‘TIS THE SEASON FOR GIVING

There are tax exceptions of spreading festive cheer. Read on… CHRISTMAS GIFTS OF UP TO £50 TO EMPLOYEES Remember that certain gifts to staff at Christmas are tax free if structured correctly. Ever since April 2016 employers are allowed to provide their directors and employees with certain “trivial” benefits in kind tax free. The rules[…]

WHEN WILL BUDGET DAY BE NOW?

It was announced on 14 October that Sajid Javed’s first budget would be on 6 November but with a general election in December when will it be now?   The current political uncertainty makes it difficult to give clear tax advice as a number of key proposals in the draft Finance Bill scheduled to take[…]

TIME FOR AN ELECTRIC COMPANY CAR?

The government has announced that there will be a zero P11d benefit for the drivers of electric cars from 2020/21. This is instead of the 2% scale charge that was originally included in Finance Act 2017 to apply for 2020/21. The legislation for the change will be included in Finance Bill 2020 and it is[…]

BUILDERS’ VAT RULES DELAYED FOR A YEAR

The government have decided to delay the start of the proposed VAT reverse charge for supplies by sub-contractors in the construction sector. The reason for the U-turn is the lack of awareness of the change that was originally due to start on 1 October 2019. Many sub-contractors, and some main contractors, were not prepared for[…]

VAT REVERSE CHARGE FOR BUILDING AND CONSTRUCTION SERVICES

The Government is introducing a VAT reverse charge on certain building and construction services. The legislation will come into effect on 1 October 2019. This is a very significant development which will present major challenges for many building contractors. Businesses involved in buying and selling construction services will need to understand the new rules.  […]

ADVISORY FUEL RATE FOR COMPANY CARS

These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 June 2019. Where there has been a change the previous rate is shown in brackets. Engine size Petrol Diesel LPG 1400cc or less 12p (11p) 8p (7p) 1600cc or less 10p 1401cc to 2000cc 15p (14p) 9p (8p) 1601cc[…]

NEW VAT RULES FOR THE CONSTRUCTION SECTOR

Under new rules due to come in on 1 October 2019 builders, sub- contractors and other trades associated with the construction industry will have start using a new method of accounting for VAT.   Under the new rules, supplies of standard or reduced-rated building services between VAT-registered businesses in the supply chain will not be[…]

DOCTORS LOBBYING FOR PENSION TAX CHANGES

Hospital doctors and GPs are lobbying the government to amend the pension tax rules as the current system of restricting tax relief on pension contributions means many doctors paying almost all of the extra salary back in tax if they take on additional responsibilities or work additional shifts. This is an issue that doesn’t just[…]

EXTRACTING PROFIT FROM THE FAMILY COMPANY

The start of the new tax year means that shareholders/directors may want to review the salary and dividend mix for 2019/20. The £3,000 employment allowance continues to be available to set against the employer’s national insurance contribution (NIC) liability which means that where the company has not used this allowance it may be set against[…]