Background Non-resident individuals disposing of UK residential property are subject to the non-resident capital gains tax (‘NRCGT’) at the higher rates of 18% or 28% applicable to residential property gains. From April 2019 these rules have been extended so that gains on the disposal of any UK commercial property held by a non-resident ‘person’ are also taxable. In addition from April 2019 all residential property gains by...
Paying tax if you are self-employed
If you are a sole trader or an individual member of a partnership you will likely be subject to income tax, and possibly National Insurance, on your earnings. Unfortunately, tax being taxing, earnings for tax purposes may not be the same as the monthly drawings you take from your business. For example, you may decide to take no “wages” from your business...
Disposing of a UK residential property?
UK readers who are anticipating the sale of a residential property on which a capital gains tax (CGT) charge may apply would be advised to consider the changes to the reporting and payment of this CGT charge from 6 April 2020. The general rule will be that for relevant disposals on or after this date (6 April 2020) a return in...
An update for hauliers
If you are involved in the transport of goods to and from the EU HMRC have posted useful guidance on what you will need to do to accommodate a no-deal Brexit on 31st of this month. The guidance can be downloaded as a PDF from https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/836920/transporting-goods-between-the-uk-and-eu-in-a-no-deal-brexit-guidance-for-hauliers.pdf Transitional arrangements are in place regarding licenses and permits. The EU has agreed that for a transitional...
Muras Matters: Off Payroll Working in the Private Sector
Background The rules for off payroll working, commonly referred to as ‘IR35’, were originally introduced in April 2000 and most readers will be aware that they refer to the legislation which prevents individuals from providing their services via an ‘intermediary’, such as a personal service company, and consequently paying less tax and NI than if they were employed directly. HMRC introduced new measures from 6 April...
Tax Diary October/November 2019
1 October 2019 - Due date for Corporation Tax due for the year ended 31 December 2018. 19 October 2019 - PAYE and NIC deductions due for month ended 5 October 2019. (If you pay your tax electronically the due date is 22 October 2019.) 19 October 2019 - Filing deadline for the CIS300 monthly return for the month ended 5 October...
The loan charge controversy continues
The following press release was published by HMRC last month. Extracts are reproduced below: Sir Amyas Morse, the former Comptroller and Auditor General and Chief Executive of the National Audit Office (NAO), will lead an independent review of the Loan Charge… The review will consider whether the policy is an appropriate way of dealing with disguised remuneration loan schemes used by individuals...
Enjoy a tax-free Christmas bash
Follow the outline below to ensure that the cost of your annual staff party will not create tax issues for you or your staff. The event must be open to all employees at a specific location. An annual Christmas party, or other annual event offered to staff, generally is not taxable on those attending, provided that the average cost per head of...
Property tax changes from April 2020
Although the Brexit process continues to throw a spanner into the normal workings of government, there are a few certainties from a tax point of view that will be effective from April 2020. A few property related changes are noted in this article: Presently, the last 18 months of ownership of a residential property are ignored if a home has been...
About face by HMRC
Last month we reported the changes that CIS, VAT registered contractors and sub-contractors were about to face with the introduction of the “reverse charge” process from 1 October 2019. Shortly after our newsletter was published, HMRC conceded that it was aware that the industry was struggling to adapt to the new rules and, as Brexit is also looming large this month,...