Chancellor Rachel Reeves has delivered the Autumn Budget for 2025, outlining a series of fiscal policies and economic forecasts that will shape the UK’s financial landscape. The announcement was marked by an unprecedented early release of the Office for Budget Responsibility (OBR) report, which provided an advance look at the economic assessments underpinning the new
As the business landscape continues to evolve, staying compliant with the latest regulations is crucial. One such regulation is the Companies House identity verification, a pivotal aspect introduced under the Economic Crime and Corporate Transparency Act 2023 (ECCTA). This regulation is set to be mandatory from autumn 2025 and signifies a new era of corporate
Inheritance tax (IHT) is evolving, with sweeping changes announced in the recent budget, and these adjustments could significantly impact families and business owners. Proper tax planning is now more important than ever to protect your wealth and ensure its smooth transition to the next generation. With the complexities of the new inheritance tax changes, seeking
In recent years, HMRC has ramped up its efforts to identify and tackle undisclosed offshore income, leaving taxpayers with little room to hide. In 2024 alone, over 5,643 taxpayers came forward to declare their untaxed offshore income, a significant increase from 4,630 in 2023. This rise is largely attributed to HMRC’s use of nudge letters,
R&D Tax Relief Is Changing: Are You Ready for the New Rules That Could Impact Your Business? With the introduction of significant reforms in the (Research and Development) R&D tax relief landscape, companies and their advisors must stay informed to avoid costly mistakes. These reforms, aimed at reducing error and fraud, now include a critical
The Spring Budget announced a significant change for property investors: the abolition of the multiple dwellings relief for Stamp Duty Land Tax (SDLT) from the 1st of June 2024. This relief has traditionally supported those purchasing two or more dwellings in one transaction or a series of linked ones. Introduced in 2011, this relief was
The Chancellor’s plan to abolish the non-dom regime by 2025 is set to revolutionise the tax landscape for non-UK domiciled individuals. The current outdated tax structure will be replaced with a modernised residence-based system that promises to be simpler, fairer, and more competitive. This significant reform aims to attract investment and ensure the UK remains
When it comes to managing your business finances effectively, one crucial decision to make is whether to opt for cash or accrual basis accounting. The choice between these two accounting methods can significantly influence how you handle your financial records and reporting. It’s important for business owners to have a solid grasp of the variances
Unsurprisingly, the dawn of 2024 found itself bombarded with rife tax news and speculations. Notable among them was the widespread and erroneous buzz about a new ‘side hustle tax.’ This ill-informed rumour spread like wildfire across social media platforms, triggering unnecessary financial anxiety among numerous individuals. So, what is the truth behind these ‘side hustle
Welcome to the first installment of our in-depth analysis of the Autumn Statement 2023. In this two-part series, we delve into the significant policy shifts and fiscal measures unveiled by Chancellor Hunt. A stark contrast to last year’s predictions of tax increases, the Autumn Statement 2023 instead heralds an era of tax cuts and ambitious
Research and Development (R&D) tax relief has become an important incentive for businesses in various industries. By encouraging innovation and advancements, R&D tax relief provides companies with the opportunity to claim significant tax credits, ultimately boosting their growth and competitiveness. However, recent statistics indicate a concerning lack of compliance with the compulsory Additional Information Form
In April 2025, HMRC will implement new rules regarding the disclosure of dividend payments, requiring business owners to provide specific information about their dividend earnings. This blog post aims to explore the key details of this upcoming change and its implications for owner-managed businesses. Read on to understand the importance of complying with HMRC’s dividend
If you’re a business owner and wondering whether you need to register for VAT, you’ve come to the right place. Understanding the VAT registration threshold and the implications it has on your business is crucial for compliance and financial planning. In this blog post, we’ll explore everything you need to know about VAT registration and
In a bid to tackle tax avoidance, HMRC is taking decisive action against UK businesses suspected of operating in tax havens. The number of tracked businesses has surged by 84%, reaching over 500, up from 277 last year. In this blog post, we delve into the latest developments surrounding tax havens, HMRC’s crackdown, and the
Following the increase in the Bank of England base rate to 5.25% on 3 August, the late payment and repayment interest rates will be adjusted accordingly for the main taxes and duties charged by HMRC. This comprehensive overview aims to provide taxpayers with a clear understanding of the financial changes that will impact them. Effective
Discovering ways to minimise tax liabilities and maximise gains is a top priority for any business owner. One such avenue is Business Asset Disposal Relief (BADR), formerly known as Entrepreneurs’ Relief. BADR offers an opportunity to reduce capital gains tax when selling part or all of a business. However, recent developments suggest that some taxpayers
