Children under 16 will join under 12s in no longer having to pay Air Passenger Duty in economy class. Families planning an Easter break will get a boost today when the cost of their foreign holidays are slashed as children under 16 will join under 12s in being exempt from paying Air Passenger Duty (APD) in economy class. This change, which...
Simpler tax system for smaller companies
On the 3rd March, the Office of Tax Simplification (OTS) unveiled a package of recommendations aimed at making the tax system simpler and easier to use for small companies. The press release says: “These incorporated micro-businesses, employing less than ten people, currently face the same tax system as large companies with hundreds of employees and turnovers of many millions. The OTS...
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 2016. The rates are intended to give guidance to employers about what is an acceptable fuel...
Institute for Apprenticeships
Just in case you have not been acquainted with this new Institute, and the rather confusing acronym, we have reproduced below the Department of Innovation and Skills fact sheet that explains what it is about… Institute for Apprenticeships: To deliver a genuinely world-class apprenticeship programme in the context of the apprenticeship levy, we will need a long-term governance arrangement which will...
Incorporating a property business
Since the recent announcement of various changes to the taxation of unincorporated property businesses, there has been renewed interest in incorporation: would it be possible to shelter property income and capital gains inside the lower Corporation Tax regime? Unfortunately, this apparent quick-fix for property business owners is fraught with dangers for the unwary. For example: Stamp Duty Land Tax (SDLT): a transfer...
Incorporation v self-employment
Prior to 6 April 2016, self employed traders could make overall tax and NIC savings by incorporating their business if their annual income from self-employment exceeded approximately £10,000. The saving generally arose by taking a low salary and the balance as dividends thus avoiding NIC charges. Unfortunately, changes to the tax system from 6 April 2016 may mean that this strategy...
Company car drivers and private fuel
Since the tax on private fuel provided with company cars is so high, many employers now have an arrangement whereby they no longer pay for private fuel. In this case, the employee must reimburse the employer for private fuel included in petrol bills paid by the employer. Otherwise, the employee may face a tax charge. Consider the following example: If your private...
Multi-nationals and sweetheart deals
In an unprecedented move, HMRC have issued a press release regarding the accusation that Google were offered a deal that short changed UK taxpayers. Here’s what they had to say regarding the “sweetheart deal” accusation and the settlement with Google: ‘Sweetheart deal’ HMRC does not do “sweetheart deals”. The National Audit Office has full access to our papers and has in the past...
Tax Diary March/April 2016
1 March 2016 - Due date for Corporation Tax due for the year ended 31 May 2015. 2 March 2016 – Self Assessment tax for 2014/15 paid after this date will incur a 5% surcharge. 16 March 2016 – Budget Day… 19 March 2016 - PAYE and NIC deductions due for month ended 5 March 2016. (If you pay your tax electronically the...
The end of the 20 percent tax credit
From 6 April 2016, savers will no longer pay income tax on interest they receive from certain deposit accounts. This is due in large part to the introduction of the Personal Savings Allowance (PSA) on the same date. The PSA is worth £1,000 to basic rate taxpayers and £500 to higher rate taxpayers. So, if you are a basic rate...