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Applying for VAT RegistrationApril 24, 2014
Businesses usually have to register for VAT if any of the following apply: The taxable turnover of their business in the previous 12 months reaches the VAT registration limit (currently 81,000). Businesses can also register on a voluntary basis if their turnover is below this. They believe
New Shares and Securities Bulletin publishedApril 24, 2014
HMRC has recently published the latest issue of the bulletin entitled Employment-Related Shares & Securities Bulletin. The bulletin is intended to provide information and updates on developments relating to employment-related securities, including the tax-advantaged employee share
Climate Change Levy – guidance updatedApril 24, 2014
The Climate Change Levy (CCL) is chargeable on the industrial and commercial supply of taxable commodities for lighting, heating and power by consumers in industry, commerce, agriculture, public administration, and other services. The levy does not apply to taxable commodities used by domestic
Updated Community Amateur Sports Club listApril 24, 2014
The CASC scheme was first introduced in April 2002 and allows for many amateur sports clubs to register with HMRC thereby benefiting from a range of tax reliefs, including gift aid. HMRC has recently published an updated list of registered Community Amateur Sports Clubs (CASCs) as at 10 April 2014.
Company tax returns guidance updatedApril 24, 2014
HMRC has issued the latest draft copy of their guide for completing a company tax return form (CT600). The guidance has been updated to include changes announced as part of the 2014 Budget. The draft version of the CT600 is intended to help software developers and substitute form producers to create
Beer DutyApril 24, 2014
Beer Duty is chargeable on beer with a strength more than 1.2% alcohol by volume (ABV). The description of beer includes ale, porter, stout, any other description of beer and anything else made or sold described as beer or a beer substitute, including beer mixed with non-alcoholic drinks such as a
The VAT Flat Rate SchemeApril 24, 2014
The purpose of the VAT Flat Rate Scheme (FRS) is to simplify the way a business accounts for VAT and in so doing reduce the administration costs of complying with the VAT legislation. However, businesses most often make decisions based on cashflow and most businesses that sign up for the Flat Rate
UK tax agreementsApril 24, 2014
The UK has published final regulations to implement the Agreements to Improve International Tax Compliance that were signed with the Isle of Man, Guernsey, Jersey and Gibraltar. Under these agreements, each government committed to an annual automatic exchange of information relating to financial
New edition of the employer bulletinApril 24, 2014
HMRC has released the latest issue of the 'Employer Bulletin' publication which includes summaries of recent changes and updates that have been announced which are relevant to employers and agents. The topics covered in the latest edition include the following: National Insurance: 2,000
The Construction Industry SchemeApril 24, 2014
The CIS is a set of special rules for tax and National Insurance (NI) for those working in the construction industry. Businesses in the construction industry are known as ‘contractors’ and ‘subcontractors’. The scheme applies mainly to contractors and sub-contractors involved in construction
VAT Retail Export SchemeApril 24, 2014
There is a special VAT refund scheme called the VAT Retail Export Scheme or Tax-Free Shopping that allows individuals not resident in the EU to obtain a VAT refund on goods bought in the UK and taken out of the EU. The scheme does not apply to services, for example hotel bills. The Government
National Insurance holiday scheme returnApril 24, 2014
The NIC holiday scheme that was officially introduced on 6 September 2010 ended on 5 September 2013. The scheme was designed to help new businesses in qualifying regional areas to create jobs by reducing the costs of employing staff. The scheme was only open to qualifying new businesses outside
Fraudulent emails from 'HMRC'April 24, 2014
Taxpayers are reminded that the problem of fraudulent emails continues. The emails are part of a 'phishing' exercise that uses bogus e-mails and websites to trick taxpayers into supplying confidential or personal information. These emails aren’t genuine HMRC messages and should be disregarded. The
HMRC targets taxpayers with second incomesApril 24, 2014
A new campaign to target individuals in employment who have an additional untaxed source of income has been launched by HMRC. The Second Incomes Campaign offers individuals the opportunity to inform HMRC that they have undeclared income from an supplementary income stream. The HMRC guidance lists
Credit card checks for businessesApril 24, 2014
New legislation came into effect in September 2013 that allows HMRC to compare the number and value of transactions completed by a specific business on credit and debit cards to declared sales figures. The new powers are expected to reduce fraud by over 50 million per year. The legislation lets
Closing or selling a businessApril 14, 2014
