Taxation

Obtaining Gross CIS Payment Status

2018-09-12T00:16:00+00:00September 11th, 2018|Categories: Blog, Taxation|Tags: , , , , |

Obtaining Gross CIS Payment Status Although the amount of tax ultimately paid on profits will be the same if you obtain CIS gross payment status, improvements in cashflow and reductions in the cost of credit, such as overdraft interest, should easily make the application process worthwhile. To be eligible to gain CIS gross payment status and receive payments from contractors gross, your ‘construction’ turnover, net of materials, has to be greater than £30,000. For partnerships and companies this limit increases by £30,000 for each additional partner or director, up to or exceeding £100,000. HM Revenue & Customs will [...]

Personal Tax Account

2018-09-12T00:36:42+00:00August 18th, 2017|Categories: Articles & Guides, HMRC, Taxation|Tags: , , , |

Personal Tax Account (PTA) What is a Personal Tax Account? How do I get one? What can I do with it? HMRC launched this account in December 2015 It is intended to make it easier for individuals to review and manage their tax affairs online, together with other interactions with HMRC such as tax credits or child benefit. See below for a list of features and services available through the account By December 2016, 7 million people had accessed their account. Setting up a PTA Before you can set up your account you will need to verify your identity with [...]

CGT annual exemption: use it or lose it!

2017-06-17T14:21:51+00:00June 17th, 2017|Categories: Taxation|Tags: , |

Capital gains tax (CGT) is normally paid when an item is either sold or given away. It is usually paid on profits made by selling various types of assets including properties (but generally not a main residence), stocks and shares, paintings, and other works of art, but it may also be payable in certain circumstances when a gift is made. The most common method for minimising a liability to capital gains tax is to ensure that the annual exemption is fully utilised wherever possible. Whilst this is relatively straight-forward where only capital gains are in question, the computation can be [...]

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 [...]

Changes to company carry-forward of losses confirmed

2017-03-22T01:12:46+00:00March 22nd, 2017|Categories: Limited Company, Taxation|Tags: , , |

Initially announced at the time of the 2016 Budget and following a period of consultation, Finance Bill 2017 contains provisions to reform the tax treatment of certain types of carried-forward loss for corporation tax purposes with effect from 1 April 2017. Losses arising from 1 April 2017, when carried forward, will have increased flexibility and can be set against the total taxable profits of a company and its group members (referred to as the 'loss relaxation'). For all carried-forward losses, whenever they arose, companies will be able only to use the losses against up to 50% of profits (known as [...]

Employers beware of plans to change Scottish income tax threshold

2017-02-18T01:04:09+00:00February 18th, 2017|Categories: Taxation|Tags: , , |

Shortly before Christmas, the Scottish draft budget contained an announcement that Scottish taxpayers will start paying the 40p higher rate of income tax at a lower point than taxpayers elsewhere in the UK. This announcement means that businesses across the UK, not just in Scotland, will need to review their payroll systems to ensure that the proposed change can be accommodated. Scotland's Finance Secretary Derek Mackay confirmed that the Scottish Government intends to restrict increases in the rate at which people start paying the higher rate of income tax to inflation only. This compares with the UK Government's proposal to [...]

HMRC’s tougher approach to offshore tax evasion

2017-02-02T00:58:14+00:00February 2nd, 2017|Categories: Taxation|Tags: , , |

HMRC have implemented various measures over recent years designed to encourage those not paying the right amount of tax across their offshore tax affairs to make full disclosures. Whilst there has been a positive approach to the facilities provided, HMRC have recently reminded taxpayers that things are about to get even tougher for those who try to hide investments offshore. To date, over 100 countries have committed to exchange information on a multilateral basis under the Organisation for Economic Co-operation and Development Common Reporting Standard (CRS) ,which means that HMRC will be receiving new financial information about their customers from [...]

Caps on income tax relief

2016-12-22T22:08:29+00:00December 22nd, 2016|Categories: Taxation|Tags: , |

In general terms, providing a business is undertaken on a commercial basis with a view to making a profit, tax relief should be available for trading losses incurred. It is usually possible to offset the loss against other taxable income from the same year, or the previous year. Other taxable income may include for example, a former employment (where tax was deducted under PAYE) or a pension. This relief may be particularly beneficial for someone who is self-employed on a part-time basis. For example, where an individual earns £30,000 a year from employment, and makes a £2,000 loss from his [...]

Load More Posts

Subscribe To Our Newsletter

Subscribe here to receive our email newsletters containing free tax and business tips and updates from our blog.

You have Successfully Subscribed!

FREE MAKING TAX DIGITAL FACTSHEET

Enter your name and email address below to receive our free Making Tax Digital factsheet.

Success, Please check your email.