DISGUISED REMUNERATION LOAN CHARGE STARTS APRIL 2019

This new charge will apply to certain loans to directors and employees that are still outstanding at 5 April 2019 and new arrangements put in place after that date. The charge affects arrangements involving loans made via Employee Benefit Trusts (EBTs) and similar disguised remuneration schemes adjudged by HMRC and the courts to be tax...

ADVISORY FUEL RATE FOR COMPANY CARS

In line with recent reductions in fuel prices, HMRC have reduced their suggested reimbursement rates for employees’ private mileage using their company car from 1 March 2019. Where there has been a change the previous rate is shown in brackets. Note that for hybrid cars you must use the petrol or diesel rate.  You can...

PERSONAL SERVICE COMPANY CHANGES FROM APRIL 2020

It was announced in the Autumn Budget that the “off payroll” workers rules in the public sector apply to the private sector in 2020. The government have now issued a consultation paper setting out proposed tax and national insurance changes that will impact on those supplying their services through personal service companies. End users will be...

BUY NEW EQUIPMENT BEFORE 6th OF APRIL?

Your business year end, not 5th of April, is relevant for capital allowances purposes. If however you are running a business and making up accounts to 31 March or 5 April, you should consider buying plant and machinery to take advantage of the Annual Investment Allowance (AIA). Note that the AIA was increased from £200,000...

NEW WORKPLACE PENSION LIMITS FROM 6 APRIL 2019

Research published recently by The Pensions Regulator shows that the vast majority of staff are continuing to save more into their pension following the increases in pensions contributions in April last year. The on-going duties survey of employers showed less than 2% of staff in medium, small and micro businesses asked to leave their workplace...

YEAR END: PERSONAL ALLOWANCE, TAX & PENSION PLANNING

  DON’T LOSE YOUR PERSONAL ALLOWANCE! For every £2 that your adjusted net income exceeds £100,000 the £11,850 personal allowance is reduced by £1. Pension contributions and Gift Aid can help to reduce adjusted net income and save tax at a rate of 60%. The restriction applies between £100,000 and £123,700 adjusted net income. Another...

TERMINATION PAYMENT CHANGES DELAYED TO 2020

HMRC have announced that the changes to the national insurance (NIC) treatment of termination payments and sporting testimonials have been delayed to 6 April 2020. From 6 April 2020 Employer class 1A NIC will become payable on termination payments in excess of £30,000 and on sporting testimonials that exceed £100,000 (lifetime limit). The changes are...

CORPORATION TAX RELIEF BACK FOR ACQUIRED GOODWILL

A further late change to the Finance Bill will re-introduce relief for acquired goodwill on the acquisition of businesses with eligible intellectual property from 1 April 2019. This relief was withdrawn back in July 2015 and the restoration of relief for goodwill and customer-related assets is very welcome although the new form of relief will...

WELCOME CGT ENTREPRENEURS’ RELIEF CHANGE FOR SHAREHOLDERS

In the December 2018 newsletter we alerted you to important changes to CGT entrepreneurs’ relief included in the latest Finance Bill that could have the effect of denying the relief to certain employee shareholders. As the result of lobbying by the professional bodies, the government have made a late change in the Finance Bill to...

NO DEAL BREXIT – WHAT ABOUT VAT?

NO DEAL BREXIT, CUSTOMS AND VAT The Government and HMRC have updated its collection of high-level guides called “partnership packs”. These will help import/export prepare for changes to customs procedures if there’s a “no deal” scenario. If we exit without a deal, UK businesses will have to apply customs, excise and VAT procedures to goods traded...