It is important that taxpayers follow the correct steps if they stop trading or close their business. Taxpayers that owe tax or National Insurance, and have difficulty making payment, may be able to negotiate an agreement with HMRC for more time to pay. There are also certain circumstances when
Duty free limits for travellersApril 14, 2014
We would like to remind those travelling over the Easter holidays of their duty and tax free allowances. Travelling to an EU country: Where tobacco or alcohol is brought in from another EU country no duties or tax will be payable as long as you can demonstrate that the goods are for your own use
Agent authorisationApril 14, 2014
The 64-8 form is used to authorise an agent, accountant or tax adviser to deal with HMRC on someone’s behalf. The form covers authorisation for individual tax affairs (partnerships, trusts, tax credits and individuals under PAYE) and business taxes (VAT, PAYE for employers and Corporation Tax). It
Insurance Premium TaxApril 14, 2014
Insurance Premium Tax (IPT) is a tax on general insurance premiums. There are two rates, a standard rate of 6% and a higher rate of 20%. The higher rate applies where insurance is sold in relation to goods and services which are subject to VAT and to travel insurance. There are a number of
Gambling duties changesApril 14, 2014
Changes to gambling duties from 'place of supply', to 'place of consumption', will come into effect from 1 December 2014. The changes affect: Remote Gaming Duty (RGD), General Betting Duty (GBD) and Pool Betting Duty (PBD). RGD applies to remote gambling, for example casinos and bingo played
Companies House – Late filing penaltiesApril 14, 2014
There are late filing penalties which are designed to encourage companies to file their accounts and reports on time. The penalties were introduced in 1992 and were significantly increased from February 2009. All companies, private and public, large or small, trading or non-trading must send their
Pension schemes newsletterApril 14, 2014
A new pension schemes newsletter has been published by HMRC. The latest edition of the newsletter includes a summary of the wide-ranging changes announced as part of the Budget for individuals that have pension savings in a Defined Contribution (DC) scheme, such as a personal pension. The proposed
UK - Germany Tax agreementApril 14, 2014
A protocol to the Double Taxation Convention between the UK and Germany was signed in London on 17 March 2014. The protocol brings in the application and interpretation of the new Article 7 to the OECD Model Double Taxation Convention adopted on 22 July 2010 by the Council of the Organisation for
Employee share schemesApril 14, 2014
There are a number of government approved share schemes that offer certain tax advantages to employees. The approved schemes are: Share Incentive Plans (SIP), Save As You Earn (SAYE) schemes, Company Share Option Plans (CSOP) and Enterprise Management Incentive (EMI) schemes. The schemes are
Late filing of Self Assessment tax returnsApril 14, 2014
Taxpayers who have not yet filed their Self Assessment returns online face a daily penalty of 10 up to a maximum of 900 i.e. for three months from 1 May 2014. If the return still remains outstanding further higher penalties will be charged from six months and twelve months late. These penalties
Tax statementsApril 14, 2014
The Chancellor of the Exchequer has announced that from October 2014 some 24 million UK taxpayers will receive a personalised statement setting out how much tax they paid in the previous year and how it contributed to public expenditure. This includes 4 million more taxpayers than the previous year.
Abolition of stamp taxes on recognised growth marketsApril 14, 2014
With effect from 28 April 2014, the Government is abolishing the 0.5% stamp duty or stamp duty reserve tax charge on acquisitions of shares traded on recognised growth markets. To qualify as a recognised growth market, a market must be a recognised stock exchange and meet one or both of the
Employers' excuses for not paying the minimum wageApril 14, 2014
To coincide with the 15th anniversary of the National Minimum Wage (NMW), HMRC has revealed some of the more unusual reasons given by employers for not paying their employees the legal wage: One employer claimed that a worker was his wife but when asked his wife’s name, was unable to
VAT - Mini One Stop ShopApril 14, 2014
From 1 January 2015 changes will be made to VAT rules for consumer supplies of telecommunications, broadcasting and e-services. Currently these supplies are taxed in the Member State in which the business is established. However, from 1 January 2015, the place of supply will be determined by the
Tribunal – late submission of P35April 14, 2014
The First-tier Tribunal recently heard a taxpayer's appeal against penalties for late submission of the Employer Annual Return - P35 for the tax year ended 5 April 2013. The P35 should have been filed by 19 May 2013 but was ultimately filed on 17 September 2013. The taxpayer in the case owned two
The Bank LevyApril 10, 2014
The Bank Levy is designed to encourage banks to take on less risky funding profiles, improve regulatory standards and enhance the financial stability of the UK banking industry. The levy applies to the global balance sheets of UK banks as well as to the UK operations of banks from other countries.
