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Capital Gains Tax

Understanding Capital Gains Tax Changes: Implications and Planning Opportunities

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

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October Budget Announcement 2024
News

October Budget Announcement 2024

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

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private schools
News

A New Era for Private Schools: The End of Tax Breaks and Introduction of VAT

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

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Big Changes Coming for Non-Domiciles: inheritance tax charges
Capital Gains Tax

Big Changes Coming for Non-Domiciles: inheritance tax charges

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tax landscape awaits ‘non doms’ in the UK from the coming year, as the Labour government hardens plans to dissolve the ‘outdated’ tax benefits and revamp the inheritance tax (IHT) accountability.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

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Where are the new non-dom hubs
News

Where are the new non-dom hubs?

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

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extracting profits
Capital Gains Tax

Extracting Profits in 2024/25: A Guide

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

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VAT reverse charges
Brexit

Unraveling the Complexity of VAT Reverse Charges

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,

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stamp duty land tax
HMRC

June marks the end of multiple dwellings relief for Stamp Duty Land Tax

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

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HMRC

Non-Dom Status Abolished: Impact on UK Tax Policy and Global Investors

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

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Tax Updates

Analyzing the Impact of the Spring Statement 2024

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

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HMRC

Debunking the ‘Side Hustle Tax’ Myth: What You Need to Know

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

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Tax Updates

Tax Rebate for Electric Car Charging: Maximising the Benefits

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,

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Research and Development

Autumn Statement 2023 Part 2: R&D Tax Relief and Investment Zone Expansion Drive Economic Prosperity

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,

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HMRC

Do We Need to Register for VAT? A Comprehensive Guide

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

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spring budget
Tax Updates

Spring Budget Announced!

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

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autumn budget
HMRC

Autumn budget announcement – Everything you need to know

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

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HMRC

NICs and SSC guidance for workers coming to the UK

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

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iht
HMRC

HMRC have updated their guidance on inheritance tax (IHT)

  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

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new change
Tax Updates

New mini budget update – a new change

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

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mini budget
Tax Updates

Mini Budget Announcement

*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

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Interest rates
HMRC

Interest rates increase for late tax bills

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

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tax year
Tax Updates

New Tax Year 2022/23

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

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Spring Statement
Tax Updates

Spring Statement 2022

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

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council tax rebate
Tax Updates

Government announces council tax rebate

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

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personal tax
Tax Updates

Personal tax changes

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

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Autumn Budget Announcement
Tax Updates

Autumn Budget Announcement

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

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national living wage increase
Tax Updates

National living wage set to increase to £9.50 per hour

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

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Tax Updates

Property landlords can now benefit from the super-deduction

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

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Coronavirus Updates

Stamp Duty Land Tax holiday phase out

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

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national insurance increase
Tax Updates

HM Treasury announces further tax consultations – how will you be affected?

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

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HMRC

Temporary tax easement for cycle-to-work schemes effected by coronavirus

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’

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register for self-assessment
HMRC

The process for claiming R&D relief will change from April 2021

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

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register for self-assessment
HMRC

Guidance update for businesses settling deferred VAT due to coronavirus

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

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HMRC

Extension to late loan charge spreading elections

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

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HMRC

Virtual Christmas party tax relief update

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

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register for self-assessment
HMRC

New changes to off-payroll working rules (IR35)

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

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register for self-assessment
HMRC

Government has proposed draft legislation for Plastic Packaging Tax

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

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STS Europe Ltd
Tax Updates

Weekly Round-Up of Latest Tax Updates 16/11/20

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

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HMRC

Capital gains tax could be increased and brought in line with income tax

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

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STS Europe Ltd
Tax Updates

Weekly Round-Up of Latest Tax Updates 30/10/20

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

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Tax Updates

Tax Update 09/10

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

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Tax Updates

Tax Update 02/10

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

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making tax digital
Tax Updates

Tax Update 11/09

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

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Tax Updates

Tax Update 04/09

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

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Tax Updates

This Weeks Tax Announcements 28/08

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

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Tax Updates

Tax update 21/08

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

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making tax digital
Tax Updates

Tax Update 7/8/2020

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

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Tax Updates

Tax Update 31/7/2020

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 –

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national living wage increase
Tax Updates

Tax Update 24/07/2020

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,

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Tax Updates

Tax Updates 10/07/2020

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

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Tax Updates

Tax Update – 03/07/20

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

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Tax Updates

Weekly Review – Personal Tax Announcements 29/05/20

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

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Tax Updates

Weekly Review – Personal Tax Announcements 22/05/20

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

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Tax Updates

Weekly Review – Personal Tax Announcements 15/05/20

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

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Tax Updates

Round up of Personal Tax Announcements 11/05/20

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

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Coronavirus Updates

Tax Reliefs for Working from Home

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

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Tax Updates

Vehicle Tax Rates for 2020/21

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

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Tax Updates

Tax treatment of staff parties and gifts to employees

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

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mixed funds
Tax Updates

Tax Returns 2018/19

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

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mixed funds
Tax Updates

Personal Tax Update 2019/20

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.

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