Category: Tax

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

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