NEWSLETTER 75

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

AUTUMN STATEMENT

Earlier this month the Office for Budget Responsibility (OBR) published its updated forecast for the UK economy and Chancellor George Osborne responded to that forecast in a statement to the House of Commons later on that day. 

ADVISORY FUEL RATES FOR COMPANY CARS

New company car advisory fuel rates have been published which took effect from 1 December 2013.

EMPLOYERS WILL NO LONGER BE ABLE TO RECLAIM SSP

The Percentage Threshold Scheme (PTS), which allows employers to reclaim Statutory Sick Pay (SSP) in certain circumstances, is abolished from 6 April 2014.

SHARED PARENTAL LEAVE

The government has announced how the new system of shared parental leave will operate for employees and employers.

CHANGES FOR LIMITED LIABILITY PARTNERSHIPS (LLPS)

Since their introduction in 2000, LLPs have become increasingly popular as a vehicle for carrying on a wide variety of businesses.

‘FALSE SELF-EMPLOYMENT’ VIA INTERMEDIARIES

Following announcements made as part of the Autumn Statement the government has announced some further information ‘false self-employment’ via intermediaries.

CGT - PRIVATE RESIDENCE RELIEF

It was announced in the Autumn Statement that there will be changes made to the rules for Private Residence Relief. 

HMRC ADVISE REGISTER FOR SELF ASSESSMENT NOW

HMRC is urging those who have to file a Self Assessment return for the first time to register for its online services now.

NEWSLETTER 74

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

EMPLOYERS FAIL TO PAY TRIBUNAL AWARDS

According to government commissioned research into the outcome of employment tribunals more than 50% of those awarded payments do not receive their full award.

HMRC NEW APPROACH TO BUSINESS RECORDS CHECKS

HMRC have announced that they are changing their Business Record Check (BRC) activity to ensure ‘it better targets help to those who are likely to have inadequate records’.

AUTUMN STATEMENT

The government has announced that the Autumn Statement will now take place on 5 December 2013.

LABOUR MARKET STATISTICS

The Office for National Statistics have made the following announcement about Labour Market Statistics.

HMRC REVEAL DELIBERATE DEFAULTERS

HMRC publishes details of deliberate tax defaulters, those people who have received penalties either for:

• deliberate errors in their tax returns or
• deliberately failing to comply with their tax obligations.

PARTIES FOR EMPLOYEES

With the season for office parties fast approaching we thought it would be a good idea to remind you of the tax implications.

PENSION SCHEME CHARGES CONSULTATION

Government consultation proposes to cap annual charges that are applied to pension schemes at between 0.75% and 1.0% a year.

EMPLOYMENT LEGISLATION

October 1^st saw the introduction of  3 new pieces of Employment Legislation

Details are available through CIPD at:

http://www.cipd.co.uk

CHARITY ANNUAL RETURNS

The Charity Commission has published its analysis on annual returns consultation.

Coming out of the consultation will be additional questions and published responses including

·    Whether Trustees are remunerated in any way

·    Whether a charity is a member of the Fundraising Standards Board

·    Use of free text boxes to explain aims for the period and achievements

Full details at :    http://www.charitycommission.gov.uk

HMRC ANNOUNCE LATEST TARGETS

H M Revenue & Customs have recently announced the next batch of criteria which they will target for enquiry.

In the Midlands area they will be looking closely at any individuals with offshore accounts, any taxpayer who upon simple viewing appears to be living beyond their means and anyone dealing in second hand vehicles.

We understand that the last sector will be dealt with under the “Missing Trader” legislation and relates principally to individuals offering vehicles for sale at the roadside and not declaring the income as a trade.

If you are at all concerned with this or feel that you need advice on voluntary disclosure of income please contact us.

NEWSLETTER 72

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

ADVISORY FUEL RATES FOR COMPANY CARS

New company car advisory fuel rates have been published which took effect from 1 September 2013.

DATA PAYMENT CRACKDOWN

HMRC have announced that for the first time they now have access to information on all credit and debit card payments to UK businesses.

