With the rapid rise of cryptocurrency investments and trading, avoiding tax penalties on crypto has become a critical concern for investors. As the UK gears up to implement stricter regulations around crypto reporting, understanding your tax responsibilities is more important than ever. Seeking expert advice to avoid tax penalties on crypto now could save you
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,
Shenal Wijetunge, a specialist in R&D tax relief and Partner at DSW Tax Advisory, highlights the importance of maintaining real-time documentation for companies preparing and defending R&D tax relief claims. With extensive experience navigating HMRC enquiries, particularly in recent years as scrutiny of R&D claims has reached unprecedented levels, Shenal stresses that tribunal cases consistently
As the UK government prepares to implement new amendments to its tax system, focus has been drawn to the new 10-year non-dom rule, set to take effect in April 2025. From April 6th the current remittance basis rules will be abolished, transitioning to a new system based on tax residence. This shift aims to close
Recent hikes in Capital Gains Tax (CGT) have captured the attention of business owners and investors alike. With the Chancellor’s announcement during the Autumn Budget, the CGT rate for basic rate taxpayers has risen from 10% to 18%, while higher rate taxpayers will see an increase from 20% to 24%. These changes took effect immediately
Leading up to the 30th of October Budget Announcement Sir Keir Starmer, promised a fresh approach seeking… “wealth and opportunity for all” The news was dominated by several leaks and rumours prompted many taxpayers to take action before the official announcement. The highly anticipated Budget announcement itself was a lengthy and detailed 80-minute speech delivering
As the Labour Party gears up for its inaugural budget presentation on October 30, the atmosphere is rife with speculation, particularly around their tax plans. With Chancellor Rachel Reeves staying tight-lipped about their strategy, the public is waiting to see how it follows through on its manifesto promises. Several taxes could potentially be included
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 UK Government has confirmed plans to implement a 20% VAT on tuition and boarding fees at private schools, a policy set to commence from the 1st of January, 2025. The VAT, which will also be applicable on pre-payment of fees, signifies the government’s intention of ending existing tax breaks for private schools. This announcement
A new and stricter tax landscape awaits ‘non doms’ in the UK from the coming year, as the Labour government hardens plans to dissolve the ‘outdated’ tax benefits and revamp the inheritance tax (IHT) accountability. These stringent transition rules with a fresh residence-based model for IHT are expected to roll out from the 6th of
As the dust starts to settle following a landslide victory in the general election for Labour, businesses and UHNW (Ultra High Net Worth) clients linger in uncertainty, waiting to understand how the change in government might affect them. With the expected scrapping of the non-dom regime, UHNW clients are considering moving their wealth elsewhere. So
During the State Opening of Parliament on Wednesday the 17th of July, the government’s priorities for the coming months were set out during The King’s Speech. The address, along with the related memorandum, featured 40 bills. Two of these were holdovers from the last parliamentary term. Notably, this represents the most substantial volume of bills
Given that most companies making an R&D tax relief claim will likely be scrutinised by an HMRC compliance check, it has never been more vital to be well-prepared. From Rare Occurrences to Standard Procedure Historically, compliance checks into research and development (R&D) tax relief claims were rare, usually triggered by a clear error within a
If you’re a business owner operating a personal or family company, chances are you’re frequently wrestling with how to go about extracting profits efficiently. As we approach the 2024/25 fiscal year, it’s time to explore strategies to optimize profit extraction whilst keeping your tax obligations in check. Paying Salaries One of the simplest and
In the world of Value Added Tax (VAT), certain concepts can appear particularly convoluted, with the VAT reverse charges mechanism topping the list. Why, you ask? Well, its application rests on an array of scenarios, each affecting the dynamics of how VAT is charged and paid. If you’re in a muddle about how this works,
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 Transfer of Assets Abroad (ToAA) legislation is undergoing significant changes with the introduction of new measures in the Spring Finance Bill 2024. The government is taking action to prevent individuals from exploiting companies to avoid taxes by transferring assets overseas. This move aims to close loopholes and combat tax avoidance practices that have been
As we embrace the arrival of the 2024/25 tax year starting on 6th April 2024 there are notable changes in the financial landscape that will impact individuals and businesses alike. Let’s delve into the essential tax updates to prepare for the upcoming fiscal year. Personal Taxes The upcoming tax year brings noteworthy adjustments in personal
