Category: Tax

Class 2 National Insurance Contributions (NICs) are paid by all self-employed taxpayers unless they qualify for the small earnings or other exemptions. Class 2 NICs are payable at a flat weekly rate. The rate for 2012-13 is £2.65 per week. Class 2 NICs count towards certain benefits such as: The basic state pension The employment … Continued

The CIS is a set of special of tax and national insurance rules for those working in the construction industry. The scheme mainly affects building contractors and sub-contractors; however, certain businesses that are not in the business of construction but have a significant amount of annual, construction expenditure may also count as contractors. The rules … Continued

The advisory fuel rates (guidelines on fuel only mileage rates for company cars) were introduced in 2002 with the aim of saving time for both employers and the Revenue by setting out some figures that can be used in the calculation of mileage payments for business travel in company cars. The rates only apply where … Continued

We have listed below a number of features of Inheritance Tax (IHT) that readers may find useful:  IHT is payable at 40% on death and 20% on lifetime gifts. There is a nil rate band, currently £325,000, below which no IHT is payable. A reduced rate of IHT at 36% applies to estates from 6 … Continued

By April 2013 it is expected that all micro, small and medium-sized employers and most large employers and payroll bureaux will begin sending payroll information to HMRC using the so-called real time information system (RTI) scheme. HMRC believes that all employers will be using the RTI system by October 2013 in time for the introduction … Continued

Under the normal VAT accounting rules a business supplying goods or services usually accounts for VAT at the time an invoice is raised irrespective of whether payment has been received or not. There are exceptions, if for example, a business uses the cash accounting scheme. If you have paid the VAT on a sales invoice … Continued

There are a number of government approved share schemes which offer certain tax advantages to employees. The approved schemes are: Share Incentive Plans (SIP), Save As You Earn (SAYE) schemes, Company Share Option Plans (CSOP) and Enterprise Management Incentive (EMI) schemes. The schemes are designed to help incentivise employees by giving them the opportunity to … Continued

HMRC have recently published new guidance designed to help contractors self-assess their possible liability to the IR35 rules. Twelve business entity test questions explore the following main areas: Business premises PII Efficiency Assistance Advertising Previous PAYE Business plan Repair at own expense Client risk Billing Right of substitution Actual substitution Each test asks at least … Continued

The rules for UK businesses claiming VAT refunds from other EU countries changed on 1 January 2010. A new simplified scheme was introduced that now allows claims to be made electronically to HMRC rather than a paper based claim to the country where the expense was incurred. The deadline for the submission of a refund … Continued

Whilst many of us will never have an opportunity to sell or carry an Olympic torch, recent publicity about this issue has highlighted the possible tax implications if you sell an item of personal property for a profit. A charge to capital gains tax (CGT) arises if you sell a chattel (an item of personal, … Continued