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...

ARE YOU SURE YOU OR YOUR WORKERS ARE SELF-EMPLOYED?

Last year we reported that the House of Commons Work and Pensions Committee published a report calling on the Government to close the loopholes that allow “bogus” self-employment practices, which burden the welfare state but reduce the tax contributions needed to sustain it. Most of the people working for organisations such as such as Uber,...

THINK YOU’RE SAFE FROM A HMRC ENQUIRY? THINK AGAIN!

Tax Investigation Protection   In the past, HMRC’s role was to ensure that you or your business paid the right amount of tax. However, in recent times its key objective has changed to maximise the amount of revenue it can collect from taxpayers. Indeed, over the next we months HMRC is aiming to collect and...

DID YOU GET A BIG TAX BILL AND NOW WANT SOME BACK?

Many of you will have just paid your 2016/17 tax bill before the 31 January 2018 deadline, and some of you will also have paid 50% of next year’s tax on account. Here are a couple of tax planning ideas that can help you obtain a tax refund. Invest in EIS or Seed EIS qualifying...

EXCEEDING THE ANNUAL PENSION ALLOWANCE

If your pension savings exceed the annual pension input limit (generally £40,000) then there is an annual allowance charge. The effect of the annual allowance charge is to reduce tax relief on any pension saving over the annual allowance. The annual allowance charge is not at a fixed rate but will depend on how much...

DOES YOUR ACCOUNTS SYSTEM COMPLY WITH MTD FOR VAT?

Making Tax Digital (MTD) for VAT is scheduled to start in April 2019 which means that your VAT information needs to be submitted to HMRC digitally. On 18 December 2017, HMRC published draft legislation together with examples of how the business account records might link with the HMRC computer in order to comply with MTD...