October 2021. What is capital gains tax?   Capital gains tax (CGT) is levied on the portion of profit (capital gain) you

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corporate criminal offence legislation
Corporate Criminal Offence

What is the Corporate Criminal Offence legislation?

The Corporate Criminal Offence (CCO) legislation was introduced in September 2017 to help prevent the facilitation of tax evasion in businesses.   The legislation holds companies and partnerships to account if anyone acting on their behalf helps to facilitate tax evasion. Facilitating tax evasion is a criminal offence and is subject to sanctions. The CCO

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tax on cryptocurrency UK
Capital Gains Tax

UK tax on cryptocurrency

Cryptoassets have undoubtedly grown in popularity over the past year and with cryptocurrency prices increasing at a rapid rate, many investors are likely to have made sizeable gains. But are investors aware of the UK tax implications?   In a statement released in 2019, HMRC confirmed that individuals selling cryptoassets will be subject to capital

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red rose awards
Awards

Red Rose Awards 2021 Finalists

We are so pleased to announce that we are finalists in this years’ Red Rose Awards for the ‘Professional Services Award’. The whole team has worked hard to get us to the final and it is an honour to be attending the awards ceremony in November. About The Red Rose Awards The Red Rose Awards

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Awards

BIBAs 2021 Finalists

BIBAs 2021 ‘Micro Business of the Year’ Finalists We are delighted to be announced as finalists at the BIBAs 2021 for ‘Micro Business of the Year’. The whole team has worked hard to get us to the final and it is an honour to be attending the awards evening on 17 September. About The Bibas

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register for self-assessment
Coronavirus Updates

Fifth SEISS grant claims must be submitted before September deadline

Applications for the fifth SEISS grant are open for online submissions. All those who are eligible for the fifth SEISS grant and wish to make a claim, must do so before the scheme closes on 30 September 2021. Eligibility criteria Eligibility will be the same as for the fourth grant and will be based on

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Corporate Criminal Offence

Corporate Criminal Offence – Is your business compliant with the legislation?

The Corporate Criminal Offence (CCO) legislation was introduced in September 2017 to help prevent the facilitation of tax evasion within businesses. The legislation holds companies and partnerships to account if anyone acting on their behalf helps to facilitate tax evasion. Facilitating tax evasion is a criminal offence and is subject to sanctions. All companies and

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Tax Updates

Property landlords can now benefit from the super-deduction

The super-deduction was first announced in March 2021, allowing for businesses who make investments in plant and machinery, to receive a 130% allowance deduction. Property letting companies were not originally included in the scheme, meaning only occupiers could make a claim. However, amendments set out in the Finance Bill, mean that landlords now qualify for

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HMRC

HMRC orders tax fraudster to repay £5.5m following tax investigation

A man, who was arrested in 2018 following a tax investigation, has been ordered to repay £5.5m within three months or face a 10-year prison sentence. The man was arrested in 2018 after he was found to have falsely taken £5,952,339 in Income Tax, National Insurance contributions and VAT, between May 2008 and May 2016.

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making tax digital
Other

Fifth SEISS grant opens for applications

Applications for the fifth SEISS grant are now open for online submissions. HMRC has confirmed that submissions can now be made online until the scheme closes on 30 September 2021. Eligibility critieria Eligibility will be the same as for the fourth grant and will be based on the individual’s tax returns. There are no requirements

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Coronavirus Updates

Furlough scheme continues to phase out from 1 August

With most restrictions ending in England, the furlough scheme continues to phase out from 1 August 2021. From this date, employers will be required to contribute more towards their employee’s wages for hours not worked. How much will employers contribute from 1 August? From 1 August to 30 September 2021, employers will be required to

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Capital Gains Tax

Does capital gains tax apply when gifting a property?

Gifting a property can be a way of reducing your Inheritance Tax liability however, it is important to be aware of other taxes which may be incurred. Certain taxes will be due depending on specific factors such as, who the property is gifted to, the age of the person receiving the gift and whether or

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Coronavirus Updates

Stamp Duty Land Tax holiday phase out

Earlier this month, the Stamp Duty Land Tax (SDLT) holiday began to phase out. From 1 July 2021, the SDLT NIL rate was lowered from £500,000 to £250,000 on residential homes. The Stamp Duty Land Tax holiday will now only apply to residential homes costing £250,000 or less. The government introduced the holiday in June

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Coronavirus Updates

Fifth SEISS Grant

The fifth Self-Employment Income Support Scheme (SEISS) grant is due to open for claims from mid-late July. Despite the fifth grant encompassing a five-month period from 1st May to 30th September, individuals will only receive three months’ worth of average trading profits for this five-month period. Eligibility critieria Eligibility will be the same as for

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Coronavirus Updates

Fast recovering companies repay £1bn in furlough claims 

The Financial Times has obtained data through a freedom of information act (FOI) request, which states that companies have repaid £709m from furlough claims that have been made under the Coronavirus Job Retention Scheme (CJRS). According to the data, an additional £319m has been reclaimed from companies that had mistakenly claimed the incorrect amount. As

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Coronavirus Updates

Furlough Scheme – When do employers need to contribute?

It was announced earlier this year, that the furlough scheme (Coronavirus Job Retention Scheme) is set to end on 30 September 2021. Since the announcement of a delay to restrictions ending, there has been no confirmation as to whether the furlough scheme will be extended further. Under the furlough scheme, employees receive 80% of wages

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HMRC

Inconsistent SEISS information delays HMRC’s processing of 2020/21 self-assessment tax returns 

HMRC have recently announced that they have come across several issues whilst processing a number of 2020/21 self-assessment tax returns, due to apparent inconsistencies in claims from previous SEISS grants. The Institute of Chartered Accountants have produced a report into the matter stating that, HMRC have been unable to automatically process numerous 2020/21 self-assessment tax

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Corporate Criminal Offence

Corporate Criminal Offence – Why all businesses should be aware of the legislation 

The Corporate Criminal Offence (CCO) legislation was introduced in September 2017 to help prevent the facilitation of tax evasion in businesses. The legislation holds companies and partnerships to account if anyone acting on their behalf helps to facilitate tax evasion. Facilitating tax evasion is a criminal offence and is subject to sanctions. The CCO legislation

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Other

Businesses investing in plant and machinery may benefit from the super-deduction and special rate first-year allowance 

The government recently introduced the super-deduction and special rate first-year allowance to help businesses with the cost of investing in qualifying plant and machinery equipment. Eligible businesses can qualify for: A super-deduction providing an allowance of 130% on investments into new plant and machinery, that would normally qualify for the main rate writing down allowance

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Capital Gains Tax

Selling a property with a dedicated home office? Make sure you are aware of the capital gains tax implications

Individuals planning to sell their main home should be aware of the potential capital gains tax implications, when selling their property with reference to a dedicated home office. The potential risk to sellers surrounds Principal Private Residence Relief (PPR) and the 1992 Taxation of Chargeable Gains Act. Section 224 states that private homes with dedicated

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tax on cryptocurrency UK
Cryptocurrencies

The taxation of cryptocurrencies

In December 2019, HMRC published guidance on its view of how crypto transactions should be treated for UK tax purposes. It stated that individuals selling cryptoassets will be subject to capital gains tax (CGT) on any profits made, over the tax-free annual allowance threshold, which will need to be reported to HMRC on a self-assessment

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Coronavirus Updates

Claim fourth SEISS grant before 1 June deadline

The fourth Self-Employment Income Support Scheme grant, which opened for claims in mid-April, covers 80% of three months’ average trading profits from 1 February 2021 to 30 April 2021. The grant will be capped at £7,500.   Claims for the fourth SEISS grant must be made on or before 1 June 2021. To make a

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Coronavirus Updates

Big-name brands repay furlough money

The furlough scheme has been a lifeline for many businesses during the pandemic. Under the scheme, employees receive 80% of wages for hours not worked, funded by the government. Since the phased reopening of the economy in April last month, some businesses have been able to repay some, or all of the money claimed through

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HMRC

HMRC makes an arrest over suspected £3.4m furlough fraud

A man and a woman have been arrested after HMRC’s Taxpayer Protection Taskforce officers executed a search warrant last month, as part of an investigation into a suspected £3.4 million Coronavirus Job Retention Scheme fraud.   The individuals from West Yorkshire were both apprehended on 28 April 2021, on suspicion of cheating the public revenue,

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Cryptocurrencies

Cryptoassets added to ‘statement of assets’ declaration form

HMRC have added a section to the ‘statement of assets’ form specifically for taxpayers to declare any holdings of Bitcoin and other cryptocurrencies. Taxpayers are being warned that they must add any holdings they have in Bitcoin or other cryptocurrencies to this section when completing the form.   Whilst it has always been a requirement