HMRC CHASE THOSE WHO HAVE MISSED RTI DEADLINES

HMRC are writing to the 167,000 employers who have missed one or more of the deadlines for reporting their PAYE information in real time.

UNIVERSAL CREDIT CRITICISED BY NAO

The implementation of the Government's welfare reform programme, Universal Credit, has been criticised in a report by the National Audit Office (NAO).

HSE GUIDANCE ON NEW FIRST AID TRAINING RULES

The Health and Safety Executive has issued guidance to help employers assess their first aid training needs and comply with amendments to the Health and Safety (First Aid) Regulations.

RTI ISSUE AFFECTING STUDENT LOAN BORROWERS

HMRC would like employers to be aware that they have identified an issue with some employees who have student loans.

HMRC ISSUE GUIDANCE ON THE STATUTORY RESIDENCE TEST

HMRC have issued some updated guidance on the Statutory Residence Test which took effect from 6 April 2013.

NATIONAL MINIMUM WAGE

National Minimum Wage rates increases come into effect on
1 October 2013.

DEADLINE FOR ‘PAPER’ SELF ASSESSMENT TAX RETURNS

For those individuals who have previously submitted ‘paper’ self assessment tax returns the deadline for the 2012/13 return is
31 October 2013.

LATEST JOB FIGURES

According to the latest information published by the ONS, employment rose by 80,000 and unemployment fell by 24,000 in the three months to July.

NEWSLETTER 71

Headlines from last month's newsletter.  Please click on any of the links below for more information :

PARENTS WITH HIGHER INCOMES MUST REGISTER FOR SELF ASSESSMENT

HMRC are reminding parents with higher incomes who continued to receive Child Benefit after January 2013 that they must register for Self Assessment by 5 October 2013 to avoid any penalties in relation to the High Income Child Benefit Charge.

PAYE RTI AND ANNUAL SCHEMES

HMRC are advising that they have now fixed the issue with Annual PAYE schemes.

PENSION ‘LIBERATION’

The ICAEW have issued a warning that individuals are being approached by firms offering to help them ‘unlock’ their pensions or access them early.

CONSULTATION ON TAX-FREE CHILDCARE FOR WORKING FAMILIES

Earlier this year the government announced that it plans to introduce a new childcare scheme for working families.

HMRC’S MOST WANTED TAX FUGITIVES

HMRC has published an updated list of their most wanted ‘tax fugitives’ and announced that a ‘fraudster’ has been apprehended at Heathrow Airport whilst travelling on a false passport, following almost ten years on the run.

A MILLION ZERO HOUR CONTRACTS

New research suggests that the number of workers on zero hour contracts, with no guarantee of hours or pay, are becoming more widespread.

HMRC INTRODUCE NEW SAFEGUARDS FOR DEBT COLLECTION VISITS

HMRC have introduced a Field Force Verification Helpline, so that taxpayers can easily check whether or not a caller on their doorstep claiming to be from HMRC is genuine.

WHAT HAPPENS WHEN MY COMPANY REACHES THE END OF ITS USEFUL LIFE?

We asked John Rimmer at BRI Business Recovery & Insolvency, who are regulated to deal with that area of business closures, for his thoughts.

PM RULES OUT TAX PLEDGES BUT SAYS HE IS 'LOW-TAX' CONSERVATIVE

David Cameron has refused to rule out tax rises after the next election, but said his goal is to "give people back some of their hard earned money" as the economy improves.

But speaking last month, the chancellor George Osborne said tax rises "were not required" to achieve future borrowing targets and they could be met solely by further cuts in spending

Full story http://www.bbc.co.uk/news/uk-politics-23395146

NEWSLETTER 70

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

NON STATUTORY EXPENSES

HMRC have introduced an optional system of ‘simpler income tax for smaller businesses’ which takes effect from April 2013 for smaller unincorporated businesses.

GIFT AID SMALL DONATIONS SCHEME

HMRC have published detailed guidance for charities and community amateur sports clubs (CASCs) on the new Gift Aid Small Donations Scheme (GASDS).