VAT registration and deregistration thresholdsApril 10, 2014
The taxable turnover threshold that determines whether businesses should be registered for VAT increased to 81,000 (was 79,000) from 1 April 2014. The taxable turnover threshold that determines whether businesses can apply for deregistration increased to 79,000 (was 77,000) on the same
Save As You Earn (SAYE) scheme changesApril 10, 2014
The SAYE scheme is a savings related scheme where employees of participating companies with share option schemes can save to buy shares at a discount. SAYEs are approved by HMRC who allows employees to make contributions and buy shares at a future date using the current share price (discounted by
Deductions for fees and subscriptionsApril 10, 2014
Many professionals such as accountants, lawyers and health professionals are required to make a subscription to a professional body or learned society. HMRC has recently published an updated list of the organisations that they will accept as valid professional bodies. This list is updated from time
The Statutory Residence TestApril 10, 2014
The rules that determine whether someone is resident in the UK for tax purposes, known as the Statutory Resident Test (SRT), changed on 6 April 2013. Historically, residence in the UK was determined by being in the UK in excess of 182 days in any tax year (6th April to 5th April) or by being
HMRC toolkitsApril 10, 2014
Toolkits have been designed by HMRC to provide information on previous risks that have been identified. It is hoped that this information will help accountants and agents identify the necessary checks that they can carry out. This in turn will assist taxpayers in proving that they take reasonable
VAT – insolvencyApril 10, 2014
There are special VAT rules concerning the VAT liability of certain services provided by insolvency practitioners. The rules are relevant to insolvency practitioners and official receivers (office holders) who are dealing with the business activities of VAT registered traders. There are also special
Electronic invoicingApril 10, 2014
VAT Notice 700/63 Electronic Invoicing has recently been updated to reflect the changes in invoicing regulations of 2013. The EU adopted a new directive in July 2010 aimed at simplifying the VAT invoicing requirements across the EU especially in relation to electronic invoices. The directive was
Basic PAYE Tools - 2014-15 updateApril 10, 2014
The Basic PAYE Tools software for the 2014-15 has been published. The 2014-15 version of Basic PAYE Tools is an update to the existing version rather than a separate download, so existing users do not need to go to the HMRC website to get the update. Employers should ensure that they are using the
Change of genderApril 10, 2014
The Gender Recognition Act 2004 gave trangender people the right to be treated by their preferred gender. The Act allowed them to acquire a new birth certificate and receive full recognition of their acquired sex in law for all purposes, including marriage. HMRC has recently updated their guidance
Real Time Information - penaltiesApril 10, 2014
It is now a year since the majority of employers began using the Real Time Information (RTI) system and more than 99% of PAYE records are currently being reported in real time. From 6 April 2014, interest charges will be applied for PAYE that is not paid by the due date. HMRC has also announced
Finance Bill 2014April 10, 2014
The Finance Bill 2014 was presented to Parliament on 25 March 2014. The Bill contains the legislation for many of the tax measures that have been announced by the Government. The Bill had its second reading debate on 1 April 2014 and the Public Bill Committee is expected to report by 17 June
New rules come into effect for LLPsApril 10, 2014
Since 6 April 2014, LLP members, who HMRC considers are not risk taking partners, may find themselves re-classified as salaried members and taxed under the PAYE regulations as if they were employees. Both the affected LLPs and their members will have to pay National Insurance as if the affected
Wayward landlords under attackApril 10, 2014
An HMRC campaign aimed at landlords who have failed to declare rental income, due to a misunderstanding of the rules or deliberate evasion, was launched in September 2013. The campaign will run for at least 18 months and HMRC will allow landlords to come forward voluntarily throughout the entire
Updated biofuels noticeApril 3, 2014
HMRC has updated Notice 179E entitled Biofuels and other fuel substitutes. The new version of the notice cancels and replaces the previous version published in August 2011. Changes include details of the various biofuels and their excise duty rates. It also explains the roles and responsibilities
