Mr Hammond surprised listeners to his autumn statement speech when he said: This is my first Autumn Statement as Chancellor. After careful consideration, and detailed discussion with the Prime Minister, I have decided that it will also be my last. And then quickly followed with: Mr Speaker I am abolishing the Autumn Statement. No other major economy makes hundreds of tax changes twice...
Salary sacrifice under the microscope
Salary sacrifice is a term applied to benefits taken in place of salary. In many respects these benefits provide employees with higher “take home” value than if the benefits were treated the same as cash income. Mr Hammond is mindful to curb this practice as it is intended that the change will add £1bn a year to tax revenues by...
Are you affected by changes to the VAT Flat Rate Scheme (FRS)
HMRC is to introduce an additional test that will determine the flat rate percentage used by traders. It would seem that HMRC presently considers the benefits obtained by certain businesses to be excessive and not in accord with the intentions of Parliament. Traders that meet the new definition of a “limited cost trader” will be required to use a fixed rate...
Changes to NLW and NMW from April 2017
From April 2017, the National Living Wage (NLW) for the over 25s is being increased to £7.50 per hour. This is an increase from the current NLW rate set in October 2016 of £7.20 an hour. For the over 25s, this will represent a wage increase of just over 4%. The National Minimum Wage (NMW) will also increase from the same...
Tax Diary December 2016/January 2017
1 December 2016 - Due date for Corporation Tax due for the year ended 29 February 2016. 19 December 2016 - PAYE and NIC deductions due for month ended 5 December 2016. (If you pay your tax electronically the due date is 22 December 2016.) 19 December 2016 - Filing deadline for the CIS300 monthly return for the month ended 5 December...
Philip Hammonds last Autumn Statement
Philip Hammond surprised MPs when he ended his Autumn Statement by saying: This is my first Autumn Statement as Chancellor. After careful consideration, and detailed discussion with the Prime Minister, I have decided that it will also be my last. This was quickly followed by: Mr Speaker I am abolishing the Autumn Statement. No other major economy makes hundreds of tax changes twice a...
Tax changes announced last week
Last week, Philip Hammond presented his first Autumn Statement to parliament. In some respects, it was a bit of a damp squid as there were no stand-out revelations. However, there were a few tax changes that are worthy of note: Pension pot reinvestment The over 55s have been making good use of George Osborne’s facility to flexibly access their pension savings. Many have...
‘MGI’ International Collaboration
‘MGI’ International Collaboration At a very successful UK conference this weekend it was good for our directors and managers to be reminded of our international connections via ‘MGI’ and the value that adds to our business and to our clients. Alongside representatives from eight UK member firms, it was a fantastic opportunity to engage with our international colleagues from across Europe, Israel,...
Autumn Statement 2016: Autumn Statements to be Abolished!
Autumn Statement 2016: Autumn Statements to be Abolished! The new Chancellor has just sat down from delivering his first and last Autumn Statement speech. Based on the speech, the main tax and savings points referred to were as follows: Individuals The income tax personal allowance is to rise to £11,500, in April 2017, from £11,000 currently The National Living Wage will rise to...
Autumn Statement wish lists
Organisations across the UK have been publicising their wish lists for Philip Hammond’s first autumn statement later this week. Amongst tax practitioners there seems to be a preference for increases in the Inheritance Tax threshold and the merger of income tax and National Insurance. Northern business leaders are keen to see investment in roads and infrastructure, and incentives to invest and grow...