Category: Tax

One of the surprises of the Budget announcements made on 21 March 2012 was the capping of certain reliefs, particularly the reliefs for charitable giving and business losses. The aim of the cap is to restrict the amount of tax relief claimed by high income earners. What is the cap?  The Budget itself contained very … Continued

Here’s a quick summary of the current tax allowances you can claim: Annual Investment Allowance The annual investment allowance (AIA) is available to all businesses regardless of size.  This AIA allows businesses to write off 100% of the cost of qualifying plant and machinery. From April 2012 it has been reduced to £25,000. Transitional rules … Continued

The following article sets out a few of the personal tax changes that have attracted press commentary since the announcements were made 21 March 2012. Top rate of income tax to fall from April 2013 – Following much speculation the Chancellor announced that the 50% top rate of income tax will be reduced to 45% … Continued

A number of changes to the VAT rules were made as part of the March 2012 Budget. Most of the changes will be implemented on or after 1 October 2012. VAT on hot food – One of the most contentious issues announced as part of the Budget related to the change in definition of “hot … Continued

Key changes announced are: Corporation tax – A surprise reduction in the main corporation tax rate was announced. From 1 April 2012 this rate drops 2% to 24%. The small companies’ rate remains unchanged at 20%. Bank levy – This is adjusted so that banks do not pay less tax as a result of the … Continued

A VAT group is a special arrangement where two or more entities can elect to be treated as a single taxable person for VAT purposes.  When a VAT group is set-up one of the VAT group members is nominated as the representative member. The representative member must account for all the group company activities and declare … Continued

Due to EU legislation the UK is no longer able to add to the zero rate categories. The minimum VAT rate that can be applied to any new category is 5%. Accordingly those items that can be treated as zero rated have been taxed at zero rate for some time. The main categories that are … Continued

HMRC campaigns are broadly based on similar principles which involve three main stages: HMRC identify taxpayers from a specific group who may have outstanding tax liabilities. Stage 2 – HMRC offer a limited time disclosure facility with reduced penalties offering taxpayers the opportunity to bring their tax affairs up to date Stage 3 – HMRC … Continued

A reminder that HMRC will not look favorably on any scheme that aims to minimise VAT liabilities by splitting businesses up in order that the annual turnover of each remains below the registration threshold. HMRC are required to consider the extent to which businesses are ‘closely bound to one another by financial, economic and organisational … Continued

The current problem: Employers are required to file an annual PAYE return, form P35, with HMRC containing details about their employees’ earnings during the tax year, along with information about the amount of income tax and National Insurance contributions (NICs) deducted from the employees’ salaries. This return is due on 19 May following the end … Continued