Tax Insider August 2022

Included in this months article:

  • Lack of awareness of tax liability among crypto investors
  • HMRC: Businesses don’t think MTD applies to them
  • Self employed struggling with tax obligations
  • Bank of England focusses on returning inflation to 2% target
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THE TAX BENEFIT FOR INNOVATIVE COMPANIES

Research and development (R&D) tax credits were once a little known tax incentive for companies which invested in innovation. But after rule changes in recent years, and a push by many tax advisers, they are now much more widely understood and used.

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Tax Insider June 2022

Included in this month’s article:

  • HMRC raises interest rates on late tax payments
  • Work from home tax relief may not be available in 2022/23
  • Bank of England raises interest rate to 1%
  • SMEs unprepared for MTD rollout
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Tax Insider May 2022

Included in this Month’s article:

  • IR35 Reform Landing Period Ends
  • New Law to Resolve Covid Rent Debt
  • National Insurance and Dividend 1.25% Uplift Underway
  • MTD for VAT rolls out to all VAT-Registered Businesses
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Tax Insider April 2022

Included in this month’s article:

  • Over one million individuals use extra time to file tax returns.
  • Economic forecasts dampen for 2022
  • House of lords raises concerns over IR35
  • Government launches onlines sales tax public consultation
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PERSONAL TAX CHANGES FOR 2022/23

By the time you’re reading this, the new tax year is either just about to start or has already started. Some of the changes have been public knowledge for months now and some of the rises have been anxiously awaited as the country continues to face a cost-of-living squeeze.

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Tax Insider March 2022

Included in this months article:

  • Two million people missed self-assessment deadline
  • £50m shot in the arm for the UK’s creative businesses
  • HMRC eyes reform of stamp taxes and multiple dwellings
  • ‘Ditch NICE increase to free up funds for apprentices’
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Year-End Tax Guide 2021/22

Throughout 2021/22, COVID-19 has continued to dominate. Millions of employees and directors on payroll were furloughed, and the self-employed continued to rely on grants available via the income support schemes.

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Tax Insider February 2022

Included in this month’s article:

  • HMRC waives penalties again for late self-assessment
  • Omicron-hit employers can reclaim statutory sick pay
  • Treasury’s pensions tax relief bill soars past £42BN
  • Deadline looms for new hospitality and leisure grants
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Tax Insider January 2022

Included in this months issue:

  • HMRC issues last reminder for 2020/21 personal tax returns
  • One if four buy-to-let landlords ‘plan to sell up in 2022’
  • More red tape for importers as new EU checks kick in
  • Report sheds more light on changes to R&D regime
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MAKING TAX DIGITAL FOR INCOME TAX

Making Tax Digital for income tax (MTD for ITSA) looks certain to affect sole traders and landlords from April 2024, following the recent news of a one-year delay.

This was the latest in a long line of delays and deferrals in the rollout of MTD, which was first proposed by then-Chancellor George Osborne in late 2015.

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Tax Insider December 2021

Included in this month’s article:

  • Cladding tax to affect large property developers in 2022/23
  • Six-month extension for COVID-19 recovery loan scheme
  • Tax reporting deadline for additional property sales extends
  • Budget confirms one-year delay for basis period reform
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Tax Insider November 2021

Included in this months article:

  • Salary sacrifice could ‘dampen increased NICS costs’
  • Hospitality and tourism VAT rate increases to 12.5%
  • Business rates burden eases for retailers and hospitality firms
  • Extension for temporary £1M annual investment allowance
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RESIDENCE & DOMICILE AFTER BREXIT

For most UK citizens, the question of what income and gains should be included on their tax return is easily answered because they are both UK domiciled and UK tax resident.

Anyone domiciled and resident in the UK will need to report their worldwide income and capital gains on their return. However, what happens if you are either non-UK domiciled (non-dom) but UK resident, or UK domiciled but non-UK resident?

