OFF-PAYROLL WORKING RULES GOING AHEAD

The draft Finance Bill clauses issued for consultation on 11 July include legislation to extend the “off-payroll” working rules to the private sector from 6 April 2020. These changes will have significant implications for off-payroll workers providing their services through personal service companies and also the end user organisations that engage such workers. End users will be...

INHERITANCE TAX TO BE SIMPLIFIED | IHT RELIEF FOR BUSINESSES & FARMS

  INHERITANCE TAX TO BE SIMPLIFIED The Office of Tax Simplification (OTS) have undertaken a detailed review of Inheritance Tax (IHT), which is perceived by many as a complicated tax. The government normally takes account of OTS recommendations and their report is likely to lead to future changes to the rules. We will keep you...

CGT UPLIFT ON DEATH | CHANGES TO CGT PRIVATE RESIDENCE & LETTING RELIEF

  NO TAX FREE CGT UPLIFT ON DEATH The Office for Tax Simplification were tasked with simplifying inheritance tax. They also considered the interaction with Capital Gains Tax as many asset transfers potentially have both CGT and IHT implications. Currently there is no CGT on assets transferred on death and the recipient inherits the asset...

ADVISORY FUEL RATE FOR COMPANY CARS

These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 June 2019. Where there has been a change the previous rate is shown in brackets.

NEW VAT RULES FOR THE CONSTRUCTION SECTOR

Under new rules due to come in on 1 October 2019 builders, sub- contractors and other trades associated with the construction industry will have to start using a new method of accounting for VAT. Under the new VAT rules for the Construction Sector, supplies of standard or reduced-rated building services between VAT-registered businesses in the...

USING A PAYE SETTLEMENT AGREEMENT TO PAY SOME OF YOUR EMPLOYEE’S TAX

A PAYE Settlement Agreement (PSA) is an arrangement under which an employer can settle the income tax and National Insurance liabilities on benefits in kind and expenses payments provided to employees and officeholders. Setting up a PSA avoids passing on an unexpected, and potentially demotivating, tax charge to employees. Where a PSA has been agreed...

A STAFF SUMMER PARTY CAN BE A TAX-FREE BENEFIT

Does your organisation have an annual Christmas party for staff?  The tax rules also allow other staff parties which are a tax-free benefit if certain conditions are satisfied. The exemption applies to an annual party (for example, a Christmas party), or similar annual function (for example, a summer barbecue). It must be provided for employees...

MAKE SCHOOL HOLIDAYS EASIER WITH TAX-FREE CHILDCARE

Did you know there is a government scheme available that can help contribute towards childcare costs? This may mean fewer of your employees will need time off at the same time this summer. Tax-Free Childcare is a scheme available to working parents with children from 0-11 years. Unfortunately many parents aren’t taking advantage of the...

REQUEST THAT THE PENSION CHARGE IS PAID BY YOUR FUND BY 31 JULY

The Pension Annual Allowance tax charge depends on the individual’s marginal rate of tax. Where their income exceeds £150,000 it would be at 45%. Thus if the pension input for 2018/19 Was £40,000 and the limit is tapered to £10,000 the excess of £30,000 would incur a £13,500 tax bill on top of their normal...

REPORTING THE ISSUE OF SHARES OR OPTIONS TO STAFF

Gifts and awards of shares in companies, often known as employment related securities (ERS) are commonly used by employers to reward, retain or provide incentives to employees. They can be tax advantaged or non-tax advantaged. You must notify HMRC of all new ERS schemes including one-off awards or gifts of shares by 6 July following...