Morgan Hemp Blog

Introducing Innovative Finance ISAs

Monday, January 4, 2016

From 6 April 2016, a new type of Individual Savings Account (ISA) will be launched – the Innovative Finance ISA. This new ISAs will be able to hold peer-to-peer (P2P) loans, which often pay significantly higher returns than cash accounts. Broadly, P2P lenders act as middlemen by matching people who wish to invest cash with those who want to borrow money. From 6 April 2016, interest and gains from P2P loans will qualify for tax advantages where these loans are made through an Innovative Finance ISA.

There are currently…

2016 Fuel and Van Benefit Rates Set

Monday, January 4, 2016

The Van Benefit and Car and Van Fuel Benefit Order 2015 (SI 2015/1979) comes into force on 31 December 2015 and takes effect for the tax year 2016-17 and subsequent tax years. The Order contains provisions for the following:

– the cash equivalent of the van benefit will rise from £3,150 to £3,170 for 2016-17;
– the van fuel benefit will increase from £594 to £598; and
– the cash equivalent of the benefit of fuel for a car is calculated by applying the ‘appropriate percentage’ (normally calculated by reference to…

VAT Partial Exemption Changes Following Le Credit Lyonnais

Monday, January 4, 2016

In Brief 22/15 HMRC confirm changes to the VAT Regulations 1995 to ensure that UK law is aligned with EU law following the decision of the European Court of Justice (ECJ) in the case Le Credit Lyonnais (C-388/11). The changes take effect from 1 January 2016.

In Le Credit Lyonnais, the ECJ found that the VAT Directive could not be interpreted so as to allow a company to take into account the turnover of its foreign branches when calculating how much input tax it can deduct in the member…

Making Tax Digital: Launch of PTAs

Monday, January 4, 2016

As part of a £1.3bn investment to transform HMRC into one of the most digitally advanced tax administrations in the world, HMRC have published a report and discussion paper setting out how new procedures for interacting with HMRC and paying tax will be implemented under the Making Tax Digital banner.

It is intended that by April 2016, every individual and small business will have access to their own secure digital tax account that enables them to interact with HMRC digitally. By 2020, businesses and individual taxpayers will be able…

Another Expertise Boost for Morgan Hemp Team

Monday, January 4, 2016

Morgan Hemp is pleased to see another of its team is now a fully-qualified ACCA (The Association of Chartered Certified Accountants) member.

Senior Accounts Clerk Kristopher Morgan achieved his most recent qualification at the end of last month, and his ACCA membership helps to underline Morgan Hemp’s continued growth.

The Swansea firm has been going through a steady period of expansion recently, taking on an extra three new recruits in the past few months, and they have plans to recruit further in the coming few weeks boosting both their intake…

Don’t get a Tax Hangover from your Christmas Party

Tuesday, December 15, 2015

While some might complain about Christmas paraphernalia popping up in the shops earlier and earlier each year, the tax-savvy will tell you that planning ahead for the Christmas party is vital if you want to avoid giving HMRC an unplanned and costly gift.

The annual celebration is a time to relax and to toast the successes of the year.

And it is perhaps an opportunity to get reacquainted with colleagues on a more personal basis, after a year of simply nodding to them on the way in…

December Questions and Answers

Monday, December 7, 2015

Q. Can I claim for the time I spend repairing my rental property? I own three rental properties and spend a considerable amount of time each year undertaking various necessary repairs. Can I pay myself say, an hourly rate, for the time I spend on the properties and claim a corresponding deduction in my accounts?

A. Any amounts taken from the property rental business will simply be viewed as a withdrawal of profits from the business and taxed accordingly. The HMRC Property Income Manual states ‘A landlord…

HMRC win ‘Rangers’ tax case

Monday, December 7, 2015

The Scottish Court of Session’s recent judgment in the ‘Rangers’ EBT’ case (Murray Group Holdings & Others [2015] CSIH 77) has attracted much attention in the press, with opinions of both support and criticism being voiced. It is not often that a Court both overturns the decisions of two Tribunals beneath it, and expressly declines to follow previous cases that have gained a certain acceptance.

This case concerned a scheme involving payments to various trusts set up in respect of executives and footballers employed by the former Rangers Football…

Dividend allowance

Monday, December 7, 2015

The government announced at the summer 2015 Budget, that a new dividend allowance of £5,000 will be introduced from 6 April 2016. Broadly, from that date, it is expected that the existing dividend tax credit will be abolished, a new annual dividend tax allowance of £5,000 will be introduced, and the rates of tax on dividend income will change. The legislation introducing the dividend tax changes has not yet been published and the rules outlined below are therefore still subject to possible change.

From April 2016, the 10% non-refundable…

Company cars – April 2016 increases

Monday, December 7, 2015

The financial benefits of driving a company car have continued to erode over recent years, but this benefit remains one of the most popular and potent perks of a job. In general terms, less tax will be payable on ‘greener’ cars, but the tax charges on lower emissions vehicles are set to rise significantly in real terms over the next few years.

Two new appropriate percentage bands apply from 2015-16 for cars emitting between zero and 50gkm CO2, and between 51and 75gkm CO2, with the appropriate percentages set at…