Continuing the theme from last week’s blog post, we have listed details of a forthcoming change to the taxation of companies that were disclosed in the draft clauses published last week for the forthcoming budget. The change outlined expands the rights of HMRC to demand a security deposit from “at risk” tax payers. In their draft notes HMRC say: HMRC can require...
Muras Matters: Self Assessment Tax Due July 2018
Self Assessment Tax Due July 2018 Tax due July 2018 Taxpayers registered under Self Assessment will need to make their second payment on account for 2017/18 by the deadline of 31 July 2018. This second payment on account is based on 50% of an individual’s combined Self Assessment tax and class 4 NIC liability for the 2016/17 tax year. There can be beneficial cash...
Do not fall for spoof emails from the taxman
New figures show that HM Revenue and Customs (HMRC) requested a record 20,750 malicious sites to be taken down in the past 12 months, an increase of 29% on the previous year. Despite a record number of malicious sites being removed, HMRC is warning the public to stay alert as millions of taxpayers remain at risk of losing substantial amounts of...
Advance notice
Last week the Treasury issued draft clauses for the forthcoming Finance Bill (to be published after the Autumn Budget later this year). These will set the scene for tax matters 2019-20 and beyond. The aim of the advance notice is to give interested parties a chance to comment on the contents before government starts the formal process of processing the legislation...
Muras Matters:Workplace Charging for All-electric and Plug-in Hybrid Vehicles
Workplace Charging for All-electric and Plug-in Hybrid Vehicles Background As reported in the news this morning the Government continues to promote the move to electric cars with their proposals that all new build properties should be required to install charging points as standard. This comes on the back of confirmation on Friday that employees charging their vehicles at work will no longer be...
Tax Diary July/August 2018
1 July 2018 - Due date for corporation tax due for the year ended 30 September 2017. 6 July 2018 - Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs. 19 July 2018 - Pay Class 1A NICs (by the 22 July 2018 if paid electronically). 19 July 2018 - PAYE and NIC deductions due...
Director minimum salary levels 2018-19
Many director shareholders take a minimum salary and any balance of remuneration as dividends. This tends to reduce National Insurance Contributions (NIC), and in some cases income tax. The planning strategy is to pay a salary at a level that qualifies the director for state benefits, including the state pension, but does not involve payment of any NIC contributions. For 2018/19 the...
Self-employed tax bills
Whether you pay income tax or National Insurance, the effect on your cash flow is the same. The payments are a necessary part of our obligation to fund the activities of State, but the self-employed are often surprised that their bi-annual tax payments cover both “taxes” – NIC and income tax. The weekly NIC Class 2 contribution is included, presently £2.95...
Construction drawn into VAT reverse charge process
It would seem, that HMRC is keen to plug the apparent drain from VAT receipts when contractors and sub-contractors charge their customers VAT and then go missing, keeping the VAT for themselves. This is described in legislation as “missing trader fraud”. Their preferred method for dealing with this abuse is to make customers responsible for accounting for the relevant VAT charge...
Unmarried couples to qualify for spousal tax breaks
In a landmark decision, the Supreme Court has ruled that discriminating on the basis of sexual orientation, or a decision to live together rather than marry, is a breach of human rights. Presently, couples need to be in a formal civil partnership or married to be able to claim the raft of tax benefits available. These advantages include: Transfers of chargeable assets...