Have you ever received a text message from someone that seems innocent enough at first but something feels off? In most cases, you’d be correct! At the moment there are many fraudsters posing Royal Mail, Amazon, and other big-name companies sending fake messages alerting people to missing parcels. There have also been reports to HMRC that fraudsters are
Last month, Chancellor of the exchequer Jeremy Hunt announced a wave of new updates regarding energy, the economy, and more in the autumn budget. Homeowners, business owners, and individuals tuned in to find out what news on energy, taxes, and other things will affect them. So, what was announced in the autumn budget? And more
HMRC have updated their guidance covering National Insurance Contributions (NICs) and Social Security Contributions (SSCs) for workers coming to the UK from the EU, Iceland, Liechtenstein, Norway, or Switzerland, and for UK workers going to those countries. In particular, the guidance has been updated to make it clearer which country’s contributions a person is liable
HMRC has updated its guidance on inheritance tax (IHT) interest rates with the new rates of 4.75% for late payments and 1.25% on repayments from 11 October 2022. What is Inheritance Tax (IHT) Inheritance tax is essentially what your heir(s) to your assets have to pay, which could lead to up to 40% of
Self Assessment tax return payment on account due 31 July Self Assessment tax return individuals, who owe more than £1,000 in tax, need to pay their latest instalment by 31 July. What is a payment on account? In order to stay ahead of their tax payments, individuals make payments on account twice a year. It
HMRC increase interest rates on late tax bills From 5 July, HMRC will increase interest rates on late tax bills. This follows the Bank of England’s decision to raise the base rate to 1.25%. Furthermore, HMRC confirmed that interest rates will rise by a further 0.25% on late tax bills. As a result, late payment interest
National Insurance threshold increases from 6 July Changes to the National Insurance threshold come into effect from 6 July 2022. During the Spring Statement in March, the Chancellor increased the National Insurance threshold for the 2022/23 tax year. From 6 July, the threshold will increase from £9,880 to £12,570. This brings NICs in line with income
Interest rates increase for late tax bills HMRC has confirmed interest rates will rise by 0.25% on late tax bills. The decision comes after the Bank of England increased the base rate to 1% last week. From 24 May 2022, the late payment interest rate will increase to 3.5% from 3.25%, the highest rate since
SEISS grants overpayments chased by HMRC HMRC is now contacting taxpayers who received more SEISS grants than they were entitled to. Taxpayers may repay a partial amount, or repay their grants in full, with the option to appeal within 30 days. HMRC is examining the SEISS claims and comparing them to amended returns. Indeed including
NFT seized by HMRC for first time in £1.4m fraud investigation HMRC has seized three non-fungible tokens (NFT) as part of an investigation into a £1.4m tax evasion fraud. The investigation into a suspected organised VAT repayment fraud, saw three NFTs seized. The fraud reportedly involved 250 fake companies. Fraud Investigation HMRC has arrested three people
Interest rate increase – what does this mean for late self-assessment payments? HMRC has increased the interest rate for late payments from 2.75% to 3% effective from 21 February 2022. The increase comes as The Bank of England announced an increase in the base rate from 0.25% to 0.5% on 3 February 2022. The 3%
Statutory Residence Test – Do you owe tax for your stay in the UK? HMRC has released updated guidance on how the Statutory Residence Test (SRT) will operate in relation to the effects of the COVID-19 pandemic. The Statutory Residence Test legislation allows for an unexpected day spent in the UK to be disregarded if there are exceptional circumstances beyond
HMRC announces self-assessment tax return penalty waivers HMRC has announced it is waiving late filing and late payment penalties for self-assessment tax return customers. The deadline for filing and paying a 2020/21 self-assessment tax return remains 31 January 2022. However, the penalty waiver will mean that taxpayers can submit their return online by 28 February
HMRC self-assessment reminder HMRC is reminding self-assessment taxpayers to declare Covid-19 grants on their 2020/21 tax return. This includes Self-Employment Income Support Scheme (SEISS) grants, which are deemed taxable income. It has been reported that more than 2.7 million people claimed at least one of the SEISS grants, up to 5 April 2021. During the
HMRC cryptocurrency update HMRC will reportedly start issuing ‘nudge’ letters to cryptocurrency investors as a way of encouraging people to check they have paid the correct amount of tax. Investors with cryptoholdings are being urged to check if they have paid the correct amount of either capital gains tax or income tax on their holdings.
UK tax officials have seized £26.5m from non-existent businesses run by an ‘entrepreneur’ who used the Coronavirus Job Retention Scheme to make fraudulent claims. According to the Financial Times, the ‘entrepreneur’ who is believed to be a 44-year-old man, used four companies to create seven fake employees to gain access to furlough funds. To
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,
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
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.
