Archive for the ‘News Updates’ Category

Protect your home address at Companies House

Thursday, May 3rd, 2018

For those of us who are reluctant to see our home address on publicly available websites such as that provided by Companies House, they will be pleased by a recent change to data suppression laws. This should help you remove your home address from publicly available company documents in certain cases.

Companies House have announced:

The law has been changed to make it easier to remove your home address from the company register. This applies to company directors and others such as secretaries, people with significant control and LLP members, whose home address is publicly available on company documents.

To remove your home address, you can apply at a cost of £55 for each document you want to suppress.

You must provide an alternative correspondence address if you are still appointed to a live company, such as a current director. This will replace your home address on the public register.

If you are no longer appointed to a company, you do not need to provide an alternative address. Instead, only the first half of your postcode will be available to the public.

You cannot use this process to remove a home address if you have used it as a company’s registered office.

If you would like to take advantage of this facility you can wade through the Companies House Guidance on their website, search for “Restricting the disclosure of your information”. Or we can discuss your options and deal with the paperwork for you.

Source: New feed

HMRC plea to tackle online VAT fraud

Tuesday, May 1st, 2018

According to government sources HMRC are asking online market places to sign an “agreement” to keep their users the right side of the law. In a recent announcement HMRC said:

“… the agreement will help online market place platforms meet their responsibility to ensure their sellers understand the tax rules, and prevent fraud taking place on their watch.”

We assume that the intention is to discourage users setting up shop and avoiding their VAT dues by avoiding registration.

 

An online marketplace is defined in VAT legislation as a website, or any other means by which information is made available over the internet, through which persons other than the operator can offer goods for sale (whether the operator also does so).

Since the 25 April 2018, HMRC is asking all online marketplaces operating in the UK to sign an agreement to help tackle online VAT fraud and errors taking place on their platforms.

Online marketplaces have transformed the way people shop and helped millions of businesses to sell their products and services.

 

As far as HMRC are concerned, the platforms have a responsibility to ensure their sellers understand the tax rules and prevent fraud from happening on their watch.

 

The agreement asks online marketplaces to commit to:

 

  • educating online sellers from the UK and abroad about their VAT obligations in the UK either via their own help and support or by directing them to HMRC’s GOV.UK guidance;
  • responding swiftly when notified by HMRC that sellers are not playing by the VAT rules, and setting up a system to take appropriate action; and
  • finding a suitable and lawful way to provide HMRC with information about their sellers, when requested.

 

The last bullet point is interesting. We assume that “lawful” alludes to the data protection rules as eBay, and the like, would be required to share the personal data of their customers to comply? Will the market places be obliged to “report” their customers in some sort of de facto Money Laundering Reporting obligation?

 

Can’t help wondering if HMRC are shifting their workload, their eyes and ears, elsewhere?

 

Be interesting to see if the market place organisations will comply. Apparently, the only down side to not complying is that HMRC will not publish their name on a list of platforms that have signed the agreement.

 

However, about 27,550 applications to register for VAT from overseas online retail businesses have been made since HMRC started to become active in dealing with this issue. This compares with about 1,650 for 2015.

Source: New feed

Do not forget to claim these if they apply

Thursday, April 26th, 2018

When you complete your tax return for 2017-18, make sure you consider the following expenses. Sometimes they are overlooked.

  • Approved subscriptions you are required to pay to professional organisations. You must have membership to do your job or it’s helpful for your work. You can’t claim tax back on fees or subscriptions you’ve paid to professional organisations not approved by HMRC or for: life membership subscriptions, fees or subscriptions you haven’t paid, e.g. your employer has paid for them. Approved organisations are listed at https://www.gov.uk/government/publications/professional-bodies-approved-for-tax-relief-list-3/approved-professional-organisations-and-learned-societies.
  • If your employer pays less than HMRC’s approved mileage rates to reimburse you for the use of your own transport you can claim the difference. HMRC’s present approved rates are: cars 45p per mile for the first 10,000 miles and then 25p per mile; motor cycles 24p per mile; bicycles 20p per mile.
  • If you are required to attend courses as part of your job, then you should be able to recover the course fees and travel expenses if either are not fully or partly reimbursed by your employer.

You may also be able to claim for:

  • The cost of work uniforms and tools
  • Travel and overnight expenses
  • Costs of working at home, and
  • Buying equipment that you use in your job.

In all cases, you must have met the cost and your employer has not fully reimbursed you.

Every little helps…

Source: New feed

It is benefits time once again

Tuesday, April 24th, 2018

This is the time of year that employers and employees deal with the reporting of Benefits in kind. Taxing times…

The provision and use of company cars features in many of these returns, both the use of the car, and if provided, the cost of any fuel provided by the employer for private mileage. What may not be appreciated is that there is such an item as an exempt use of a car.

To be exempt, an employee must use the car in one of the following ways:

1. Privately owned cars – You don’t have to pay anything on cars that directors or employees own privately.

2. Cars available for business journeys only – Business journeys are either: journeys that are part of your employee’s duties, e.g. a service engineer travelling to an appointment or journeys an employee must make to get to a temporary workplace. To be exempt, you must tell your employee not to use the vehicle for private journeys and check that they don’t.

