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landscape awaits ‘non doms’ in the UK from the coming year, as the Labour government hardens plans to dissolve the ‘outdated’ tax benefits and revamp the inheritance tax (IHT) accountability.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