HMRC are currently consulting with interested parties (the accounting profession and associated professional organisations) to re-vamp the UK’s system for taxing employee benefit in kind and expenses. Changes are planned to simplify this process in accordance with recommendations made by the Office of Tax Simplification. Consultations commenced 18 June 2014 and due to be completed 9 September 2014. The four areas of...
Tax free capital gains – private residence relief
If you dispose of a dwelling house (which can include a house, flat, houseboat or fixed caravan) which is your home, or part of a dwelling house which is your home, or• part of the garden attached to your home , you would normally have to pay Capital Gains Tax (CGT) on any gain you make. However, you will be entitled...
A new range of apprenticeships under the Trailblazer scheme.
Skills and Enterprise Minister Matthew Hancock announced a new range of apprenticeships that will be developed by employers under the Trailblazer scheme on 27 June 2014. He also called for expressions of interest from groups of employers to become part of the third phase of Trailblazers. The Apprenticeship Trailblazers, launched in October 2013, have gone from strength to strength. The first...
Is my State Pension taxable or not?
The State Pension is part of a pensioner’s taxable income. The problem is, it is paid gross, without deduction of tax. If your sole source of income is the State Pension then this should cause no problem as the State Pension is usually below the annual tax-free personal allowance. What can, and does, cause a problem is if you have other...
TV productions vie for share of UK\’s new TV tax credits
The UK’s new TV tax credit for approved productions in the UK are going down a storm with production companies on both sides of the Atlantic. One of the key draws to working on productions in the UK, aside from the financial incentives, is the large pool of experienced crew and actors based in the UK. TV production incentives were first introduced...
Business use of employees\’ cars
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...