The Low Incomes Tax Reform Group (LITRG) has welcomed a recent announcement by the Government that there will be a one-year delay before the removal of Class 2 National Insurance contributions (NICs) to enable consultation on the impact of its abolition on the self-employed with low incomes. If Class 2 NICs were abolished, those with profits below the small profits threshold...
Smaller businesses to be drawn into the VAT net
The Office of Tax Simplification (OTS) published a report setting out a range of proposals for simplifying VAT. According to the OTS the tax is showing its age. What was meant to be a simple tax has become highly complex and it has not kept pace with changes in society. The most significant issue identified in the report is the VAT...
Muras Matters: Measuring the UK Tax Gap
Measuring the UK Tax Gap HM Revenue and Customs (“HMRC”) has just published the latest statistics relating to the UK ‘Tax Gap’. The tax gap is the theoretical difference between the amount of tax HMRC expects to collect through the tax system, and what it actually does collect. The report shows that the level of uncollected tax in the year 2015/16 (the...
Clampdown on child maintenance cheats
If a parent owes child maintenance, deductions to recover that debt can currently only be made from a bank or building society account held solely by them. Unfortunately, a small minority of parents are cheating their way out of supporting their children by putting their money into a joint account with a partner. New laws will be brought in to allow deductions...
Paying self-assessment tax by instalments
If you file your 2016-17 self-assessment tax return on or before 30 December 2017, you can elect to spread the repayment of any underpayment of tax for 2016-17 to the tax year 2018-19. This is done by amending your tax code for 2018-19 such that any arrears are repaid by increasing your tax payments each pay period. There are caveats to...
Carry back charitable donations
One of the few remaining options to carry back tax allowable payments to a previous tax year is the facility to set off certain charitable donations made after 5 April 2017, to the tax year 2016-17. Allowable donations have the effect of extending the amount of income you can earn at the basic rate of income tax – the donations extend...
Corporation tax payment deadline for March year end companies
Many companies have adopted the end of March each year as their accounting year end date. Corporation tax is payable by most smaller companies nine months and one day after the end of their accounts year end. Accordingly, companies that have adopted a 31 March date will need to pay any corporation tax liability for the year to 31 March 2017...
Tax Diary November/December 2017
1 November 2017 - Due date for corporation tax due for the year ended 31 January 2017. 19 November 2017 - PAYE and NIC deductions due for month ended 5 November 2017. (If you pay your tax electronically the due date is 22 November 2017.) 19 November 2017 - Filing deadline for the CIS300 monthly return for the month ended 5 November...
Room to breathe
The government are considering plans to offer people with serious debt issues time to consider their options. They are seeking views to develop a way to provide individuals in debt with up to six weeks free from further interest, charges and enforcement action. This period would give those affected time to act by seeking financial advice about how to manage and...
Muras Matters: Capital Gains Tax and the Autumn Budget
Capital Gains Tax and The Autumn Budget Background With the Autumn Budget due on Wednesday 22 November 2017, many political and tax commentators have started to try to predict what changes the Chancellor, Philip Hammond, may introduce. Given the cancelling of his planned rise in national insurance contributions for the self employed after the last Budget in March, there is the need...