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making tax digital
Coronavirus Updates

Claim tax relief for working from home 

In April 2020, the government announced a temporary tax break for those working from home. The tax break allows for employers to pay their workers up to £6 a week tax-free to cover additional costs incurred for working from home. If an employer chooses not to pay their staff the £6 a week, workers can

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Coronavirus Updates

HMRC are continuing to investigate fraudulent furlough claims – Make sure your claims are up to date

Last year, the government introduced the official Coronavirus Job Retention Scheme (CJRS) to offer support for those businesses who have been forced to close during the pandemic. The scheme allows for employers to claim for 80% of employee’s wages for hours not worked. From July 2021, employers will be required to contribute towards their employees

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HMRC

General Electric wins court battle against HMRC

The UK Court of Appeal ruled in favour of General Electric in a court case against HMRC on 14th April 2021, following HMRC’s claims that General Electric had made a “fraudulent misrepresentation” in a past agreement. The case looked back on the agreement made in 2005 between GE and HMRC, where HMRC agreed to grant

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Corporate Criminal Offence

Corporate Criminal Offence  – Why it is important that your business is aware of the legislation

The Corporate Criminal Offence (CCO) legislation was introduced in September 2017 to help prevent the facilitation of tax evasion in businesses. The legislation holds companies and partnerships to account if anyone acting on their behalf helps to facilitate tax evasion. Facilitating tax evasion is a criminal offence and is subject to sanctions. The CCO legislation

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Coronavirus Updates

Fourth SEISS grant – HMRC to contact eligible self-employed individuals

The fourth Self-Employment Income Support Scheme (SEISS) grant is due to open for claims from late April. HMRC has confirmed it will be contacting those self-employed workers who are eligible for the fourth grant, by either email, letter or within the online service. Eligibility will be based on the individuals tax returns. There are no

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register for self-assessment
Coronavirus Updates

HMRC has already opened 10,000 inquiries into potentially fraudulent claims under the furlough scheme and Eat Out to Help Out scheme

Earlier this month, HMRC launched a new taskforce of 1,250 staff to investigate fraudulent furlough claims and Eat Out to Help Out claims. Investigators will be cross-referencing claims under the furlough scheme with other records, such as the Eat Out to Help Out scheme. As part of HMRC’s investigations, a number of businesses have been

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HMRC

HMRC updates guidance on tax treatment of cryptoassets

HMRC has released the latest cryptocurrency guidance on the tax treatment of crypto assets. The guidance has been issued as part of an updated manual, which depicts the tax treatment of cryptoassets. Part of HMRC’s manual features guidance relating to income from staking in proof-of-stake networks. This is the first time that HMRC has released

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Coronavirus Updates

More than 10% of mid-sized businesses found their furlough claims were incorrect 

The furlough scheme has been a lifeline for businesses of all sizes throughout the coronavirus pandemic. However, many have exploited the furlough scheme by making fraudulent claims or failing to review their initial claim. According to HMRC data, mid-sized businesses claimed £9.49 billion through the furlough scheme, as of 31st January 2021. Research has found

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HMRC

Financial Institution Notices – Everything you need to know 

The UK government are in the final stages of implementing a new notice in the 2021 Finance Bill, which will allow HMRC to issue Financial Institution Notices (FIN’s). This notice will give HMRC the power to request information from financial institutions for the purposes of checking the position of a taxpayer, without the need for approval

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Coronavirus Updates

HMRC will step up investigations into furlough fraud as more than 26,000 cases of suspected fraud have been reported since the scheme began last year

Last year, the government introduced the official Coronavirus Job Retention Scheme (CJRS) to offer support for those businesses who have been forced to close during the pandemic. The scheme allows for employers to claim for 80% of employee’s wages for hours not worked. Unfortunately, furlough fraud has proven to be a widespread issue over the

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HMRC

HMRC is consulting on updating transfer pricing documentation rules

As part of the ‘Tax Day’ consultation announcements, HMRC outlined that changes to the transfer pricing documentation rules will allow for more targeted compliance interventions. Changes to the rules will also provide businesses with greater certainty whilst aligning with the requirements of global tax administrators. HMRC figures state that transfer pricing compliance activity has raised

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national insurance increase
Tax Updates

HM Treasury announces further tax consultations – how will you be affected?

Yesterday (23rd March)  the government published a series of consultations which outlined the plans to modernise Britain’s tax system, whilst rectifying flaws that cost £31bn every year. Here are some of the key announcements: Freelancers/self-employed to be taxed like employees The government will review the ‘pay-as-you-go’ system to start taxing self-employed workers in the same

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making tax digital
Coronavirus Updates

Coronavirus Restart Grant available from 1st April – Check if you are eligible

Earlier this month, the government introduced the Restart Grant Scheme to support businesses in reopening, once COVID-19 restrictions are lifted. Eligible non-essential retail businesses may be entitled to a one-off grant of up to £6,000 Eligible businesses within the hospitality, leisure, accommodation, personal care and gym sectors may be entitled to a one-off grant of

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national insurance increase
Other

HM Treasury to reveal future tax changes – what can be expected?

Following the Chancellor’s Budget announcement earlier this month, HM Treasury will reveal documentation on future tax policies on 23rd March. HM Treasury are expected to announce information regarding technical administration of the tax system, such as moving online. However, Rishi Sunak could potentially announce a number of possible tax changes. In the Budget, Chancellor Rishi

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Coronavirus Updates

Freelancers to benefit from £1bn in tax rebates as the government announced an emergency extension to ‘loss carry back’ rules

As the government announced an emergency extension to the ‘loss carry back’ rules in the Budget earlier this month, thousands of small business owners who have lost money, due to the coronavirus pandemic, can claim more than £1bn in tax rebates. Businesses now have the option to claim back profit and income taxes paid over

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Other

Here are 7 ways your tax bill may increase over the next year

Earlier this month Chancellor Rishi Sunak announced a number of tax allowances will be frozen to help pay off the debts incurred by the coronavirus pandemic. These new ‘stealth taxes’ will raise billions, without directly increasing charges for taxpayers. As the economy bounces back and the cost of goods and services increases, more people will

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Corporate Criminal Offence

IR35 rules are changing on 6th April 2021 – non-compliance could result in breaching the Corporate Criminal Offence legislation

IR35 rules (off-payroll working) will be changing from 6th April 2021. The new rules will see a shift in responsibility when determining the employment status of contractors. Under the new rules, it will now be the employer’s responsibility to assess the employment of the contractor, which will determine how they should be taxed. These changes

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Coronavirus Updates

When can you claim the fourth and fifth SEISS grants?

Chancellor Rishi Sunak confirmed, in last week’s Budget announcement, further details for the fourth Self-Employment Income Support Scheme (SEISS) grant. The grant will allow those who are self-employed, whose business and income has been effected by the coronavirus pandemic, to claim support from the government. The fourth SEISS grant will be available to claim through

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Coronavirus Updates

HMRC has confirmed pre-verification checks for new SEISS claims

HMRC will be writing to 100,000 taxpayers who became newly self-employed in 2019/20. HMRC aims to protect the Self-Employment Income Support Scheme from fraud and will therefore ask these taxpayers to complete a pre-verification check. Taxpayers will be asked to confirm their identity as well as providing evidence of trade. Selected taxpayers will receive a

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making tax digital
Other

Do you need to pay tax on your small hobby-based business?

From 6th April 2017, a tax-free trading allowance of £1,000 was introduced to cover ‘self-starters’ with small hobby-based businesses. The allowance can be used against trading or casual income on hobby activities, which are in the process of developing into a commercial business. This may include selling via social media platforms for example, selling sweet

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UK Government

2021 Budget Overview

Earlier this week the Chancellor outlined his plans to get the economy going again, following the impact of the coronavirus pandemic. On Wednesday, Rishi Sunak announced the following: Furlough scheme extended until the end of September Self-Employment Income Support Scheme 4th and 5th grants confirmed Income tax thresholds frozen until 2026 Stamp duty holiday extended

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UK Government

Budget 2021 – what can be expected? 

