Many employers pay their employees a monthly car allowance to compensate them for the business use of their private vehicles. In most cases this car allowance is treated as remuneration and is subject to PAYE and National Insurance deductions. Additionally, employers may also pay a nominal amount per mile as a contribution to fuel costs. Employers are entitled to pay their employees...
Discontinuance of trade and the Annual Investment Allowance (AIA)
In a recently decided tax case a self-employed air conditioning engineer, David Keyl, was denied a claim for AIA. He had purchased a van in July 2008 and on 31 March 2009 (the end of his trading year) he transferred his sole trader business to a limited company. Unfortunately, the legislation setting up the AIA includes a provision that relief will...
Penalty for just one day
Consider the following facts: The filing deadline for a Stamp Duty Land Tax return was a Sunday. A member of the advisor’s staff forgot to file the return by the end of the Friday – two days before the deadline. Realising their mistake, the staff member took the file home with the intention of filing over the weekend. Due to problems with internet access...
Replacement of white goods items in unfurnished, let property
This reminder will affect landlords of unfurnished let property who are considering the replacement of standalone white goods (fridges etc) and similar items. Following the withdrawal of a tax concession from April 2013, there is effectively no tax relief for the replacement of defective, free-standing white goods in unfurnished properties. In some respects this absence of relief is difficult to justify but...
Tax Diary July/August 2014
1 July 2014 - Due date for Corporation Tax due for the year ended 30 September 2013. 6 July 2014 - Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs. 19 July 2014 - Pay Class 1A NICs (by the 22 July 2014 if paid electronically). 19 July 2014 - PAYE and NIC deductions due...
Avoid and report internet scams and phishing
Internet fraudsters are using ever more intricate messages to trick you to part with private information. For example: your bank details and passwords. They may also hide viruses in email attachments that will give them access to your personal computer files. The viruses will usually be activated if you open the attached files. The best way to combat this activity is...
Business rates exemptions
Certain property, whether occupied or out of use for a period, may be eligible for exemption from payment of business rates. The GOV.UK website lists the following as potentially eligible: Exempted buildings - certain properties are exempt from business rates. Exemptions include: agricultural land and buildings, including fish farms buildings used for training or welfare of disabled people buildings registered for public religious worship...
Do you need to fill in a tax return?
HMRC have determined that you must complete a self assessment tax return if any of the following circumstances apply to your personal, financial circumstances: 1. You're a company director, minister, Lloyd's name or member. Your annual income is £100,000 or more. You have income from savings, investment or property. If you are an employee or a pensioner and already pay tax through a...
Construction Industry and tax
All active building contractors and building subcontractors are subject to HMRC regulation. The rules they have to abide by are set out in the Construction Industry Scheme (CIS). Essentially, contractors cannot pay their subcontractors without stopping tax. Only in specific circumstances can payments be made without deduction of tax. The scheme operates a little like the PAYE system with one important...
European Commission ventures opinion on UK economy
In March 2014 the European Commission published a report entitled Macroeconomic Imbalances United Kingdom 2014. The text includes a few observations on the UK property market that have been greeted with less than enthusiasm by the UK Government. The report includes the following introduction: “The United Kingdom continues to experience macroeconomic imbalances, which require monitoring and policy action. In particular, developments in...