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
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
During the first nine months of the coronavirus pandemic, HMRC received more than 91,000 calls to their fraud hotline. Many reports are believed to be in relation to furlough fraud. Between April and December 2020, HMRC received around 10,000 calls on average each month. This is up from the monthly average of 9,000 the year
Gary Lineker is being pursued by HMRC over a £4.9 million tax bill in relation to the IR35 legislation, according to the Telegraph. Lineker, who presents Match of the Day, is a freelance who set up a partnership in 2012 with his wife at the time. Gary Lineker Media (GLM) has been used to
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,
An Estate Agent from London has voiced their concerns over an issue which is described as ‘an urgent alert’ surrounding the risk of capital gains tax being levied on some properties with a dedicated home office. The agent was recently involved in the sale of a property which included reference to a dedicated home
According to HMRC, over the last year, more than 50,000 small businesses made Research and Development tax credit claims. Overall, the tax relief came to a total of around £6 billion, half of which was claimed by small companies. R&D tax relief allows for small and medium sized enterprises (SMEs) to deduct an extra 130%
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
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
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
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
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
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
HMRC can agree time to pay arrangements with those individuals who cannot pay their self-assessment tax bill on time. A time to pay arrangement can be set up using HMRC’s online service, providing the following criteria is met: Owe £30,000 or less Tax returns are up to date There are no other payment plans or
Last week the Chancellor revealed, in the 2021 Budget, inheritance tax allowances will be frozen for five years until 2026. The freeze has been announced following the governments plans to raise funds to pay back the debt incurred during the coronavirus pandemic. A five-year freeze on inheritance tax allowances will bring in £985m in revenue,
HMRC figures show that approximately 1.1million taxpayers had still not filed their self-assessment tax return on 2nd March 2021. These taxpayers have already incurred a £100 fine and will face a 5% late-payment penalty, if they do not take action by 1st April. HMRC has issued more than £100million in fines to those taxpayers yet
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
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
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,
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
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.
Over the past year, HMRC’s investigations into online sellers using platforms such as Amazon and eBay, decreased drastically amid concerns over tax evasion. Tax evasion from online sellers has been a concern for HMRC as VAT evasion by overseas sellers on online platforms has cost HMRC up to £1.5billion in lost tax revenue in 2015/16
Last year, the government automatically deferred VAT payments for businesses between 20th March 2020 and 30th June 2020, during the coronavirus pandemic. The VAT payments were deferred until 31st March 2021 however, businesses do not need to pay the full amount by the end of March, instead they can opt into a new payment scheme
With less than a month to go until the Chancellor announces his March Budget, Rishi Sunak is reportedly considering a number of tax rises. The Chancellor is now facing the task of repaying the £400billion deficit, caused by the coronavirus pandemic. Rumours have been circulating in parliament regarding how the Chancellor plans to deal with
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
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
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,
Earlier this week, HMRC announced that there would be no late filing penalty for Self-Assessment (SA) customers who file online by 28th February 2021. The late filing penalty easement applies to forms SA100 (individual tax returns) however, SA returns filed by paper in February will not benefit from the easement. HMRC has also confirmed its
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.
HMRC have increased the number of investigations into families who claim child benefits. Introduced in 2013, the High Income Child Benefit Charge, requires higher earners, of more than £50,000, to pay back a percentage of their child support payments. For those who earn over £60,000, the entire amount must be repaid. This is based on
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
The UK’s transitional period out of the European Union officially ended on 31st December 2020. New rules were implemented on 1st January 2021, following the UK’s Free Trade Agreement with the EU. Since leaving the EU, the UK no longer implements DAC 6, the European legislation for disclosing arrangements. Under UK law, arrangements must be
The housing market slumped last year when the UK went into its first lockdown, as a result of the coronavirus. When the market reopened, Chancellor Rishi Sunak announced a Stamp Duty Land Tax holiday, which saw the threshold for paying stamp duty raised from £125,000 to £500,000 until 31st March 2021. According to Rightmove, house
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.
HMRC has published a list of 139 employers who failed to pay their employee’s minimum wage. During 2016 to 2018, HMRC discovered 139 companies had failed to pay a total of £6.7 million to over 95,000 employees. The most common reason for minimum wage breaches was employers expecting low paid staff to cover work costs,
Self-Assessment tax returns are due on 31st January 2021 however, HMRC have stated that late filing fines will not be administered this year, if people can prove they filed late due to implications from the coronavirus pandemic. HMRC are encouraging people to file their tax returns on time, even if they cannot pay the amount
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
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
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
Following the UK’s transition out of the European Union, the UK introduced new tax changes that came into force on 1st January 2021. Businesses in the EU, importing into the UK, will now have to comply with additional laws and may face higher costs. This change has led to some EU businesses stating they will
Following the UK’s Free Trade Agreement with the EU, DAC 6 ceased to apply from 11pm on 31st December 2020. However, certain hallmarks under category D will still need to be reported under DAC 6 for a limited time, in line with the OECD’s Mandatory Disclosure Rules. DAC 6 is the EU Council Directive 2011/16.
