TIME FOR AN ELECTRIC COMPANY CAR?

The government has announced that there will be a zero P11d benefit for the drivers of electric cars from 2020/21. This is instead of the 2% scale charge that was originally included in Finance Act 2017 to apply for 2020/21. The legislation for the change will be included in Finance Bill 2020 and it is...

DON’T FORGET THERE MAY BE TAX TO PAY ON DIVIDENDS IN JANUARY

The rules for taxing dividends changed radically from 6 April 2016 with the removal of the 10% notional tax credit and the introduction of new rates of tax on dividends. For many taxpayers that means more tax to pay on dividends on 31 January each year. If you are a higher rate taxpayer and received...

ADVISORY FUEL RATE FOR COMPANY CARS

These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 September 2019. Where there has been a change the previous rate is shown in brackets. You can continue to use the previous rates for up to 1 month from the date the new rates apply.  For hybrid cars use...

DISGUISED REMUNERATION LOAN CHARGE REVIEW

The Chancellor, Sajid Javid has commissioned a review of the Loan Charge to consider whether the policy is an appropriate way of dealing with disguised remuneration loan schemes used by individuals who entered directly into these schemes to avoid paying tax. The disguised remuneration Loan Charge was introduced to tackle contrived schemes where a person’s...

“OFF-PAYROLL” WORKING RULES AND EMPLOYMENT STATUS DETERMINATION

Where large or medium-sized organisations are paying workers via personal service companies or agencies they will need to operate new procedures from 6 April 2020. The new rules will apply to partnerships, LLPs and larger charities as well as limited companies. Only those organisations that would be classed as “small” under the Companies Act criteria...

Domestic Reverse Charge for Construction Services Postponed

After listening to concerns raised by Construction Industry Representatives the Government has decided to postpone the domestic reverse charge for these services until October of 2020. It has been agreed that some construction businesses will require more time to implement the VAT domestic reverse charge and that the original date planned (October 1st) is too...

GOVERNMENT U-TURN ON PENSION TAX FOR DOCTORS AND OTHERS?

In earlier newsletters we reported that hospital doctors and GPs were lobbying the government to amend the pension tax rules. The current system of restricting tax relief on pension contributions means many doctors paying almost all of the extra salary back in tax if they work additional shifts. This issue does not just affect doctors....

THE TAX TREATMENT OF COMMERCIAL VEHICLES

HMRC ARE BEING URGED TO PROVIDE CLARITY AND CONSISTENCY ON THE TAX TREATMENT OF COMMERCIAL VEHICLES An example would be VW Kombi Vans that are marketed as goods vehicles. The need for clarity follows the ruling in an important tax tribunal case involving “vans” provided to employees of Coca Cola. The court has upheld the...

VAT PENALTIES

  NO VAT PENALTIES FOR MISSING THE FIRST QUARTERLY MTD DEADLINE If you pay your VAT quarterly by direct debit the sign-up window has closed. This is for the 7 August (30 June quarter) submission. Do not worry as HMRC have announced that there are no VAT penalties this time. You may file the old...

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...