This years highly anticipated Budget will be watched closely by many as Chancellor Rishi Sunak sets out the UK’s economic recovery, following the coronavirus pandemic. The Chancellor will outline the state of the economy and the government’s plan to either raise or lower taxes. The Budget will also forecast how the UK economy could perform

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register for self-assessment
HMRC

HMRC issues 11,000 people with letters questioning claims made under the Coronavirus Self-Employment Income Support Scheme 

HMRC has issued 11,000 people with letters questioning their claims for self-employment support grants. Last year, the UK’s tax authority sent 24,000 similar letters to claimants who said they had stopped trading. Letters have been sent to those who said they had stopped trading either on their 2019/20 self-assessment tax return or by amending their

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HMRC

VAT reverse charge for construction sector takes effect on Monday 1st March

After numerous delays, the VAT reverse charge on construction and building services comes into force on Monday 1st March 2021. The new rules will see changes to how VAT is collected in the sector. VAT-registered subcontractors performing qualifying ‘construction operations’ will no longer charge VAT on its services to main contractors. From Monday, it will

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UK Government

Stamp Duty holiday set to be extended until the end of June

Ahead of the Budget announcement next week, there has been a lot of speculation surrounding what the Chancellor is set to announce. According to media sources, Rishi Sunak is planning to extend the Stamp Duty holiday until the end of June. The current deadline for the holiday extension is 31st March. The Chancellor has been

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HMRC

HMRC loses IR35 appeal against TV presenter

HMRC has lost the long-running tax case involving the employment status of TV presenter, Kaye Adams. The decision was finalised following an Upper Tribunal, which stated that she was not an employee for the BBC and therefore IR35 rules do not apply. The BBC required Adams’ services as a presenter on the Kaye Adams Programme,

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register for self-assessment
HMRC

HMRC waives self-assessment late payment penalty until 1st April  

HMRC has announced that self-assessment taxpayers will not be charged an initial 5% late payment penalty, if they pay their tax or set up a Time to Pay arrangement by 1st April. A Time to Pay arrangement allows for payments to be made in monthly installments up until January 2022. Whilst the late payment penalty

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Other

Supreme Court declares Uber drivers are workers not self-employed

After a four-year legal battle, the UK’s highest court has ruled that Uber drivers must be treated as workers rather than self-employed. This decision will see thousands of Uber drivers entitled to breaks, holiday pay and minimum wage, following the long legal battle. Uber has around 60,000 drivers in Britain, 45,000 of which work in

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HMRC

HMRC publishes policy briefing to provide support for those affected by changes to off-payroll working (IR35) rules

HMRC published a new policy briefing earlier this week, which outlined the ‘compliance principles’ for implementing off-payroll working (IR35) rules. The guidance reiterates the employer’s responsibility to determine the individual’s employment status, under the new IR35 rules. HMRC has confirmed they will not be issuing any penalties in the first 12 months, for any inaccuracies.

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national insurance increase
UK Government

UK government urged to extend business rates holiday and VAT holiday ahead of Budget announcement

High streets have undoubtably struggled throughout the pandemic over the past year. Since the first lockdown in March, the government has provided support for businesses to try and prevent as many closures and job losses as possible. To support businesses during these challenging times, the government introduced a business rates holiday. Business rates were temporarily

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national insurance increase
UK Government

Bounce Back Loan borrowers now have the option to delay repayments

In a recent announcement, the government has stated that it will allow greater flexibility for businesses that took out Bounce Back Loans, as a means to get through the coronavirus pandemic. Those businesses now have the option to tailor their payments according to their individual needs. The Chancellor’s Pay as You Grow repayment plan will

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HMRC

Cryptocurrencies targeted by global tax enforcement chiefs

Five international tax enforcement leaders known as the Joint Chiefs of Global Tax Enforcement or J5, have formed an alliance to combat tax evasion. The J5 includes, the UK, the US, Australia, Canada and the Netherlands. The leaders meet on a yearly basis to collaborate on tackling common tax evasion issues. This year the meeting

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register for self-assessment
HMRC

Retirees hit with unexpected tax bills following pension withdrawals

Under the pension freedom rules, introduced in 2015, anyone over the age of 55 is able to withdraw as much cash as they like, whenever they like, from their retirement savings. In the last three months of 2020, nearly £26million was reclaimed from HMRC in pension savings however, many savers are unaware that they may

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HMRC

Off-payroll working (IR35) rules are changing on 6th April 2021

Off-payroll working (IR35) rules will be changing on 6th April 2021. From this date the rules will change regarding how companies engage with individuals through personal service companies. Under the new IR35 rules it will be the employer’s responsibility to assess the individual’s employment status. This change will affect all medium and large sized businesses,

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Coronavirus Updates

Chancellor Rishi Sunak is set to announce details for the fourth Self-Employment Income Support Scheme grant in the March Budget

Chancellor Rishi Sunak is set to announce the latest details for the fourth Self-Employment Income Support Scheme (SEISS) grant, in the upcoming Budget on 3rd March 2021. The grant will take into account self-employed worker’s earnings from February to April 2021. The government has spent £13.7billion on SEISS grants since the pandemic began in March

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Coronavirus Updates

Taxpayers in £4bn of debt to HMRC as self-assessment deadline approaches

Many are facing higher tax bills this year as deferred bills from last year are beginning to catch up, this has resulted in taxpayers accumulating £4bn in debt with HMRC. The coronavirus pandemic has had a lasting effect on the UK economy, with many people out of work and businesses being forced to temporarily close.

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UK Government

Chancellor’s March Budget could see Corporation Tax increase to pay for coronavirus deficit

Chancellor Rishi Sunak is said to be considering increasing corporation tax in the March Budget. Following the devastating impact from the coronavirus pandemic, the government now has an estimated £400bn deficit to pay off. The government has spent billions trying to support businesses and prevent job losses by introducing the Furlough Scheme and Business Support Grants.

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HMRC

Are Bitcoin profits subject to Capital Gains Tax?

In recent months, investors in the cryptocurrency Bitcoin, have made fortunes from their dealings. One crypto winner, who invested in Bitcoin over the past 3 years, now has £150,000 worth of the cryptocurrency. The plan is to cash in on the winnings, but are people aware of the tax implications they could face? For tax

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Coronavirus Updates

HMRC issues warning over fraudulent furlough claims

The furlough scheme was launched in March 2020 in an effort to minimise job losses during the coronavirus pandemic. Under the scheme, employees will receive 80% of their wages, up to a total of £2,500 a month, off the government. At its peak in May last year, the furlough scheme was supporting 8.9 million jobs.

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national insurance increase
Coronavirus Updates

Calls for UK government to extend tax exemption on employee COVID-19 tests 

The UK government recently introduced an Income Tax exemption on coronavirus antigen tests for employees. The tax exemption came into effect on 8th December 2020 and is expected to end on 5th April 2021. The Association of Taxation Technicians (ATT) is calling for the tax exemption to be extended beyond 5th April 2021. The current

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HMRC

HMRC are pursing multinationals in corporate tax dispute

HMRC are investigating large companies who they believe could be wrongly paying less UK tax, due to their cross-border financial arrangements. HMRC have started a criminal investigation into businesses that allocate their profits between different countries, in connection with transfer pricing. Transfer pricing can legally allow for connected companies to minimise their tax liabilities by

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Brexit

Post Brexit: Where UK citizens working in the EEA and Switzerland need to pay their National Insurance or social security contributions

The end of the Brexit transition period signified new rules for the UK. From 1st January 2021, where workers/employers pay social security contributions will depend on certain criteria, including the country in which work is being undertaken. For work in the EU, Switzerland or Norway, a worker will only need to pay into one country’s

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HMRC

HMRC issues warning after surge in Self-Assessment scams

As the deadline for self-assessment tax returns approaches, people are being warned to be aware of scams from fraudsters claiming to be HMRC. Criminals are taking advantage of the self-assessment deadline by sending fake emails and texts, along with fake calls offering ‘tax rebates’ and ‘refunds’ as a way of gaining personal information, in particular

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national insurance increase
Coronavirus Updates

Chancellor announces further support for businesses in the retail, hospitality and leisure sectors

Following Boris Johnson’s announcement of a third national lockdown in England, the Chancellor has announced further grants totaling £4.6 billion. A one-off grant worth up to £9,000 per property, will be available for those businesses in the retail, hospitality and leisure sectors, who have been affected by the latest coronavirus restrictions. Around 600,000 properties are

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HMRC

Temporary tax easement for cycle-to-work schemes effected by coronavirus

In a written statement from the Financial Secretary of the Treasury to parliament, it was announced that a temporary tax easement will be introduced on the cycle-to-work schemes. The cycle-to-work schemes benefit from a tax exemption on bicycles and safety equipment provided to staff, on the provisions that they are used ‘mainly for qualifying journeys’

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HMRC

Maintaining the current Stamp Duty Land Tax holiday threshold could provide millions for the Treasury