Cash Accounting SchemeApril 3, 2014
Under standard VAT accounting, VAT is payable on sales whether or not the customer has paid and can lead to a claim for Bad Debt Relief. Under the Cash Accounting Scheme, VAT does not need to be paid over until the customer has paid. If the customer does not pay then the VAT is not payable. This
Bereavement issuesApril 3, 2014
The dedicated HMRC bereavement services team deals with PAYE and Self Assessment issues that arise when a taxpayer dies. The team provides family members or personal representatives with a single point of contact when finalising the PAYE and Self Assessment affairs of the deceased. The R27 Form
New tax agreements come into forceApril 3, 2014
During October and November 2013, the UK signed reciprocal agreements with Guernsey, Jersey, the Isle of Man and Gibraltar. Under these agreements, each government committed to an annual automatic exchange of information relating to financial accounts maintained by financial institutions in one
VAT treatment of refunds made by manufacturersApril 3, 2014
HMRC has published an information sheet entitled VAT Treatment of refunds made by manufacturers. The publication of the information followed the Government’s announcement as part of the 2013 Budget measures that they would introduce legislation that will allow manufacturers to adjust their VAT to
Aggregates Levy noticeApril 3, 2014
HMRC has published the latest version of Notice AGL1 which relates to the aggregates levy. The Levy was introduced in the UK on 1 April 2002 and is a tax on the commercial exploitation in the UK of rock, sand and gravel. The levy is charged at a flat rate of 2 per tonne. There are a number of
Authorised Economic Operators (AEO)April 3, 2014
AEO is a recognised quality mark of business customs control and operating procedures. Businesses that are actively involved in international trade and hold the AEO standard can in many cases fast-track shipments by reducing the number of safety and security checks performed by HMRC and other EU tax
Machine Games DutyApril 3, 2014
A higher rate of 25% Machine Games Duty (MGD) is added by the Finance Bill 2014. This will be the third rate of MGD on any machine where the maximum stake exceeds 5. This measure will mean that the more profitable high street gaming machines pay a higher rate of duty. Machine Games Duty (MGD)
VAT on vehicles brought into the UKApril 3, 2014
A new online notification system called Notification of Vehicle Arrivals (NOVA) was launched last year for vehicles entering the country for permanent use on UK roads. Under this system anyone who brings a vehicle into the UK will be required to notify HMRC within 14 days and any VAT due will have
Abolition of stamp taxes on recognised growth marketsApril 3, 2014
The Government has confirmed that stamp taxes on purchases of securities on recognised growth markets are to be abolished from 28 April 2014. Currently there is a 0.5% stamp duty or stamp duty reserve tax charge. The exemption will apply to securities that are admitted to trading on a recognised
Childcare scheme to launch in 2015April 3, 2014
The Government has confirmed plans to introduce a new Childcare scheme to support working families with their childcare costs. The new scheme will be launched in Autumn 2015 and will replace the current salary sacrifice scheme. Unlike its predecessor, the new scheme will be available to the
National Insurance limitsApril 3, 2014
National Insurance is a separate tax (or contribution) payable in addition to Income Tax. NICs are meant to fund social security benefits such as an entitlement to the State Pension. The amount of NICs payable by taxpayers depends on the level of their income and their employment status. Two new
Private Residence ReliefApril 3, 2014
One of the most often used and valuable of the Capital Gains Tax (CGT) exemptions covers the sale of the family home. CGT is a tax on the profit made from selling certain assets such as property, shares or other investment e.g. antiques and fine art. There are a number of exemptions available which
Corporation Tax changes from April 2014April 3, 2014
A timely tweet from the Chancellor earlier this week read ‘Today Corporation Tax down from 23% to 21% & Annual Investment Allowance doubled to 500k. Backing business so UK best place to create jobs’. From 1 April 2014 the main Corporation Tax rate for companies with profits in excess of 1.5
National Insurance employment allowanceApril 3, 2014
The employment allowance of 2,000 per year for all businesses and charities to be offset against their employer Class 1 secondary NICs’ bill starts 6 April 2014 following Royal Assent of the National Insurance Contributions Act 2014. The allowance will be claimed as part of the normal payroll