3. Cars adapted for an employee with a disability – This includes cars with automatic transmission if the employee’s disability means they need this. These cars are exempt if the only private use is for: journeys between home and work or travel to work-related training

4. Fuel that employees pay for – You don’t have to pay or report on fuel, including for private journeys, if either: employees buy the fuel for their own use or you buy it and they pay you back during the tax year, and their payment is equal to or more than the amount you paid.

5. ‘Pool’ cars – You don’t have to pay or report on ‘pool’ cars. These are cars that are shared by employees for business purposes, and normally kept on your premises. You’ll have to pay if a pool car is driven for private use, or if a car is shared by employees and doesn’t qualify as a pool car.

 

Additionally, if you provide a car to a close relative you won’t have to pay anything if both the following apply:

  • you’re an employer who’s an individual, e.g. a sole trader

  • you’re providing the car to someone who works in your business, but only because they’re a close relative and not because they work for you (e.g. you give your child a car as a birthday present)

 

A close relative includes:

  • your spouse or civil partner

  • your son or daughter, and their spouse or civil partners

  • your parents

  • any other dependants or guests of your household

 

Food for thought?

Source: New feed

Do not forget to report Benefits in Kind

Monday, April 23rd, 2018

HMRC posted the following reminder on their website the first day of the new tax year:

Employers need to report all Benefits in Kind (BiKs), including those under the Optional Remuneration Arrangements (OpRAs), to HMRC on form P11D from today (6 April 2018), unless they are registered to voluntarily payroll benefits.

They further explained, for those of us who had missed the import of the last Finance Act, that:

OpRAs are where an employee gives up the right to an amount of earnings in return for a Benefit in Kind (BiK) and includes flexible benefit packages with a cash option, cash allowances and salary sacrifice.

Rubbing salt into the wounds they reminded us:

The Income Tax and employer National Insurance contributions (NICs) advantages of BiKs – and employee NICs advantages where a charge exists – have mainly been withdrawn due to new rules that took effect in April 2017.

And then:

From today, the rules will cover all OpRAs, apart from those for cars with emissions above 75g CO2/km, school fees and accommodation – these will be included from 6 April 2021.

If a BiK is provided under OpRA rules, the taxable value is now the higher of the cash foregone or the taxable value under the normal BiK rules. This applies to all BiKs, including those that were previously exempt, such as workplace parking.

Until finally, we get the good news:

However, pensions, pension advice, childcare, cycle-to-work schemes and cars with emissions of 75g CO2/km or less are not affected by the rules.

What we should take seriously, is to observe the filing deadline to submit the BiK returns (forms P11D) to HMRC. For the 2017-18 tax year just ended this is 6 July 2018.

If you need help with the process please call, we are happy to assist.

Source: New feed

Borderline benefits

Thursday, April 19th, 2018

Now that Scotland and Wales have their very own stamp duty taxes buying a house in the border areas between Wales and England, and Scotland and England, raise some interesting planning options.

Consider Llanymynech, a village that straddles the border between Powys (Wales) and Shropshire (England). The amount of stamp duty payable on an identically priced house, say £179,000, would cost the buyer £1,080 in Stamp Duty Land Tax if bought in the English side of the village, but no Land Transaction Tax would be payable for an equivalently priced house in the Welsh side of the village. A definite incentive to buy in this price bracket the Welsh side of the border.

If you live in the Scotland/England border areas and you are contemplating the purchase of an expensive property and your budget is £1m, you may want to consider the following numbers:

  • Buying in Scotland would cost you £78,350 in Land Transaction Tax, and
  • Buying in England would cost you a mere £43,750 in Stamp Duty Land Tax.

Scotland has also set its own Income Tax rates for 2018-19. So, depending on the amount of your income, you may pay more or less income tax depending which side of the border you choose to live.

These border considerations will need to be considered as our regions gain more autonomy over their local taxes. They unfortunately add another raft of regulation that will have to be considered when planning on the situation of your residence (in border areas) for stamp duty and income tax in the years to come.

Source: New feed

Broadband fibre gets rates boost

Wednesday, April 18th, 2018

The Telecommunications Infrastructure Act 2018 paves the way for full-fibre broadband and future 5G communications by enabling 100% business rates relief for operators who install new fibre on their networks. In other words, the Act incentivises operators to invest in the broadband network.

Apparently, the secondary legislation has been laid, firing the starting gun on the scheme which will see communications providers exempt from business rates on new fibre for 5 years, backdated to 1 April 2017.

Local Government Minister, Rishi Sunak, said:

From the country’s most rural locations, to our big cities, we want everyone to benefit from fast, affordable and reliable broadband.

With this new legislation now in place, people can expect the rapid installation of new fibre, paving the way for better connectivity across the country.

From making it easier to work from home to allowing digital businesses to flourish, our measures are creating the right conditions for more high-skilled, high-paid jobs of the future.