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
In the Spring Statement which was announced on Wednesday the 6th of March 2024, Chancellor Jeremy Hunt has outlined the Conservative Party’s strategy to rejuvenate the party’s electoral fortunes in the wake of trailing Labour by 20 points in the polls. At the core of the statement is a focus on tax cuts to incentivise
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
In today’s digital age, cryptoassets have become increasingly popular as a form of investment. However, with their rise in popularity comes the need for individuals to ensure they are compliant with tax regulations. The UK government, through Her Majesty’s Revenue and Customs (HMRC), has launched a specific disclosure route for individuals with unreported taxes on
Crypto assets, particularly cryptocurrencies, have been making waves in the financial world, captivating the attention of investors and enthusiasts alike. However, many people are still unfamiliar with the underlying technology and how these assets function. The volatility of crypto asset values serves as a reminder of the ever-changing nature of markets and the potential risks
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
In recent years, the popularity of cryptoassets has soared, attracting millions of individuals worldwide. However, what many people fail to realise is that transactions involving cryptoassets may have tax implications. In this comprehensive guide, we will delve into the world of cryptoasset tax, helping you navigate the complexities and ensure compliance with the tax authorities.
Electric cars have become increasingly popular, offering numerous advantages, especially when used as company cars. The tax benefits associated with electric vehicles have made them an attractive option for businesses and individuals alike. However, confusion surrounding the reimbursement of electric car charging costs has been a topic of debate among advisers. In this blog post,
Welcome to part two of our blog post series on the 2023 Autumn Statement. In this installment, we will delve deeper into the notable highlights and key announcements made by Chancellor Hunt. From simplifying R&D tax relief to extending investment zones, as well as the decline in inflation and the government’s commitment to economic stability,
The ‘non-dom ding dong’ between Prime Minister Rishi Sunak, whose wife is a non-dom, and Labour leader Sir Keir Starmer, who is proposing to scrap non-dom status, has helped to keep the issue in the headlines. Andrew Robinson of DSW Tax Advisory, who advises many high-net worth clients, explains which rules apply, who the non-doms
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
As self-assessment season commences, it’s crucial for taxpayers to remain vigilant against scammers impersonating the tax authority in order to steal personal details. In a recent development, a fraudster has been apprehended in a remote Indonesian village, 6,500 miles away from UK soil. While the mangrove forests of North Sumatra face the depletion of freshwater
STS Europe joins Dow Schofield Watts We are delighted to announce that STS Europe has joined Dow Schofield Watts as Tax Advisory Partners. STS Europe will be part of the DSW Network but will remain in the Burscough office and continue to provide our existing clients with specialist tax services. Our name will change to
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
In the last tax year, a staggering £16.7bn in capital gains tax (CGT) was raised, marking a significant increase in revenue. This blog post delves into the details of this record-breaking achievement, shedding light on the factors contributing to this surge and its implications for taxpayers. Join us as we explore the key insights surrounding
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
As the world becomes increasingly interconnected, the risk of cyber threats continues to grow. One particular menace that has been making headlines is the surge in global crypto attacks. With cybercriminals constantly evolving their tactics, it is crucial for individuals and businesses to be aware of these risks and take proactive steps to safeguard their
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
The recent expose of businesses underpaying workers across the UK has highlighted a persistent issue: fair pay remains a key challenge for many organizations operating in the country. At the forefront of this scandal is WH Smith, a high street staple and reputed responsible employer that owes over 17,600 workers £1.01m in wages. This revelation
2023 has seen changes to Corporation tax and the National Living Wage. Corporation tax is a tax based on a company’s profits and is currently set at 19%. Since April 1st 2023, it has been increased to 25% for companies with profits over £250,000, whereas for companies with profits under £50,000, it will remain at
HMRC is exploring ways to simplify the tax treatment of crypto assets used for decentralised finance (DeFi) transactions. The proposal would stop treating these types of assets as a disposal, which is often subject to capital gains tax (CGT). Instead, DeFi users will likely be taxed on their underlying income when engaging with such transactions.
