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...
Tax Diary October/November 2014
1 October 2014 - Due date for Corporation Tax due for the year ended 31 December 2013. 19 October 2014 - PAYE and NIC deductions due for month ended 5 October 2014. (If you pay your tax electronically the due date is 22 October 2014.) 19 October 2014 - Filing deadline for the CIS300 monthly return for the month ended 5 October...
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...
International tax avoidance
Britain is to take the lead in the clamp down on international tax avoidance, Financial Secretary to the Treasury David Gauke announced Saturday 20 September. UK-based multinationals will have to report to HMRC where they make profits and pay taxes around the world. The UK is the first of 44 countries to formally commit to implementing the new country-by-country reporting...
VAT registration dilemma
James is very industrious gent’s hairdresser. He just manages to keep his turnover below the VAT registration limit. Apart from his rent, which was not subject to a VAT charge, his overheads are minimal. He is considering the purchase of his first home and needs to raise a deposit. To do this he calculates that he can just about fit in...