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2020/21 INCOME TAX RETURNS & THE SEISS

A chunk of time has passed since the self-employed income support scheme (SEISS) was launched in May 2020, following the onset of the COVID-19 pandemic.

The first taxable grant, worth up to £7,500 in total, was paid out in August 2020. That was followed by a second grant of up to a total of £6,570 and a third grant, worth up to £7,500 in total.

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Tax Insider October 2021

Included in this month’s article:

  • Curtain comes down on stamp duty land tax holiday
  • Government launches new trust registration service
  • The rise of electric vehicles could create £30BN tax hole
  • National insurance and dividends tax rates to rise 1.25% in 2022/23
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BASIS PERIOD RULES IN LINE FOR REFORM

Unincorporated businesses could be about to see significant changes to the ways in which they are taxed, following the launch of a Government consultation.

The Government plans to reform the basis period rules in a bid to simplify how unincorporated businesses, such as sole traders and business partnerships, allocate trading profits to tax years for inclusion on their self-assessment returns.

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Tax Insider September 2021

Included in this month’s article:

  • Deadline approaches for fifth and final self-employed grant
  • National Insurance contribution rates ‘poised to increase’
  • 1 in 5 UK employers consider making redundancies
  • Capital gains tax receipts climb 3% to record-high
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August 2021 Tax insider

Included in this month’s article:

  • Lower stamp duty land tax threshold in place until October.
  • Employer costs increase as furlough scheme winds down.
  • Treasury seeks feedback on business rates revaluations.
  • Pensions tex traps catch out thousands more savers.
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Tax Planning for Residential Landlords

After a challenging year for the UK’s residential landlords, you might have read about improvements to the buy-to-let mortgage market in recent weeks.

In the three months to 31 May 2021, the average interest rates for residential landlords had declined. A two-year fixed-rate buy-to-let mortgage fell 0.10 percentage points to 2.95%, while a five-year fixed dropped 0.11 percentage points to 3.30%.

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Tax Insider July 2021

Included in this months article:

  • Sweeping VAT reforms in the EU will affect the UK’s online retailers
  • Families hit with big bills after believing gifts would not be taxed
  • OTS considers bringing the end of the tax year forward
  • UK tax incentive ‘fails to deliver extra R&D spending’
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June 2021 Tax Insider

Included in this month’s article:

  • Deadline approaches for SME Brexit support grant
  • Employers told to issue childcare voucher reminder
  • Directors bank mandatory climate credential disclosure plan
  • HMRC seeks to remove VAT repayment Supplement
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TAX IMPLICATIONS OF FURNISHED HOLIDAY LETS

Owning and letting out a holiday home, otherwise known as a furnished holiday let (FHL), has always been a popular way of investing and earning income.

Not only do FHLs enjoy many tax advantages over normal residential let properties, owners have an asset which they can use for holidays while it largely pays for itself.

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May 2021 Tax Insider

Included in this month’s article:

  • Super-deduction tempts 51% of manufacturers to invest
  • VAT-registered firms start using digital links under MTD
  • HMRC rolls out new measures to ‘Tackle CIS abuse’
  • Workplace pension contributions bounce back after slump
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April 2021 Tax Insider

Included in this month’s article:

  • Three month extension for business rates holiday in England
  • New recovery loan scheme replaces previous COVID-19 loans
  • VAT-registration and deregistration thresholds frozen until 2024/25
  • Treasury issues guidance on the final two self-employed grants
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March 2021 Tax Insider

Included in this month’s artice:

  • Opt-in to VAT deferral new payment scheme by 31 March 2021
  • Personal allowance and higher-rate threshold to increase 0.5%
  • Changes to prompt-payment code aim to end late payments
  • Record number miss self-assessment filing deadline due to COVID-19
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Complying With Your Tax Obligations

It’s not often that HMRC makes exceptions to its tax deadlines or late-filing penalties, but the past year has, as in so many ways, been different.