GOVERNMENT PUBLISHES 'SUPPORTING AUTOMATIC ENROLMENT'

Under Pensions Auto Enrolment employers will have to automatically enrol eligible workers in a qualifying pension scheme and make pension contributions for those employees.

SINGLE COMPLIANCE PROCESS

HMRC have been trialling a new approach to enquiries, known as the Single Compliance Process (SCP).

TAX RETURN AMNESTY

HMRC have launched a tax return ‘amnesty’ for those individuals who have been issued with a self assessment tax return or notice to complete a tax return for any year up to 2011/12 and have not completed the return(s).

EMPLOYEE SHARE OWNERSHIP

The Department for Business, Innovation and Skills (BIS) has published some useful guidance on employee share ownership following the Nuttall review.

REAL TIME INFORMATION AND ANNUAL SCHEMES

HMRC have received a number of requests since April 2013 from employers, asking for the status of their PAYE schemes to be changed to ‘annual’ which is only an option where employees are only paid once a year.

HMRC ANNOUNCE LATEST TASKFORCES

The latest targets in HMRC’s sights are tax dodger’s involved in:

• the holiday industry in Blackpool, Lake District, North Wales, Devon
   and Cornwall
• restaurants in Yorkshire and Humber
• road hauliers in the Midlands and
• the fishing industry in Scotland.

NEWSLETTER 69

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

REAL TIME INFORMATION AND PAYING HMRC

HMRC are reminding employers that they need to pay their PAYE liabilities ‘on time and in full’ although they are mindful that employers are still getting used to reporting under RTI.

ADVISORY FUEL RATES FOR COMPANY CARS

New company car advisory fuel rates have been published to take effect from 1 June 2013.

HMRC GUIDANCE FOR CHARITY SHOPS

HMRC have published new detailed guidance on claiming Gift Aid when goods are sold by, and the proceeds gifted to, charity shops.

HMRC ANNOUNCE EXTENSION TO RELAXATION ON RTI

HMRC have announced that they will extend the temporary relaxation of the new reporting rules for businesses with fewer than 50 employees from October 2013 until April 2014 and that this relaxation will come to an end at this point.

LATEST EMPLOYMENT AND PAY STATISTICS

The Office for National Statistics has announced the latest official labour market statistics.

NEW 0300 HELPLINE NUMBERS

HMRC have introduced new phone numbers for VAT, National Insurance, income tax and self assessment.

DOWNLOAD BASIC PAYE TOOLS

HMRC have updated their Basic PAYE Tools which is a software package designed to help those employers operating their own payroll.

NEWSLETTER 68

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

RETENTION OF TITLE

We have been contacted recently by several clients who have encountered problems regarding this subject, particularly when a customer becomes insolvent and wants their goods back.
   
RTI ANNUAL SCHEMES AND GUIDANCE ON PAYMENT DATE

HMRC have issued guidance on RTI and annual schemes, including clarification of the requirements and operating annual PAYE schemes in real time.      

STATUTORY RESIDENCE INDICATOR

From 6 April 2013 the rules that determine whether an individual is resident in the UK for tax purposes have changed. These rules are known as the Statutory Residence Test (SRT).      

HMRC GATHER EXTRA £220M FROM HIGH NET WORTH INDIVIDUALS

HMRC have announced that their High Net Worth Unit, which deals with the tax affairs of 5,800 people with assets in excess of £20m, increased its yield from tax enquiries by 10% in 2012/13 to £220m.      

NEW EMPLOYEE SHAREHOLDER STATUS FINALLY LAW

After much debate the Growth and Infrastructure Act is now law.      

THE QUEEN HAS ANNOUNCED THE LEGISLATIVE PROGRAMME

The Queen's Speech set out the government's legislative programme for the 2013/14 Parliamentary session including confirmation that the government plans to introduce an annual £2,000 National Insurance rebate for employers from April 2014.

TAX CREDITS RENEWALS AND SCAM EMAILS

Tax credit customers are being reminded by HMRC that they must renew claims by the 31 July deadline or their payments may stop.

