NEWSLETTER 94

Headlines from our latest newsletter.  Please click on any of the links below for more information:

BUDGET ANNOUNCEMENTS

George Osborne delivered his second budget of the year on 8 July 2015 - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-94#Budget

CHANGES FOR 'BUY TO LET' LANDLORDS

It was announced in the Budget that the government will restrict the amount of income tax relief landlords can claim on residential property mortgage interest costs to the basic rate of income tax - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-94#Changes

ANNUAL INVESTMENT ALLOWANCE CERTAINTY

The Chancellor announced that Annual Investment Allowance will be set permanently at £200,000 from 1 January 2016 providing certainty for businesses - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-94#Annual

THE FAMILY HOME AND IHT

The government has announced the introduction of a new transferrable nil rate band for the family home. The additional band will apply where a residence is passed on death to direct descendants such as a child or a grandchild - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-94#Family

NATIONAL LIVING WAGE

The government has announced the introduction of a new National Living Wage (NLW) for working people aged 25 years and above - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-94#National

PAYE LATE FILING PENALTIES

HMRC have now issued the first in-year penalties notices to employers with fewer than 50 employees who missed the deadline for sending PAYE information to HMRC - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-94#PAYE

CLAIMING THE MARRIAGE ALLOWANCE

The Low Incomes Tax Reform Group published updated guidance on how to apply for the new transferable personal allowance, known as the marriage allowance, for married couples and civil partners which came into effect on 6 April 2015 - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-94#Claiming

PHISHING EMAILS HMRC EXAMPLES

HMRC have updated their list of examples of emails, letters, text messages and bogus calls used by 'scammers' and fraudsters to get taxpayers personal information - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-94#Phising

HMRC CHECKING EMPLOYEES HAVE PAID THE CORRECT AMOUNT OF TAX ON THEIR PAY

HMRC have started to check that people have paid the right amount of tax in 2014/15, a process they refer to as the annual End of Year Reconciliation process - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-94#HMRC

STATISTICS SHOW EMPLOYMENT RISE IN 2015

The Office for National Statistics (ONS) has released figures showing that UK employment rates were up between February and April compared to the three months to January 2015 - See more at: http://www.walkerthompson.co.uk/newsletters/Newsletter-94#Statistics

Tax Time to Pay Arrangements – HMRC Announce Mandatory Direct Debit

HMRC can use discretionary powers to agree to payment of a debt by instalments after the due date, where the customer is genuinely unable to pay by the due date and is able to commit to agreed payments to bring their tax up to date. 

Direct Debit has always been the preferred method of payment for any regular time to pay arrangement, however from 3 August 2015 payment by direct debit will be mandatory.

HMRC say that they are moving to direct debit by default because:

• It is more cost effective  and more secure than other payment methods
• It removes the chance that the customer will forget to make payment
• Payments are more likely to be correctly allocated
• Reduces the need for subsequent customer contact, saving time for the customer and HMRC
• Direct Debit scheme includes a guarantee to protect the customer

HMRC say that they recognise that there will be exceptional circumstances where a customer is unable to set up a direct debit, perhaps because their bank account will not allow it. In such cases payment by other methods may be agreed.

HMRC state that it is not their intention to routinely revisit any existing non-direct debit agreements however for any new agreements we will expect the customer to agree to payment by direct debit.