The gradual restriction of tax relief for buy-to-let mortgage interest has received much publicity since the process commenced 5 April 2017. From that date, tax relief is converted from a straight forward deduction against business profits into a basic rate tax deduction. If you continue to be a basic rate taxpayer as these changes roll-out, you will see no increase in...
Grants available for food producers and suppliers
Up to £20 million is being made available to increase productivity and sustainability in crop and ruminant agriculture systems through the Industrial Strategy Challenge Fund. Innovate UK are looking for projects that improve productivity and sustainability in crop and ruminant agriculture. There is £20 million to be shared across 2 types of project: productivity solutions, which develop a single intervention within a supply...
Customs procedures with a no deal Brexit
Last week we posted an article advising businesses that trade with the EU of guidance that HMRC have issued in the event that we do not reach an accommodation with the EU when we leave March 2019. This week we are paraphrasing, from HMRC’s guidance announcements, the likely changes to customs procedures if the so-called “no deal” scenario becomes a reality....
Spreadsheets and VAT from April 2019
Making Tax Digital (MTD) is HMRC’s long running intention to make an electronic link with the accounting data of UK businesses. The idea is to draw in the data they need directly from your computers using links provided by your software developers for this purpose. Which is fine if you are using accounts software that will accommodate these changes. The first implementation...
VAT before and after Brexit
Businesses that buy goods from the EU or export goods to the EU would be advised to read the recent guidance from HMRC that is published under the title: "VAT for businesses if there is no Brexit deal" The stated purpose of the document is reproduced below. The full text can be read online at https://www.gov.uk/government/publications/vat-for-businesses-if-theres-no-brexit-deal/vat-for-businesses-if-theres-no-brexit-deal The purpose of this notice is, in...
Where there is a Will…
None of us relish the thought of our own demise which probably explains why approximately 70% of us have not made a Will. With no direction, who will inherit your worldly goods if you die without making a Will? The legal jargon is dying 'intestate'. Consider Louis, 75 years old and deeply into avoidance when it comes to considering his estate. Let...
What has hope got to do with it?
In a recent tax case, Pallister v Revenue & Customs, Pallister’s son (PJ) was left a share in his deceased parent’s investment property in June 2012. A local surveyor valued the property at £1.2m and this was the figure used to determine the deceased parent’s inheritance tax bill. Subsequently, the property was sold in March 2014 for £2.5m. HMRC were peeved. Less...
Muras Matters: Requirement To Correct
Requirement To Correct Background In recent years HM Revenue and Customs (HMRC) has focused heavily on offshore matters but it still considers a significant amount of tax remains uncollected in this area. In response to this, the Requirement to Correct (RTC) legislation was introduced last year, requiring a taxpayer with overseas assets to bring their tax affairs up to date. The deadline for...
Boosting recycling through the tax system
The government has announced that it has received record-breaking support from members of the public to counter the blight of plastic waste. Here’s what they said: Individuals, businesses and campaign groups have expressed overwhelming support for action on tackling the impact of plastics on our environment. The backing comes as HM Treasury publishes the summary of responses to its recent call for...
New ideas from government think tank
At the beginning of August, the Office for Tax Simplification (OTS) – a government department charged with coming up with new ideas to simplify our tax system – issued a number of reports and recommendations. They include a number of interesting topics and we have shared the conclusions below: Changes to capital allowances At present, businesses depreciate assets in their accounts and...