If any of your Construction Industry (CIS) returns are filed one day late, HMRC will charge an initial fixed penalty of £100. Additionally, if they have still not received that return: two months after the date it was due, they will charge a second fixed penalty of £200 six months after the date it was due, they will charge a further penalty of...
Understanding the new State Pension
This month sees the launch of a new service that provides a personalised written estimate of what you can expect to receive under the new State Pension system. This will be based on your work history and National Insurance (NI) contributions to date. Initially, the estimate will be available to the approximately 2.5 million people who reach State Pension age in...
Muras Matters: Changes to the Rules of Intestacy
Changes to the Rules of Intestacy Background When a person dies without leaving a valid Will, the rules of intestacy govern how their assets are distributed. A person who dies without leaving a Will is said to have died intestate. Commentators suggest that more than 60% of the adults in the UK do not have a Will, meaning that recent changes to the...
Farming tax strategy – the herd basis
Farm animals are usually dealt with for tax purposes as trading stock: the costs of animals are deducted from monies received when the animals are sold and any resultant profit taxed as income. However, farmers can elect to treat qualifying “herds” of animals in a more tax efficient way, they can apply the Herd Basis (HB). HMRC advise: “Some farm animals are kept...
US Treasury blocks tax inversions
A move by the US Treasury to close loopholes that encourage US companies to merge with foreign firms and relocate their tax residences offshore could stifle takeovers announced this year worth hundreds of billions of dollars. In particular, it will probably throw into doubt the agreed £32bn takeover of UK listed Shire by AbbVie of the US and it is...
Muras Matters: National Minimum Wage Increase
National Minimum Wage Increase Echoing the changes recommended by the Low Pay Commission, the rates of National Minimum Wage (NMW) announced in March 2014 come into effect for pay periods starting on or after 1 October 2014. The changes are: the main adult rate (for workers 21 and over) will increase by 19p to £6.50 an hour the rate for 18 to 20...
Wear & Tear Allowance (WTA)
If a property is let furnished - with sufficient furniture, furnishings and equipment for normal residential use – landlords can only claim tax relief for the furniture and equipment by way of the WTA. Prior to April 2013, landlords had the option of claiming the cost of replacement furniture instead. The WTA is calculated as 10% of the gross rents less...
HMRC delays RTI penalties
From 6 October 2014, HMRC was due to include smaller employers in the penalty regime for late filing of Real Time Information (RTI) payroll returns for 2014-15. HMRC have announced that this penalty process will be delayed for a number of smaller employers. They will now start from: 6 October 2014 for employers with 50 or more employees 6 March 2015 for employers with...
Business rates relief
There are a number of reliefs available to owners or tenants of smaller business premises. This article lists a number that can be claimed. Small business rate relief: You’ll get 100% relief (doubled from the usual rate of 50%) until 31 March 2015 for properties with a rateable value of £6,000 or less. This means you won’t pay business rates on properties...
Autumn statement 2014
HM Treasury has announced that this year’s Autumn Statement will be made on 3 December 2014. Historically, this has been used to showcase the Government’s expected tax changes in the following year’s finance act. If you have any suggestions the Government is seeking your views on what you would like to see in the Statement. According to the GOV.UK website: “In the...