The latest news from the world of taxation, brought to you by the experts at Vantage Fee Protect.
Tax Articles
Are you ready for the plastic packaging tax?
Craig Harman explains the new plastic packaging tax will mean for businesses and why they should be planning for the changes now. The UK uses an estimated five million tonnes of plastic every year, nearly half of which is packaging. As the plastic problem worsens, countries across the globe have been looking at ways to…
TAX PLANNING WITH SHARES AND SPOUSES – AVOID THE TRAPS!
Many “one-man” companies, and indeed many “close” companies within the OMB/SME sector, utilise their directors’ tax free allowances by paying them a small salary, usually up to the primary threshold, so as to incur no PAYE or NICs but still maintain entitlement to state benefits and the state pension. The company gets corporation tax relief…
Goodwill Hunting
Mark McLaughlin points out two circumstances in which business owners may be thankful for goodwill in the business The valuation of assets can be important for tax purposes. For example, a valuation may determine the amount of inheritance tax (IHT) payable on a lifetime transfer (e.g. the transfer of an investment property to a discretionary…
Deal Or No Deal?
Mark McLaughlin points out that some shareholders may prefer proceeds from a company purchase of their shares to be treated as income rather than capital for tax purposes. Individual shareholders selling their shares back to the company normally prefer the proceeds from the share disposal to be treated as a capital receipt, where possible. This…
Late Payment Penalty – Don’t get caught out!
The payment deadline for the second payment on account for 2020/21 is 31 July 2021. Failure to meet this deadline will result in interest being charged at the rate of 2.6% by HMRC from 1 August 2021 until the outstanding amounts are settled. Given the current situation many taxpayers may also have tax outstanding from…
Professional Indemnity Insurance & Regulation in the Tax Advisor Market
At The Spring Budget in 2020 the Government asked for evidence to look at ways to raise standards in the tax advice market. As part of this the Government sought to seek views on making professional indemnity insurance (PII) compulsory for all tax advisers and launched a consultation on 23 March. We are still awaiting…
Budget 2021 – Further Changes Explained
On 3 March 2021 the Chancellor delivered his 2021 Budget upon the backdrop of the current Covid pandemic, and the Governments continued pledge to support businesses through the crisis. While the Budget contained many numbers of changes in regard to the direct side of taxation, there were very a few changes in regards to VAT,…
Budget 2021: Stamp Duty Land Tax
Given the high take up of property purchases following the temporary increase of the 0% SDLT rate to £500,000 which was due to end on 31 March 2021, there are many property transaction which were unlikely to complete in time to enjoy the break. Initially this was to be a finite break and the band…
Budget 2021: Changes to Corporation Tax
In his Budget Speech on 3 March 2021 the Chancellor, Rishi Sunak, announced a number of changes to Corporation Tax. First the rate of CT will remain at 19% for the next 2 financial years until 1 April 2023 when it will be increased to 25%. However, this rate will only apply to those companies…
HMRC refuse to move on filing deadline
Representatives from the professional accountancy bodies met with HMRC to urge them to move the 31 January 2021 filing deadline in response to the COVID-19 situation and whilst HMRC ultimately decided not to grant an extension, they have clarified the position on penalties. Self-assessment Following the impact of the current pandemic, most people expected HMRC…
Adversely affected business by coronavirus
Self-Employment Income Support Scheme What is an Adversely Affected Business? A taxable grant was payable to eligible self-employed individuals (and partners) in the course of the COVID-19 crisis. HMRC will and have already started policing claims to ensure that only those eligible were in receipt of the grant. Many of the qualifying criteria are factual.…
COVID-19 Statutory Self-Employment Pay Scheme
On 26 March 2020, the Chancellor announced the following new measures to help self-employed businesses through the current Coronavirus pandemic. The scheme is intended to allow those individuals who are self-employed claim a taxable grant of up to 80% of their trading profits up to a maximum of £2,500 per month for the next three…
Coronavirus update – Deferment of July 2020 Payment on Account
HM Treasury have recently released an update on the option for a taxpayer to defer their second Self-Assessment Payment on Account which would usually be due by 31 July 2020. What is it? The Self- Assessment payment on account, that is ordinarily due to be paid to HMRC by 31 July 2020 may now be…
What is IR35?
IR35 is a set of tax rules which form part of the Finance Act. The original part of legislation came into force in April 2000 and is correctly known as the Intermediaries Legislation. IR35 takes its name from the original press release published by the then Inland Revenue informing of its creation. IR35 is a…
History of Goodwill
We are often asked for the various dates relating to amortising goodwill for tax in companies. So here is a summary: From the 1ST April 2002: Creation, acquisition or enhancement of goodwill could be amortised for tax. Although connected parties transferring goodwill on incorporation could only amortise for tax if the goodwill if had been…
Pension Annual Allowance and the over 55s and Pensions Recycling
Since 6th April 2015 it has been possible for those over 55 to flexibly access their defined contributions pension schemes (money purchase schemes). Normally 25% of the pot will be taken as a tax free lump sum and the balance receivable as a taxable pension. Careful planning could present an individual with an opportunity to…
Extension to Entrepreneurs Relief – Investors Relief
When Business Asset Taper Relief was abolished on 5 April 2008 and Entrepreneurs Relief succeeded from 6 April 2008 there were definitely some that lost out. This was especially the case for individuals who held shares in what had previously been a ‘personal company’, the introduction of Investors’ Relief may go some way to redress…
HMRC Challenges Private Sector Personal Service Companies (PSC)
By now you may have already heard that HM Revenue & Customs has written to around 1,500 PSC’s providing services to pharmaceuticals giant GlaxoSmithKline (GSK), advising them to check whether they are complaint with IR35 rules. For those of you that have no clients providing services to GSK this is what the letter said: “Dear…
Structures and Buildings Allowance (SBA)
The Chancellor announced on 29 October 2018 the introduction of a new capital allowance for new on-residential structures and buildings (SBA). After consultations the draft legislation has been published for the new Structures and Buildings Allowance which differs from the original proposals announced in October 2018. Core structure and timing of relief. This remains as…
Business Property Relief on Furnished Holiday Lettings
Business Property Relief In a recent tax case, the Personal Representatives of Grace Joyce Graham (deceased) v HMRC [2018] TC06536, it was held that inheritance tax business property relief was available on furnished holiday lettings. Business property relief (BPR) IHTA 1984 S103 to 114 Business property relief is available on the value of transfers of…
Taxation of Cryptoassets
HMRC updated the guidance on the tax treatment of cryptoassets, such as bitcoins, on 19th December 2018. The paper sets out HMRC’s view - based on the law as it stands at the date of publication – about how individuals who have cryptoassets are taxed. It does not explicitly consider the tax treatment of cryptoassets…