Other

Categories
Archives
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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,

Read More
national living wage increase
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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,

Read More
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.

Read More
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

Read More
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.

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
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

Read More
national living wage increase
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

Read More
national living wage increase
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

Read More
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

Read More