Rent a Room Relief Background Rent a Room Relief is available where an individual lets a furnished room in their main residence. The relief removes the requirement to pay income tax and file a tax return where certain criteria are met. Broadly, up until 5 April 2016, where a furnished room in a residential home was let for less than £4,250 p.a. before...
Small businesses take on more staff
According to new government research published recently shows that almost a quarter (24%) of small and medium-sized (SME) employers had more people working for them in 2015 than in 2014. The Small Business Survey 2015 is based on the views of more than 15,000 SMEs. Starting from this year, the survey will track the same businesses over time to better understand...
HMRC issues warnings and advice regarding fraudulent emails
There is a continuing misuse of emails and SMS messages that purport to be from HMRC asking questions about your tax and encouraging recipients to part with their personal information and bank details. HMRC have recently issued guidance, intended to help taxpayers decide if an email from the tax office is genuine. Here’s what HMRC have said on this topic: As well...
UK tax to be simplified
The UK has one of the most detailed tax codes in the developed economies. Readers might be amused, bemused, that the so-called Office of Tax Simplification (OTS) has launched a high level strategy consultation that aims to move its tax simplification agenda forwards. The aim is to make our tax system easier to understand and therefore simpler to use. Here’s what Angela...
Muras Matters: Capital Gains & The Investors’ Relief
Capital Gains & The Investors’ Relief Background With effect from 6 April 2016, the tax rates for Capital Gains Tax (“CGT”) have changed. Previously, the rates were 18% or 28% after deducting the tax free Annual Exemption (£11,100 since 6 April 2016). The 18% applied to the extent that the gain fell within an individuals basic rate (20%) band of income tax. For...
Two thirds of large UK businesses experience computer hacking
Nearly seven out of ten attacks on all firms involved viruses, spyware or malware. Record £1.9bn government investment to protect UK but industry must act to help protect themselves New National Cyber Security Centre will launch in the autumn 2016 Britain’s businesses are being urged to increase protection from cyber criminals after government research into cyber security found two thirds of large businesses...
Muras Matters: Form P11D and Form 42 – Deadline
Form P11D and Form 42 - Deadline Forms P11D, P9D 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% (2015/16), as reported on the employers declaration form P11D(b). Form P11D Deadline The deadline...
International tax transparency makes progress
Chancellor of the Exchequer, George Osborne hailed the international expansion of a UK-led deal to automatically share information on the ultimate owners of companies as over 20 jurisdictions, including British crown dependencies, overseas territories and EU member states sign up. Gibraltar, Isle of Man and Montserrat are amongst those joining the initiative led by the UK and launched with Germany,...
Home owners may be caught by stamp duty increase
From 1 April 2016, buyers of residential property that is not to be their main residence in England, Wales and Northern Ireland, will be liable for the higher rates of Stamp Duty Land Tax (SDLT). Basically any property subject to the higher rates, that costs more than £40,000, will be charged at the following rates: Where applicable, the higher rates will...
Non competition clauses under the microscope
Business Secretary, Sajid Javid, has announced plans to look into employment rules that could be stifling British entrepreneurship by preventing employees from starting up their own business after leaving a job. In a move designed to back even more small businesses and entrepreneurs across the country, the government is launching a call for evidence asking for views on what are known...