An extension of the Stamp Duty Land Tax (SDLT) threshold after 31st March 2021, rather than returning to the £125,000 threshold, could generate higher consumption. This has the potential of increasing housing market activity, which subsequently could provide a fiscal surplus of £139 million per year. Research suggests that maintaining the current SDLT holiday threshold

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HMRC

HMRC have made arrests in relation to fraudulent R&D tax relief claims

In recent months, HMRC has been investigating fraudulent Research and Development (R&D) tax relief claims. In November 2020, HMRC arrested three men involved in a fraudulent tax relief claim for £29.5 million. Through one of the individual’s companies, the three men tried to acquire tax relief on £137 million, for the purposes of developing a

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national insurance increase
Coronavirus Updates

Government announces extension to the Furlough Scheme

The UK Government has confirmed the Coronavirus Job Retention Scheme will be extended until the end of April 2021. The scheme was set to expire at the end of March 2021 but has now been extended for another month. Under the scheme, the government will continue to pay employees 80% of wages for hours not

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making tax digital
HMRC

Reminder for trustees and agents to update the trust register or make a ‘no change’ declaration by 31st January 2021

Professional bodies, including The Chartered Institute of Taxation, are urging trustees and agents to update their details on the Trust Registration Service or make a ‘no change’ declaration by 31st January 2021. HMRC have provided clarification for completing the 20.1 tick box question on the Trust and Estate return (SA900). Trustees and agents should ensure

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Corporate Criminal Offence

How non-compliance with the new IR35 rules could result in your company being subject to a potential criminal investigation under the Corporate Criminal Offence (The Failure to Prevent the Facilitation of Tax Evasion)

Off-payroll working rules (IR35) will be changing on 6th April 2021. From this date the rules regarding how companies engage with individuals through personal service companies, will be affected. See our article on ‘New changes to off-payroll working rules (IR35)’ for further details on the changes. Companies should be aware of the changes to the

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register for self-assessment
HMRC

The process for claiming R&D relief will change from April 2021

From 1st April 2021, HMRC have confirmed that all companies will be required to complete a supplementary page when claiming for the following: Small and medium-sized enterprises (SME) Research and Development Relief SME Payable Tax Credit SME Research and Development Expenditure Credit The supplementary page (CT600L) will need to be completed when submitting the corporation

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register for self-assessment
HMRC

Guidance update for businesses settling deferred VAT due to coronavirus

HMRC has updated its guidance for VAT-registered businesses who deferred their VAT between 20th March and 30th June 2020, due to the Covid-19 pandemic. Businesses who still have payments to make can: Pay the full deferred VAT amount on or before 31st March 2021 Opt into the new payment scheme that launches in 2021 Contact

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national insurance increase
UK Government

Chancellor announces government Spending Review 2020

Last week, Chancellor Rishi Sunak announced the government spending plans for 2021/22 in the latest Spending Review. The Spending Review sets out the departmental budgets and devolved administrations’ block grants for 2021/22. The coronavirus has had a huge impact on the UK economy this year, causing hardship for families and businesses across the UK. The

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HMRC

Extension to late loan charge spreading elections

The Low Income Tax Reform Group (LITRG) has welcomed the decision to extend the late loan charge spreading elections up to 31st December 2020. The original deadline was 30th September 2020, but was missed by a number of people. A Statement of Practice has been published by HMRC that outlines how they will accept late

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HMRC

Virtual Christmas party tax relief update

HMRC have been pushed to acknowledge that ‘normal’ Christmas parties are unlikely to go ahead this year. As some employers are opting to throw a virtual Christmas party, clarification has been needed as to whether the same rules apply, regarding tax relief. It has now been confirmed by HMRC, that employers will be able to

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register for self-assessment
HMRC

New changes to off-payroll working rules (IR35)

Off-payroll working rules (IR35) are set to change on 6th April 2021. From this date the rules will change regarding engaging with individuals through personal service companies. These changes will effect medium and large sized businesses, as well as all public authorities. Under the new changes, organisations will be responsible for determining whether the off-payroll

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HMRC

Are ‘Virtual’ Christmas parties eligible for tax relief?

Are ‘Virtual’ Christmas parties eligible for tax relief? The Association of Taxation Technicians (ATT) is asking HMRC to clarify whether virtual Christmas parties fall under the tax relief this year. As a result of the coronavirus pandemic, Christmas parties are set to be a little different this year as usual work functions will not be

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Corporate Criminal Offence

Corporate Criminal Offence. Why it’s important your business is aware of this legislation.

The Corporate Criminal Offence (CCO) legislation was introduced in September 2017 to help prevent the facilitation of tax evasion in businesses. The legislation holds corporations liable if they fail to prevent anyone acting on behalf of their company from facilitating tax evasion. Facilitating tax evasion is a criminal offence and is subject to sanctions. CCO

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Coronavirus Updates

Coronavirus support scheme overpayment penalty guidance issued by HMRC

HMRC have issued guidance on penalties that might be incurred where there is failure to notify of an overpayment made under certain coronavirus support schemes, the following schemes are included: Coronavirus Job Retention Scheme, Self-Employment Income Support Scheme and Eat Out to Help Out Scheme. Failure to notify if you have received a coronavirus support

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register for self-assessment
HMRC

Government has proposed draft legislation for Plastic Packaging Tax

The government has proposed a draft legislation to introduce a Plastic Packaging Tax, which would take effect from April 2022. The aim of the tax is to provide businesses with an economic incentive to start using recycled material when manufacturing plastic packaging. The tax will increase levels of recycling and plastic waste collection by increasing

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STS Europe Ltd
Tax Updates

Weekly Round-Up of Latest Tax Updates 16/11/20

Coronavirus Job Support Extended by Chancellor On 5th November 2020, the Chancellor announced in the House of Commons that he would be extending the Furlough Scheme and the Self-Employed Income Support Scheme, following the news of a second national lockdown for England. The Furlough Scheme was set to end in December 2020 however, it has

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HMRC

What tax relief can your company claim at Christmas?

As the coronavirus pandemic continues, it is looking highly unlikely that Christmas parties will be the same this year. Under normal circumstances employers who hold annual events, such as Christmas parties, for their employees may be able to benefit from a limited tax relief under specific criteria. Whilst there is no specific tax legislation that

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national insurance increase
Coronavirus Updates

Furlough Scheme extended until the end of March 2021

In an announcement today, Chancellor Rishi Sunak confirmed the Furlough Scheme will be extended until the end of March 2021. The government will pay employees, who are on the Furlough Scheme, 80% of their wages however, employers are still expected to make contributions to National Insurance and pensions for hours not worked. The scheme is

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UK Government

Calls for Stamp Duty Land Tax holiday to be extended

During the coronavirus pandemic the government introduced the Stamp Duty Land Tax (SDLT) holiday in England and Northern Ireland for residential properties purchased from 8th July 2020 to 31st March 2021. The reduced rates allow for people to purchase property under the value of £500,000 and pay no SDLT. With SDLT reduced rates set to

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making tax digital
Coronavirus Updates

Self-Employment Income Support Scheme Extended

Following on from Boris Johnson’s announcement to extend the Furlough Scheme through until December, it has been further announced that the Self-Employment Income Support Scheme grant will also be extended. The scheme will last for 6 months from November 2020 to April 2021 with grants being paid in two instalments, each covering a three month

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Coronavirus Updates

Furlough scheme extended as Prime Minister announces national lockdown for England

England is preparing to face another national lockdown following Boris Johnson’s announcement over the weekend (31st October ). The PM addressed the nation telling people they must stay at home from 5th November until 2nd December, when rules will be reviewed. All non-essential shops along with bars and restaurants will have to close however, schools

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STS Europe Ltd
Tax Updates

Weekly Round-Up of Latest Tax Updates 30/10/20

Earlier this week the Chancellor, Rishi Sunak, made a statement to the House of Commons to offer support to businesses who are struggling as a result of further restrictions required, due to the coronavirus pandemic. In these challenging times the Chancellor has acknowledged that additional support is required in order to keep people in jobs

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making tax digital
HMRC

HMRC VAT Changes

HMRC will be migrating their VAT customers from VAT Mainframe on to their Enterprise Tax Management Platform. These changes will take place from March 2021. The new changes do not affect any customers already signed up to Making Tax Digital, as their records are already stored on the Enterprise Tax Management Platform. Any VAT businesses

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Coronavirus Updates

New policy for Job Support Scheme

Following the Chancellor’s announcement regarding the Job Support Scheme, a Policy paper has been published by the government to provide additional information about the scheme. The scheme is designed to help protect jobs in businesses where demand is expected to fall during the coming winter months due to the coronavirus. There are two different types

