Category: Tax

Summarised below are a number of changes and issues that have been recently publicised by HMRC including the following: From April 2011 employers with less than 50 employees must file starter and leaver forms electronically. Any Employer’s Annual return submitted after 19 May 2011 will now receive a late filing penalty. For 2011/12 and later, … Continued

The new rules detailed below will start from 6 April 2011 but will only apply to individuals who join a scheme on or after that date.  They will not apply to employees already in schemes by that date. The Government has announced that it intends to restrict the tax relief on childcare provided by employers … Continued

The system of penalties has been amended for late filing of personal, trust and partnership returns, and late payment penalties relating to tax years 5 April 2011, with effect from 6 April 2011. Late Returns: The basic penalty for late filing of a return will be £100.  There will no long be any reduction to … Continued

There have been a number of changes made to the FHL legislation recently, and these are summarised below: Foreign property For 2011/12 and later tax years property situated in an EEA Member State will qualify for FHL treatment, with all such properties bring pooled. Losses One of the main changes is the ability to relieve … Continued

What records should you keep The sort of records you need to keep depends very much on the type of tax you have to pay and the size and complexity of your business. The table below gives examples of only the most common records required.  If you would like any more detailed advice specific to … Continued

George Osborne made much of his intended reductions in corporation tax from 1 April 2011. They are: 1 April 2011 – 2% fall from 28% to 26% 1 April 2012 – further 1% drop to 25% 1 April 2013 – further 1% drop to 24% 1 April 2014 – further 1% drop to 23% The … Continued

In a surprise but welcome announcement, the Chancellor increased the lifetime limit for entrepreneurs’ relief from £5 million to £10 million with effect from 6 April 2011. As a result, an individual who qualifies for the relief should only pay capital gains tax (CGT) at a rate of 10% on the first £10 million of … Continued

The tax savings that a business can make by transferring to a limited company can be frequently offset by other costs. Accordingly the decision to incorporate should not be taken for tax reasons alone. There are often other key issues to recognise, such as: The benefits and protection of limited liability. The tax impact of … Continued

New legislation applies to inaccuracies on returns due for filing on or after 1 April 2009, so if your business is subject to a VAT inspection, it is likely that the new penalty rules will be applied. Where a return includes a mistake (as opposed to deliberate understatement) the taxpayer is not liable to a … Continued

The recent case of Grace v HMRC has shed more light on HMRC’s position regarding residence. Mr Grace was born in South Africa but lived in the UK for a decade before moving back to Cape Town. He argued that for five years after 1997 he was not UK  tax-resident. This was challenged by HMRC who argued … Continued