News

When must you register for VAT?
16/08/2017 - More...
The taxable turnover threshold, that determines whether businesses should be registered for VAT is currently £85,000. Businesses are required to register for VAT if they meet any of the following conditions: At the end of any month, the value of the taxable supplies made in the past 12 months or less has exceeded £85,000. At any

BPP holdings Supreme Court decision
16/08/2017 - More...
The Supreme Court has dismissed HMRC’s appeal in a long running case between the BPP Group of companies (who provide professional and academic education) and HMRC. The case initially centred on the VAT liability of supplies of books and education by BPP. BPP had a corporate restructure in 2006 and began to use one company to supply the

What are overlap profits?
16/08/2017 - More...
The assessment of self-employed or partnership profits is relatively straight-forward if the accounting date, to which accounts are prepared, falls between 31 March and 5 April. However, year ends that fall outside these dates create overlap profits. Overlap profits can be created in the first 3 years of the business or in any year in

Dormant company obligations
16/08/2017 - More...
If a company has stopped trading and has no other income then HMRC should be informed that it’s dormant for Corporation Tax purposes. HMRC can also send a notification if they think a company is dormant. This notice will state that a company or association is dormant and is not required to pay Corporation Tax or file Company Tax

100% write down for qualifying capital expenditure
16/08/2017 - More...
The Annual Investment Allowance (AIA) limit has changed significantly over the last number of years. However, the limit has been fixed at £200,000 for all qualifying expenditure on or after 1 January 2016. The current £200,000 limit is a generous allowance and will more than cover the annual capital expenditure spend of many small and

Choosing a company name
16/08/2017 - More...
Companies House guidance sets out the main requirements for incorporating a company in the UK. The guidance entitled Incorporation and Names also provides advice on checking which names are acceptable to Companies House when naming a company. Choosing a company name can be one of the most important considerations for a new business. The

What qualifies for 10% Entrepreneurs’ Relief?
09/08/2017 - More...
Entrepreneurs' Relief applies to the sale of a business, shares in a trading company or an individual’s interest in a trading partnership. Where Entrepreneurs' Relief is available CGT of 10% is payable rather than the normal main rate of 20%. This can significantly reduce the amount of CGT due. When the relief was first introduced there

How to roll-over capital gains
09/08/2017 - More...
Business Asset Rollover Relief allows for the deferral of Capital Gains Tax (CGT) on gains when you sell or dispose of certain assets and use all or part of the proceeds to buy new assets. The relief means that the tax on the gain of the old asset is postponed. The amount of the gain is effectively rolled over into the cost of the new

Holiday lets occupancy rules
09/08/2017 - More...
The furnished holiday let (FHL) rules allow holiday lettings of properties that meet certain conditions to be treated as a trade for tax purposes. In order to qualify as a furnished holiday letting, the following occupancy criteria need to be met: The property must be let on a commercial basis with a view to the realisation of

Claiming back VAT on fuel
09/08/2017 - More...
HMRC offers a number of alternative methods for claiming back VAT on car fuel where there may be a mix of business and private mileage. They fall into a number of broad categories: Standard scale charge - HMRC operates a useful simplification measure that allows businesses to use a standardised scale charge to value fuel costs for

VAT capital goods scheme
09/08/2017 - More...
The VAT Capital Goods Scheme (CGS) adjusts the initial VAT recovery in respect of certain assets over either 5 or 10 year period. The scheme seeks to agree a fair and reasonable attribution of VAT to taxable supplies and non-taxable supplies relating to the use of an asset over its lifetime. In effect, the recovery of VAT input tax

Carry back charitable contributions
09/08/2017 - More...
Donations to charities are a recognised way to benefit charities and certain tax payers. To facilitate these advantages, taxpayers must ensure they keep a proper record of all donations to back up claims on their tax return. Donations that are made through the Gift Aid scheme allow for the recipient charity to claim 25p worth of tax

The end of disincorporation relief?
01/08/2017 - More...
Disincorporation involves the transfer of a business from a private limited company to a sole trader or partnership. Disincorporation relief was introduced from 1 April 2013 and is effectively a form of roll-over or deferral relief. The relief is due to end on 31 March 2018. The relief allows a company to transfer certain types of

