Why don\’t they join up the dots

According to HMRC, around three million couples across the UK have boosted their finances by claiming the Marriage Allowance, but more than a million married and civil partnered couples are still eligible for the free tax break worth up to £238 a year. Thanks to the start of the new tax year couples can backdate their claim and boost a potential...

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Muras Matters: Companies House “Phishing” Emails

Companies House “Phishing” Emails Phishing Companies House has recently been used as a cover for phishing emails sent out by fraudsters. The latest emails refer to a “company complaint” and use Companies House headers and footers to make the emails appear authentic. The links used do not however direct the recipient to the correct webpage, and the email address given as enquiries@companie-shouse.gov.uk is subtly...

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Are you paying too much income tax

When your income exceeds £100,000 for income tax purposes your entitlement to a personal allowance (£11,850 for 2018-19) is reduced by £1 for every £2 that your income exceeds this threshold. Which means, when your income reaches £123,700, you no longer qualify for a personal allowance. The effect on the income tax rate you pay in this band - £100,000 to £123,700...

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What now for the gig economy

The Supreme Court has ruled in favour of Gary Smith, a self-employed contractor with Pimlico Plumbers, who considered he was due worker’s rights and has now had his assertion rubber stamped by the highest court in the land. There are no win-win outcomes following this case, in fact the status of all sides in the so-called “gig economy” is up for...

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Muras Matters: New Rules on Taxation of Termination Payments

New Rules on Taxation of Termination Payments   Background From 6 April 2018 the rules surrounding termination payments changed. Previously termination payments were broadly only subject to income tax and Class 1 National Insurance Contributions (“NICs”) if they were contractual payments along with a few other exceptions. However, from 6 April 2018 all termination payments for payments in lieu of notice, rather than just contractual...

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When is a car a van

There are advantages for tax purposes if the vehicle you buy for your business is considered to be a van as opposed to a car. If you are VAT registered, you can claim back the VAT added to the purchase price (as long as there is no private use in which case you will have to apportion your claim) and the...

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Muras Matters: Workplace Pension Contributions Higher Rate Tax Relief

Workplace Pension Contributions Higher Rate Tax Relief   Background As a result of employers responsibilities under auto-enrolment most employees are now paying pension contributions into their workplace pension schemes. HMRC have made it very easy for basic rate taxpayers to get the full relief they are entitled to as, regardless of whether the contributions are given through salary sacrifice or through a net pay...

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How deep are your pockets

Next month, those of us who are still self-employed will be digging deep to pay our second payment on account for the tax year 2017-18. The deadline to avoid late payment interest and penalties is 31 July 2018. For most of us, these payments on account (January and July 2018) for 2017-18 are based on agreed self-assessment liability for 2016-17. Which...

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The Maternity Allowance

Women who find that they are not eligible to claim Statutory Maternity Pay may nevertheless, still qualify for the Maternity Allowance (MA). The amount of MA you get will depend on eligibility. You might get Maternity Allowance for 39 weeks if one of the following applies: you’re employed, but you can’t get Statutory Maternity Pay you’re self-employed and pay Class 2 National Insurance (including...

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Construction sector VAT shakeup

Government are considering an extension of the VAT reverse charge to include the construction sector. The reverse charge process places the responsibility for paying VAT on the customer instead of the supplier. In their explanatory notes on this topic HMRC said: What is being done and why 7.1 This instrument, with effect from the 1st October 2019, applies a reverse charge to...

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