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Tax Updates

Tax Update 09/10

Keep up to date with the key announcements made this past week. Self-assessment time to pay limit increased to £30,000 HMRC has announced that the threshold for Self-assessment customers to spread the cost of the tax bills is being tripled from £10,000 to £30,000. The measure is introduced to help ease the financial burden resulting

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Tax Updates

Tax Update 02/10

Keep up to date with the key announcements made this past week. Top Slicing Relief on life insurance policy gains Following on from the Silver case (see below), changes to Top Slicing Relief were included in the Finance Act 2020. In the wake of this change, the Chartered Institute of Taxation have released a update

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UK Government

Chancellors Economic Statement to the House of Commons

Today in his speech to the House of Commons the Chancellor, Rishi Sunak announced his latest plans to help protect jobs amidst the ongoing coronavirus pandemic. Whilst the primary goal to protect people’s jobs remains unchanged, Mr. Sunak has confirmed that the way to approach this must change. Mr. Sunak has confirmed that the furlough

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UK Government

Autumn Budget scrapped due to Coronavirus uncertainty

The Treasury have announced that the autumn budget, which was planned for October, has now been scrapped. This coincides with the recent announcements made by the Prime Minister, introducing stricter restrictions on England. The autumn budget, which would have laid forth a plan to potentially start recouping the costs of the pandemic, has been scrapped

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making tax digital
Tax Updates

Tax Update 11/09

Keep up to date with the key announcements made this past week. Loan Charge deadline looms large The deadline for settling the highly controversial disguised remuneration loan charge is fast approaching. Following the findings of the report from Sir Amyas Morse, HMRC relented and narrowed the scope of the loan charge, removing a  large number

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Coronavirus Updates

Working from home, what tax reliefs are available?

Given the ongoing coronavirus pandemic a number of UK office workers have now been working from home for periods of up to 6 months, and for some this looks set to continue long into the future. Employees should be alert to possible tax allowances they could receive as a result of this lengthy stint working

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Tax Updates

Tax Update 04/09

Keep up to date with the key announcements made this past week. Coronavirus Job Retention Scheme changes The latest September updates to the Coronavirus Job Retention Scheme have now taken effect. The updates will see the total contribution provided by the scheme fall from 80% of employees wages to 70% up to a cap of

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making tax digital
HMRC

Companies House Bank details have changed

Anyone making payments via bank transfer (BACS) will need to use companies house updated bank details from 1st September 2020. Following on from the recent change in status of Companies House, from a trading fund to a central government organisation, Companies House must use bank accounts which come under the government bank account scheme. Taxpayers

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HMRC

HMRC have been Issuing warning letters for P11D and P11D (b)

It has recently been reported by the Institute of Chartered Accountants in England and Wales (ICAEW) that employers and agents who have submitted forms P11D and P11D (b) on time have been receiving penalty warning letters from HMRC. HMRC offered the following explanations to the ICAEW: For online filings: processing delays could include, processing delays

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Coronavirus Updates

Coronavirus Job Retention Scheme changes from September

From today (September 1) there will be changes to the way that the Coronavirus Job Retention Scheme (CJRS) makes payments to employers. What is changing? For the period from 1 September to 30 September the schemes grant will reduce from the previous 80% down to 70% of employees’ pay up to a cap of £2,187.50

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Tax Updates

This Weeks Tax Announcements 28/08

Keep up to date with the key announcements made this past week. HMRC announce new payment for people self-isolating in highest risk areas The Government has announced a new payment for people on low incomes in areas with high rates of COVID-19 who have been forced to self-isolate and can’t work from home. The scheme

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HMRC

Corporation Tax overpayments soar past £9bn in the last year

Over the last year (year end 31st March 2020) UK businesses overpaid at least a whopping £9.1 billion in corporation tax according to UHY Hacker Young . This figure has risen significantly from £8.1 billion the previous year. The figures come from the total amount refunded to businesses over HMRC’s tax year which spans 1st

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Coronavirus Updates

HMRC issue CJRS Compliance Letters

The Association of Tax Technicians have announced that HMRC issued the first wave of Coronavirus Job Retention Scheme (CJRS) compliance letters last week. The action comes as HMRC moves past it’s transaction review phase of the scheme. The initial set of letters, which were due to arrive on doormats from 18th August, will be asking

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HMRC

Capital Gains Tax: UK residential property disposals

HMRC has revised its guidance to note that, due to coronavirus, HMRC did not issue late penalties on any transactions that were executed between 6 April and 30 June 2020. This relaxation of the penalty regime was given where the gain was reported and any tax due was paid by 31 July 2020. However, if

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Tax Updates

Tax update 21/08

Keep up to date with the key announcements made this past week. HMRC has produced updated guidance on disguised remuneration settlement terms HMRC have updated a number of their guidance pages on disguised remuneration tax schemes. The changes relate to those made to the loan charge in the Finance Act 2020. The updates come as

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making tax digital
HMRC

HMRC’s new powers under FA 2020 for CJRS fraud

The government introduced Coronavirus Job Retention Scheme (CJRS) on the 20 March 2020 to combat a potential loss of UK jobs across all sectors during the coronavirus pandemic. Originally, the CJRS had been set to end on 30 June 2020, however, following lobbying from various industry groups, the government extended the scheme and it is

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making tax digital
Tax Updates

Tax Update 7/8/2020

Tax Update 7/8/2020 Keep up to date with the key announcements made this past week. Job Retention Bonus Clarification for Employers HMRC have produced a policy paper on the eligibility requirements for employers seeking to claim the job retention bonuses. The updated guidance provides clarifications as to when claims can be submitted, claims after the

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Coronavirus Updates

Job Retention Bonus Clarification for Employers

Job Retention Bonus Clarification for Employers Following the announcement during the summer economic update by the Chancellor, Rishi Sunak, HMRC have published a policy paper on the eligibility requirements for employers seeking to claim the job retention bonuses. Employers will be able to claim for employees who: Were furloughed and had a Coronavirus Job Retention

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Other

General Electric accused of $1 billion tax fraud

General Electric accused of $1 billion tax fraud In an astonishing turn of events HMRC have gone from praising General Electrics (GE) tax department to alleging that the company has committed tax fraud. In 2012 Will Morris, the companies director of tax policy was recognised for his role in “informing the public debate on large

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Tax Updates

Tax Update 31/7/2020

Keep up to date with the key announcements made this past week. Covid-19 support scheme overpayments HMRC has published two new compliance check factsheets, these factsheets cover assessments, interest and penalties where grants under the coronavirus support schemes have been over paid and fail to notify HMRC about the overpayment. CC/FS48 Job Retention Scheme –

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Tax Updates

Tax Update 24/07/2020

Keep up to date with the key announcements made this past week. Finance Bill 2020 On the 22nd July the Finance Bill 2020 received royal accent and became the Finance Act 2020 Finance Bill 2021 A day earlier on the 21st July, HMRC published the draft legislation for the next finance bill. The draft provisions,

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Coronavirus Updates

The Increasing Presence of Furlough Fraud

Whenever any financial incentive or support is made available, scammers and fraudsters try their best to infiltrate the scheme and cheat the system in order to receive funds designed only for those in need of them. The Coronavirus Job Retention Scheme (CJRS) or ‘Furlough Scheme’ is no exception. The Coronavirus Job Retention Scheme The Coronavirus

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Tax Updates

Tax Updates 10/07/2020

Keep up to date with the key announcements made this past week. Summer Economic Statement In the long awaited summer statement, the Chancellor Rishi Sunak announced a plethora of new measures. Included in these measures where the ‘Eat Out Help Out’ scheme. Customers with receive 50% off, up to £10 per head, on meals out

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UK Government

Summer Economic Update

This afternoon the Chancellor, Rishi Sunak announced a raft of new measures in his summer economic update. In a bid to restart the economy and save jobs Mr. Sunak announced the following measures; VAT Cuts The rate of VAT for the hospitality and tourism industries is set to drop from the standard 20% rate to

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Tax Updates

Tax Update – 03/07/20

Keep up to date with the key announcements made this past week. Charges for Payments Made to HMRC Using Debit Cards From 1st November 2020, when payments are made to HMRC using business credit and debit cards a fee will be charged. Previously, a fee was only payable to HMRC in relation to payments with

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HMRC

Claimants Urged to Check Tax Credit Renewals After HMRC Error

Following what HMRC are describing as a human error, when this years automatic renewals notices were sent out over 1 million of them had omitted income details. Further letters have subsequently been sent to those effected but we are now urging anyone receiving tax credits to carefully check their annual renewals before the deadline on

