The business environment within which we operate is constantly changing, and we recognise the importance of being able to advise clients of the impact of new legislation and other regulations whenever they are introduced.
Please contact us for further information on the details below. You should not take any action on this information without first checking with us how this might impact on your own specific circumstances. News items do not constitute advice and we do not accept responsibility for any actions taken that are based solely upon reading this website.
Some interesting announcements were made in the July budget following this year’s general election. (i) The income tax relief buy to let landlords can claim on residential property is to be restricted to the basic rate of income tax. This change will be introduced gradually from April 2017. (ii) The Annual Investment Allowance (AIA) which provides a 100% deduction for most plant and machinery purchased by a business is to be set permanently at £200,000 from 1 January 2016. This is a welcome announcement which will provide certainty after so many recent changes in the limit. (iii) A new transferable nil rate band of inheritance tax relief is to be introduced for the family home. The additional band will apply where a residence is passed on death to direct descendants such as children or grandchildren. The amount will be £100,000 from 2017/18.
(Updated July 2015).
HMRC have issued useful guidance for those employers who pay casual employees working outdoors harvesting perishable crops, or as casual beaters for a shoot. You may not have to deduct income tax if you pay these workers for 2 weeks or less. Please contact us if you would like further information.
(Updated June 2015).
The government has announced the introduction of a new type of ISA, the ‘Help to Buy ISA’ which will provide a tax free savings account for first time buyers wishing to save for a home. The scheme will provide a government bonus at the point savings are used to purchase a saver’s first home. For every £200 a first time buyer saves, the government will provide a £50 bonus up to a maximum bonus of £3,000 on £12,000 of savings. The Help to Buy ISA scheme is expected to be available from autumn 2015.
(Updated May 2015).
From 6 April 2015 certain married couples and civil partners may be eligible for a new transferable income tax allowance. The allowance will enable eligible spouses to transfer a fixed amount of their personal allowance to their spouse. The amount is however restricted and certain conditions apply.
(Updated February 2015).
From 6 April 2015 the requirement for contractors within the construction industry scheme (CIS) to make a monthly return to HMRC even if no payments have been made in that month, will be abolished. This is a welcome change in order to reduce administration. Other changes will enable more sub-contractors to achieve gross payment status.
(Updated January 2015).
Late RTI (payroll) filing penalties already in force for larger employers will affect all employers from 6 March 2015. Automatic in year penalties for late payment of PAYE remittances will also begin from April 2015 for all employers. It is therefore now very important that PAYE scheme filing and payments are kept up to date.
(Updated January 2015).
A major reform of Stamp Duty Land Tax (SDLT) on residential property transactions was announced in the Autumn Statement this month. Historically SDLT has been charged as a single percentage of the price paid for the property depending on the rate band within which the purchase price falls. From 4 December 2014 each new SDLT rate will only be payable on the portion of the purchase price which falls within each band.
(Updated December 2014)
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(Updated September 2014)
Please note that HMRC will shortly start to issue penalty notifications for late online RTI submissions of PAYE information. The penalties are to be introduced from October 2014.
For advice on PAYE matters please get in touch with us.
(Updated August 2014)
New inheritance tax rules for Trusts have been proposed and will be backdated to 6 June 2014 once legislation has been enacted. This will be of most concern to those who have created more than one trust.
(Updated August 2014)
HMRC has written to certain taxpayers to tell them their effective tax rate is lower than average and asks you to check if it is right. If you receive one of these letters there should be no cause for alarm as there are many legitimate reasons why this situation can exist. Nevertheless, please let us know if you receive one of these letters and we will respond to HMRC for you.
(Updated June 2014)
Changes are proposed with regard to LLP partnerships so as to tax individuals who receive fixed profit shares as if they are employees.
(Updated February 2014)
Of more concern however is the proposed introduction of anti-avoidance measures for partnerships which route profits through limited company members. The intention being to re-allocate those profits in certain circumstances. We will be keeping an eye on developments.
(Updated February 2014)
It was announced in the Autumn Statement that there will be changes made to the rules for capital gains tax Private Residence Relief. The final period of exemption for deemed occupation (where an individual is not living in the property) is to be reduced from 36 months to 18 months for disposals made after 6 April 2014.
(Updated December 2013)
HMRC have announced that they are changing their Business Record Check activity to ensure 'it better targets help to those who are likely to have inadequate records'. If we become aware that our clients' business records are inadequate we will offer help to remedy the situation. If you are contacted by HMRC regarding your business records please contact us.
(Updated November 2013)
Employers will no longer be able to recover Statutory Sick Pay (SSP) for periods after 6 April 2014. (Updated November 2013)
The government has announced that from April 2015 married couples and civil partners may be eligible for a new Transferable Tax Allowance. This will help couples where one partner does not have income to use all of their personal allowances. However the relief will be quite limited in scope and the tax saving no more than200.
(Updated October 2013)
This month will see the start of a new tax year with an increase in personal allowances for income tax from8105 to9440. Higher rate taxpayers will not be better off due to a corresponding reduction in the higher rate threshold to32010.
(Updated April 2013)
HMRC expect most employers to begin Real Time Information (RTI) in April 2013. All employers will be required to routinely report PAYE in real time by October 2013 in time for the introduction of Universal Credit. RTI means that employers will tell HMRC about employee's pay and deductions on or before the time that employees are paid. Please contact us for information about how this will affect you if we are not already processing your payroll.
(Updated September 2012)
We note with interest a recent inheritance tax case decided before the First Tier Tribunal (Hanson v HMRC) concerning agricultural property relief and farmhouses. The Tribunal concluded that 'occupation' rather than 'ownership' of a farmhouse was the key point in the test as to whether it was of a 'character appropriate' to land farmed from the farmhouse.
(Updated May 2012)
Some clients have received fraudulent emails purporting to be from H M Revenue & Customs (HMRC) advising that repayments of tax are due. Please always check with us first regarding tax repayments due (normally we will have advised you in advance) and never click on links to websites or open attachments contained in these emails without first checking their authenticity.
(Updated October 2011).
CHRIS YOUNG BA, MIAgrM, CTA
Changes are proposed with regard to taxation of partnerships.
Changes made to the rules for capital gains tax Private Residence Relief.
A new Transferable Tax Allowance.
Statutory Sick Pay (SSP) changes.
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