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Advisory fuel rates update

HMRC publish rates that can be used by employers wishing to pay their employees the cost of fuel for business journeys in company cars (or, where the employer initially pays for all fuel, for reimbursement of private mileage by company car drivers to their employers). Hybrid cars are treated as petrol or diesel cars for this purpose.

HMRC’s guidance on fuel-only mileage rates for company cars confirms that employers are not obliged to use advisory fuel rates. Where an employer wishes to use them, they only apply where the employer:

– reimburses…

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Business asset disposal relief update

The Spring Budget 2020 announced a significant restriction on future availability of entrepreneur’s relief (ER) for individuals who dispose of all or part of their business, individuals who dispose of shares in their personal company, and trustees who dispose of business assets.

Broadly, the changes will increase the amount of tax payable by a business sold at a profit of over £1m. For potential sale profits at or around this limit, careful planning may be needed to extract value from the business prior to sale, for example through increased employer…

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FTT publishes practice statement on ADR

The First-tier Tribunal (FTT) has published a practice statement setting out its practice in appeals against HMRC decisions where the parties wish to engage in Alternative Dispute Resolution (ADR) after an appeal has been made to the Tribunal.

What is ADR?

ADR aims to provide an alternative way of resolving tax disputes by using an independent facilitator, who mediates discussions between the taxpayer and the HMRC caseworker in an attempt to resolve the dispute.

ADR can be used before and after HMRC have issued a decision that can be appealed against,…

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Change to partial exemption VAT treatment

HMRC have released guidance on changes to their policy for businesses who supply goods by way of hire purchase agreements.

Brief 8 (2020) explains HMRC’s suggested method for apportionment of VAT incurred on overheads following judgment in Revenue and Customs Commissioners v Volkswagen Financial Services (UK) Ltd (Case C-153/17) (VWFS) for businesses who supply goods by way of hire purchase agreements.

Background

VWFS, a finance house, provided credit to customers who wanted to purchase a vehicle. It operated by purchasing the car from the dealer at the same time as providing…

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GUIDANCE FOR OUR CLIENTS – CORONAVIRUS (COVID-19) UPDATE 7 – Furlough/Coronavirus Job Retention Scheme – 8th June 2020

It was announced on 29th May 2020 that the furlough scheme (also known as the Coronavirus Job Retention Scheme) would be extended along with changes to how the scheme would operate. Further details are expected to be published on 12th June however, furloughing decisions may need to be made prior to the 10th June. With that in mind, we would like to bring these key dates to our client’s attention.

10th June 2020 – Final date by which an employer can furlough an employee for the first time (furlough…

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Tax-efficient savings update

As the new tax year progresses, now is a good time review some of the tax-efficient savings incentives available which may help maximise potential returns.

Help-to-save

The Help-to-Save scheme offers working people on low incomes a 50% bonus, rewarding savers with 50p for every £1 saved. Over four years, a maximum bonus of £1,200 is available on savings of up to £2,400. Savings limits are flexible and it is not necessary to pay in every month to get a bonus.

How much is saved and when is up to the account…

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Coronavirus SSP Rebate Scheme launches

From 26 May 2020 onwards, employers can make claims through the Coronavirus Statutory Sick Pay (SSP) Rebate Scheme.

This is a new online service and forms part of the package of support measures for businesses affected by the COVID-19 outbreak. The service enables small and medium-sized employers with fewer than 250 employees, to recover SSP payments they have made to their employees.

Employers will be able to make their claims through the service and receive repayments at the relevant rate of SSP that they have paid to current or former…

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Coronavirus (COVID-19) update: self-assessment payment deferrals

To help ease the financial impact of the coronavirus (COVID-19), the Government has announced that self-employed taxpayers may be able to defer some tax payments without paying a penalty. At present it is possible to:

– delay VAT payments due before 30 June 2020 until 31 March 2021;
– delay self-assessment payments on account due in July 2020 until 31 January 2021.

Taxpayers have the option to defer their second payment on account for the 2019/20 tax year if they are registered in the UK for self-assessment and finding it difficult…

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Coronavirus (COVID-19) update: homeworkers’ expenses

The government has introduced a temporary tax exemption and National Insurance disregard to ensure that home office equipment purchased by employees as a result of the coronavirus outbreak, will not attract tax and NICs liabilities where reimbursed by the employer. This temporary change applies for 2019/20 from 16 March 2020, and for the 2020/21 tax year.

To be eligible for the exemption the expenditure must meet the following two conditions:

– The equipment is obtained for the sole purpose of enabling the employee to work from home as a result…

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GUIDANCE FOR OUR CLIENTS – CORONAVIRUS (COVID-19) – UPDATE 6 – The Self Employed – 11th May 2020

HMRC have released updated information with regards to the Self-Employment Income Support Scheme that we would like to bring to our clients attention. As per our e-mail of the 27th March, this scheme will allow the self-employed to claim a taxable grant worth 80% of trading profits up to a maximum of £2,500 per month for 3 months, below is a reminder of the eligibility criteria:

To claim the grant the following conditions apply:
• Your 2018/2019 tax return must have been submitted.
• You traded in the 2019/2020 tax year.
• You are…

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