VAT – Annual Accounting SchemeMarch 27, 2014
The VAT Annual Accounting Scheme is open to most businesses with a turnover up to 1.35m per year. The scheme has been designed to allow businesses to simplify their VAT accounting procedures and in turn reduce the cost of complying with the VAT requirements. Businesses that use the scheme are only
Incorporating an LLPMarch 27, 2014
Limited Liability Partnerships (LLPs) retain the flexibility of a partnership with the added advantage that a partner's personal liability is limited. At least two members must be 'designated members' and the law places extra responsibilities on them. The formation of an LLP is more complex and
Enhanced Capital AllowancesMarch 27, 2014
There is a special scheme, known as the Enhanced Capital Allowances (ECA) scheme for energy-saving technologies. The ECA scheme enables a business to claim accelerated tax relief 100% first year allowances on qualifying expenditure: energy-saving and water efficient technologies. The cash-flow
The Money Laundering RegulationsMarch 27, 2014
The Money Laundering Regulations (MLR) are designed to protect the UK financial system and put in place certain controls to prevent businesses being used for money laundering by criminals and terrorists. From 1 April 2014, HMRC becomes the supervisor of Estate Agency Businesses under the Money
The Landfill Communities FundMarch 27, 2014
The Landfill Communities Fund (LCF) redresses some of the environmental costs of landfill by improving the environment in the vicinity of landfill sites. Projects benefitting from LCF funding include those that are involved with the reclaiming of land, improvements to local community facilities,
Venture Capital Trusts (VCTs)March 27, 2014
The VCT scheme has been designed to encourage individuals to invest in small usually high risk trading companies. Income Tax relief is available at 30% on new subscriptions for ordinary shares in VCTs by individuals aged 18 or over. The maximum amount qualifying for relief is 200,000 in each tax
Import VATMarch 27, 2014
The VAT due on goods imported into the UK is known as import VAT. Goods are treated as imported when they arrive in the UK directly from outside the EU and are entered to free circulation in the UK or Customs duty otherwise becomes chargeable on them. There are separate rules where goods are
Air Passenger Duty ratesMarch 27, 2014
Air Passenger Duty (APD) is a departure tax levied on most air travel. Currently, there are four air passenger bands based on the distance from London to a destination's capital city and are divided into four geographical bands. Each geographical band has two rates of Air Passenger Duty, one for
Health professionals deadlineMarch 27, 2014
The Health and Wellbeing Tax Plan offered physiotherapists, occupational therapists, chiropractors, osteopaths, chiropodists and podiatrists an opportunity to regularise their tax affairs. The scheme covered any tax owed, for whatever reason. The campaign was not aimed at doctors and dentists, who
Annual Tax on Enveloped Dwellings (ATED)March 27, 2014
The ATED came into effect from 1 April 2013. The tax is payable by certain Non-Natural Persons that own interests in dwellings valued at more than 2 million. This provision affects certain companies, partnerships with company members and managers of collective investment schemes described in the
Company car tax ratesMarch 27, 2014
The company car benefit-in-kind charges for 2014/15 were announced prior to the 2014 Budget. The minimum benefit is 5% for emissions between 1-75g/km, from 76g/km up to 94g/km the rate is 11%. From 95g/km to 99g/km the rate is 12% and increases by 1% for every full 5g/km up to a maximum of 35% for
Employee share scheme changesMarch 27, 2014
From 6 April 2014, employers need to register existing and new share schemes and arrangements online with HMRC. In addition, HMRC will no longer provide formal approval of these schemes, businesses must self-certify that the schemes meet the necessary requirements. The changes also affect any
Class 2 National Insurance contributionsMarch 27, 2014
Starting from April 2014, HMRC can collect outstanding Class 2 National Insurance Contributions by adjusting a taxpayer's tax code or by passing the debt onto a specialist private debt collection company. Class 2 National Insurance Contributions (NICs) are paid by all self-employed taxpayers unless
Options at retirementMarch 27, 2014
As the dust settles on the 2014 Budget, it is clear that the most wide-ranging changes are for individuals that have pensions savings in a defined contribution (DC) scheme, such as a personal pension. The proposed changes, which are expected to come into effect from April 2015, will give savers