The Spring Budget 2023 announcements by the Chancellor of the Exchequer Jeremy Hunt are highly anticipated in terms of what they will mean for citizens and businesses alike. One of the main topics to be addressed is taxation, with reports suggesting that there may be a shift towards personal tax increases as well as potential
UK Crypto Tax If you’ve made any gains through your cryptocurrency investments, it’s important to note that they must be included when filing taxes. In many cases, HMRC considers crypto transactions as taxable income, so it pays to understand how it works and what you need to report to stay compliant with the law. Here
The new GDPR course from STS Training is perfect for staying up-to-date and compliant with the ever-changing data protection regulations. Our comprehensive program covers everything you need to know, including what GDPR is, why it matters and its scope. We also cover the principles and rights that must be observed, including: The responsibilities of data
More and more businesses are utilising crypto, which has led to more and more initiatives to control it, including CARF by the OCED. The G20 recently requested the development of an ‘automatic exchange of information between countries on crypto-assets. The Crypto-Asset Reporting Framework, or CARF, was presented to G20 ministers and Central Bank Governors in
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
The last few weeks have been…interesting to say the least and as you may know, there was a change to the mini-budget. New chancellors, reversals on top of reversals and now a new PM have bombarded the headlines. If you’re thinking ‘hang on, isn’t there already a blog about the mini-budget?’ then don’t worry. You’re
*UPDATE* As you may be aware of, on the 3rd of October 2022 Kwasi Kwarteng (Chancellor of the Exchequer) retracted the planned abolition of the 45p tax rate. In the update announcement it states; “It is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle
We are delighted to announce that we have been awarded the Highly Commended award at this year’s BIBAs award. Our accomplishment – Highly Commended Award The BIBAs (Be Inspired Business Awards) is the longest running and most acclaimed ceremony in Lancashire so we are incredibly honoured to have been nominated and have our work recognised
Research and Development Tax Credits – Changes from April 2023 Research and development tax credits relief will see changes in the way businesses apply for the relief, from April 2023. Additionally, the introduction of new qualifying measures will make the relief more accessible to a wider range of businesses. Changes when submitting research and development tax
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
BIBAs 2022 Finalists – Micro Business of the Year We are so pleased to be named BIBAs 2022 finalists in the category Micro Business of the Year. It is a great achievement for our team to reach the final, for a second year! We are very much looking forward to the awards ceremony in Blackpool,
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
Gifting property – Does capital gains tax apply? Gifting a property can be a way of reducing your Inheritance Tax liability. However, it is important to be aware that other taxes, such as capital gains tax, may be levied. HMRC deems the act of giving away your property as a disposal for capital gains tax
Research and Development Tax Credit Update HMRC has provided an update on Research and Development Tax Credit payments, via the CIOT. Investigations into irregular claims are still ongoing. Furthermore, HMRC has made it clear that the investigations are to stop the abuse of the relief. However, delays in the processing time of claims have increased.
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
Dividends – When to pay tax Dividends are shares of profit paid out by limited companies. A company’s shareholders receive dividends when it makes a profit. A limited company can only declare dividends if it makes enough profit after paying all its liabilities and expenses. The amount of dividends relates to how many shares a
Research and Development tax credit payments on hold HMRC have paused Research and Development tax credit payments. Investigations are also now underway into irregular claims for the tax relief. HMRC says that most of the claims are genuine and that the investigations should have no impact. However, delays are now expected when processing R&D claims,
NFTs and UK Tax NFTs and cryptocurrencies have become undoubtedly popular, especially since NFT was Collins Dictionary’s word of the year for 2021. Non-fungible tokens (NFTs) are unique sets of data on a blockchain. The term non-fungible refers to an asset that is unique and cannot be exchanged like-for-like. Fungible items, such as Bitcoin, can
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
R&D Tax Relief – Does your business qualify? Research and Development Tax Relief (R&D) is a relief that businesses may be able to claim if they incur expenses whilst developing or enhancing existing products, services or processes. Many different businesses can claim R&D relief if they seek to research and develop an advancement in their
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
Crypto Tax UK Cryptocurrency investors should be aware of the UK crypto tax implications. Tax implications can arise when selling or exchanging cryptocurrencies. HMRC released a statement in 2019 confirming that individuals selling cryptoassets will be subject to capital gains tax (CGT). CGT will be due on profits made, over the tax-free annual allowance threshold.
