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Pensions Death Tax

Currently if you die before you have started to draw your pension, the value of your pension fund will not usually be subject to inheritance tax (IHT) at 40%, as it is excluded from your estate. However, there can be a 55% tax charge where your pension fund is passed to someone else under your will, especially if you die aged over 75.

From 6 April 2015 the 55% tax charge will be abolished. If you die before you reach age 75 you will be able to pass on…

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Don’t Get a Tax Hangover From Your Christmas Party!


Here at Morgan Hemp we are keen to keep our clients abreast of news, issues and events to help you keep your finances in order and to make sure you are not losing out.

Heading in to the festive period you are probably making plans for a Christmas party. But have you thought about making sure the big annual celebration isn’t a gift to the taxman?

Entertaining your employees can be allowable for tax relief in your business accounts, and it…

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Scottish Taxes

The Scottish people have spoken and the majority have decided they want Scotland to remain part of the UK. However, that doesn’t mean everything will remain the same. We already know there will be two new taxes in Scotland from 1 April 2015, and a variation to income tax rates for Scottish taxpayers from 6 April 2016.

If you are planning to buy land or buildings in Scotland, you should be aware that the…

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VAT on International Services

When you sell services to businesses in other countries, the sale will generally be outside the scope of UK VAT. You don’t charge VAT on your invoice, but you need to report the value of that sale as part of the total in box 6 on your VAT return. There are exceptions to this general rule for services connected to land, live performances, catering or passenger transport.

If the sale is to a VAT registered business in another EU country the Read More

Understanding the CIS

If you are a contractor in the construction industry it is essential that you deduct the right amount of Construction Industry Scheme (CIS) tax from payments you make to subcontractors.

A common misunderstanding about the CIS is that deductions of CIS tax only have to be made from labour costs. This is not the case, but it may work out like that in practice.

HMRC’s instructions are clear, the contractor must deduct the following cost…

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Creating Extra Cash-flow

Could your creative company benefit from a boost to its cash flow? If it produces computer games, films, high-end TV or animation programmes, it may qualify for a new payable tax credit.

All of these products can qualify for extra tax relief if they can be certified as culturally British, and at least a quarter of the core production costs are incurred in the UK. There are some other conditions:

– only businesses trading as…

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HMRC Launch South Wales Property Taskforce

HMRC has this month launched new specialist taskforces designed to target individuals who have not declared rental income or capital gains on property disposals in the South West and South Wales.

The taskforces are part of the Government’s campaign to tackle tax evasion and fraud.  HMRC aims to raise an additional £7bn each year through the various taskforces it has launched since May 2011.

It is important to note that the targeting of sectors is not an amnesty and unlike some…

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Child Benefit, Tax Penalty Ticking Time Bomb

Government changes to child benefit claims for households where at least one person earns over £50,000 can lead to surprise Self-Assessment penalties, if there is a failure to register for Self-Assessment prior to the 5th October 2014 and your circumstances have changed.

Less than two weeks away!

Consider these two scenario’s

1. You or your partner have received a pay increase in the past year taking your employment income in excess of £50,000, and you continue to receive child benefit.  You must…

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Tax Tracking App Launched

Morgan Hemp is proud to announce the launch of its ground-breaking smartphone app.

The app, allows individuals and businesses to log their expenses, keep on top of important dates in the annual tax calendar — and in light of recent changes to the VAT system — to accurately log business mileage.

The free app uses the smartphone inbuilt GPS system to allow users to generate a report at the end of each month that can be sent directly on…

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Travel Question

If you contract through your own personal service company (PSC), you will be an employee of that company and you have to obey the strict tax rules that apply to employees’ travel deductions when claiming expenses from your PSC.

The first rule is that the cost of ordinary commuting cannot be claimed. This is defined as travel to a permanent workplace, which is somewhere attended regularly to perform the duties of the employment. Travel costs to a temporary workplace can be claimed, but the conditions that make a workplace…

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