Tax Diary April/May 2014

  1 April 2014 – Due date for Corporation Tax due for the year ended 30 June 2013.  19 April 2014 – PAYE and NIC deductions due for month ended 5 April 2014. (If you pay your tax electronically the due date is 22 April 2014.) 19 April 2014 – Read more…

State Pension and tax

If you have recently started to receive your State Pension, you may, or may not, have noticed that it is paid without deduction of tax. This can have a number of unforeseen tax consequences: If your total income including your State Pension is less than your personal tax allowance then Read more…

What has not changed since the Budget?

   Entrepreneurs’ Relief  As long as the ownership of your business is structured correctly, and for a minimum time period, then lifetime disposals not exceeding £10m will only be taxed at 10% for Capital Gains Tax purposes.   Cap on tax reliefs  Don’t forget that certain tax reliefs are capped Read more…

What has changed since the Budget?

For those born after 5 April 1948 the personal tax allowance is £10,000. It was also announced that from 6 April 2015 this would increase to £10,500. The much publicised change to the taxation of salaried members of Limited Liability Partnerships is confirmed. Ongoing vigilance is required to ensure that Read more…

Investing in plant and equipment?

If expenditure on plant and equipment qualifies for the Annual Investment Allowance (AIA) 100% of the cost can be written off against taxable profits. The amount that can be written off as AIA expenditure has changed a number of times in the past few years. Immediately before 31 December 2012 Read more…

Budget highlights

We have reproduced two of the more surprising changes announced in the Budget notes published immediately following George Osborne’s presentation last week. HMRC to be given powers to raid bank accounts:  “The government will modernise and strengthen HMRC’s debt collection powers to recover financial assets from the bank accounts of Read more…

Budget Statement 19 March 2014

Personal Tax, Stamp Duty Land Tax and miscellaneous matters  Personal Tax allowance  The personal allowance for those born after 5 April 1948 will be: For 2014-15 – £10,000 For 2015-16 – £10,500  Income Tax rate bands There was significant press commentary prior to the Budget announcements lobbying for an increase Read more…

HMRC to use Mr Bean film makers

In a bizarre attempt to create positive PR for HMRC, Channel 4 has been given unprecedented access to HM Revenue and Customs as they pursue tax evaders and collect unpaid tax. Tiger Aspect Productions, the production company behind Mr Bean, will be filming HMRC staff as they target the so-called Read more…

Treasury hungry for ideas

George Osborne is delivering his Budget speech Wednesday of this week. It will be interesting to see if his plea for ideas to help smaller businesses has received a sympathetic ear. Here’s what a number of organisations have requested: British Chambers of Commerce The BCC have made three recommendations: A Read more…

Reducing tax evasion and avoidance

Just in case you have missed the news – that HMRC are stepping up their campaigns to stop tax avoidance and evasion – you may be interested to read the following quotes from HMRC and the Treasury:  “Issue The difference between the revenues that in HM Revenue & Customs’ (HMRC) Read more…

Budget speculation

Speculation is rife that George Osborne is under pressure to pre-empt possible interest rate increases next year by offering tax cuts in the forthcoming Budget announcements on 19 March. Polling day for the 2015 general election is 7 May so an announcement to increase the basic personal allowance (presently £10,000) Read more…

Tax Diary March/April 2014

 1 March 2014 – Self Assessment tax for 2012/13 paid after this date will incur a 5% surcharge.  1 March 2014 – Due date for Corporation Tax due for the year ended 31 May 2013.  19 March 2014 – PAYE and NIC deductions due for month ended 5 March 2014. Read more…

VAT Flat Rate Scheme

This scheme can be beneficial for businesses that have a low proportion of costs that include a VAT input tax charge, and their business turnover, excluding VAT, does not exceed £150,000. One interesting feature of the scheme is that you do not have to leave the Flat Rate scheme until Read more…

Entrepreneurs’ Relief

Having spent many years building a business, entrepreneurs can still look forward to a maximum tax hit of just 10% when they sell their business, as long as they have organised their business affairs so that they qualify for the CGT Entrepreneurs’ Relief. Basically, you will need to demonstrate that Read more…

Compensation for flood victims

The following announcements were posted to the GOV.UK website last month. They provide details of some of the compensation being offered to businesses affected by last month’s flooding across the UK:  Cash compensation  Measures include: A £5,000 repair and renewal grant for all affected householders and businesses. The aim is Read more…

Expected tax changes in the Budget 2014

The government has already published certain draft clauses for the Finance Bill 2014. We have listed below some of the more topical changes disclosed.  Changes for the tax year 2014-15:  Personal Tax: Individuals born after 5 April 1948 will be entitled to a personal tax allowance of £10,000. Employees will Read more…

April 1st auto-enrolment deadline

For employers with between 50 and 249 employees auto-enrolment of employees into a pension scheme starts 1 April 2014. Smaller employers, under 50 employees, will need auto-enrol on a staged basis between 1 June 2015 and 1 April 2017. Employers who are still unclear what their responsibilities are under this Read more…