17/02/2015, by HM Revenue & Customs, Tax news - PAYE and Payroll Taxes, National Insurance, NICs
HMRC has announced that it will allow a 3-day "period of grace" for the filing of PAYE information, so employers will not incur penalties for delays in filing under RTI of up to 3 days.
HMRC has also advised that late payment penalties will continue to be reviewed on a "risk-assessed basis", rather than automatically.
There is no change to the filing deadlines. This means filing on or before each payment date unless the circumstances set out in the sending an FPS after payday guidance apply.
In ... Continue Reading
13/02/2015, by Lee Sharpe, Tax article - General
TW Ed offers some tips for people who don’t want to be accused of tax avoidance.
Tax avoidance, it seems, is perceived to be morally bankrupt, egregious, only just short of scaring the horses. With that in mind, here are some pointers to politicians and anyone else who wants to join the mad scramble away from being labelled a tax avoider:
Don’t pay into a pension, because the pension firm then takes tax from HMRC and puts it into your personal pension pot. Some people don’t ... Continue Reading
09/02/2015, by Tax Insider, Tax tip - Property Tax
Ownership (1)
By default, rental profit from property jointly owned by spouses/civil partners is taxed 50:50 irrespective of the underlying respective proportion of actual ownership. (This does not apply to property held within a partnership business proper.) However, if it would be more income tax efficient for the split of profit to be different, then the profit may be divided according to actual ownership once HMRC has been notified. A couple may also change the underlying ownership to suit, ... Continue Reading
06/02/2015, by Low Incomes Tax Reform Group, Tax article - General
LITRG reminds taxpayers who missed the Self-Assessment deadline of 31 January they may be able to avoid a penalty by claiming a ‘reasonable excuse’ for filing their tax return late.
Introduction
Taxpayers were required to file their tax returns for 2013/14 by 31 January 2015 in order to avoid a late penalty of a minimum of £100. However, there are certain situations where individuals, who could be unaware that they have the right to claim ‘reasonable excuse’, ... Continue Reading
03/02/2015, by Tax Insider, Tax tip - Property Tax
PPR relief is not allowed on the sale of property purchased as the residence of an elderly or infirm (‘dependent’) relative. ‘Dependent relative’ is defined as being the owner’s own or their spouse/civil partner’s widowed or separated mother or any other relative who is unable to look after themselves. PPR is allowed on property used by the relative pre 5 April 1988, providing that the relative was the property’s sole resident, living there rent-free and ... Continue Reading
27/01/2015, by Tax Insider, Tax tip - Property Tax
Expenses may be incurred in the setting up of a letting business before the first rental receipt is received (for example, travel, phone, advertising, etc.). If so, deduction may be possible once the letting starts. Relief is only allowable under these special rules where the expenditure is:
incurred within a period of seven years before the date the rental business actually starts; and
is not otherwise allowable as a deduction for tax purposes (i.e. against any other income or capital); and
would ... Continue Reading
20/01/2015, by Low Incomes Tax Reform Group, Tax article - General
HMRC closed all their Enquiry Centres in 2014 but now offer a specialised service to help people struggling with filing their self-assessment returns by the 31 January deadline.
Introduction
HMRC’s specialised service is intended for people who are new to self-assessment (SA) or who may not have used the online system before and need extra support.
For those who need extra support
HM Revenue and Customs’ (HMRC) ‘needs extra support’ ... Continue Reading
12/01/2015, by Tax Insider, Tax tip - Property Tax
The usual practice when letting a property is for a tenant to pay a deposit to a landlord when moving into the property. The deposit is returned at the end of the tenancy, subject to any deductions for ‘dilapidations’ – any repairs that the tenant has not undertaken although contractually obliged to do so.
On payment the landlord has no legal right over the deposit money; he is only entitled to some or all of the deposit at the end of the tenancy.
The tax ... Continue Reading
05/01/2015, by Tax Insider, Tax tip - Property Tax
HMRC do not have the power to tell a landlord how much to charge for the rental of their property. However, they can restrict the amount of expenses claimed against any rent that is paid. HMRC take the view that unless the landlord charges a full market rent for a property and imposes normal market lease conditions, it is unlikely that the expenses of the property are incurred ‘wholly and exclusively’, which is required to arrive at rental business profits. However, HMRC are prepared ... Continue Reading
22/12/2014, by Tax Insider, Tax tip - Property Tax
HMRC do not have the power to tell a landlord how much to charge for the rental of their property. However, they can restrict the amount of expenses claimed against any rent that is paid.
HMRC take the view that unless the landlord charges a full market rent for a property and imposes normal market lease conditions, it is unlikely that the expenses of the property are incurred ‘wholly and exclusively’, which is required to arrive at rental business profits.
However, HMRC ... Continue Reading
