Category: Tax

Employers need to report all BiKs including those under optional remuneration arrangements (OpRAs), to HMRC on form P11D from 6 April 2018, unless they are registered to voluntarily payroll benefits. OpRAs are where an employee gives up the right to an amount of earnings in return for a BiK and includes flexible benefit packages with … Continued

The element that is now chargeable to Income Tax and NICs is the amount of the termination payment that represents payment in lieu of notice (PILON). This change applies to payments, or benefits received on, or after, 6 April 2018 in circumstances where the employment also ended on, or after, 6 April 2018. This follows … Continued

This campaign gives individual landlords the opportunity to bring their tax affairs up to date if letting out residential property in the UK or abroad. If you owe tax on your letting income you need to tell HM Revenue and Customs (HMRC) about the undeclared income by making a voluntary disclosure. To get the best possible … Continued

The dividend allowance was introduced in the 2016/17 tax year to encourage people to invest by making the first £5,000 of dividend income earned by shareholders each year tax-free from 6/4/18 the tax-free dividend allowance to will reduce £2,000. Dividends above the £2,000 threshold will be taxed at 7.5% for basic rate taxpayers, 32.5% for … Continued

A total of 745,588 people run the risk of being fined by HMRC after missing the deadline to submit their self-assessment tax return. About one in 15 taxpayers failed to beat the midnight deadline on 31 January 2018 to file their annual returns relating to the 2016/17 financial year. Late payers can expect an initial … Continued

HMRC has had to return nearly half-a-billion pounds to taxpayers since April 2015, claims analysis of government statistics. Royal London reports the Revenue is overcharging on two areas of the tax system, and has had to refund £493 million as a result. Savers using the new pension freedoms are among the hardest hit, as income … Continued

Vulnerable and elderly people are being told they owe large amounts of tax which they can only pay off through digital vouchers and gift cards. HMRC has issued a warning over fraudsters who are preying on victims by cold-calling them and impersonating members of staff from the Revenue. Figures from Action Fraud, the national fraud … Continued

Disincorporation relief will not be extended beyond its 31 March 2018 expiry date. The relief was introduced in April 2013 in a bid to remove the tax burdens when small business owners want to change from a limited company to a sole trader or partnership. It allows companies to transfer certain assets, such as land, … Continued

.Small businesses breathed a collective sigh of relief when chancellor Philip Hammond resisted calls to lower the VAT registration threshold in Autumn Budget 2017. The Office of Tax Simplification (OTS) made eight core recommendations for the government to clarify the VAT system ahead of the chancellor’s speech on 22 November 2017. It called the current … Continued

The Chancellor reminded us that the government are committed to increasing the personal allowance to £12,500 in 2020 and the higher rate tax threshold to £50,000.However,the personal allowance for 2018/19 was only increased in line with inflation to £11,850 and the higher rate threshold to £46,350. Note that up to 10% of the personal allowance … Continued