EXPENSES AND BENEFITS ONLINE FORMS

The forms P11D, and where appropriate P9D, which report benefits and expenses for both employees and directors for the year ended 5 April 2013, are due for submission to HMRC by 6 July 2013.

NEWSLETTER 67

We often think that HMRC are interested only in collecting in tax due by way of cash into the Treasury. During the last month however we have seen a position emerge where HMRC are keen to deny tax relief which would otherwise have been due and would have reduced a taxpayer’s liability.

Under Self Assessment it is the responsibility of the taxpayer to notify any circumstances which could lead to additional tax becoming payable. It seems however that some taxpayers may have taken the view that as their main source of income is through PAYE and tax correctly deducted, their rental property income which results in a loss after interest and overheads does not require disclosure. They may take the view that when profits are made then they will tell HMRC. Rental losses can only be carried forward to use against rental profits but HMRC are challenging undisclosed losses from earlier years and seeking to open enquiries into all aspects of a return as a consequence.

Our advice is to disclose everything including losses on a tax return as this will potentially avoid any unnecessary investigation into tax affairs.
   
LOANS FROM A COMPANY TO SHAREHOLDERS

Draft legislation has been published which confirms an announcement made in Budget 2013 and which has effect from 20 March 2013.
 
INCREASE IN NMW RATES

The Government has announced increases in the NMW rates which will come into effect on
1 October 2013.  

HMRC LAUNCH MANAGING SERIOUS DEFAULTERS (MSD)

Following on from Managing Deliberate Defaulters (MDD) programme, under MSD HMRC will closely monitor the tax affairs of more individuals and businesses who have deliberately evaded tax for up to five years.
 
EMPLOYER END OF YEAR FORMS

HMRC are reminding employers that in order to avoid penalties they must file the Employer Annual Return (P35 and P14s) online and on time.
 
EMPLOYMENT PARTICULARS

The government has updated the template of written employment particulars.
 
P11D DEADLINE APPROACHING

The forms P11D, and where appropriate P9D, which report employees and directors benefits and expenses for the year ended 5 April 2013, are due for submission to HMRC by 6 July 2013.
 
SCOTTISH RATE OF INCOME TAX

On 14 February 2013 Scottish and UK ministers agreed the final text of the Memorandum of Understanding between HMRC and the Scottish Government covering the Scottish rate of income tax.

DIVIDENDS VERSUS SALARY

In a long standing case which reached The Court of Appeal,
PA Holdings has conceded that dividends it paid to sections of its workforce under a contrived scheme of arrangement will now stand to be taxed as remuneration.  HMRC announced last week that
PA Holdings had decided against taking the case before the Supreme Court.


It is possible that HMRC could use the decision to challenge
dividends paid out by ordinary SME companies to their shareholders but HMRC state that this will not be their intention. They stated that the PA Holdings scheme was complex and that a deduction for Corporation Tax was being sought from both the Dividend and the remuneration and that the Court of Appeal had correctly drawn the conclusion that payments were either remuneration or dividends and that having decided that it was all remuneration then there was no way that it could attract the lower 10% rate of tax applicable to dividends.  Of course with remuneration there must be tax of at least 20% and NIC’s as well.


If HMRC do begin enquiries into dividends paid to shareholding members of staff then the correct paperwork voting the amounts etc will prove invaluable. If in doubt contact us on 024 7663 5522

NEWSLETTER 66

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

PERSONAL ALLOWANCE UP TO £10,000 FROM 2014/15

It has been confirmed in the Budget that the basic personal allowance will be increased from the current £8,105 to £9,440 for 2013/14

NATIONAL INSURANCE - £2,000 EMPLOYMENT ALLOWANCE

The Government will introduce an allowance of £2,000 per year for all businesses and charities to be offset against their employer Class 1 NIC liability from April 2014

NEW SCHEME FOR TAX FREE CHILDCARE

New tax incentives for childcare have been announced.   To be eligible, families will have to have all parents in work, with each earning less than £150,000 a year and not already receiving support through Tax Credits or Universal Credit