Budget 2014 - Seed Enterprise Investment Scheme (SEIS)March 20, 2014
The SEIS is designed to increase the level of investing in the early development of high growth potential businesses. The scheme is similar to the EIS but focuses on smaller, early stage companies carrying on, or preparing to carry on, a new business in a qualifying trade. The Chancellor announced
Budget 2014 - Business Premises Renovation Allowance (BPRA)March 20, 2014
The Business Premises Renovation Allowance (BPRA) is a special capital allowances scheme to encourage the conversion and renovation of empty business properties in specified assisted areas (i.e. deprived areas in the UK). The use of the BPRA provides for a 100% tax deduction on the capital costs a
Budget 2014 - VAT registration and deregistration thresholdsMarch 20, 2014
The taxable turnover threshold, that determines whether businesses should be registered for VAT, will increase from 79,000 to 81,000 from 1 April 2014. The taxable turnover threshold that determines whether businesses can apply for deregistration will be increased from 77,000 to 79,000 on the
Budget 2014 – Savings and investmentsMarch 20, 2014
The Chancellor announced a number of important changes to benefit savers. The first of these changes was a major reform to the ISA system. A New ISA (NISA) is to be introduced from 1 July 2014 with equal limits for cash and stocks and shares. This will allow savers to transfer funds from stocks
Budget 2014 – Increase in the Annual Investment AllowanceMarch 20, 2014
The Chancellor will have pleased many businesses with his announcement that the temporary increase in the Annual Investment Allowance (AIA) is to be extended for a further year to 31 December 2015. From 1 April 2014 the maximum amount of the AIA is to be doubled to 500,000 for Corporation Tax and
Budget 2014 - Sporting tax breaks extendedMarch 20, 2014
The Budget measures have confirmed that a special exemption from UK Income Tax will apply to non-UK residents sportspersons’ income related to their appearance at the Glasgow Grand Prix which is due to take place between 5 July and 14 July 2014. Under UK tax rules a sportsperson not resident in the
Budget 2014 – Income Tax Rates & AllowancesMarch 20, 2014
In the Budget, the Chancellor announced that from April 2015 the basic personal allowance for taxpayers born after 5 April 1948 will rise to 10,500. At the same time the basic rate limit will be reduced to 31,785. Taxpayers' personal allowances are withdrawn for those with income of more than
VAT fuel scale chargesMarch 20, 2014
The new VAT road fuel scale charges have been published. The changes amend the VAT scale charges for taxing private use of road fuel to reflect changes in fuel prices. The new fuel scale charges must be used by companies from the start of their next prescribed accounting period beginning on or
Companies House guidanceMarch 20, 2014
A comprehensive guide relevant to incorporating a company is published by Companies House. The guidance entitled GP1 Incorporation and Names also provides advice on checking which names are acceptable to Companies House when naming a company. The guide includes information on: Incorporating a
The Business Tax DashboardMarch 20, 2014
HMRC’s Business Tax Dashboard is an online tool which provides smaller businesses with the ability to view their current tax position across different taxes. In order to use this service, businesses must have enrolled to use either HMRC's Corporation Tax or Self Assessment online service. There
HMRC toolkitsMarch 20, 2014
Toolkits have been designed by HMRC to provide information on previous risks that have been identified. It is hoped that this information will help accountants and agents identify the necessary checks that they can carry out. This in turn will assist taxpayers in proving that they take reasonable
Qualifying Recognised Overseas Pension Schemes (QROPS)March 20, 2014
HMRC has published an updated list of Qualifying Recognised Overseas Pension Schemes (QROPS). The most recent list published on 13 March 2014 includes QROPS providers in countries including Australia, Belgium, Canada, France, Germany, Gibraltar, Guernsey, Ireland, Isle of Man, Jersey, Switzerland
Tax credits fraud - NewcastleMarch 20, 2014
A new campaign has been launched by HMRC to reduce tax credits error and fraud in Newcastle. The campaign was launched on 17 March and HMRC is using local radio and newspaper adverts to raise awareness of the issue. The adverts highlight changes in circumstances that must be reported to HMRC to
