Gift aid donation rules clarified

Recent reports in the national media have suggested that HMRC has sought to restrict Gift Aid on donations which are accompanied by a message of support from a donor’s family. According to a recent announcement by HMRC this is absolutely not the case. HMRC’s position as set out in their Read more…

Tax free childcare update

HMRC have updated their online “top ten things you should know about the new tax-free childcare scheme”. The notes are reproduced below and they provide parents with and easy read overview of the changes that will start early 2017: 1. You’ll be able to open an online account You’ll be Read more…

Budget for business

Just in case you were wondering what was in the Budget last week for small businesses, we have reproduced below the comments made by George Osborne and posted to the GOV.UK website: Backing business and creating opportunity This Budget backs business and enterprise to drive up productivity growth and create Read more…

Budget Statement 16 March 2016

 Personal Tax and miscellaneous matters  Personal Tax allowance  From 2016-17, there will be one Income Tax personal allowance regardless of an individual’s date of birth. For 2016-17 the allowance is set at £11,000, and For 2017-18 at £11,500  Income Tax rate bands  The Chancellor confirmed his intention to remove taxpayers Read more…

Aligning national insurance and income tax

The Office of Tax Simplification (OTS) has published the findings of a detailed review into bringing the two payroll taxes closer together. Here’s what they have to say: “Bringing National Insurance Contributions (NICs) and income tax closer together would create a simpler and fairer system for businesses and taxpayers, the Read more…

Simpler tax system for smaller companies

On the 3rd March, the Office of Tax Simplification (OTS) unveiled a package of recommendations aimed at making the tax system simpler and easier to use for small companies. The press release says: “These incorporated micro-businesses, employing less than ten people, currently face the same tax system as large companies Read more…

Institute for Apprenticeships

Just in case you have not been acquainted with this new Institute, and the rather confusing acronym, we have reproduced below the Department of Innovation and Skills fact sheet that explains what it is about… Institute for Apprenticeships: To deliver a genuinely world-class apprenticeship programme in the context of the Read more…

Tax Diary March/April 2016

 1 March 2016 – Due date for Corporation Tax due for the year ended 31 May 2015.  2 March 2016 – Self Assessment tax for 2014/15 paid after this date will incur a 5% surcharge.  16 March 2016 – Budget Day…  19 March 2016 – PAYE and NIC deductions due Read more…

Multi-nationals and sweetheart deals

 In an unprecedented move, HMRC have issued a press release regarding the accusation that Google were offered a deal that short changed UK taxpayers. Here’s what they had to say regarding the “sweetheart deal” accusation and the settlement with Google: ‘Sweetheart deal’ HMRC does not do “sweetheart deals”. The National Read more…

Company car drivers and private fuel

Since the tax on private fuel provided with company cars is so high, many employers now have an arrangement whereby they no longer pay for private fuel. In this case, the employee must reimburse the employer for private fuel included in petrol bills paid by the employer. Otherwise, the employee Read more…

Incorporation v self-employment

Prior to 6 April 2016, self employed traders could make overall tax and NIC savings by incorporating their business if their annual income from self-employment exceeded approximately £10,000. The saving generally arose by taking a low salary and the balance as dividends thus avoiding NIC charges. Unfortunately, changes to the Read more…

Incorporating a property business

Since the recent announcement of various changes to the taxation of unincorporated property businesses, there has been renewed interest in incorporation: would it be possible to shelter property income and capital gains inside the lower Corporation Tax regime?  Unfortunately, this apparent quick-fix for property business owners is fraught with dangers Read more…

The end of the 20 percent tax credit

From 6 April 2016, savers will no longer pay income tax on interest they receive from certain deposit accounts. This is due in large part to the introduction of the Personal Savings Allowance (PSA) on the same date. The PSA is worth £1,000 to basic rate taxpayers and £500 to Read more…