Morgan Hemp Blog

MTD update

Monday, July 2, 2018

HMRC’s pilot of Making Tax Digital (MTD) for income tax has been extended and is now able to accept quarterly updates from individual landlords with simple tax affairs. Agents can also sign up clients to pilot.

The latest extension means that certain taxpayers will be able to opt out of the current self-assessment regime and use software to report their income tax if at least one of the following applies:

– the taxpayer is a sole trader with income from one business; or
– they rent out only UK property but…

EU mandatory tax disclosure rules take effect

Monday, July 2, 2018

HMRC have released interim guidance for agents on the new EU Mandatory Disclosure Rules and new reporting requirements for intermediaries, which apply from June 2018.

Under the new mandatory EU tax disclosure rules, information will be exchanged between member states on a quarterly basis. Intermediaries will first have to report by 31 August 2020, on any arrangements where the first step has been taken, after the directive enters into force on 25 June 2018.

Broadly, the EU directive on administrative cooperation applies to intermediaries who design, market, organise, or…

CGT payment date under consultation

Monday, July 2, 2018

The Association of Taxation Technicians (ATT) is warning that owners of second homes and buy-to-let (BTL) landlords may face a much shorter period in which to pay any capital gains tax (CGT) due on property sales from April 2020.

Where CGT is due, a disposal is normally reported to HMRC in a self-assessment tax return. Under self-assessment, any CGT must be paid by 31 January following the tax year of disposal.

The government has noted that (depending on the timing of the sale within a tax year) this allows residential…

HMRC continue to face issues with TRS

Monday, July 2, 2018

HMRC’s new Trusts Register is designed to provide a single point of access for trustees and their agents to register and update their records online, replacing the paper 41G(Trust) form (which was withdrawn from April 2017) and the ad hoc process for trustees to notify changes in their circumstances. Initially, new trusts had until 5 October 2017 to register, but this deadline was subsequently extended to 5 January 2018. The registration deadline for existing trusts was also extended to 5 March 2018. Registration must be done online using…

Banking Advice from the Barclays Premier Relationship Manager: Ashley Lawson

Wednesday, June 27, 2018

Mr Ashley Lawson who is the Barclays Premier Relationship Manager in this area is visiting our offices on the 28th June 2018. Ashley will be here all day and if you would like to book an appointment to see him to discuss any banking requirements you may have then please contact our offices on 01792 466428.

Barclays Premier Banking gives you access to exclusive products, preferential rates and a wide range of benefits and rewards. Combined with a dedicated personal banking service. Premier Banking brings you the best of…

Using tax to keep employees healthy

Friday, June 1, 2018

The adverse effects of being inactive can of course have a major impact on health and wellbeing. According to a recent government report, workers can spend up to three-quarters of their day sitting down, which contributes to a range of preventable health conditions, including the two leading causes of workplace absence: back injuries and stress, depression or anxiety. In 2016/17, 1.3 million workers suffered from work-related ill-health, which equated to 25.7 million working days lost. This has been estimated to cost £522 per employee, and up to £32…

Investors’ relief

Friday, June 1, 2018

At the time of the 2016 Spring Budget, the government announced that the existing capital gains tax (CGT) entrepreneurs’ relief would be extended to certain long-term investors in unlisted trading companies who had subscribed for their shares. However, when the Finance Bill 2016 was published a few days later, it became apparent that in fact a new relief – investors’ relief – was being created. This new relief is designed to complement entrepreneurs’ relief by extending the 10% rate of CGT to gains accruing on disposals of qualifying…

IT contractor wins IR35 case

Friday, June 1, 2018

The confusion over HMRC’s application of the IR35 legislation continues after an IT contractor successfully appealed to the First Tier Tribunal (FTT) against a tax charge of some £26,000 in connection with a project he was working on with the Department for Work and Pensions (DWP).

In Jensal Software Ltd v HMRC Commrs [2017] TC 00667, the IT contractor, Ian Wells, successfully appealed a tax bill relating to a succession of contracts during the 2012/13 tax year. Wells provided his services through his limited company, Jensal Software Ltd, to…

Corporate offences guidance updated

Friday, June 1, 2018

HMRC’s guidance on corporate offences for failing to prevent criminal facilitation of tax evasion has recently been updated to include information about self-reporting a company or partnership that has facilitated such an offence.

All corporate entities need to be aware of the two new offences that were introduced by the Criminal Finances Act 2017, which apply from 30 September 2017 onwards. The first applies to the facilitation of UK tax evasion, and the second applies to the facilitation of foreign tax evasion.

Criminal facilitation of tax evasion involves a person…

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…