Category: Tax

With the ‘outing’ in the Times and then in the press generally of the more aggressive tax planning schemes, the K2 scheme provider which had been exposed said in a conference that far from their business being declining, they had increased sales by 40%!.  The publicity generated made tax payers more aware of the availability … Continued

It is important to understand the new, complex RTI penalty regime. Penalties for late real-time PAYE submissions will not be charged until April 2014 – but errors will now be penalised from next April 2013. No penalties will be imposed for late filing of returns for 2012/13 or 2013/14 under RTI. The current penalty system … Continued

On 1 November 2012, HMRC started a ‘new approach to Business Records Checks’ (BRCs). The target audience of these checks are small and medium sized businesses which is why we are writing to you about this development. What are Business Records Checks? In the context of income tax, a BRC is a check by HMRC … Continued

There are currently three types of investment vehicle that provide investors with a measure of tax relief. 1.      Seed Enterprise Investment Scheme (SEIS) The SEIS is designed to increase the level of investing in the early development of high growth potential businesses. The scheme is similar to the EIS but focuses on smaller, early stage … Continued

Small business owners need to be mindful that withdrawing funds from their company can have a number of unwanted tax consequences; this includes paying personal bills as well as withdrawing cash.  It is quite common for small company accounts to show an overdrawn position on a director’s loan account. A DLA overdraws if a director … Continued

As you are probably well aware, the Revenue has recently been targeting the legal profession in one of its latest campaigns. We have seen letters which confirm that a new Barristers Team has been set up in Bradford specifically looking into the taxation of barristers’ profits. With the Revenue’s wider powers to undertake informal checks … Continued

The High Income Child Benefit charge will be introduced from 7 January 2013. You may be liable to this new tax charge if you, or your partner, have an individual income of more than £50,000 and one of you gets Child Benefit. It may also apply if someone else receives Child Benefit for a child … Continued

This update contains a list of the goods and services that are currently subject to the lower 5% rate. 1.      Electricity – The supply of electricity for domestic or for non-business use by a charity is usually supplied at the reduced rate.   On supplies used solely for business purposes, VAT will usually be charged at … Continued

VAT retail schemes are a special set of schemes used by retail businesses to account for VAT.  The schemes are usually used by retailers that sell a significant amount of low value and/or small quantity items to the public with different VAT liabilities. The use of the scheme can save businesses a significant amount of … Continued