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Other

Business Reminder to Reinstate VAT Direct Debits

With the deadline for the deferral of VAT payments due to Coronavirus having now passed on 30 June. Businesses that made use of the deferral scheme will now need to reinstate their direct debit mandates or potentially face late payment charges. The VAT payment deferral has meant that all UK VAT-registered businesses had the option

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Coronavirus Updates

Coronavirus Job Retention Scheme (CJRS) Updates

The guidance on the CJRS has been updated, and new guidance has been published for calculating claims. The changes outlined mean that employers will be required to gradually take back responsibility for the salaries of any furloughed employees until the end of the scheme. A policy paper has been published by HMRC outlining changes to

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Tax Updates

Weekly Review – Personal Tax Announcements 29/05/20

Personal Tax Update – 29/05/20 Keep up to date with the key announcements made this past week. Coronavirus (COVID-19): job retention scheme HMRC have provided further updates on the coronavirus job retention scheme (CJRS) for employees and employers to: explain that employers will be asked to detail separately the amounts for NIC, pension and wages

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Tax Updates

Weekly Review – Personal Tax Announcements 22/05/20

Personal Tax Update – 22/5/2020 In another information packed week, below is a summary of the key changes announced. Coronavirus (COVID-19): job retention scheme HMRC has updated the coronavirus job retention scheme (CJRS) guidance with several changes: the guidance note on ‘working out 80% of your employees’ wages to claim through the CJRS ’ has been

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Tax Updates

Weekly Review – Personal Tax Announcements 15/05/20

Keep up to date with the key announcements made this past week. In the ever-fast-moving world of tax announcements and developments, here we have pulled together some of the key changes announced this week. Coronavirus (COVID-19): job retention scheme extended until 31 October As at the 12 May, 7.5m employees had been furloughed under the

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Tax Updates

Round up of Personal Tax Announcements 11/05/20

Keep up to date with the key announcements made this past week. In the ever-fast-moving world of tax announcements and developments, here we have pulled together some of the key changes announced this week. HMRC Guidance on job retention scheme HMRC has updated its guidance  with various changes on the job retention scheme. A new section for

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Coronavirus Updates

Coronavirus Business Interruption Loan Boosted

Chancellor Strengthens Businesses Position on Interruption Loan On 3 April the Chancellor, Rishi Sunak, gave a boost to businesses aiming to utilise the Coronavirus Business Interruption Loan Scheme (CBILS). Banks have been requesting personal guarantees for loans taken out through the CBILS, Sunak has now taken the decision to ban that requirement. The government is

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Other

Returning NHS staff targeted

Tax avoidance promoters are targeting returning NHS staff for their schemes. HMRC announced that they are aware of “unscrupulous promoters of tax avoidance schemes are targeting workers returning to the National Health Service (NHS) to help respond to the coronavirus (COVID-19) outbreak.” HMRC warned returning staff to avoid signing up to such schemes, which they

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Coronavirus Updates

COVID 19 – Lightening the Tax Burden

In the current emergency, anything that potentially reduces outgoing cash flow, including impending tax due dates for payment, is welcome.  We have therefore outlined, opportunities within the current tax system that businesses should not overlook.  Tax Deferral – HMRC Announcements Second Payment on Account instalment due on 31 July 2020 HMRC have confirmed that the

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Coronavirus Updates

COVID-19: Digital lines of contact with HMRC

We have received a vast number of queries around how businesses should manage communications with HMRC and which lines of communications they should use, keeping in mind the new COVID-19 restrictions. The lockdown put in place by the government, aimed at slowing down the coronavirus spread, means that HMRC offices are closed. No physical letters

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Other

UK Insolvency Laws Amended to Protect Businesses

New measures have been announced by the UK government to help prevent businesses who are unable to meet debts as a result of the COVID-19 pandemic These measures are an attempt to help business owners from having to file for bankruptcy and putting their companies into liquidation. The new rules will allow companies undergoing restructuring

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Coronavirus Updates

COVID-19 Job Retention Scheme

The Coronavirus Job Retention Scheme is a temporary scheme open to all UK employers for at least three months starting from 1 March 2020. It is expected that the scheme will be up and running by the end of April. It is designed to support employers whose operations have been severely affected by coronavirus (COVID-19).

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Other

50% Discount for Tax Return Service

STS Europe are offering a 50% discount for new clients on our self-assessment tax return service. After last nights announcement, individuals have 4 weeks to submit their SA tax return in order to qualify for the self-employed pay support measures. We will prepare and submit any 2018/19 tax returns for those who are yet to

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Coronavirus Updates

New Announcement For The Self-Employed

Tonight, Chancellor Rishi Sunak announced support for the self-employed. The scheme introduced is aimed to assist 95% of those who are currently self-employed. As stated during the chancellor’s briefing, the Government will pay those who are self-employed a grant of 80% of their average monthly profits over the last 3 years – up to a

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Coronavirus Updates

Overview of the financial support announced for SME’s

Following on from the raft of announcements over the past few weeks, we appreciate that many individuals are struggling to keep up with all of the new updates. In this article we will provide a brief outline of the relevant announcements made for small and medium enterprises. Business Interruption Scheme Provides loans through the British

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Other

Statutory Self-Employment Pay

In a draft bill announced by the House of Commons public bill committee, self-employed individuals could about to be provided with a much needed lifeline. After all of the announcements in the past few weeks regarding businesses & employed individuals, many self-employed individuals have been left uncertain of their position. The bill, subject to approval,

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HMRC

Update on the SRT position

In a recent article we discussed how COVID-19 could potentially have an impact on the UK tax position of expats and non-UK residents who could not leave the UK. These individuals risked exceeding the allotted amount of days to remain non-resident for tax purposes due to cancelled flight and self-isolation measures. With this considered, HMRC have

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Coronavirus Updates

Tax Reliefs for Working from Home

Given the Governments insistence for those who can work from home should do so, a large number of employed individuals will suddenly be working from home. Workers may be able to claim tax reliefs for the extra household costs associated with working from home. For instance for extra telephone bills, electricity and gas. HMRC accepts that

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making tax digital
Coronavirus Updates

HMRC Coronavirus Tax Rebate Scam

The latest in a long list of these scams appears to be related to Tax rebates due to Coronavirus. HMRC tweeted on Saturday to warn taxpayers of the latest scam, stating; “We are aware of emails claiming to be from HMRC offering tax rebates as a result of #coronavirus If you receive an email, text

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UK Government

Unprecedented Funding Announced By The Government

During today’s coronavirus (COVID-19) briefing, Rishi Sunak, the Chancellor of the Exchequer, announced unprecedented funding designed to protect businesses and save lives during the ongoing pandemic. The government will step in to cover 80% of salaries, up to £2,500 pcm, for staff who cannot work because of the virus. The grant is intended to cover

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HMRC

Unplanned tax bills could hit Non-Residents & UK Expats

As an unexpected consequence of travel disruptions caused by the current COVID-19 outbreak, UK expats & non-residents could be faced with an unexpected tax bill, if they fall foul of the Statutory Residence Test (SRT). Under the rules of the SRT, non-residents and UK expats pay no income tax on their foreign earnings so long

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UK Government

Further Measures Announced to Support Businesses hit by COVID-19

After his announcement in the budget last week, where Mr Sunak declared that he would do whatever it takes to support the economy through the disruption caused by coronavirus (COVID-19). On Tuesday he announced further measures to help support businesses affected by the global coronavirus pandemic. With an announcement of up to £350 billion of

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Tax Updates

Vehicle Tax Rates for 2020/21

Background As part of last weeks budget the 2020/21 Vehicle Excise Duty (VED) rates were announced, these rates are set to take effect from 1st April 2020. Those who are looking to purchase a new car only have just over a week to utilise the old system. The way in which CO2 Emissions of a

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HMRC

IR35 Delayed Amidst Coronavirus Pandemic

The government announced that the controversial changes to IR35 will be postponed until April 2021. A move which is designed to help alleviate the pressures being imposed on businesses by Covid-19. Steve Barclay the chief secretary of the treasury was however, quick to emphasise that this is merely a delay to the reforms and not

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HMRC

HMRC announce cuts to late payment interest rates

The Bank of England’s decision on 11th March to cut the interest rates from 0.75% to 0.25% has resulted in HMRC following suit. Given that HMRC’s interest rates are linked to the Bank of England’s, there is no surprise that yesterday HMRC announced that their late payment interest rates will fall by the same amount

