EMI SHARE OPTION SCHEME RECEIVES STATE AID APPROVAL

Last month, we reported that the Enterprise Management Incentives (EMI) share option scheme lost its EU State Aid approval on 6 April 2018. The consequence of loss of approval being that the tax advantages of such options was temporarily withdrawn. On 16 May 2018 the European Commission gave formal state aid approval to EMI. Qualifying...

RULES FOR OFF-PAYROLL WORKERS (IR35) TO BE EXTENDED TO PRIVATE SECTOR?

As mentioned in the Autumn Budget, the Government has opened a consultation into a possible extension of the rules that currently apply to “off-payroll” workers in the public sector to the private sector. This consultation is being undertaken at the same time as the consultation into employment status. The IR35 rules introduced in 2000 are...

TAX ADVANTAGE OF EMI SHARE OPTION SCHEMES LAPSES

HMRC have advised companies to consider delaying the grant of Enterprise Management Incentive (“EMI”) share options until fresh State Aid approval has been granted by the EU. As the UK Government were late in applying for an extension (12 months’ notice is required) the existing approval expired on 6 April 2018 and EMI share options...

TAKING A LODGER? DON’T FORGET TO CLAIM “ RENT A ROOM ” RELIEF

Are you eligible for ” Rent A Room ” Relief ? HMRC are carrying out a review of rent a room relief to discover whether the scheme, introduced back in 1992 provides the right incentives for the rental market. The current scheme exempts from tax, gross rents up to £7,500 where rooms within the taxpayer’s...

CHANGES TO TERMINATION PAYMENTS

What are the Tax implications of Termination Payments? Care is always required  when employees are made redundant or payments are made on the termination of employment. Not only are there employment law considerations, there are also important tax implications and this is an area where professional advice is strongly recommended to avoid unnecessary pitfalls. The...

NO MAJOR TAX CHANGES IN CHANCELLOR’S SPRING STATEMENT

As announced last year, the Chancellor’s Budget will in future take place in the Autumn each year as opposed to the Spring. There was however a Spring Statement by the Chancellor on 13 March, but he made little mention of tax changes, instead choosing to focus on the state of the economy and stating that...

CHARITIES GIFT AID SMALL DONATIONS SCHEME

We would like to remind you of the Gift Aid Small Donations Scheme (GASDC). Under this scheme a charity or community amateur sports club (CASC) can claim top-up payments on small donations up to £20. From 6 April 2017 charities have also been able to claim tax back on donations made using contactless technology, such...

TAX EFFICIENT EXTRACTION OF PROFIT FROM COMPANIES FOR 2018/19

The new tax year means that many directors of family companies will be considering the most tax efficient method of paying themselves. For many years accountants and tax advisors have suggested that director/shareholders should extract profit by paying themselves a low salary with the remainder of their income being extracted in the form of dividends....

THE SPRING STATEMENT 2018

On Tuesday 13 March 2018 Phillip Hammond presented his Spring Statement. So what exactly did the Chancellor say and, more importantly, what did it actually mean? A summary of this year’s Spring Statement is now available here… The Spring Statement reaffirms fundamental taxation changes which will affect business and personal lives for the tax year...

PENSION FUNDS CAN BE VERY EFFECTIVE IN ESTATE PLANNING

We have featured the tax efficiency of pension funds investment in a number of recent newsletters. As well as the increased flexibility in terms of draw-down arrangements that were introduced in April 2015 there were some important changes to what happens to the un-drawn funds on death. These changes mean that your pension fund can...