Multiple tax benefits are available for drivers of electric company cars – and many of us don’t even realise it. HBA Director, Karen Chase, will save over £6,000 this coming tax year as she won’t be paying tax on the benefit-in-kind (BIK). It may finally be time to benefit from driving a company car!
Continue readingAuthor Archives: Amy Thompson
Laughable excuses for late tax returns! You do not want to receive a penalty for not filing in time
You do not want to receive a penalty for not filing your return in time. As you’d expect, most taxpayers provide their Self Assessment tax returns on time with honest information and pay their tax bill on time too. But alongside all these good citizens and business folk with their straightforward tax returns HMRC also receives a raft of laughable excuses as well as some dubious tax-reducing expense claims. Surely no one in our local area of Hertfordshire, Essex and north London would have put these whoppers for late tax returns forward?
Continue readingSelf Assessment tax return deadline
The deadline for filing your Self Assessment tax returns online is looming on 31 January 2020. Consequently, around 12 million people are required to complete these tax returns. They are mainly those who are self-employed or have more than one source of income. For those people who haven’t filed online before, they’ll need to register first and should allow an extra 20 working days, in other words register by Friday 3 January 2020.
Continue readingCapital Allowances have changed: Three tax changes
So Capital Allowances have changed. Three significant changes to Capital Allowances have come into effect. Firstly, the first-year allowance for electric charge points due to expire in 2019 has been extended to 2023. Secondly, the Special Rate relief for plant and machinery is reduced from 8% to 6% from April 2019. And finally, the new Building & Structures Allowance provides tax relief on qualifying construction costs for works that started on or after 29 October 2018.
A Quick Guide to Gift Aid – Are you aware of Tax Relief for Charitable Donations?
Tax Relief for Charitable Donations
Are you aware of Tax Relief for Charitable Donations? If you donate to charity, did you know you can do so tax-free? There are various ways of making tax-relieved gifts to charity – the way in which the relief works depends on whether the donation is made via Gift Aid, as a deduction from wages or a pension via the Payroll Giving Scheme, in a will or whether it is a gift of land or property.
Buying a property to let – the importance of keeping records from day one
For tax purposes, good record keeping is vital. Without complete and accurate records, it will not be possible to provide correct details of taxable income or to benefit from allowable deductions. Aside from the risk of paying more tax than is necessary, landlords who fail to take their record keeping obligations seriously may also find that they are on the receiving end of a penalty from HMRC.
Survey results: tax planning at mid-sized businesses
A new study by IFF Research for HMRC has looked into how mid-sized businesses go about tax compliance and tax planning. Whilst the businesses interviewed described their approach to tax as somewhere on the spectrum from more reactive to more proactive, almost every business relied on an Accountant or tax specialist. The reason given was that as a mid-sized business they didn’t have the right tax expertise in-house and needed support with strategy and planning as well as one-off queries to remain tax efficient. Here we look at some of the pro-active ways these businesses manage down their tax liabilities and the tax questions that Accountants can answer to ensure compliance with the law.
Disguised remuneration – loan charge review
The Chancellor, Sajid Javid has commissioned a review of the Disguised Remuneration Loan Charge. Led by Sir Amyas Morse, who is the former Chief Executive and Comptroller and Auditor General of the National Audit Office the review will report back to the Government by mid-November with recommendations, focusing on the impact of the new charge on those affected.
Construction services: VAT domestic reverse charge – on hold now for 12 months!
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*On 1st October 2019 HMRC’s new VAT domestic reverse charge for construction services was due to come into force, as part of ongoing moves to cut VAT fraud. The new rules require the contractor receiving services and not the sub-contractor who supplied the services to account for the Output VAT due on specific building and construction services. This change means that construction businesses will need to know whether the reverse charge applies. They’ll also need to ensure their accounting processes and IT systems can handle the reverse charge. It’s also recommended that businesses estimate and plan for any impact on cash flow if they are no longer holding Output VAT.
Tax compliance as HMRC systems get smarter
The Government recognises that the majority of UK taxpayers, individuals and businesses, pay their fair share towards the provision of public services. Where taxpayers try to hide their obligations, HMRC now has a more comprehensive view of finances and is committed to dealing with any non-compliance. So, what information does HMRC know about you and your business?