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HMRC

HMRC prompting those with offshore assets

Your offshore assets, income and gains – HMRC using ‘nudge letters’ to prompt disclosures  Specialist Taxation Services (Europe) Limited (STS Europe) have observed an increase in clients approaching the firm to seek advice on HMRC correspondence relating to their offshore assets. Common Reporting Standard (CRS) is an information standard for the automatic exchange of information regarding

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UK Government

Spring Budget 2020 – Overview

Budget 2020 Rishi Sunak has delivered his first Budget speech as Chancellor and the first one for about 17 months. Amid the backdrop of a growing threat to the economy from the global outbreak of Coronavirus, here are the main tax changes announced. Personal Tax As we already knew, the personal allowance and basic rate

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UK Government

Research suggests that households in England could face council tax rises

According to research, from April households in England face further council tax increases. The County Councils Network said the majority of councils that run social care services would be raising council tax by the full amount allowed – 3.99%. But it said councils faced a funding shortfall of £19bn over the next five years and

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HMRC

HMRC launches a new ‘secret’ unit to tackle inheritance tax avoidance

It appears that HMRC have their sights set on Inheritance Tax avoidance by wealthy families. News has broken of a new team inside of HMRC that has been specifically tasked with investigating the use of Family Investment Companies (FICs). Financial Investment Companies are a bespoke vehicle which can, and often are, be used as an

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Forensic analysis for briery and corruption cases
HMRC

Cayman Islands placed on EU tax haven blacklist

The Cayman Islands has been added to the European Union’s tax haven blacklist. According to the EU, the UK overseas territory has failed to implement tax reforms they had committed to by the agreed deadline. The EU Blacklist was set up as part of the EU’s strategy on effective corporate taxation, with a view to

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making tax digital
HMRC

Recognising genuine HMRC communication

What is phishing? “Phishing” is an illegal attempt to “fish” for an individual’s private and sensitive data. It works by using false pretences to lure individuals into disclosing personal or financial information such as bank account details, credit card details, and passwords. One of the most common phishing scams involves sending emails/SMS that fraudulently claim

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UK Government

Increased National Minimum Wage rates from April 2020

Nearly three million workers are set to benefit from the increases in National Living Wage (NLW) and minimum wage rates for young workers. Since its introduction in 1999, the NLW is a compulsory national rate set for people aged 25 and over. The NLW is enforced by HMRC alongside the national minimum wage (NMW). Generally,

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Corporate Criminal Offence

HMRC crackdown on Corporate Criminal Offence

It was announced yesterday that HMRC are investigating 9 companies for failing to prevent the facilitation of tax evasion. Originally announced in the March 2015 budget, the Corporate Criminal Offence came into effect on 30th September 2017. The stated aim of the legislation is to put responsibility on corporate entities to help tackle tax evasion.

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Other

Planning opportunities prior to Budget 2020

With the Chancellor’s announcement that 2020 Budget will take place on 11 March 2020, we highlight some possible planning opportunities to consider prior to any potential changes in legislation. Please note that any decisions made before the Budget is announced must take into consideration non-tax aspects, such as commercial feasibility.   However, postponing or fast-tracking transactions

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UK Government

New Budget Set for 11th March

With yesterday’s announcement from the Chancellor Sajid Javid we take a look at what we can potentially expect to see. Manifesto Pledges One of the main pledges from the Conservative’s manifesto was an increase in the NI threshold from its’ current level at 8,632 to 9,500 and this could potentially be confirmed in this budget.

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UK Government

The government responds to the loan charge review

Christmas has come early for some of those with 2018/19 loan charge! Following the review of the loan charge, the Treasury has issued the government’s response. But how are the rules changing? Summary The loan charge applies where a taxpayer has previously been paid for services with a loan that is unlikely to be repaid.

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Tax Updates

Tax treatment of staff parties and gifts to employees

With the festive period on the horizon, employers often ask about the tax treatment of providing a staff Christmas party or giving gifts to employees. Here is a quick summary of the rules. Staff Parties What is exempt? There is a tax exemption for employee entertaining if the event meets the following criteria: an annual

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UK Government

General Election – What are the main parties tax policies?

With voting for the General Election taking place on Thursday, what are the tax policies that have been pledged? We have outlined those proposed by the main parties that could affect you and your business. Conservatives. Having previously planned to reduce corporation tax to 17% from April 2020, the Conservatives’ have pledged to keep it

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Other

Tax-Free Childcare Account

HMRC are running a campaign to remind people that they could get up to £2,000 per child, per year, towards childcare costs. Broadly, eligible parents or guardians can receive government top-ups of 20p for every 80p that they pay into a tax-free childcare account, up to a maximum of £2,000 per child or £4,000 for

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Other

Minimising NIC Through Remuneration Planning

The provision of benefits for employees will usually assist in reducing National Insurance Contributions for businesses. Where a director is concerned, this may have the opposite affect due to the low salary they receive. Here is an explanation on how remuneration planning can help to keep NIC’s low. National Insurance Contributions NIC is a form

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Other

The NHS’ 2019/20 Pension Plans Scrutinised

Last week NHS England published a plan under which doctors could pay their 2019/20 annual allowance tax charges out of their pension fund. The UK Health Minister has since warned that these plans may constitute ‘tax avoidance’. How have the charges arisen? The annual allowance for pension contributions is currently £40,000 per annum. Taxpayers who

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HMRC

No Retrospective Enquiries Under New IR35 Rules?

New IR35 Rules In a statement about IR35 (off-payroll working) at the end of October 2019, HMRC has set out how it intends to manage and enforce new IR35 rules when they take effect on 6 April 2020. While there’s no change to the principles which determine if IR35 applies, from April 2020 the responsibility for deciding shifts from those

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Other

Are you declaring Offshore Funds correctly?

Offshore funds can be a complicated matter when it comes to declaring the correct income or capital gain on investments. It is often an area in which mistakes can accidentally occur and leave a taxpayer with an outstanding tax liability. We have recently been notified of the intention for HMRC’s Wealthy and Mid-Sized Business Unit

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making tax digital
HMRC

Recognising genuine HMRC communication

What is phishing? “Phishing” is an illegal attempt to “fish” for an individual’s private, sensitive data. It works by using false pretences into disclosing personal or financial information such as bank account details, credit card details, and passwords etc. One of the most common phishing scams involves sending emails/SMS that fraudulently claims to be from

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Other

Tax Advantages Of Incorporating A Business

Tax advantages of incorporating a business Running a small business as a sole trader has plenty of advantages, the alternative is to create a limited company form which to run your business from. This article compares how setting up a limited company affects individual’s tax liability in 2019/20. It is important to note, that levels

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Other

A Review Into The Loan Charge Announced

The Chancellor, Sajid Javid has commissioned a review of the highly controversial loan charge to give taxpayers certainty ahead of the Self-Assessment deadline in January. Background The loan charge was intended to tackle disguised remuneration schemes whereby individuals were paid via loans that were never intended to be repaid. At the time individuals being paid

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Other

Deadline for Help to Buy ISA is 30 November!

The 30th November is the deadline for a new Help to Buy ISAs to be opened. Therefore, if you are over 16 and aim to buy your own home in the future, you need to open one now. An ISA can be opened for as little as £1 but will enable you to make contributions

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Other

Managing Principal Private Residence Relief

For individuals not trained in tax, it is easy to assume that when you sell your ‘home’ there will be no tax charge to consider. Tax experts know that this is not always the case, particularly where a client owns several properties. Claiming PPR Relief HMRC often look towards incorrect PPR relief claims as a

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UK Government

Employment Allowance is Changing from April 2020

Following draft legislation published by the government, the NI Employment Allowance for businesses will be restricted from April 2020. The legislation was subject to consultation in August however, this is not expected to have changed the main features.   What is Employment Allowance? Employment Allowance has entitled businesses, charities and amateur sports clubs to a deduction

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Other

Dividend allowance

Many family-owned companies allocate dividends towards the end of their financial period and/or the tax year, which means that the reduction in the dividend allowance from £5,000 to £2,000 can have a significant impact on income tax liabilities of an individual. Taxpayers may not be aware of this change in the dividend allowance until they

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Computational work for mixed funds cleansing
Other

The 10-Year Charge (Decennial Charge)

Introduction The decennial charge imposes inheritance tax on the value of assets held in trusts based upon their market value at each tenth anniversary. The charge to tax is on relevant property, in the case of a UK domiciled settlor this means all property that is held or has been held in the trust. Relevant

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HMRC

Capital Gains Tax on Residential Property is Changing

Background Starting from April 2020, the way you report and pay capital gains tax (CGT) generated from residential property disposals will change. Currently you are required to report any capital gains made from residential properties (not covered by PPR relief) on your Self Assessment (SA) returns. Therefore, it is important that you are aware of

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Other

Parking provided for by work? Here are the exemption rules.

