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Uncategorised

Please find below all the articles that have been categorised as 'Uncategorised'.

Company vans update

A charge to income tax will generally arise if a company van is made available, by reason of the employment, to an employee or to a member of his or her family or household. It must be made available without a transfer of ownership from the employer to the employee. Since 2016/17, when the £8,500 earnings threshold for most benefits-in-kind was abolished, the charge applies regardless of the employee’s earnings rate. The charge will however, be proportionately reduced if the van is only available for part of a…

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VAT reverse charge in the construction industry

Autumn Budget 2018 announced a new measure, designed to counter fraud in the construction industry, which has seen gangs of criminal traders artificially extending the chain of supply of labour services, then failing to account for all the output VAT due to HMRC by collecting the VAT on the supplies (sales) and then going “missing” before passing the VAT on to HMRC.

The proposed change, which is scheduled to take effect from 1 October 2019, will mean that for certain specified supplies of construction services, the customer will be…

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PGLs for employers

The Department for Education has launched a new Student Loan product known as Postgraduate Loans (PGLs). From April 2019, individuals will be able to start loan repayments of this type through PAYE, so employers need to be aware of their new obligations.

Broadly, if an individual has a PGL:

– HMRC will send their employer a new Postgraduate start notice (PGL1) to ask them to start taking PGL deductions
– HMRC will send their employer a new Postgraduate stop notice (PGL2) to ask them to stop taking PGL deductions
– employers will…

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HMRC warn of tax scams targeting university students

HMRC have published a series of warnings that university students are being targeted by scammers with fake tax refunds in an effort to steal money and personal details.

The scammers are using seemingly legitimate university email addresses (for example ‘@uc.ac.uk’) in order to avoid detection, and HMRC have received thousands of fraud reports from students at colleges across the UK.

This is the first time HMRC has seen a tax scam attack directly targeting university students in such high volumes.

HMRC never inform people about potential tax refunds by email, text…

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Autumn Budget 2018

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The Chancellor’s 2018 Autumn Budget contained some important announcements and confirmed a number of changes planned for the new tax year.

Following this, we have put together a PDF which contains the latest tax and financial information, which we trust you will find useful. For more information on how the changes may affect you, please contact us.

If you have any questions or would like one-to-one advice tailored to your needs, please call us on 01792 466 428 or email…

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HMRC launch MTD campaign

According to recent research undertaken by the Institute of Chartered Accountants in England and Wales (ICAEW), over 40% of businesses that will be affected by Making Tax Digital (MTD) for VAT are not yet aware of it. With only six months to go until MTD goes live for some businesses in April 2019, HMRC have only recently launched a major communications campaign to try and build awareness amongst small businesses.

The ICAEW survey also shows that although there has been a significant increase in the number of businesses now…

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VAT on holiday accommodation

Letting of residential accommodation is generally an exempt supply for VAT purposes. However this exemption does not apply to holiday accommodation (includes furnished and non-furnished holiday lettings. The definition of ‘holiday accommodation’ for these purposes includes property that is advertised or held out as holiday accommodation and those consider suitable for holiday or leisure use. It is not restricted to periods of letting or availability.

Supplies of holiday accommodation are therefore taxable supplies and should be standard-rated, which means that if the rental income goes above the VAT registration…

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Help-to-Save accounts go live

Many people on low incomes who wish to build up a savings pot can now register for a government-incentivised Help-to-Save account. The launch of the new account follows an eight-month trial, with over 45,000 customers who deposited over £3 million.

The new scheme is easy to use, flexible and secure, will help those on low incomes build up a ‘rainy day’ fund, and encourage savings behaviours and habits. How much is saved and when is up to the account holder, and they don’t need to pay in every month…

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Class 2 NICs to remain

Self-employed earners (i.e. sole traders or partners) over the age of 16 and below state retirement age are currently liable to both Class 2 and Class 4 National Insurance contributions (NICs) unless specifically excepted by provisions contained in the Social Security Contributions and Benefits Act 1992.

Former Chancellor, George Osborne, made proposals to abolish Class 2 NICs and reform the system for paying Class 4 NICs. The proposals were designed to simplify the tax system for the self-employed and offer them more equal access to contributory benefits. However, the…

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HMRC consult on BIK changes

Following the recent consultation covering the taxation of employee expenses (as announced in the Autumn 2017 Budget), draft Finance Bill 2018-19 contains proposals to amend some of the existing rules concerning travel and subsistence payments.

BSRs and OCRs

Currently, there are no income tax or NIC implications where an employer uses HMRC’s approved benchmark scale rates (BSR) to pay or reimburse employees’ qualifying expenses incurred when travelling for work. The BSRs are designed to cover modest meal allowances with which employers can reimburse their staff for food and drink…

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