Asif

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So far Asif has created 75 blog entries.

Reform of Landlords’ Taxation

2017-06-13T14:18:08+00:00June 13th, 2017|Categories: Taxation|Tags: , , , |

The government's plans to allow landlords to use the cash basis for tax purposes were confirmed in the 2017 Spring Budget, but although the proposed legislation was included in Finance Bill 2017, it did not appear in the much reduced Finance Act 2017, which received Royal Assent on 27 April 2017. It is likely that the proposals have been temporarily shelved, pending the outcome of the General Election, and are expected to reappear in a second Finance Bill later this year. If the provisions are subsequently enacted, they are expected to apply retrospectively from 6 April 2017, i.e. for the [...]

IHT: Main Residence Nil-Rate Band

2017-06-08T14:07:17+00:00June 8th, 2017|Categories: Taxation|Tags: , |

From April 2017, each individual spouse or civil partner will be offered a residence nil rate band (RNRB), which is designed to help pass on a home to 'direct descendants', including children or grandchildren, tax-free after their death. The rules governing the inheritance tax (IHT) nil rate band are complex and it is always recommended that prior professional advice is considered. Phasing in of RNRB The RNRB is being phased in over a four-year period as follows: - £100,000 in 2017-2018 - £125,000 in 2018-2019 - £150,000 in 2019-2020 - £175,000 in 2020-2021 Broadly, the new RNRB will be added [...]

VAT Flat Rate Scheme: changes take effect

2017-05-15T16:00:14+00:00May 15th, 2017|Categories: VAT|Tags: , , , |

The VAT flat rate scheme (FRS) is used by many small businesses to help simplify their VAT reporting obligations. Businesses could often gain a cash advantage from using the scheme, but this advantage has been significantly curtailed from 1 April 2017, particularly in relation to service-related businesses. Whilst the FRS continues to operate, many businesses will no longer find it economical to use. Broadly, the FRS is a simplified VAT accounting scheme for small businesses, which allows users to calculate VAT using a flat rate percentage by reference to their particular trade sector. When using the FRS, the business ignores [...]

HMRC launch consultation on employee expenses

2017-05-10T15:54:03+00:00May 10th, 2017|Categories: HMRC|Tags: , , |

As confirmed the Spring Budget 2017, HMRC have launched a consultation on the use of the income tax relief for employees' business expenses, including those that are not reimbursed by their employer. The main objectives of the consultation, which will run until 12 June 2017, are to understand: - if the current rules or their administration can be clearer and simpler; - whether the tax rules for expenses are fit for purpose in the modern economy; and - why the cost to the exchequer of the tax relief for expenses which are not reimbursed has increased. Expenses form an integral [...]

May Questions and Answers

2017-05-08T16:03:31+00:00May 8th, 2017|Categories: Questions & Answers|Tags: , , |

Q. My company owns a car which is used during the day by various employees for business travel only. However, since there is no overnight parking facility at our business premises, one of my employees takes the car home each night and parks it outside his house. He does not use the car privately. Am I correct in assuming that no taxable benefit arises? A. Unfortunately not. To qualify for exemption under the pool car rules, the vehicle must not normally be kept overnight on or near the residence of any of the employees. In addition, home to work mileage [...]

HMRC launch MTD pilot

2017-05-05T15:50:20+00:00May 5th, 2017|Categories: HMRC|Tags: , , |

HMRC have already confirmed that they are committed to having Making Tax Digital (MTD) fully operational by 2020, and recently announced that they would be running a pilot scheme from April 2017 until April 2018. The pilot has now been launched, with customers (both businesses and agents) being invited to sign up for a new way to report income and expenses online. At different stages of the pilot, customers will help HMRC develop and improve the service by: - using accounting software to record their business income and expenses; - sending summary reports of their income and expenses direct from [...]

Automatic Enrolment for Pensions

2017-05-01T15:26:04+00:00May 1st, 2017|Categories: PAYE|Tags: , , |

To encourage workers to start building up retirement benefits, the Pensions Act 2008 introduced certain reforms requiring all employers to offer workplace pension schemes and to enrol eligible workers into their schemes. These reforms are commonly known as the 'automatic enrolment' provisions. Automatic enrolment is currently being phased in, starting with the largest UK employers - eligible employees should have been enrolled by 1 February 2018 at the latest. By October 2018, all existing employers will be required to offer workplace pensions to eligible workers. Broadly, 'eligible workers' are workers who: - are aged between 22 and state pension age; [...]

Apprenticeship Levy

2017-04-20T22:03:40+00:00April 20th, 2017|Categories: HMRC|Tags: , |

The new Apprenticeship Levy takes effect from 6 April 2017. Although the levy affects employers in all sectors, it will only be paid on annual pay bills in excess of £3 million - this means that, according to government estimates, less than 2% of UK employers will pay it. However, from 1 May 2017, changes are also being made to the way that apprenticeships are funded in England. The changes are designed to make it easier for employers of all sizes to navigate and choose the apprenticeship training they want to purchase. Apprentice funding Employers who currently have apprentices working [...]

Change to Class 4 NIC rate reversed

2017-04-16T22:00:49+00:00April 16th, 2017|Categories: Self Employment|Tags: , , |

The Government has confirmed that the proposed increase in the rate of Class 4 National Insurance Contributions, paid by the self-employed on profits from a business, will not now take effect from April 2018. The Chancellor of the Exchequer, Philip Hammond, had announced that the rate would rise from 9% to 10% from 6 April 2018, and again to 11% from April 2019. In a letter to MPs informing them of the decision, Mr Hammond said 'however difficult the fiscal challenges we face, the tax lock and spending ring-fence commitments we have made for this Parliament should be honoured in [...]

April Questions & Answers

2018-07-03T01:07:04+00:00April 14th, 2017|Categories: Questions & Answers|Tags: , , , |

Q. I have recently become aware that one of my employees has been selling my stock and pocketing the cash. As the money has never gone in the till, do I have to account for VAT on it? A. The VAT treatment depends on whether or not you've actually supplied the goods, what happened to them, who was responsible for them at the time and if you've issued a VAT invoice. Generally, where goods are stolen, no supply is made by the business, and so no output tax is due. However, where goods have been sold and cash is stolen, [...]

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