Morgan Hemp Blog

HMRC continue with modernisation plans

Monday, December 7, 2015

The recent formal announcement that HMRC will be replacing local offices with thirteen large regional centres has served to alert the general public to what tax professionals and accountants have known for some time – that to meet government cost and performance targets, HMRC must cut back on frontline staff and take forward digital interactions with taxpayers and their advisers. The announcement comes at a time when HMRC are also facing criticism over customer service issues. In its report on HMRC’s performance in 2014-15, the House of Commons…

Autumn Statement 2015

Friday, November 27, 2015

Making the most of your money and achieving your financial goals in a world of complex and ever-changing tax legislation requires careful planning and expert advice.

This guide introduces some of the kay areas to consider when planning to maximise your business and personal wealth, although your exact requirements will depend on your individual circumstances.

If you have any questions or would like one-to-one advice tailored to your needs, please call us on01792 466 428 or email [email protected].

November Question and Answer Section

Tuesday, November 3, 2015

Q. I am a director and employee of a trading limited company (A Ltd), of which I also own 100% of the shares. I am about to set up a holding company in the European Union, which will own 100% of the shares in A Ltd. I will own 100% of the new EU company. Will there be any capital gains tax or stamp duty payable on the transfer of shares?

A. The ‘share for share’ rules should apply to the transfer, so there should be no capital gains…

Flat rate homeworking expenses

Tuesday, November 3, 2015

Many small businesses can choose to be taxed on the basis of the cash that passes through their books, rather than being asked to spend their time doing calculations designed for big businesses (‘cash basis’). Where the cash basis is used, it is also possible for the business to use certain simplified arrangements for claiming expenditure in working out taxable profits for income tax purposes. Flat rate expenses can be claimed for business costs for vehicles, working from home, and living at your business premises.

Where a trader runs…

HMRC business records checks scrapped

Tuesday, November 3, 2015

HMRC have announced that they have scrapped their compliance procedure known as ‘business record checks’ (BRCs) with immediate effect. However, businesses should be warned that keeping good records is still essential to enable them to produce accurate accounts and tax returns.

Broadly, BRCs were introduced in 2011 and used by HMRC to confirm that a business was keeping sufficient information on its income and expenses to produce an accurate tax return. The checks have, however, consistently been criticised for being ineffective and poorly targeted.

HMRC have acknowledged that the initiative…

Update on intermediaries review

Tuesday, November 3, 2015

The government estimates that around £420m a year is lost in tax and NICs by taxpayers ignoring or manipulating the intermediaries’ legislation (IR35). The September edition of this newsletter (see The future for intermediaries) contained details of the government’s consultation on proposals to improve the effectiveness of the rules. The consultation document set out proposals that could see the onus to verify the employment status of an individual being put on the shoulders of the ‘engager’. The option for aligning the IR35 test with that used for temporary…

Follower Notices and Accelerated Payment Notices (APNs)

Tuesday, November 3, 2015

When a court or the tribunal issue a ruling that potentially resolves a large number of cases, many ‘followers’ (i.e. taxpayers with similar circumstances) agree to settle their affairs with HMRC, but some do not. They argue that small differences in the arrangements mean that the decision does not apply to them. HMRC will issue a follower notice to such taxpayers requesting them to settle the liability they believe is due.

Alongside the ‘follower’ rules are the accelerated payment rules. HMRC may issue an accelerated payment notice (APN) requesting…

Morgan Hemp Fuels Expansion With More Recruitment

Friday, October 2, 2015

Morgan Hemp is continuing with its steady expansion, having boosted the team with another new recruit.

The firm has taken on a new Junior Accounts Clerk, who is studying towards his professional accountancy qualifications, AAT Level 3. Morgan Hemp recruited two other Junior Accounts Clerks in the spring of this year.

Joe Parker, aged 20, has joined the Morgan Hemp team as an integral part of the continued growth of the Swansea-based company – highlighted by the firm’s expansion into neighbouring premises in recent years.

Joe, from Penllergaer, brings with him…

South Wales Accountancy Firm on the Ball With Mumbles Youth Team Sponsorship

Friday, October 2, 2015

Swansea accountancy firm Morgan Hemp are on the ball when it comes to supporting youth football. They have sponsored Mumbles Rangers Albion Under 13s boys 11-a-side team, providing new shirts.

The chartered certified accountants have long associations with the Mumbles team, with one of the company directors, Mark Robinson, being a regular team coach for the Under 12 girls.

Mark said they were delighted to give their backing to the young squad.

“We are very happy to show our support for grass roots sport and it is great to see so…

Spotlight on Contractor Loan Schemes

Friday, October 2, 2015

According to recent guidance published by HMRC, contractors and freelancers have been bombarded by promoters who make claims that they can help individuals take home up to 90% of their income using a contractor loan scheme. Broadly, promoters have been using this type of scheme to reduce the amount of tax paid on income by making payments which purport to be ‘loans’ from a trust or a company. Normally, a contractor would receive the contract income directly and pay tax on it. These arrangements artificially divert the income…