What is the Enterprise Investment Scheme? The Enterprise Investment Scheme (EIS) is a government backed initiative. The scheme encourages investors to buy shares in companies that are higher risk. In exchange, individuals receive generous tax reliefs. Under the Enterprise Investment Scheme, businesses can raise up to £5m each year. Although, a business can only claim
New Tax Year 2022/23 The 2022/23 tax year begins today, 6 April 2022 and ends on 5 April 2023. Each new tax year has the potential to bring an element of change to individual taxes and business taxes. Over the course of the year, Chancellor Rishi Sunak has announced numerous tax updates which take effect
What is the Corporate Criminal Offence (CCO) legislation and how does it apply to you? In 2017, HRMC introduced the CCO legislation, to help prevent the facilitation of tax evasion in UK businesses and offshore trust companies. The CCO legislation applies to all companies and partnerships, no matter their size or services provided. Companies will
Spring Statement 2022 Chancellor Rishi Sunak announced his Spring Statement in the Commons today (Wednesday 23rd March). There have been calls for the Chancellor to scrap the health and social care levy, over the past few months, in response to the cost of living squeeze. Pressure was also being applied to introduce a fuel duty
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%
Government announces council tax rebate Chancellor Rishi Sunak has laid out a £9.1bn support plan which is set to offer a helping hand to households, as energy prices soar. The plan includes a loan to cover some of the increased costs and a discount on council tax. Sunak’s plan comes as the energy price cap
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
Government announces £1bn support package for businesses affected by Omicron The Chancellor has announced a £1bn support package for businesses hit hard by Omicron. Businesses within the hospitality and leisure sectors in England will be able to claim one-off grants of up to £6,000. It was recently revealed that hospitality businesses have seen a steep
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
UK Crypto Tax Cryptoassets have undoubtedly grown in popularity over the past two years and with cryptocurrency prices increasing at a rapid rate, many investors are likely to have made sizeable gains. But are investors aware of UK crypto tax implications? In a statement released in 2019, HMRC confirmed that individuals selling cryptoassets will be subject to
Research and Development tax credit changes Research and Development (R&D) tax credits are intended to support companies who invest in science and technology projects. To qualify for R&D tax credits companies must be developing or enhancing new or existing products, services or processes. Staff costs, software and research contributions all qualify under R&D. However, during
Over the course of the year, the Chancellor has announced some key personal tax updates in both his Spring Budget and Autumn Budget. Many changes are due to take effect from 2022/23. Tax rates and allowances 2022/23 As announced in the Spring Budget earlier this year, the personal allowance of £12,570 and the basic rate
Chancellor Rishi Sunak delivered his Autumn Budget announcement in parliament today to outline government spending and plans for the future. In the Budget, Rishi Sunak set out measures to support the recovery of the UK economy following what has been a difficult year for many families and businesses. Although it was announced prior to the
The Chancellor is due to announce his Autumn Budget to Parliament tomorrow. The Autumn Budget will be the second financial statement, following the Spring Budget earlier this year. Any tax changes announced will be in addition to the recent 1.25% National Insurance social care levy and the £20bn freeze in income tax allowances. What could be
The Chancellor is set to announce an increase to the national living wage from £8.91 to £9.50 per hour. The national living wage is predicted to rise for workers aged 23 and over. Those below the age of 23 are paid the national minimum wage, which varies depending on age. The current rates are £4.62
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
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
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
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
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
The Prime Minister has announced a 1.25% National Insurance increase to fund the health and social care system, after it has been hit hard by Covid over the past 18 months. The National Insurance increase will take effect from April 2022. Employees, companies, and freelancers will pay the new 1.25% tax, which will be
In April 2020, the government announced a temporary tax break for those working from home, as an effect of the coronavirus pandemic. Although many workers are now returning to the office, you can still claim tax relief for working from home this tax year, even if it was just for one day. Depending on
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
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
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
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
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.
