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Employer responsibilities for tips

2019-02-27T18:25:37+01:00March 16th, 2019|Categories: Blog, PAYE|Tags: , , , , |

Employer responsibilities for tips The tax and NIC treatment of tips will depend on how they are paid to the recipient. Cash tips handed to an employee, or say, left on the table at a restaurant and retained by the employee, are not subject to tax and NICs under PAYE, so there is not responsibility for the employer to keep track of them and deduct tax or NICs. The employee is however, obliged to declare the income to HMRC and pay the tax and NICs due. By contrast, if the employer passes tips to employees that are either [...]

Spring Statement 2019

2019-03-14T22:41:44+01:00March 15th, 2019|Categories: Spring Statement|Tags: , , , , |

Spring Statement 2019 Summary Chancellor Philip Hammond has delivered his 2019 Spring Statement to the House of Commons. A supporting Written Ministerial Statement (WMS) provides more detail on some of the announcements in the Spring Statement, and sets out details of other forthcoming government policies. Mr Hammond opened his Statement by acknowledging that the most urgent task at present is to 'lift the uncertainty', but he also added a positive note, stating that the 'economy itself is remarkably robust'. The Chancellor indicated that if the UK does leave the EU with a deal, there will be an economic [...]

Voluntary disclosures

2019-02-27T18:24:11+01:00March 8th, 2019|Categories: Blog, HMRC, Personal Finance|Tags: , , , , |

Voluntary disclosures HMRC have updated their online guidance on disclosing unpaid tax to include information on authorising an agent to deal with a disclosure made through the Digital Disclosure Service (DDS). The DDS gives individuals and companies a chance to bring their affairs up to date in a simple, straightforward way. Anyone who owes tax on your income you must tell us about any unpaid tax now. Anyone who owes tax on income or gains must tell HMRC about any unpaid tax. They will then have 90 days to calculate and pay what is owed. - How to make a voluntary [...]

Checking directors’ expenses

2019-02-27T18:22:30+01:00March 4th, 2019|Categories: Blog, Taxation|Tags: , , , |

Checking directors' expenses As 31 March approaches, many companies will be getting ready to tie up tax matters for their financial year-end. Now is a time to ensure that everything is in order regarding directors' expenses and review loan account record-keeping procedures. This is particularly so as HMRC report that they commonly find errors in relation to directors' loan accounts when making routine reviews of company tax returns. The statutory rules for computing taxable profits exclude companies from deducting expenditure unless it is incurred 'wholly and exclusively' for the purposes of the trade. As companies are separate legal entities [...]

HMRC reaffirm income tax charge on winding up

2019-02-27T18:20:08+01:00February 27th, 2019|Categories: Blog, HMRC, Taxation|Tags: , , |

HMRC reaffirm income tax charge on winding up HMRC have published Spotlight 47, which provides guidance on tax avoidance schemes that try to avoid the income tax charge on distributions when a company is being wound up. In recent years, HMRC have endeavoured to prevent schemes being used by shareholders to take advantage of more favourable capital gains tax rates when extracting value from their company. Until 6 April 2016, under arrangements known as 'phoenixism', an individual shareholder who intended to carry on the company's activities could arrange matters enabling them to wind up the company and receive [...]

VAT: Supplies of digital services to consumers in the EU

2019-01-05T14:23:06+01:00January 20th, 2019|Categories: Blog, VAT|Tags: , , , , |

VAT: Supplies of digital services to consumers in the EU The VAT rules for businesses suppling digital services to private consumers in other member states change with effect from 1 January 2019. From that date, the place of supply will be the UK where both: - a UK business is not established in any other EU member state; and - the total value of cross-border digital sales is less than £8,818 in the current and preceding calendar years. Businesses affected will no longer need to register for VAT in other EU countries where they have consumers or use the [...]

Considering capital expenditure?

2019-01-05T14:21:16+01:00January 16th, 2019|Categories: Blog|Tags: , |

Considering capital expenditure? Businesses considering investing more than £200,000 in plant and machinery could benefit from a change to the capital allowances rules in January 2019, which should allow them to obtain tax relief at an earlier time. Capital allowances are treated as a trading expense of a particular accounting period, so they can potentially increase a loss, or turn a profit into a loss for tax purposes, which in turn, will impact on the amount of tax payable by a business. Where a business is considering expenditure on qualifying items, it may be beneficial to undertake some [...]

Can an employer still claim the EA?

2019-01-05T14:18:01+01:00January 12th, 2019|Categories: Blog, PAYE|Tags: , , |

Can an employer still claim the EA? In broad terms, the Employment Allowance (EA) is available to most employers and should enable them to reduce the amount of National Insurance Contributions (NICs) they have to pay by up to £3,000 per year. The eligibility rules changed from April 2016, and the Autumn Budget 2018 announced further changes expected to take effect from April 2020. It is worth checking to make sure that a limited company is still eligible to benefit from this tax incentive. Employers may generally claim the EA if they are a business (including a Community [...]

Make the most of tax efficient savings offers

2019-01-05T14:18:50+01:00January 9th, 2019|Categories: Blog, Personal Finance|Tags: , , , |

Make the most of tax efficient savings offers As the end of the current tax year approaches, it is worthwhile making a check to ensure that the various tax-efficient savings opportunities have been utilised wherever possible. The following paragraphs highlight some of the areas where savings may be made. ISAs The maximum annual investment limit for Individual Savings Accounts (SAs) will remain at £20,000 for 2019/20. The limit effectively allows a couple to save £40,000 a year between them and receive interest on the investment tax free. There will also be no capital gains tax to pay when the account [...]

Company vans update

2018-12-15T22:16:00+01:00December 20th, 2018|Categories: Blog|Tags: , , |

Company vans update A charge to income tax will generally arise if a company van is made available, by reason of the employment, to an employee or to a member of his or her family or household. It must be made available without a transfer of ownership from the employer to the employee. Since 2016/17, when the £8,500 earnings threshold for most benefits-in-kind was abolished, the charge applies regardless of the employee's earnings rate. The charge will however, be proportionately reduced if the van is only available for part of a tax year. The taxable amount of the van [...]

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