The phrase “in-limbo” comes to mind when describing the present outlook for businesses in the UK. What will be the outcome of the June election? What will be the outcome of the withdrawal from the EU? We will all likely be affected. If not directly involved in trade with Europe, we are possibly part of the downward supply chain. What to do? First...
Muras Matters: HM Revenue & Customs and ‘Phishing’ Emails
HM Revenue & Customs And ‘Phishing’ Emails Phishing On Friday HM Revenue and Customs (“HMRC”) issued another warning of ‘phishing’ emails being sent out by fraudsters. This follows the warnings in the run up to the Self Assessment deadline in January, and with the worldwide ransomware virus issues of the last few days, it is essential to be vigilant with all such...
What is the current tax position when dividends are taken
One of the most useful ways for owner directors of small companies to reduce their overall tax and NIC costs is to pay themselves a reduced salary – just enough to maintain their State benefits entitlements – and take any balance of remuneration in the form of tax efficient benefits and dividends. Government has changed the rules regarding the sacrifice of...
The new Criminal Finances Bill
New legislation to increase the powers of law enforcement received Royal Assent 27 April 2017. The Criminal Finances Act 2017 will give law enforcement agencies and partners, further capabilities and powers to recover the proceeds of crime, tackle money laundering, tax evasion and corruption, and combat the financing of terrorism. The act: creates unexplained wealth orders which can require those suspected of serious...
Change in accounts filing for small companies
Small companies are required to file a copy of their end of year accounts with Companies House. In the past, it has been possible to file abbreviated accounts – basically, a few notes and a Balance Sheet with very little data regarding profitability – for smaller companies this has restricted the amount of financial information available in the public domain,...
Muras Matters: Form P11D and Form 42 – Deadline
Form P11D and Form 42 - Deadline Form P11D and Form 42 - Deadline 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% (2016/17), as reported on the employers declaration form P11D(b). Form P11D...
Under 4 year olds now eligible for tax-free childcare
The government have issued the following press release regarding the roll-out of the new tax-free childcare scheme: From 21 April 2017, working parents can start applying for two new government childcare schemes launching this year – Tax-Free Childcare which begins immediately and 30 hours free childcare which starts in September. This means that working parents of children, who will be aged under...
Finance Bill reduced
In order to ensure that the Finance Bill 2017, introduced March 2017, is passed before the impending general election, huge chunks of the original, published bill have been removed. In the national press this has been referred to as a “wash-up”. Significant legislation has been side-lined in the process. For example, the following charging provisions have been removed: Rules to introduce the...
Muras Matters: New ‘Tax-free Childcare’ Scheme
New ‘Tax-free Childcare’ Scheme Background ‘Tax-free Childcare’ is a new government scheme to help working parents with the cost of childcare. It will be introduced on 28 April 2017 for parents of children under two, and will then gradually be rolled out during 2017 for children up to the age of 12, or up to the age of 17 for children with...
Expenses and benefits for employees
Until 2015-16, it was possible to apply for a dispensation to exclude certain expenses and benefits provided to employees from the year end returns to HMRC: primarily the submission of forms P11D. These dispensations ceased to be effective from 6 April 2016. From this date many of the expenses covered by dispensations were exempted from the benefits legislation. The sorts...