Archive:May 2018

Please find below all the articles from May 2018.

Use gift Aid to save tax

Tuesday, May 1, 2018

HMRC have recently highlighted that charities are collectively missing out on some £600m extra funding because a third of donations made do not add Gift Aid when they could have done so.

Broadly, Gift Aid allows charities and community amateur sports clubs (CASC) to claim an extra 25p for every £1 donated. To add Gift Aid to a donation, the donor must have paid income or capital gains tax that year worth at least the value of the Gift Aid being added, and must give the charity permission to…

Diesel car supplement increase takes effect

Tuesday, May 1, 2018

The rules for taxing petrol company cars apply equally to diesel cars, but the latter are then subject to further adjustment.

The taxable benefit arising on a car is, broadly, calculated using the car’s full manufacturer’s published UK list price, including the full value of any accessories. This figure is multiplied by the ‘appropriate percentage’, which can be found by reference to the car’s CO2 emissions level using HMRC’s ready reckoner. This will give the taxable value of the car benefit.

For cars that are ‘propelled solely by diesel’,…

HMRC update guidance on MSCs

Tuesday, May 1, 2018

HMRC have updated their guidance, following the recent decision in Christianuyi Ltd v R & C Commrs [2018] UKUT 10 (TCC), in which the Upper Tribunal ruled that a number of companies were operating as managed service companies (MSCs).

In this case, the Upper Tribunal upheld the decision of the First-tier Tribunal that the appellant companies were MSCs within the scope of the MSC legislation, and subsequently that the individuals were liable for PAYE income tax and National Insurance contributions (NICs) on the dividends they received from the…

When are tips taxable?

Tuesday, May 1, 2018

The Sum season usually sees a rise in the number of casual staff taken on by restaurants and cafes. Whilst the tax and NIC implications of wages is generally straight-forward, confusion often arises regarding tips and gratuities as the necessary tax and NIC treatment depends on how they are paid to the recipient.

Cash tips handed to an employee, or left on the table at a restaurant and retained by that employee, are not subject to tax and NICs under PAYE, but the employee is obliged to declare the…