14/09/2016, by Low Incomes Tax Reform Group, Tax article - Income Tax
HMRC launch a new Worldwide Disclosure Facility encouraging taxpayers to put things right if they have not declared all of their UK tax liabilities relating to offshore income or gains.
This LITRG article outlines the new opportunity to tell HM Revenue and Customs (HMRC) about any problem with your tax.
Worldwide income
If you have income and gains that arise outside the UK, you generally have to tell HMRC about them, as you may have to pay UK tax on them. If you have worldwide income that you ... Continue Reading
14/09/2016, by Tax Insider, Tax tip - Business Tax
Many benefits, including childcare vouchers up to the exempt limit and mobile phones, can be provided free of tax and National Insurance.
While a tax-free benefit is valuable in the hands of the employee, the employer is left to meet the cost.By using a salary sacrifice arrangement it is possible for the employer to pass the cost of the benefit to the employee and for the employee to save tax and National Insurance and the employer to save National Insurance.Under a salary sacrifice arrangement ... Continue Reading
12/09/2016, by Tax Insider, Tax tip - Property Tax
If a property was at some point your PPR then the last 18 months are exempt from tax. Where the disposal took place prior to 6 April 2014, the last 36 months of ownership were exempt. The last 36 months of ownership remain exempt for post April-2014 disposals where the owner or their spouse or civil partner is disabled, or one of the couple have moved into a residential care home.This means that if you have a second property that you now live in, then you are still entitled to PPR for the last 18 ... Continue Reading
09/09/2016, by Tax Insider, Tax tip - General Tax
To save some of the work incurred in keeping details of expenses, individuals carrying on a trade as a self-employed sole trader or in partnership with other individuals can instead claim fixed rate deductions.Fixed rate deductions are available in respect of vehicle deductions, business use of home and in relation to business premises which are also used as a home.Businesses can choose to claim the fixed rate deductions to save work. Alternatively, they can keep records of actual expenditure ... Continue Reading
08/09/2016, by Richard Symonds, Tax article - Business Tax
Introduction
Setting up and running a charity or not-for-profit (NPC) organisation is often a very noble and morally commendable thing to do. That doesn’t mean HMRC make it any easier than running a for profit company of course. In fact running a charity requires keeping to some fairly complex rules and regulations and, as such, the services of a chartered accountant are essential.
Whilst this guide is no substitute for the one to one advice of an accountant (preferably one with experience ... Continue Reading
07/09/2016, by Tax Insider, Tax tip - General Tax
Children’s Bonds are a tax-free investment issued by NS&I. Children’s Bonds allow investments to be made in the child’s own name and there is no tax to pay on the interest. The maximum investment is £3,000 per issue (minimum £25 per issue) and the term is five years. At the end of the five-year term, the bond can be cashed in or reinvested in another bond for another five years. The bond finally matures on the first five-year anniversary after the child’s 16th ... Continue Reading
05/09/2016, by Tax Insider, Tax tip - Property Tax
The ‘Annual Tax on Enveloped Dwellings’ (ATED) was introduced in 2013 to tackle the avoidance of stamp duty land tax. The charge relates to residential property with a value over £1m owned by a ‘non-natural person’, generally a company or a partnership with a corporate member. Properties valued in the £1m to £2m band are charged £7,000 per annum, and the bands increase such that properties valued at over £20m are charged £218,200. From 1 ... Continue Reading
02/09/2016, by Sophia Chapman of Portfolio Payroll, Tax article - PAYE and Payroll Taxes, National Insurance, NICs
Introduction
With the new tax year in full swing, payroll professionals really need to be aware of what the calendar has in store. Organising yourself early will make the rest of the year much easier and ensure nothing gets missed. You will certainly thank yourself later.
Here are some of the key dates you need to be aware of in 2016.
Monthly Tax and National Insurance Contributions
As a business, you are obliged to pay a certain amount of tax every month to HMRC. This payment consists of the ... Continue Reading
02/09/2016, by Lee Sharpe, Tax article - Budgets and Autumn Statements
TWEd looks at yet another slug of bad legislation, coming your way soon...
I recently joked with a fellow practitioner that I had developed a phobia of new tax legislation. But, dear reader, it was not really a joke; nor is it a laughing matter. Legislitis is a real and degenerative disorder, for which only the prompt excision of diseased parts offers any tangible hope of a cure.
Symptoms of coming into contact with the pathogen include:
Nausea
Headaches
Edged teeth
Raised hackles
Mood swings, ... Continue Reading
02/09/2016, by Tax Insider, Tax tip - Business Tax
Many small businesses are run from home and a proportion of the costs associated with running and maintaining a home can be deducted in computing the profits of the business.The fixed costs associated with a home are incurred regardless of whether there is any business use of the property. These include rent, mortgage interest, insurance, council tax and general repairs.Where a part of the house is set aside specifically for business use, a proportion of the fixed costs can be deducted in computing ... Continue Reading