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’
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
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
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
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
The new Income Tax exemption came into effect from 8th December 2020 in relation to employers providing their employees with a coronavirus antigen test. This new temporary exemption will ensure that employees who are given a relevant coronavirus antigen test, will not be liable to an Income Tax benefit in kind charge. A benefit in
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
Corporation tax returns are due 12 months after the accounting period ends. For many companies the accounting period ends on 31st December therefore, 31st December 2020 will be the filing deadline for accounting periods ending on 31st December 2019. HMRC are urging businesses to file their corporation tax returns by the relevant deadline. Due to
Businesses that import goods regularly into Great Britain, can apply for a duty deferment account, taking effect from 1st January 2021. A duty deferment account delays payment of most customs and tax charges, for example: Customer Duty Excise duties Import VAT Duty deferment accounts allow for importers (or their representatives) to make one monthly payment
HMRC has updated its guidance on the information published for employers who make a claim under the Coronavirus Job Retention Scheme (CJRS) from 1st December 2020. HMRC is providing this information in the hope that it will deter fraudulent claims. The new guidance includes the information that HMRC will publish on employers who claim under
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
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
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
HMRC have issued a reminder to anyone who is yet to pay Capital Gains Tax if they sold a second home during the 2019 to 2020 financial year. Any profit made from selling a second home within the UK during 2019 to 2020, needs to be declared on a Self Assessment tax return by 31st
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
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
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
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
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
Chancellor Rishi Sunak has been looking for ways to cover the costs of the devastating financial impact caused by the coronavirus pandemic. The UK’s economy has been hit hard during the pandemic and the government are now looking for ways to gain back funds. Rishi Sunak has reassured the nation that there will not be
Businesses can claim back employees Statutory Sick Pay if they have been absent due to the coronavirus. A claim can be made for up to two weeks of an employee’s statutory sick pay if they have been absent for reasons relating to the coronavirus. Businesses can only claim if the following criteria are met: Employees
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
The government’s working from home tax relief has been reviewed due to the coronavirus pandemic. With more people being required to work from home due to local restrictions and national lockdowns, HMRC have updated their system to allow people to claim the entire tax year, regardless of the period of time spent working at home.
The government introduced the Eat Out to Help Out scheme in August which offered 50% discount of up to £10 per person. The aim of the scheme was to boost the economy after the national lockdown by allowing businesses in the hospitality sector to offer discounted meals on Mondays, Tuesdays and Wednesdays. Whilst this scheme
In a recent announcement, HMRC have confirmed that Enterprise Management Incentive schemes (EMI) will continue in the UK once the Brexit transition period has ended. The scheme will operate under UK law from 1st January 2021. EMI is a scheme that allows for some companies to offer their employees a share option up to the
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
Despite the uncertainty of the coronavirus pandemic, HMRC look set to push on with the proposed IR35 changes with updates to aspects of its Employment Status Manual. The changes brought in by IR35 have already been delayed by a year as a result of the coronavirus pandemic and it would appear that HMRC are currently
HM Revenue and Customs (HMRC) have told MP’s on the Public Account Committee it estimates that between 5-10% of furlough cash has been wrongly awarded, with the latest government figures indicating around £35.4bn having been paid out through the scheme, already the upper end of this estimate would leave £3.5bn having been paid out incorrectly.
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
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
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
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
In the recent case of Legends Leisure Ltd v Revenue & Customs, the first tier tribunal have found that the illness of a family member is no excuse for late filing of pay as you earn (PAYE) real time information (RTI) returns. Despite the fact the appellant (Legends Leisure Ltd) never made a formal appeal
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
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
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
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
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
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
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
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
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
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
In a case between Aozora GMAC Investment Ltd & HMRC, the Court of Appeal has rejected the notion that legitimate expectation can be based off guidance given in HMRC’s online manuals. Here we look into the details of the case, along with the potential ramifications of the decision. Case overview Aozora UK received interest on
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
A recent case that was taken to the First-tier Tribunal has determined that the grounds of a farmhouse are residential property under SDLT. This means that buildings such as a barn, meadow and bridleway will all be caught in the valuation for full SDLT rates. The Case – Hyman v HMRC A taxpayers applied for
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
Background Where tax returns are filed late, penalties for the late filing can swiftly begin to rack up . As you can see from the table below you could incur a penalty of £1,600 for a return that is more than 12 months late. Prior to the a recent appeal hearing, HMRC originally issued late
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
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 is still active in pursuing offenders and this has led to
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
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
Following a Court of Appeal ruling here in the UK, a major power shift based on the extra territorial powers of HMRC in relation to a Schedule 36 notices has occurred. The ruling outline below has swung the balance firmly in HMRC’s favour as far as non-UK residents with a UK tax liability are concerned.