National Minimum WageMarch 20, 2014
The Low Pay Commission’s (LPC) recommendations for increases in the National Minimum Wage (NMW) rates have been accepted by the government. The new NMW rates will come into effect on 1 October 2014. The hourly rate of the NMW will increase to 6.50 (a rise of 19p) with effect from 1 October 2014
Real Time Information - penaltiesMarch 20, 2014
The introduction of major changes to the way PAYE information is collected, began with the introduction of the Real Time Information (RTI) system in April 2013. The system involves employers sending HMRC information about tax and other deductions from employees' pay when the employee is paid, rather
Budget Report SummaryMarch 19, 2014
Budget Statement 19 March 2014 George Osborne has presented his 5th Budget and we have summarised below some of the more impactful changes. As ever, he was caught between the need to rebalance UK plc’s books and meet the demands of industry to stimulate investment. Our summary of the main tax
Reimbursing additional household expensesMarch 13, 2014
The guideline amount which employers can pay employees who have to work from home for additional household expenses is 4 per week. The amount for additional household expenses is designed to cover costs incurred by virtue of working from home such as gas and electricity. HMRC’s definition states
Intrastat declarationsMarch 13, 2014
Intrastat declarations are used to collect information on the movement of goods from the UK to other EU countries and vice versa. Any business that exceeds the exemption threshold for either arrivals or dispatches of goods is obliged to submit monthly returns. Businesses with annual EU trade above
VAT – Option to taxMarch 13, 2014
There are special VAT rules which allow businesses to standard rate the supply of most non-residential and commercial land and buildings (known as the option to tax). This means that subsequent supplies by the person making the option to tax will be subject to VAT at the standard rate. The ability
National Insurance numbersMarch 13, 2014
The old plastic National Insurance number cards have been replaced by a letter quoting an individual's National Insurance number. It is important that this notification is kept in a safe place. Individuals who have lost or forgotten their National Insurance number can complete HMRC form CA5403 in
Updated tax credits and Child Benefit informationMarch 13, 2014
New regulations have been published that increase the thresholds for tax credits, Child Benefit and guardian's allowance from April 2014. Tax credits: The child tax credit child element increases from 2,720 to 2,750. The child tax credit family element remains unchanged at 545. The
Latest ISA bulletin publishedMarch 13, 2014
An ISA account is free of all Income Tax and Capital Gains Tax. Eligible holdings are cash (up to half the maximum), national savings products, life insurance products, stocks and shares. Account holders may make withdrawals at any time without the loss of tax relief. The ISA limits increase
UK Trade estimatesMarch 13, 2014
The latest set of regional trade statistics has been published for the final quarter of 2013. This data is primarily sourced from Customs systems and Intrastat returns. Exports The total value of UK exports for the 12 months ending 31 December 2013 was 298.9 billion. This represents a
Stamp taxes bulletinMarch 13, 2014
HMRC has published the latest issue of the 'Stamp Taxes Bulletin'. The bulletin provides information relevant to stamp taxes. The bulletin also includes details of the Annual Tax on Enveloped Dwellings (ATED) that came into effect from 1 April 2013. The annual tax will be payable by certain
Cash basis for small businessesMarch 13, 2014
HMRC is urging small businesses with a turnover of less than 79,000 to consider the use of the cash basis scheme for simpler accounting. The new scheme, which has been available since April 2013, saves the need for smaller businesses to make more complex accounting adjustments saving both time and
Payroll GivingMarch 13, 2014
Payroll Giving was introduced in 1997 to encourage employers to allow employees to deduct charitable donations from their pay before PAYE is calculated. The scheme effectively allows taxpayers to make a tax free donation to charity directly from their pay or pension. Payroll Giving has raised over
Basic PAYE tools - 2014-15 updateMarch 13, 2014
The latest version of the Basic PAYE Tools software for the 2014-15 version is expected to be released on 3 April 2014. The 2014-15 version will be provided as an update to the existing version rather than a separate download, so existing users do not need to go to the HMRC website to get the