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
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
Does capital gains tax (CGT) 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, such as capital gains tax, which may be incurred. Certain taxes will be due depending on specific factors such as, who the
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
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
STS (Europe) is partnering with NORI HR to deliver an insightful webinar, based on the latest changes to the IR35 employment status legislation. We will be exploring the link between IR35 and employment law and the importance of not breaching the Corporate Criminal Offence. STS (Europe) will provide an update on HMRC’s Corporate Criminal Offence,
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
Since the introduction of the furlough scheme back in March 2020, more than £60 billion has been claimed through the furlough scheme. Whilst the furlough scheme has been used to protect over 11 million jobs, there have been instances where the scheme has been exploited. Last month a couple from Yorkshire were arrested as part
Furlough Scheme – When do employers need to contribute? The furlough scheme was announced in 2020 as a means for employers to retain their staff during COVID-19. Under the furlough scheme, employees currently receive 80% of wages for hours not worked, up to a total of £2,500 a month. However, this is set to change
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 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
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
Selling a property with a dedicated home office? Check 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
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
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
As of April 2020, landlords and those selling second homes must declare and pay any capital gains tax due, within 30 days. HMRC revealed that thousands of landlords have incurred fines for failing to pay the tax within the 30-day window. Latest figures from April 2020 to January 2021 show that 51,300 capital gains tax
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
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
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
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
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%
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
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
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
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
A 2% stamp duty land tax (SDLT) surcharge now applies to transactions of residential property in England and Northern Ireland, for non- UK residents. The new surcharge came into effect on 1st April 2021. The surcharge applies to purchases of freehold and leasehold property, as well as increasing the SDLT on rents on the 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 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
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
Following the UK’s exit from the European Union, the government announced a £20m fund to provide support for small and medium-sized enterprises adjusting to the changes in importing and exporting. SMEs can apply for up to £2,000 to help cover costs of training and seeking professional advice to help with changes to rules regarding customs,
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
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
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
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
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
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
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
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
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
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 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
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
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
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
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
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
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
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
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.
Earlier this week, the government announced a new £20 million Brexit Support Fund to help small and medium sized businesses (SMEs) adjusting to the new customs and VAT rules, when trading with the EU. The Fund will comprise of grants of up to £2,000 per business. The grant is intended to cover: Training on managing
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
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
Ahead of the March Budget, rumours have been circulating regarding what tax changes Chancellor Rishi Sunak plans to make. Reportedly, the Treasury may be planning to freeze personal income tax allowances for the two lower tax thresholds. This would mean that the thresholds £12,500 and £50,000 would not rise in line with inflation. Currently, basic
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
Supermarket retail giants have asked the Chancellor to introduce a sales tax for online competitors, to create a level playing field. They have said that the current tax system puts retailers with large estates at a disadvantage compared to online retailers. Property based business rates have been temporarily paused since the start of the coronavirus
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
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
Chancellor Rishi Sunak is under pressure from MP’s to end stamp duty and council tax. Under the proposal, homeowners would no longer pay council tax and stamp duty would be abolished for primary residences. The proposal is expected to benefit 19 million households. Instead of paying council tax, households would pay a proportional property tax
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,
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
HMRC has recently published a list of employers who have made a claim under the Coronavirus Job Retention Scheme. The list represents those employers who have claimed for periods in December 2020. As of February 2021, HMRC will publish a list of employers claiming under the scheme along with an indication of the value being
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
Following the result of over 100,000 signatures on an online petition to extend the stamp duty land tax holiday, parliament announced that MP’s will debate extending the holiday on 1st February 2021. The stamp duty land tax holiday was introduced last year to try and keep the housing market stable during the coronavirus pandemic. The
Post-Brexit rules came into force on 1st January 2021, despite the Free Trade Agreement with the EU, the UK is now facing new taxes and charges on goods sent between the EU and the UK. Many UK consumers have been faced with unexpected charges, in order to receive their goods. As the UK is no
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.
