Muras Matters: Student Loan Repayments

Background Most people are familiar with the basics surrounding the student loan repayment system and the normal course of action is generally to see repayments made through the payroll for the individual concerned. However, for those individuals who are self-employed repayments will instead be made under the self-assessment tax system and for those taxpayers there are a couple of important points to remember. In addition, when approaching the end...

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CGT giveaway?

The awkwardly named “Gift Hold-Over Relief” (GHOR) allows you to give away business assets – including certain shares – or sell them for less than they are worth, and not pay (or pay reduced) capital gains tax (CGT). The person receiving the gift will potentially pay CGT when and if they sell the asset at some future date. Any taxable gain...

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Muras Matters: Offshore Income & Gains “Nudge Letters”

Background Over recent years HMRC has been exchanging more and more information with other countries in an attempt to identify where taxpayers have received income and gains from overseas sources but not declared them, either deliberately or accidentally. As a result of information received from other countries HMRC are writing to taxpayers where they have reason to believe they may have received income that has not...

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Have you heard of the Prompt Payment Code?

The Prompt Payment Code (Code) is not a fanciful device to access cash from bank machines or a way to secure automatic “prompt” payment from your customers. The Code was actually set up by the Chartered Institute of Credit Management (CICM) on behalf of government in order to promote a culture of prompt payment. Signatories to the Code agree to pay...

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What exactly is insolvency?

The dictionary definition of insolvency is less than illuminating, it is: The state of being insolvent… Listed synonyms provide more detail: bankruptcy · liquidation · failure · collapse · ruin · financial ruin · ruination · pennilessness · penury · impecuniousness · beggary · administration · receivership · folding · pauperdom What these explanations do not provide is a definition of the state of...

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Complaining to HMRC

Although many of the tax office processes are automated, dealt with by computerised systems, the rest is managed by human beings each subject to the same range of foibles as the rest of us. And we all know how reliable computerised systems have proven to be. If you are certain, or have misgivings, about the accuracy of HMRC’s assertions regarding your...

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Complaining to HMRC

Although many of the tax office processes are automated, dealt with by computerised systems, the rest is managed by human beings each subject to the same range of foibles as the rest of us. And we all know how reliable computerised systems have proven to be. If you are certain, or have misgivings, about the accuracy of HMRC’s assertions regarding your...

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The real tax cost of benefits in kind

There is a sting in the tail for companies that provide their directors or employees with taxable benefits as part of their remuneration package. Obviously, the directors or employees that receive the benefits will pay additional income tax if the benefits provided are chargeable to tax: for example, the use of a company car. The cost of the benefits is generally a...

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E-bike cycle to work scheme announced

Readers who have been tempted to cycle to work but are challenged by fitness issues or really can’t afford the bike they would like, might be interested in the recent announcement that has extended the existing Cycle to work scheme to include the use of so-called e-bikes. These are bikes with electric motors that assist with taking on those challenging gradients. Here’s...

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Muras Matters: Forms P11D and P11D(b)

As you will be aware, the above HMRC forms are used to report benefits and expenses provided to employees and directors each tax year. An employer is liable for Class 1A National Insurance Contributions on taxable benefits, at 13.8% (2018/19), as reported on the employers declaration form P11D(b). Form P11D Deadline The deadline for submitting forms P11D (and providing a copy to employees) and also form P11D(b) for...

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