New criminal offence for individuals who hide money offshore

The government is consulting on plans to introduce a new strict liability criminal offence for individuals who hide their money offshore. Under the plans announced by the Chancellor, HM Revenue & Customs (HMRC) would no longer need to prove that individuals who have undeclared income offshore intended to evade tax, in order for a criminal conviction to be handed down. At...

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Unemployment drop…

Figures recently published by the Office for National Statistics show that unemployment has dropped below 7% for the first time since the recession and employment has seen the biggest annual jump in a generation. Unemployment fell by 77,000 in the last 3 months, taking the unemployment rate to 6.9% for the first time since 2009. In the largest annual rise in nearly...

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Government announces extension for pension decision period

The government announced recently that people who have recently taken a tax-free lump sum from their defined contribution pension will be given 18 months rather than 6 months to decide what they wish to do with the rest of their retirement savings, and will not be put at a disadvantage should they wish to wait to access their pension savings...

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Radical proposal to change private residence relief

At present, it is possible to make an election, in certain circumstances, allowing owners of more than one residential property to choose which property is their main residence. In this way a measure of Private Residence Relief (PRR) can be achieved for the elected property. This process of swapping properties for tax purposes achieved notoriety during the MPs’ expenses scandal...

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Office for Budget Responsibility (OBR) issues conflicted information

It would seem that economic indicators confuse economists as well as the rest of us. The first two paragraphs of the recently published Executive Summary of the OBR makes for interesting reading.  Here’s a bullet point summary: The UK economy has continued to recover. In the final quarter of 2013, GDP growth matched our December forecast, inflation fell back to target and unemployment...

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Don\’t forget to claim Employment Allowance

Employers are reminded to claim the £2,000 Employment Allowance which commenced 6 April 2014. Basically, employers can reduce their National Insurance contributions by a maximum £2,000 in the current tax year.  Here’s the instructions on claiming the allowance as posted on GOV.UK’s website:  “You can use your own 2014 to 2015 payroll software (see your software provider’s instructions), or HM Revenue and...

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Lifestyle victory for taxi driver and his family

Glen Whittle must be feeling pleased with the outcome of his recent appeal against assessments issued by HMRC. An enquiry instigated by HMRC resulted in the issue of assessments on the basis that the income of Mr & Mrs Whittle was insufficient to meet their outgoings. HMRCs argument centred on the level of household and holiday costs. Fortunately, Mr & Mrs Whittle...

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Tax Diary April/May 2014

  1 April 2014 - Due date for Corporation Tax due for the year ended 30 June 2013.  19 April 2014 - PAYE and NIC deductions due for month ended 5 April 2014. (If you pay your tax electronically the due date is 22 April 2014.) 19 April 2014 - Filing deadline for the CIS300 monthly return for the month ended 5 April...

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State Pension and tax

If you have recently started to receive your State Pension, you may, or may not, have noticed that it is paid without deduction of tax. This can have a number of unforeseen tax consequences: If your total income including your State Pension is less than your personal tax allowance then there is no tax to pay and you can spend your...

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HMRC is changing the way they charge interest on late paid PAYE

Employers should note that HMRC is changing the way they charge interest on unpaid PAYE from 6 April 2014. We have reproduced below HMRC’s recent Helpsheet:  For the tax year 2014-15 onwards:  HMRC will charge in-year, rather than annual, interest on all unpaid: PAYE tax and Class 1 National Insurance, including specified charges (estimates HMRC makes in the absence of a PAYE submission) Construction...

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