P11D FORMS STILL DUE BY 6 JULY

Despite the Coronavirus lockdown, HMRC have announced that they will still expect P11D forms reporting expenses and benefits to be submitted by the normal 6 July deadline. Remember that reimbursed expenses no longer need to be reported where they are incurred wholly, exclusively, and necessarily in the performance of the employee’s duties. Dispensations from reporting[…]

CAN WE FURLOUGH THE COMPANY CAR?

During the lockdown period many employees and directors have not been using their company cars and they have been left sitting in the driveway. You might think that means that the benefit of having a company car does not apply, but unfortunately HMRC do not agree. HMRC have recently confirmed that there continues to be[…]

CGT PRIVATE RESIDENCE RELIEF CHANGES GO AHEAD

The latest finance bill includes important changes to private residence relief that took effect from 6th April 2020. The first change is to limit to just 9 months for the period prior to disposal that counts as a period of deemed occupation and thus exempt from CGT even though the owners are not living in[…]

IMPACT ON THE HIGH-INCOME CHILD BENEFIT CHARGE

With many employees and the self-employed being furloughed, being made redundant, or making lower profits, their income for 2020/21 may fall below the £50,000 limit at which child benefit starts being taxed. The charge is 1% for every £100 that adjusted net income exceeds £50,000 multiplied by the child benefit claimed in respect of the[…]

2020 BUDGET ANNOUNCEMENTS

On the 11th of March, the 2020 budget was announced by Chancellor Rishi Sunak. We have summarised the relevant updates, including those that have recently been amended by Covid-19. We hope you find this information useful. As always, if you have any further enquiries please don’t hesitate to get in touch with a member of[…]

IR35 “OFF-PAYROLL” TO GO AHEAD AND THEN DELAYED

It was confirmed in the budget that the new rules for workers providing their services through personal service companies would start from 6th April 2020. However, it has subsequently been announced that this would be delayed by a year.  This would have represented a significant additional administrative burden on large and medium-sized businesses which would[…]

CHANGES TO CAPITAL TAX GAINS

From the 6th of April 2020, there will be some changes to capital tax gains. To make sense of the upcoming adjustments, we will show you how these changes work in action: Letting Relief: £40,000 Potential Tax Relief Lost Current Rules Capital gains tax relief of up to £40,000 (£80,00 per couple) is available if[…]

INHERITANCE TAX IN THE SPOTLIGHT

We are expecting major changes to inheritance tax (IHT) in the March budget following two reviews by the Office of Tax Simplification (OTS) and a report by an all-party parliamentary committee. IHT is perceived as a complicated tax with numerous trivial reliefs and exemptions. Currently the tax only generally applies to transfers on death and[…]

THINGS TO CONSIDER BEFORE THE END OF THE TAX YEAR

Spring is approaching quickly, and the new tax year will be upon us before we know it. Here are a few things you may wish to consider: YEAR END CGT PLANNING Have you used your 2019/20 £12,000 annual capital gains exemption? Consider selling shares where the gain is less than £12,000 before 6 April 2020.[…]

BUDGET DAY IS NOW 11 MARCH

The December General Election meant that the Autumn Budget was delayed and we now know that Sajid Javed will deliver his first Budget on the second Wednesday in March which is when Budget day used to be!   We are expecting that the tax measures in the Conservative Party manifesto will be announced again together[…]