Between optional deadline deferrals, new payment schemes and temporary reliefs, keeping on top of the changes to the usual tax timetable hasn’t been easy.

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February 2021 Tax Insider

Included in this months article:

  • Hardest-hit businesses offered new government grants of up to £9,000
  • Pre-Christmas furlough extension stems the tide of redundancies
  • Record number of small businesses ‘set to close for good in 2021’
  • COVID-19 sees retail sales slump to a 25-year low in 2020
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2021 Tax Year End Guide

With the ever-changing circumstances of 2020/21 it is hard to imagine that we are already close to the tax year end again.

Feels like we did nothing and went nowhere in the last 12 months!

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January 2021 Tax Insider

Included in this month’s article:

  • Annual investment allowance remains at £1m until 2022
  • HMRC issues last reminder for 2019/20 personal tax returns
  • One-year freeze for business rates multiplier in England
  • National living wage to increase alongside age threshold fall
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CLAIMING VAT ON PAYMENT OF THIRD-PARTY LEGAL COSTS

My client has been in dispute regarding a road traffic accident between one of his company’s lorries, and another VAT registered business’ lorry. A small claims court has judged in favour of the third-party business, and has awarded them payment for damages, including reimbursement of their legal costs. The third-party is a partially exempt business, and so they would like reimbursement for the net amount of their costs, plus the VAT – will the third party raise a VAT invoice to us for payment of those costs and can my client claim back any of the VAT?

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Tax Insider December 2020

INCLUDED IN THIS MONTH’S ARTICLE:

  • VAT-REGISTERED TRADERS URGED TO PREPARE FOR LIFE AFTER BREXIT
  • FURLOUGH SCHEME EXTENDS UK-WIDE UNTIL THE END OF MARCH
  • GOVERNMENT BODY URGES CAPITAL GAINS TAX OVERHAUL
  • SELF-EMPLOYED FEAR TAX RETURNS MAY AFFECT FOURTH SEISS CLAIM
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TAX INSIDER NOVEMBER 2020

INCLUDED IN THIS MONTH’S ARTICLE:

– GROUP SLAMS LATEST TAXABLE GRANTS FOR THE SELF-EMPLOYED
– IMPROVED JOB SUPPORT SCHEME OPENS FOR EMPLOYERS
– SUNAK HINTS AT SPRING TAX HIKES TO ‘BALANCE THE BOOKS’
– THREE IN FIVE BOUNCE-BACK LOANS MAY NEVER BE REPAID, WATCHDOG CLAIMS

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TAXES TO CONSIDER WHEN MOVING HOME

If you are considering moving home in the second half of 2020/21, you are by no means alone.
In the month leading up to 8 August 2020, 149,000 properties were put on the market – the highest number since before the financial crash in 2008.

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Tax Insider October 2020

Included in this month’s article:

  • Commission set to recommend national living wage freeze
  • Chancellor reveals new support measures amid second-wave fears
  • Tax group calls for extension to the annual investment allowance
  • Fraudulent furlough claims or those paid in error cost £3.5BN
(more…) Read More

Tax Insider September 2020

INCLUDED IN THIS MONTH’S ARTICLE:

  • VIDEO-WITNESSED WILLS BECOME LEGAL IN ENGLAND AND WALES
  • BUSINESSES CLAIM LATE PAYMENTS CRISIS DEEPENS DURING LOCKDOWN
  • FURLOUGHED WORKERS GET REDUNDANCY PAY PROTECTION
  • FIRMS ‘UNABLE TO PREPARE’ FOR END OF BREXIT TRANSITION PERIOD
(more…) Read More

GET ON TOP OF YOUR TAX RETURN

With everything that’s happened so far this year, it might be easy to forget your obligations to file a tax return for 2019/20 by midnight on 31 January 2021.
The coronavirus pandemic and subsequent economic crisis has caused chaos with businesses up and down the country, most of which closed entirely during April 2020.

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