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.
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.
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
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 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
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
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
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
Following the official departure from the EU, Great Britain is currently in the transitional period until 31st December 2020. From 1st January 2021, a new model for VAT treatment of goods arriving from overseas will be introduced. HMRC will be moving the point at which VAT is collected from the current point of importation to
The government has extended the temporary 5% reduced VAT rate. The temporary rate was originally planned to end on 12th January 2021 however, it has now been extended to 31st March 2021. These changes have been introduced in response to the Covid-19 pandemic to support those businesses affected most. The extension of the 5% reduced
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
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
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
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
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
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
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
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
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
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
HMRC have updated their ‘How to contact HMRC to discuss a time to pay arrangement’ section on their website. New information includes how it may be possible to set up a payment plan online, for a self-assessment tax bill, without contacting HMRC. A payment plan, for a self-assessment bill, can be set up to spread
Stamp Duty Land Tax rates are potentially set to change from 1st April 2021, for non-UK residents. The new rates will see a rise of 2% points higher than applications to purchase made by UK residents. This change will apply to both purchases made on freehold and leasehold property as well as being payable on
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
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
The Chancellor Mr. Rishi Sunak has delivered his latest economic statement. In his announcement, The Chancellor began by acknowledging the frustration of those living in Tier 3 local lockdown areas. He then reiterated that the treasury have a plan to save jobs and backed the Prime Minister’s local lockdowns. Sunak announced the further steps he
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
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
Keep up to date with the key announcements made over the last 2 weeks. Winter Economic Plan The Chancellor, Rishi Sunak has laid out the latest support package for the ongoing coronavirus pandemic. In his speech to the house of commons yesterday, Sunak confirmed that the furlough scheme would indeed end on 31st October as
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
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
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
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
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
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.
HMRC have published guidance on when you can claim reliefs to pay less customs duty and VAT if you re-import goods to the UK and EU. The relief which is known as Returned Good Relief, can be claimed where goods are re-imported into the UK or EU that had been previously exported. Goods must have
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
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
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
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
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
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
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
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
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
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
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
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
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 –
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,
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
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
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
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
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
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
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
On Friday 29 May, the Chancellor, Rishi Sunak, announced the gradual phasing out of the Coronavirus Job Retention Scheme (CJRS) with its complete conclusion set to take place on 31 October 2020. The changes outlined mean that employers will be required to gradually take back responsibility for the salaries of any furloughed employees until the
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
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
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
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
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
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
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
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
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
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).
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
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
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
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,
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
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
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
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
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
Following on from the interest rate cuts announced last week from 0.75% down to 0.25%, the Bank of England (BOE) announced a further cut to 0.10%. The lowest in the 325 year history of the bank. The latest move was announced by Andrew Bailey, the new governor of the BOE . In his first week
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
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
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
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
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
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
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,
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.
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
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.
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.
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
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
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
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
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
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
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
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
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
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
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
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
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
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
The 10 Year Charge (Decennial Charge) The 10 year charge (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
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 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,
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.
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
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
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
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.
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
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
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
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
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
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
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
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
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
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
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
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.
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
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.
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
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
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
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
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
Mixed Funds Cleansing Deadline for UK Deemed Domiciles and Non-Domiciles The deadline to take advantage of the mixed funds cleansing legislation is fast approaching for individuals. UK Resident Non-Domiciled and UK Deemed Domiciled individuals have the opportunity to cleanse their offshore mixed funds account. Individuals must take advantage of this before 5 April 2019. The
