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VAT and Brexit

2020-02-11T22:21:09+00:00February 16th, 2020|Categories: Blog, VAT|Tags: , , |

HMRC have not yet issued any guidance as to how imports and exports to the EU and out with the EU should be recorded for VAT return purposes after 31 January 2020, what happens with the reverse charge, and what should be recorded in boxes 8 & 9 of the VAT return. The last guidance given was in the case of a no deal Brexit and we are monitoring any new advice as it is issued. HMRC have said: - There will be NO requirement to complete an EC sales list for sales after 1 January 2021. - Intrastat returns [...]

Increased National Minimum Wage rates from April 2020

2020-02-11T22:17:18+00:00February 14th, 2020|Categories: Blog, PAYE|Tags: , , , |

Some three million workers are set to benefit from increases to the National Living Wage (NLW) and minimum wage rates for younger workers from 1 April 2020. The compulsory NLW is the national rate set for people aged 25 and over. The NLW is enforced by HMRC alongside the national minimum wage (NMW), which they have enforced since its introduction in 1999. Generally all those who are covered by the NMW, and are 25 years old and over, will be covered by the NLW. These include: - employees; - most workers and agency workers; - casual labourers; - agricultural [...]

CGT on Cryptoassets

2020-02-11T22:13:54+00:00February 11th, 2020|Categories: Blog, Taxation|Tags: , , , , , , , |

Cryptoassets are a relatively new type of asset that have become more prevalent in recent years. New technology has led to cryptoassets being created in a wide range of forms and for various different uses. Cryptoassets (or 'cryptocurrency' as they are also known) are cryptographically secured digital representations of value or contractual rights that can be: - transferred - stored - traded electronically While all cryptoassets use some form of Distributed Ledger Technology (DLT) not all applications of DLT involve cryptoassets. HMRC do not consider cryptoassets to be currency or money. They have identified three types of cryptoassets: - [...]

HMRC advisory fuel rates from 1 December 2019

2020-01-03T11:58:05+00:00January 5th, 2020|Categories: Blog, HMRC, Taxation|Tags: , , |

HMRC have published company car advisory fuel rates for use from 1 December 2019. The rates apply when employers reimburse employees for the cost of fuel for business travel in their company cars or require employees to repay the cost of fuel used for private travel. HMRC review rates quarterly on 1 March, 1 June, 1 September and 1 December. The rates applying from 1 December 2019 are as follows: Petrol and LPG Engine size 1400cc or less: petrol 12p per mile, LPG 8p per mile 1401cc to 2000cc: petrol 14p per mile; LPG 9p per mile Over 2000cc: petrol [...]

What does the General election mean for tax?

2020-01-03T11:50:32+00:00January 3rd, 2020|Categories: Blog, Taxation|Tags: , , |

Following the General election on 12 December, Prime Minister Boris Johnson has confirmed that Sajid Javid remains as Chancellor of the Exchequer and no other changes at HM Treasury have been announced. The Prime Minister has however, confirmed that a more significant cabinet reshuffle will take place after the UK leaves the EU on 31 January 2020. The Conservative manifesto set out a fairly limited number of tax pledges, with commitment to a triple lock on income tax, national insurance contributions (NICs) and VAT, which means there should be no tax hikes forthcoming in these areas. Moreover, the government has said it will [...]

Should I incorporate my business?

2019-12-18T23:25:53+00:00December 27th, 2019|Categories: Blog, Business, Limited Company, Self Employment|Tags: , , |

As things currently stand, the expected cut in the main rate of corporation tax to 17% from April 2020 is unlikely to happen, but current corporation tax rates remain pretty favourable. There are also other areas where company formation may help save tax. The costs and regulations involved with running a company are usually greater than trading as a sole trader or in partnership, and should not be overlooked. In addition, incorporation generally means an increase in administration, which some businesses may find burdensome. The starting point for dealing with companies and company directors is to remember that a limited company [...]

Should I register for VAT?

2019-12-18T23:21:11+00:00December 21st, 2019|Categories: Blog, Business, VAT|Tags: , , , |

In broad terms, and subject to certain exceptions, a business will be required to register to charge and pay VAT once annual sales reach a pre-set annual threshold, which is currently £85,000. This threshold is determined by total sales and is not the same as total profits (which is generally sales minus expenses). However, a business can register for VAT even if its turnover (total sales) is below the threshold and it may actually save tax by doing so, particularly if its main clients or customers are organisations that can reclaim VAT themselves. Example Bill is a non-VAT registered [...]

Tax-free Christmas parties

2019-12-18T23:18:20+00:00December 19th, 2019|Categories: Blog, Business|Tags: , , |

Whilst the tax legislation does not include a specific allowance for an employer providing a Christmas party for employees, HMRC do allow limited tax relief against the cost of holding a social function for employees, providing certain conditions are met. Broadly, a social event - which of course, includes the annual Christmas party - will qualify as a tax-free benefit if the following conditions are satisfied: - The total cost must not exceed £150 per head, per year; - The event must be primarily for entertaining staff; and - The event must be open to employees generally, or to those at [...]

Salary or bonus?

2019-11-01T21:15:38+00:00November 9th, 2019|Categories: Blog, PAYE|Tags: , , , |

As 31 December approaches, many companies will be getting ready to tie up tax matters for their financial year-end and giving consideration to salaries, bonuses and dividends. Given current tax rates, paying a dividend rather than a salary will often be a more cost-effective way of withdrawing profits from a company. However, if the company is loss-making and has no retained profits, it will not be possible to declare a dividend, and an alternative will need to be considered. This often involves an increased salary or a one-off bonus payment. From a tax perspective, the position will be the same [...]

Private residence relief and the final period exemption

2019-10-28T23:04:14+00:00October 31st, 2019|Categories: Blog, Property, Taxation|Tags: , , , |

Private residence relief (also called main residence relief) is well known. It prevents a liability from capital gains tax arising on any gain on the disposal of a property which has been the taxpayer’s only or main residence throughout the period of ownership. Where a property has not been the only or main residence throughout, the amount of private residence relief is reduced. It is available both for the period during which the property was the taxpayer’s only or main residence and, currently, the final 18 months of ownership (the ‘final period exemption’). Where the property has been let, [...]

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