Today Philip Hammond will present his first budget to parliament; forecasting any changes he may be considering to the UK tax system is perhaps unwise. If he remains committed to austerity, anticipating any potential fall-out from the Brexit process and maintaining (or more likely slowing down) the repayment of national debt, it is difficult to see where savings can come from...
Muras Matters: Company Cars – Changes to Advisory Fuel Rates
Company Cars Changes to Advisory Fuel Rates This Bulletin is aimed at company car drivers (and their employers) who are not provided with fuel for private mileage HM Revenue and Customs (HMRC) are changing their advisory fuel rates for company cars with effect from 1 March 2017. The rates are intended to give guidance to employers about what is an acceptable fuel...
Making Tax Digital
We have now seen the response of HMRC to representations made by accountants and other interested parties to their Making Tax Digital (MTD) agenda. A reminder that MTD will result in the gradual digitisation of small business (including landlords) reporting to HMRC. The present proposals will oblige smaller businesses to upload quarterly data to HMRC from April 2018. HMRC’s response included a...
Personal tax and National Insurance changes for 2017-18
In no particular order changes already announced include: The personal tax allowance will increase to £11,500 and the higher rate threshold will rise to £45,000. The annual ISA limit will increase to £20,000. Both employers and employees will start paying NICs on weekly earnings above £157. The government will legislate for a new Income Tax exemption and NICs disregard to cover the first £500...
Buy to let property owners – time to start planning for tax changes
Property business owners, particularly buy-to-let landlords, have been hit with a number of quite dramatic changes in their tax status. One of the most draconian is the gradual disallowance of tax relief for finance payments that starts April 2017. We have highlighted this issue in past articles posted to this newsletter. In essence, from April 2017, finance charges will be progressively...
The UK is to get its first Small Business Commissioner
A search is underway to recruit the UK’s first Small Business Commissioner. The commissioner will be a high profile role supporting small businesses in payment disputes with their larger customers. The Commissioner appointment is an important measure in tackling late payment issues Expected to be based in Birmingham, the Commissioner will be a national champion for small businesses. Comments from government sources include: Small Business...
Tax Diary March/April 2017
1 March 2017 - Due date for Corporation Tax due for the year ended 31 May 2016. 2 March 2017 – Self Assessment tax for 2015/16 paid after this date will incur a 5% surcharge. 19 March 2017 - PAYE and NIC deductions due for month ended 5 March 2017. (If you pay your tax electronically the due date is 22 March...
Muras Matters: New Vehicle Tax Regime
New Vehicle Tax Regime Background Vehicle tax on newly registered vehicles is changing from 1 April 2017. The current structure is based on CO2 bands and was introduced in 2001 when average UK new car emissions were 178 g/km. The new rules are being introduced to reflect changes in emissions technology in newer cars and were first announced by former chancellor George Osborne...
Tax free pensions advice
People planning their retirement will be able to withdraw up to £1,500 from their pension pots tax-free to pay for financial advice, under recent plans unveiled by the government. The new Pension Advice Allowance, first announced at Autumn Statement 2016, will enable people to withdraw £500 up to three occasions from their pension pots tax-free to put towards the cost of...
Buy-to-let and the changing tax landscape
Buy-to-let property owners have been singled out in recent budgets for some quite draconian tax changes. One of the most pervasive starts 6 April 2017. From this date, tax relief for the cost of borrowing – predominately interest charges – will be progressively withdrawn and replaced with a basic rate tax credit. Between now and the 6 April 2020 relief will be...