Hopefully this cash incentive will help to close the loop and provide the many “fibre vacant zones” with much needed high-speed broadband. According to government sources, by driving improvements in the speed, service quality, security and reliability of broadband services, the Act will help transform the way modern businesses work together, reach their consumers and target their export markets.

As well benefiting businesses, full fibre broadband will also increase internet speeds for households and enable users to access more services online with multiple devices. For example, simultaneously streaming high definition TV and films, playing online games, and working from home quicker and more reliably.

Of course, increased funding is one thing, it will be interesting to see if remote businesses still obliged to access the internet at pre-broadband speeds, will finally get a high-speed connection on which all our businesses benefit.

Source: New feed

Common-sense prevails

Thursday, April 12th, 2018

Imagine that you have no interest in computers or computing. That Facebook and Twitter sound like racehorses running in the 2.30 at Haydock Park. Further, imagine that the thought of having to deal with computers pushed you into a severe anxiety state.

Ms Naylor, the Company Secretary of a flooring company, fitted this profile. For many years she had filed paper monthly contractor’s returns to HMRC and had never missed a deadline. When the returns were converted to an online filing version from April 2016, she was thrown into the computer age and with unfortunate consequences.

For months she tried to fathom out how to register for online filing and was constantly delayed by the non-arrival of an elusive activation code from HMRC; repeated tries at getting support from various help lines failed to prompt the code to appear in the mail, letterbox mail that is.

With each passing month late filing penalties were accruing, and Ms Naylor’s health started to fail. The anxiety she experienced resulted in visits to her local cardiology clinic for various tests, and still the access code failed to arrive even when the application process was repeated, this time with help from her daughter – newly returned from university.

Eventually, after many months of frustrating delays, she and her daughter managed to complete the login process and file all the outstanding returns.

With what remained of her over-stretched nervous system, Ms Naylor appealed against the multitude of financial fines on the basis she had a reasonable excuse – no knowledge of computers and poor health.

After considering the arguments from both sides, the court ruled to quash the fines, and allowed Ms Naylor’s appeal. Phew… A victory for common-sense.

Apparently, Ms Naylor did not seem to receive much help from her professional advisor. Can we just confirm that any clients reading this post can be assured that we are computer literate and very willing to help if you have problems dealing with the online world.

Source: New feed

Black cabs urged to go green

Monday, April 9th, 2018

Britain’s black cabs now qualify for an incentive to go green as the new tax exemption for electric taxis comes into force this month. The exemption, worth £1,550, will apply to new cabs purchased from April 2018 onwards, and follows the Autumn Budget announcement that zero emission taxis worth over £40,000 will no longer have to pay a Vehicle Excise Duty charge.

Currently, all cars over £40,000 are required to pay this charge. By exempting zero emission taxis, it is hoped that cabbies will be incentivised to replace their old diesel taxi for a cleaner, greener electric version.

If just one switches to a zero-emission vehicle, it would rid the country of seven tonnes of carbon dioxide a year. With over 75,000 black cabs operating in England alone, the impact this would have on the environment would be significant.

According to government sources, black cab owners have had limited choice in the type of vehicle they can buy. This has meant that they have been forced to pay charges which their competitors – who can choose more affordable vehicles – can avoid.

Not only will today’s exemption save drivers from paying the VED charge, but by transferring to a zero-emission electric cab they will also benefit from average fuel savings of over £400 a month.

This initiative is part of a wider government plan to transform air quality and it builds on the £7,500 Plug in Taxi Grant, which helps cab drivers buy a zero-emission vehicle.

Source: New feed

Spring Statement

Monday, April 9th, 2018

The Chancellor, Philip Hammond, was keen to promote the positive aspects of the UK’s economic performance when he stood to present his Spring Statement on 13 March.

  • Employment and manufacturing growth rising,
  • Inflation and debt falling.

The speech was also peppered with the usual political gambits to boost his party at the expense of the opposition.

The one practical change that was disclosed was a change to the next business rates revaluation that will now take place a year earlier than planned, in 2021, with further reviews every three years starting 2024.

The Chancellor also revealed new consultations that may eventually shape future legislation. These will include:

  • Reducing single-use plastic waste through the tax system. This will look at ways to reduce the impact of plastic waste in our environment such as disposable plastic cups, cutlery and foam trays. Some of the tax revenue raised will be used to fund research into new ways to encourage a more responsible use of plastic.
  • Making sure multinational digital businesses pay a fair share of tax. This is an ongoing attempt to ensure that the larger digital players pay tax in the UK on sales they make in the UK.
  • Seeking views on the role of cash in the new economy. Will cash become less relevant as digital payment processes become more widely used? This and the prevention of the use of cash to avoid tax and to launder the proceeds of criminal activity will be opened to a wider debate.
  • Supporting people to get the skills they need. Improving skills to benefit growth in the economy by investing in upskilling and retraining, especially by the self-employed.

It will be interesting to see if these initiatives subsequently drive government policy and new legislation.

Source: New feed

Switch to our mobile site