Landlords, what expenses can you claim?
01/08/2017 - More...
It is important that landlords are aware of the expenses that can be deducted from their rental income. As a rule, these expenses must be wholly and exclusively for the purposes of renting out the property in question. Since April 2017, tax relief on mortgage costs used to buy investment properties is being gradually restricted to the

VAT – what you cannot reclaim
01/08/2017 - More...
Most VAT registered businesses are entitled to reclaim the VAT they incur on goods and services used by the business. This is known as input VAT. Some of the common areas where VAT cannot be reclaimed include the following: Goods and services used to make exempt supplies. VAT doesn't apply to everything and there are certain supplies

Tax write downs for business cars
01/08/2017 - More...
Capital allowances allow businesses to secure tax relief for certain capital expenditure. Qualifying expenditure on cars must usually be allocated to one of two general pools of expenditure. Which pool is appropriate depends on the car’s CO2 emissions. Expenditure on cars with CO2 emissions over 130g/km will be dealt with in the special

Company purchase of own shares
01/08/2017 - More...
As a general principle, when a company makes a purchase of its own shares, any payment in excess of the amount of capital originally subscribed for the shares is treated as a distribution (taxed as income not a capital gain). However, there are special provisions that enable an unquoted trading company or an unquoted holding company of a

Let property disclosure campaign
01/08/2017 - More...
HMRC’s Let Property Campaign provides landlords who have undeclared income from residential property lettings in the UK or abroad with an opportunity to regularise their affairs by disclosing any outstanding liabilities whether due to misunderstanding the tax rules or because of deliberate tax evasion. HMRC has recently updated their

Supreme Court declares employment tribunal fees unlawful
31/07/2017 - More...
In R (on the application of Unison) v Lord Chancellor 2017, the Supreme Court has ruled that employment tribunal and Employment Appeal Tribunal (EAT) fees are unlawful and it has quashed the Employment Tribunals and the Employment Appeal Tribunal Fees Order 2013 with immediate effect. The Supreme Court held that the fees regime was

Tax Diary August/September 2017
27/07/2017 - More...
1 August 2017 - Due date for Corporation Tax due for the year ended 31 October 2016. 19 August 2017 - PAYE and NIC deductions due for month ended 5 August 2017. (If you pay your tax electronically the due date is 22 August 2017) 19 August 2017 - Filing deadline for the CIS300 monthly return for the month ended 5 August 2017. 19 August

European Union (Withdrawal) Bill published
26/07/2017 - More...
The government has published the European Union (Withdrawal) Bill 2017-19 and it has had its first reading in the House of Commons. The second reading is scheduled for 9 September 2017, following which it will enter Committee Stage for further debate. Explanatory Notes to the Bill have also been published. The Bill performs four main

Credit card transaction charges to be banned
25/07/2017 - More...
The EU second Payment Services Directive (PSDII) was approved by the European Parliament and European Council in December 2015 and seeks to widen the scope of the existing EU Payment Service Directive (PSD) that defines the information that consumers and businesses must receive when making payments. This includes making reforms to the way

Directors, beware minimum wage legislation
25/07/2017 - More...
We have recently considered some of the issues surrounding various tax efficient strategies for paying director shareholders. One aspect of this complex area that we have not yet examined is whether company directors need to be concerned with employment legislation in relation to the minimum wage. At the most basic level, company

The new State Pension
25/07/2017 - More...
The new State Pension is payable to those that reach the State Pension age on or after 6 April 2016. The full new State Pension is currently £159.55 per week and is payable to eligible women born on or after 6 April 1953 and eligible men born on or after 6 April 1951. Retirees that reached the State Pension age before 6 April 2016 will

 

Latest News

When must you register for VAT?
16/08/2017 - More...
The taxable turnover threshold, that determines whether businesses should be registered for VAT is currently £85,000.

BPP holdings Supreme Court decision
16/08/2017 - More...
The Supreme Court has dismissed HMRC’s appeal in a long running case between the BPP Group of companies (who provide

What are overlap profits?
16/08/2017 - More...
The assessment of self-employed or partnership profits is relatively straight-forward if the accounting date, to which

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