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...
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...
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...
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...
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...
Muras Matters: Form P11D and Form 42 – Deadline and Recent Changes
Form P11D and Form 42 – Deadline and Recent Changes Forms P11D and P11D(b) As you will be aware, the above HMRC forms are used to report benefits and expenses provided to employees and directors each tax year. An employer is liable for Class 1A National Insurance Contributions on taxable benefits, at 13.8% (2017/18), as reported on the employers declaration form P11D(b). Form P11D Deadline The...
Ring in the changes, or else
There are a number of obligations that business owners should be aware, that involve them informing HMRC of changes to their business circumstances. In some cases, failure to comply may result in fines. We have paraphrased some of occasions when you will need to advise HMRC: You must tell HMRC if you decide to change the legal structure of your business, for...
Thousands receive back pay
In a recent press release, HMRC urged underpaid workers to complain as figures show that the number of workers getting the money they're owed by employers has doubled after interventions by HMRC. According to latest figures, in 2017-18, HMRC investigators identified £15.6 million in pay owed to more than a record 200,000 of the UK’s lowest paid workers. HMRC launched its online...
Crackdown on abuse of UK businesses
Reforms are being considered that will ensure that Scottish Limited Partnerships continue to be used as a legitimate vehicle for investment in the UK. Measures to crack down on the abuse of a specialised financial arrangement to launder foreign money through the UK was unveiled at the end of April 2018. This is part of a package of government reforms. Scottish Limited...
Employees holiday entitlement
The following definitions should help to clarify employee and employer rights and responsibilities regarding entitlement to holiday pay. Almost all workers are legally entitled to 5.6 weeks’ paid holiday per year (known as statutory leave entitlement or annual leave). An employer can include bank holidays as part of statutory annual leave. Most workers who work a 5-day week must receive at least...