Last month we touched on the changes that HMRC is introducing to the treatment of defined contributions pensions. HM Treasury has now issued the following update that clarifies the position of people who have recently taken a tax-free lump sum from their defined contribution scheme. “The government has announced today (Wednesday 9 April) that people who have recently taken a tax-free...
VAT Mini One Stop Shop (MOSS)
Currently, the place of taxation for broadcasting, telecommunications and e-services (BTE) supplies is determined by the location of the supplier of the services. However, from 1 January 2015, the place of taxation for private consumers will be determined by the location of the consumer. Business to business supplies are unaffected; this change will only concern suppliers of BTE services to private...
Tax Diary May/June 2014
1 May 2014 - Due date for Corporation Tax due for the year ended 31 July 2013. 19 May 2014 - PAYE and NIC deductions due for month ended 5 May 2014. (If you pay your tax electronically the due date is 22 May 2014.) 19 May 2014 - Filing deadline for the CIS300 monthly return for the month ended 5 May...
New criminal offence for individuals who hide money offshore
The government is consulting on plans to introduce a new strict liability criminal offence for individuals who hide their money offshore. Under the plans announced by the Chancellor, HM Revenue & Customs (HMRC) would no longer need to prove that individuals who have undeclared income offshore intended to evade tax, in order for a criminal conviction to be handed down. At...
Unemployment drop…
Figures recently published by the Office for National Statistics show that unemployment has dropped below 7% for the first time since the recession and employment has seen the biggest annual jump in a generation. Unemployment fell by 77,000 in the last 3 months, taking the unemployment rate to 6.9% for the first time since 2009. In the largest annual rise in nearly...
Government announces extension for pension decision period
The government announced recently that people who have recently taken a tax-free lump sum from their defined contribution pension will be given 18 months rather than 6 months to decide what they wish to do with the rest of their retirement savings, and will not be put at a disadvantage should they wish to wait to access their pension savings...
Radical proposal to change private residence relief
At present, it is possible to make an election, in certain circumstances, allowing owners of more than one residential property to choose which property is their main residence. In this way a measure of Private Residence Relief (PRR) can be achieved for the elected property. This process of swapping properties for tax purposes achieved notoriety during the MPs’ expenses scandal...
Office for Budget Responsibility (OBR) issues conflicted information
It would seem that economic indicators confuse economists as well as the rest of us. The first two paragraphs of the recently published Executive Summary of the OBR makes for interesting reading. Here’s a bullet point summary: The UK economy has continued to recover. In the final quarter of 2013, GDP growth matched our December forecast, inflation fell back to target and unemployment...
Don\’t forget to claim Employment Allowance
Employers are reminded to claim the £2,000 Employment Allowance which commenced 6 April 2014. Basically, employers can reduce their National Insurance contributions by a maximum £2,000 in the current tax year. Here’s the instructions on claiming the allowance as posted on GOV.UK’s website: “You can use your own 2014 to 2015 payroll software (see your software provider’s instructions), or HM Revenue and...
Lifestyle victory for taxi driver and his family
Glen Whittle must be feeling pleased with the outcome of his recent appeal against assessments issued by HMRC. An enquiry instigated by HMRC resulted in the issue of assessments on the basis that the income of Mr & Mrs Whittle was insufficient to meet their outgoings. HMRCs argument centred on the level of household and holiday costs. Fortunately, Mr & Mrs Whittle...