HMRC’s Let Property Campaign is aimed at people renting out residential property who have not registered for tax or have not paid enough tax. It is open to all residential property landlords with undeclared income, and there is no date given as yet for when it will close. The Campaign is designed to give people … Continued
Existing HMRC tax enquiry – Consider a certificate of tax deposit
If you are facing an open tax enquiry, a prudent approach to minimise any future interest costs could be to obtain a certificate of tax deposit. Under the Certificate of Tax Deposit scheme an individual can deposit money with HMRC and use it later to pay any future tax liabilities which may arise. Tax liabilities … Continued
Disincorporation relief
Disincorporation relief was introduced from 1 April 2013 and removes certain tax barriers that previously existed when companies transferred from incorporated status to sole trader or partnership status. This relief provides a time-limited opportunity for small companies and their shareholders to make a joint claim for qualifying business assets to be transferred from the company … Continued
RTI penalties start October 2014
Earlier this year, HMRC announced that the penalties for late returns of payroll information (RTI) would start from October 2014 instead of April 2014. If you operate your own payroll, make sure that your RTI submissions are made on time to avoid an automatic penalty. Remember that the RTI submission should normally be made on … Continued
Changes to Class 2 NICs collection
The National Insurance Contributions Bill was published on 18 July 2014. It will introduce legislation (which was consulted on last year) to reform the collection of Class 2 NICs by enabling the self-employed to pay their Class 2 contributions through self-assessment alongside their income tax and Class 4 NICs. Liability for Class 2 NICs will … Continued
Business travel for self employed traders
Following a recent case in front of the Upper Tier Tax Tribunal involving a doctor with a private practice (Dr Samadian), HMRC are applying the rules for business travel much more strictly. The “wholly and exclusive” principle states that where there is both a business and a personal reason or benefit in meeting an expense, … Continued
Consultation on possible changes to rules on employee’s travel
Many employees and employers find the current tax rules for dealing with travelling and subsistence claims difficult to understand. This is an area that the Office of Tax Simplification is seeking to make more comprehensible. Consequently, the treasury are consulting on possible changes to the rules, and the way that such expenses are reported. The … Continued
Tax Avoidance Schemes- The latest from HMRC
Anyone with an open enquiry (or appeal) concerning a tax avoidance scheme may be issued with follower notices and accelerated payment notices under new legislation in Finance Act 2014. It is understood that 43,000 payment notices will be issued by HMRC (33,000 to individuals and 10,000 to corporates) and will cover about £7.1 billion of … Continued
Non-savers cite lack of spare money
More than a third (38%) of people don’t have enough money to save every month, according to research by Lloyds Bank. Lloyds Bank’s latest survey of more than 3,500 people found that 24% will either stop saving or save less during the next 12 months. The research found: 34% of respondents have less than their … Continued
Pensions Update: Individual Protection 2014 (IP2014)
From 6 April 2014 the standard lifetime allowance will be reduced from £1.5 million to £1.25 million. Individual Protection 2014 will give individuals a protected lifetime allowance equal to the value of their pension savings on 5 April 2014, subject to an overall maximum of £1.5 million. You will not lose Individual Protection 2014 by … Continued