Category: Tax

Comments Off on Making Tax Digital on hold – but businesses should still prepare

Making Tax Digital on hold – but businesses should still prepare

Making Tax Digital on hold – but businesses should still prepare

Plans to force every business and landlord operating in the UK to file four six returns a year online plus VAT returns have been put on hold ahead of the General Election on June 8. And the news has been welcomed by leading Merseyside accountant Peter Taaffe, managing partner of Castle Street-based practice BWMacfarlane. However, … Continued

Comments Off on Investing in small companies

Investing in small companies

Investing in small companies

ISAs and pensions are the most popular options for people saving for their futures. However, if you are an experienced investor with a significant portfolio of assets, there are other tax-advantaged products which may be appropriate. Known as ‘tax-led investments’, these include Venture Capital Trusts (VCTs) and the Enterprise Investment Scheme (EIS). Tax-led investments offer … Continued

Comments Off on Does the new 16.5% VAT flat rate percentage apply to your business?

Does the new 16.5% VAT flat rate percentage apply to your business?

Does the new 16.5% VAT flat rate percentage apply to your business?

The new VAT flat rate of 16.5% started to apply from 1 April 2017 for “limited cost traders”. A “limited cost trader” is one using the VAT flat rate scheme but where the VAT inclusive cost of goods for a year is less than 2% of VAT inclusive turnover, excluding certain specified items. Those specified … Continued

Comments Off on MTD among reforms dropped from Finance Bill

MTD among reforms dropped from Finance Bill

MTD among reforms dropped from Finance Bill

  The Government’s “Making Tax Digital” policy has been dropped from the Finance Bill after blanket opposition from taxpayers, business groups and senior political figures across all parties. The initiative would have forced millions of businesses and self-employed people to file multiple tax returns each year. Anita Monteith, tax manager at ICAEW, said: “This is … Continued

Comments Off on IR35 changes for public sector contractors

IR35 changes for public sector contractors

IR35 changes for public sector contractors

Important changes to public sector contractors working under IR35 legislation have taken effect for 2017/18. Individuals who work through intermediaries, such as personal service companies, are no longer subject to IR35 rules if they work in the public sector. Public sector organisations or agencies paying off-payroll workers are now responsible for deciding whether the work … Continued

Comments Off on ISA rules misunderstood

ISA rules misunderstood

ISA rules misunderstood

More than half of adults don’t understand ISA rules, research by Opinium has found. Key findings: 1 in 5 knew that the ISA annual allowance is £20,000 for 2017/18 24% knew that you can transfer money from previous tax years into a current ISA 9% wrongly believed that you can only move money if your … Continued

Comments Off on MTD: Taxpayers will have to make multiple annual submissions to HMRC

MTD: Taxpayers will have to make multiple annual submissions to HMRC

MTD: Taxpayers will have to make multiple annual submissions to HMRC

In March 2015, George Osborne outlined the new concept of “making tax easier”. All the tax information relevant to an individual would be gathered into the taxpayer’s digital tax account, and the annual paper tax return would be consigned to history. This was designed to result in a reduction in the administrative burden for taxpayers. … Continued

Comments Off on Do recent inheritance tax changes necessitate a change of your will?

Do recent inheritance tax changes necessitate a change of your will?

Do recent inheritance tax changes necessitate a change of your will?

It is advisable to review your will on a regular basis, particularly on marriage, divorce, the birth of a child or grandchild, the death of a beneficiary or executor. But some changes in tax law can also affect the provisions of your will. The introduction of the transferable nil rate band (NRB) between spouses in … Continued

Comments Off on Business Relief

Business Relief

Business Relief

Never assume your business interests will avoid Inheritance Tax. Many major shareholders and business owners are oblivious to the traps surrounding Business Relief, some of which can leave their estate at risk of a very large and unexpected Inheritance Tax (IHT) bill. Business Relief (BR), formerly – known as Business Property Relief, is much like … Continued

Comments Off on Remuneration strategy and Pension Planning

Remuneration strategy and Pension Planning

Remuneration strategy and Pension Planning

Money that would have otherwise gone to the taxman can boost your retirement savings, but action is needed before your company’s financial year-end. Salaries reduce your profits and, in turn, your Corporation Tax bill, so this is the most obvious way to move cash out of your business. An alternative form of remuneration is dividend income. … Continued