Background Where your employer provides you with a rented space near their premises, there could be a tax consequence for you. With the cost of parking in and around towns and cities ever increasing, some firms offer to pay for car park spaces for employees. Whilst in most cases workplace parking is an exempt perk,

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Other

NIC Class 1A Payment Due

Where you have provided any form of benefits in kind to your employees or directors, payment of the associated Class 1A National Insurance is due by 19 July. For all benefits reported on your employees and directors P11D forms, payment of the full amount due must be made by Friday 19 July at the latest.

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Other

Looking to rent on Airbnb? Here’s what you need to consider.

With Airbnb becoming an ever more popular way of earning a few extra pounds, here are the varying tax positions you may need to consider. If you are new the the letting markets, it would be easy to assume that all income would be taxed in the same way… you’re wrong! Depending on the type

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UK Government

Draft Finance Bill expected on 11 July

The government has announced it will publish draft clauses on 11 July 2019 for the next Finance Bill to follow the Budget in the Autumn. These draft clauses will principally cover pre-announced policy changes. Accompanying the draft legislation will be explanatory notes, impact notes and tax information, responses to consultations and other supporting documents. As

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Other

Making use of gift exemptions for Inheritance Tax

A recent survey undertaken on behalf of HMRC produced results showing that only a quarter of individuals making financial gifts have detailed knowledge of inheritance tax rules surrounding such payments. The results, which can be found in the report Lifetime Gifting: Reliefs, Exemptions, and Behaviours, showed a substantial lack of knowledge around most areas of gifts.

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Other

No Payments On Account For 31st July 2019!

HMRC previously advised of a problem where Payments on Account (POA) for 2018-19 had not been created on the submission of a 2017-18 tax return. The error in HMRC’s system meant that some self-assessment accounts were showing that POA were not required for the 2018/19 tax year. Where this has occurred, a credit will now

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Other

Lifetime ISA vs Pension Savings

Planning for the future and your retirement is at the front of any individuals mind when it comes to financial planning. With the various schemes and options available to taxpayers, we have made things simple and focused our attention on two similar choices, the Lifetime ISA (LISA) and pension savings. Below we have taken a

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Other

Charging Rent To Your Business

Where a company owner or director personally own a property that their business operates from, is it tax-efficient to charge rent? When considering the tax consequences there are several areas to consider Capital Gains Tax, Entrepreneur’s relief and Corporation tax. Charging rent to your company will create an added expense and in turn reduce the

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Other

Trivial Benefits Exemption

During a recent webinar hosted by HMRC, the host commented that where small benefits, such as food or drink, are provided to employees the trivial exemption would not apply. Their reasoning behind this was that the value over the year would add up to more than £50. Unfortunately for the host, the exemption does apply

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Tax investigations
HMRC

HMRC advisory fuel rates for company car users from 1 June

HMRC has published revised advisory fuel rates for company cars, applying from 1 June 2019. The rates are to be used only where employers either reimburse employees for business travel in their company cars, or require employees to repay the cost of fuel used for private travel. Advisory Fuel Rates from 1 June 2019 These

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Other

Is ten weeks occupation enough to claim PPR relief?

A recent tribunal case has declared that 10 weeks occupation of a residential property is enough to qualify a taxpayer for Principle Primary Residence (PPR) Relief . The case concerned was Davidson v HMRC, the taxpayer claimed that his main residence was a London flat which he had occupied for 10 weeks. The property had

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HMRC

HMRC Clamp Down on Loan Charge Sidestep Schemes

The introduction of the retrospective loan charge has been extremely controversial with taxpayers facing bankruptcy and a recent damning report stating that the charge has resulted in at least one suicide. Despite recommendations for the charge to be suspended for a 6 month period, HMRC are still active in pursuing offenders and this has lead to warnings from

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HMRC

Appointing someone to deal with HMRC on your behalf

HMRC have agreed that on occasions someone other than a tax advisor may need to help you with your tax affairs, we look at the procedures you will have to follow and what’s involved depending on the situation. Phone Conversations For a one-off arrangement HMRC will speak to someone other than your agent on the

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HMRC

HMRC vs Entrepreneurs’ Relief

HMRC have recently been take to the First-tier Tribunal (FTT) twice based on their interpretation of the qualifying conditions for Entrepreneurs’ Relief. Whilst one decision ruled in their favour (Hunt vs HMRC), the second case went against them. What is clear from these challenges, is those advising individuals on their investments must be careful and

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Other

Restriction to Rent-A-Room Relief is Dropped

Last year the Chancellor announced a significant restriction to rent a room relief. This restriction, due to come in to effect from 6 April 2019, would only allow the relief if you occupied the property for some of the period it is let. This proposal to deny rent-a-room relief from 6 April 2019 has since been withdrawn. You

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Other

RTC and ATED Related Capital Gains

When a company disposes of relevant property post 5 April 2013 and the value exceeds the ATED threshold, a ATED related capital gain can occur. During a recent discussion with fellow professionals, a debate was raised as to whether the Requirement To Correct penalties could be applied to ATED related gains for offshore companies. As

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Tax investigations
Other

The Future of Offshore Compliance by Andy Cole CBE

In March 2019 HMRC published an update of the earlier 2013 “No Safe Havens” offshore tax compliance strategy. Since 2013, the offshore landscape has changed significantly. Currently, more than 100 countries have adopted the Common Reporting Standard (CRS) as their process to automatically exchange tax information data. By 30 September 2018 all countries had exchanged

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Tax Updates

Tax Returns 2018/19

Tax returns for the 2018/19 tax year are due for online submission by 31st January 2020. If you are newly self-employed or looking for someone new to look after your tax affairs and submit your return, STS Europe can help. Due to the constant changes to legislation, tax returns can become a complex process and

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Tax Updates

Personal Tax Update 2019/20

Now we have entered the new tax year on the 6 April 2019, here are the new changes that individuals need to be aware of for the 2019/2020 tax year. Income Personal Allowance The Personal Allowance has increased from £11,850 to £12,500. This means most people will get a £130 tax reduction compared to 2018/19.

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Other

Key Findings and Recommendations of the APPG Loan Charge Report

The report from the recent Loan Charge inquiry conducted by the APPG has now been published with the findings casting a very dark shadow over HMRC. Along with the Treasury, HMRC have been found to have acted inappropriately and well below the expected standards in their pursuit of liabilities payable. The key findings of the

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Other

Offshore Compliance – The Tide Has Turned!

The Past… In his March 2015 Budget statement, the then Chancellor of the Exchequer, George Osborne “set alarm bells ringing” by announcing the early closure of all offshore disclosure facilities, including the much-vaunted Liechtenstein Disclosure Facility (LDF) and the less popular Crown Dependencies Disclosure Facilities (CDDF). This seemed an unusual step to take, the LDF

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UK Government

Budget 2018 Anti-Avoidance

The new assessment period for ‘careless’ offshore tax non-compliance will come into force from April 2019. Following the Requirement to Correct deadline passing on the 30th September, any non-compliance in offshore matters now face hefty penalties over 12 years. The IR35 rules are also being extended out to private sector and there will be corporation

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UK Government

Budget 2018 Business and Corporation Tax

The Chancellor’s key announcement was the introduction of a new Digital Service Tax, aimed at technology giants with a global revenue above £500m. A 2% tax will be payable on the revenue generated from the UK and is designed to make digital platform business pay a more appropriate amount of tax. There was also a

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Other

Budget 2018 Personal Tax – Capital Gains

The major change for capital gains tax comes in via the Entrepreneur’s Relief. Leading up to the Autumn Budget there were concerns it could be slashed or abolished, luckily neither happened with the chancellor instead announcing new qualifying conditions and the holding period increasing to 2 years. The Annual Exemption will rise to £12,000 with

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Other

Budget 2018 Personal Tax – Income

The Budget 2018 will result in most people paying less tax on their income from April 2019, the result of the Personal Allowance and Higher Rate Thresholds being increased to their target levels a year early. The reduced income tax will be recuperated through national insurance contributions, the burden placed on higher earners after the

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Other

Mixed Funds Cleansing Deadline for UK Deemed Domiciles and Non-Domiciles

The deadline for qualifying individuals to take advantage of the mixed funds cleansing legislation is fast approaching.  UK Resident Non-Domiciles and UK Deemed Domiciled individuals have been given a golden ticket to cleanse their offshore mixed funds accounts before the 5 April 2019. The legislation enables existing offshore mixed funds to be analysed, categorised and

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