Auto Enrolment – Not an employer

with No Comments

Auto enrolment does not apply if a company is not considered an employer by The Pension Regulator. Reasons for not being an employer include: Director only company, none of the directors have an employment contract No longer employ any staff Ceased trading, Although you will not have any auto enrolment duties you must inform The […]

Auto Enrolment – New Employers

with No Comments

From the 1 October 2017 all new employers will immediately have legal duties due to Auto Enrolment. These duties will apply from the first day an employee starts working for you. Please visit The Pension Regulator website to find out about your duties as a new employer. If you fail to comply with these duties then […]

The Apprenticeship Levy

with No Comments

From 5 April 2017 HMRC has introduced an apprenticeship levy. The levy is charged at 0.5% of the businesses total payroll cost and applies to all businesses operating payroll.   Each business receives a £15,000 allowance each tax year which means that they do not have to pay the levy until 0.5% of their payroll […]

Auto Enrolment Rates Increase

with No Comments

The current minimum pension contributions for employees inside Auto Enrolment are 2%, with the employer being required to contribute at least 1%.   From 6 April 2018 the minimum contributions will increase to 5%, with the employer required to contribute at least 2%.   This will increase further to 8% from 6 April 2019 onwards, […]

Budget Update: Corporation Tax Rates

with No Comments

The Chancellor announced that the Government is committed to continue to have the lowest corporate tax rate of the G20 major trading nations.  As already announced the corporation tax rate reduces to 19% from 1 April 2017 and then to 17% from 1 April 2020.   The Government is also keen to continue to encourage […]

Budget Update: Start of Digital Reporting Delayed for Smaller Businesses

with No Comments

The Government is committed to the “Making Tax Digital” (MTD) project which is scheduled to start in April 2018 with the first quarterly updates being submitted by the self-employed and property landlords in July 2018. However, the Chancellor has now announced that there will be a one year deferral in the start date to 2019 […]

Budget Update: Tax Free Dividend Allowance to be Reduced to £2,000

with No Comments

The Chancellor has announced measures to limit the rise in tax-driven incorporation. The £5,000 tax free dividend allowance will be reduced to just £2,000 from 6 April 2018. Mr Currently, once the dividend allowance has been used the remaining dividends are taxed at 7.5%, 32.5% and then 38.1% depending upon whether the dividends fall into […]

Tax Free Childcare Accounts To Start 6 April 2017

with No Comments

New tax-free childcare accounts were announced in 2014 to replace the employer-provided childcare voucher scheme. Introduction has been delayed by legal disputes with organisations involved in administering the existing scheme, but the new accounts will at last be introduced on a trial basis in early 2017. The new scheme will then be rolled out across […]

Don’t Forget “Rent A Room” Relief

with No Comments

From 6 April 2016 Rent A Relief has increased from £4,250 to £7,500. This is an annual allowance which can be deducted from rent received from lodgers where you rent out part of your main residence. Where income from lodgers exceeds £7,500 a year only the excess is taxable or this can to calculated on […]

New 16.5% VAT Flat Rate for service-based businesses

with No Comments

It was announced in the Autumn Statement that from 1st April 2017, “businesses with limited costs, such as many labour-only businesses” will have their VAT flat rate percentage increased to 16.5%. HMRC refers to such businesses as “a limited cost traders”. For such businesses this will remove the benefit of being on the Flat Rate […]

EC Sales List 31-Mar-16

with No Comments

Don’t forget that if you have made any EC sales during the quarter ended 31 March 2016 that you need to report these to HMRC on an EC Sales List (ECSL).   You can submit your ECSL through HMRC Online Services here, it is possible that you may need to enrol for the service if […]

Student Loan Plans

with No Comments

From April 2016 there will be 2 student loan plan types known as Plan 1 and Plan 2.   Each plan will have a different threshold before loan repayments are made.   For the tax year beginning 6 April 2016, the thresholds will be £17,495 for Plan 1 and £21,000 for Plan 2.   HMRC […]

Register now to use the Payrolling Benefits in Kind online service if you want to start or continue payrolling in the 2016 to 2017 tax year

with No Comments

From 6 April 2016 PAYE legislation is changing. If you intend or already payroll benefits and expenses you must register them with HMRC using the online Payrolling Benefits in Kind (PBIK) service. If you use this service and payroll benefits and expenses you won’t have to report them on a P11D. If you do not […]

Auto Enrolment – On and after your staging date

with No Comments

The Auto Enrolment staging dates for many businesses is approaching. Below summarises the key points you should be aware of. Key points Your staging date is when the Automatic Enrolment duties come into force for your business. You’ll need to identify what your duties are for each member of staff on your staging date or […]

Undisclosed Offshore Income

with No Comments

If you have undisclosed offshore holdings or investments, for example: offshore bank accounts overseas assets like property, eg a holiday let shares or other interests in an offshore company or trust inherited money from overseas You have until 31st December 2015 to disclose these. After that date a penalty could be charged up to 200% […]

Research and Development tax relief: Advance Assurance

with No Comments

From November 2015 HMRC introduced Advance Assurance for companies that claim Research and Development (R&D) tax relief. If your company carries out R&D for itself or other companies, it could qualify for Advance Assurance. This means that for the first 3 accounting periods of claiming for R&D tax relief, HMRC will allow the claim without […]

Scottish Rate of Income Tax

with No Comments

From the 6 April 2016 the Scottish rate of income tax will come into effect. This will mean that some of the Income Tax collected under the Scottish rate will fund the Scottish government and the rest will fund the UK government. This will affect all individuals living in Scotland, and all employers with employees […]

Corporation Tax Return Filing Deadlines

with No Comments

There can be no late filing penalty for corporation tax returns if the return is filed with HMRC by the date on which the accounts are due at Companies House. There have been cases where HMRC have incorrectly raised a penalties based on tax return due dates being earlier than Companies House accounts due dates.   […]

HMRC clearance on salary sacrifice

with No Comments

You can ask HMRC Clearances Team to confirm the tax and NICs implications of a salary sacrifice arrangement once it is in place. However, this is not a requirement.   HMRC would want to see: evidence of the variation of terms and conditions (if there is a written contract) payslips before and after the variation […]

Errors on VAT Returns

with No Comments

If you make an error on a VAT return then you simply adjust for it on the next VAT return, providing the error does not exceed £10,000.   However, if HMRC were undertake a VAT investigation and found the error was caused due to not taking ‘reasonable care’ then they could still charge a penalty. […]

Tell us about your business and projects...