CERTAIN PROPERTY BUSINESS OWNERS ARE LIABLE TO CLASS 2 NICs

  Class 2 National Insurance Contributions (NICs) are currently paid at the rate of £3.05 per week by self-employed earners. A person who is liable to Income Tax on the profits arising from the receipt of property rental income will only be a self-employed earner for NICs purposes if the level of activities carried out...

MTD FOR VAT TO BE EXTENDED TO ALL VAT REGISTERED BUSINESSES IN 2022

  Since 2019, the vast majority of VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) have been mandated to keep digital VAT records and send returns using Making Tax Digital (MTD)-compatible software. From April 2022 these requirements will apply to all VAT-registered businesses. It has also been announced that MTD for Income...

HIGH INCOME CHILD BENEFIT CHARGES NOT VALID

  A recent tax tribunal has ruled against HMRC who were seeking to raise tax assessments for the High Income Child Benefit Charge (HICBC) for earlier years that had not been reported to HMRC. HICBC is a special tax charge that applies where one member of a couple in receipt of child benefit receives income...

RUMOURS OF CGT INCREASES

  There has been a lot of speculation in the Press that the Chancellor may introduce radical changes to capital gains tax to start to repay the substantial Government borrowings to support businesses and employees affected by the coronavirus pandemic. It has been suggested that the current £12,300 CGT annual exemption will be reduced and...

REPORTING PROPERTY GAINS WITHIN 30 DAYS

  Since 6 April 2020 where UK residential property is disposed of, the resulting capital gain needs to be reported and the capital gains tax paid within 30 days of completion of the disposal. [See the original article here.] There have been a number of teething problems with the new online reporting system and HMRC...

SECOND HOME BUYERS AND BUY-TO-LET LANDLORDS WELCOME SDLT CUT

  Although the temporary increase in the Stamp Duty Land Tax (SDLT) threshold to £500,000 was aimed at those buying their main residence, it also benefits those buying a second or subsequent property where there is a 3% supplementary charge. Thus, the rate of SDLT on a second home costing up to £500,000 is now...

MORE DETAILS ON HOSPITALITY VAT REDUCTION

When the Chancellor announced a temporary cut in the rate of VAT for the hospitality sector and attractions in his Summer Statement on 8 July there were a number of areas that needed clarification. The vat reduction applies to supplies made between 15 July 2020 and 12 January 2021. HMRC have now set out more...

COMPANIES HOUSE (CH) TO RESTART THE VOLUNTARY STRIKE OFF PROCESS

  In March 2020, CH introduced temporary easement measures to suspend voluntary strike off action in response to coronavirus (COVID-19) and they have reviewed these measures each month.   Following the July review, this temporary measure will be lifted from 10 September 2020. From this date, CH restart the process to dissolve companies that have...

HMRC INVITES HOSPITALITY INDUSTRY TO REGISTER FOR EAT OUT TO HELP OUT

  Registrations for the Eat Out to Help Out Scheme started on the 13th of July Restaurants and other establishments serving food for on-premises consumption can now sign up to a new government initiative aimed at protecting jobs in the hospitality industry and encouraging people to safely return to dining out. The Eat Out to...

CORONAVIRUS JOB RETENTION SCHEME (CJRS) – INDIVIDUALS YOU CAN CLAIM FOR WHO ARE NOT EMPLOYEES

  From 1st July “Flexible Furlough” was introduced and the calculations and time recording of full-time, part-time and fully furloughed employees has become more complicated. Changes are occurring regularly as the Government and HMRC make clarifications to the scheme. If you have any queries regarding your claim talk to us first. The latest changes are...