SUPPORT FOR THE HOUSING MARKET

Major reforms have been announced in Budget 2013, including over £5.4 billion of financial help

RTI ‘RELAXATION’ FOR SMALL EMPLOYERS

HMRC have announced that, for some smaller employers, they will relax the reporting requirement for RTI that payments to employees should be reported on or before the amount is paid to the employee

ADVISORY FUEL RATES FOR COMPANY CARS

Updated company car advisory fuel rates have been published which took effect from 1 March 2013

EMPLOYER END OF YEAR FORMS

HMRC are reminding employers that in order to avoid penalties they must file the Employer Annual Return (P35 and P14s) online and on time

REMINDER TO THOSE WITH CHILD BENEFIT AND HIGHER INCOMES

HMRC are reminding people with income over £60,000 whose family is still receiving Child Benefit to consider ‘opting out’ before 28 March if they wish to avoid filling in a tax return and repaying the benefit for the 2013/14 tax year

HMRC PUBLISH NAMES OF DELIBERATE DEFAULTERS

For the first time, HMRC have published a list of ‘deliberate tax defaulters’

ANOTHER HMRC DISCLOSURE FACILITY

HMRC have launched the Property Sales campaign, which is the latest in a long line of disclosure facilities

NEWSLETTER 65

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

AUTO ENROLMENT TOOL

Under Pensions Auto Enrolment employers must:

• ‘auto enrol’ eligible employees into a pension scheme

• make employer pension contributions for them, and

• make deductions of employee pension contributions from the employees pay.  

REAL TIME INFORMATION

HMRC are issuing final reminders to employers to ‘act now’ in order to be ready to report PAYE under Real time Information (RTI).  

PAYING HMRC BY BILL PAY

The ICAEW has reported that HMRC are aware that there are problems with the Bank of Santander’s Bill Pay service which is used by many individuals to pay their self assessment tax liabilities by credit or debit card.

TAX REBATE PHISHING SCAM

HMRC are warning taxpayers not to fall victim of scam emails sent by fraudsters. In 2012 taxpayers reported almost 80,000 tax rebate phishing emails and HMRC took action to close down 522 illegal sites.  
HMRC REPORT SELF ASSESSMENT STATISTICS

HMRC have reported that a record 9.61 million people submitted their self assessment tax return on time this year.  

HMRC WIN FURNISHED HOLIDAY LETTINGS TEST CASE

HMRC have been successful in a test case which considered the tax reliefs available for Furnished Holiday Lettings (FHL).  

SHARED PARENTAL LEAVE

Proposals to change the way parents can share maternity leave have been outlined as part of the Children and Families Bill.

TACKLING LONG TERM SICKNESS ABSENCE

The government has announced proposals to introduce a new independent assessment and advisory service aimed at getting people back to work.

HEALTH AND SAFETY REFORMS

The government has announced that they have made significant progress in reforming Health and Safety requirements. The government has been working towards implementing some of the recommendations made in the Löfstedt Report in 2011 and the Young Report in 2010.

CHARITIES ONLINE GIFT AID SERVICE

HMRC have announced that claiming gift aid repayments will be quicker and easier for charities and sports clubs from April 2013.

NEWSLETTER 64

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

EMPLOYMENT RIGHTS - STATUTORY LIMITS

The limit on the amount of the compensatory award for unfair dismissal is set to increase from 1 February 2013.

HMRC TARGET THOSE WITH OUTSTANDING VAT RETURNS

HMRC have introduced the VAT Outstanding Returns Campaign, which is an opportunity for taxpayers to bring their VAT returns and payments up to date.

‘TAX CHEATS’ SENTENCED TO OVER 150 YEARS BEHIND BARS

HMRC have announced that the top ‘tax criminals’ of 2012 have been sentenced to a combined total of 155 years and 10 months behind bars.

PAYE CODING NOTICES

HMRC are issuing PAYE tax codes for 2013/14.

RTI IS COMING

HMRC are urging employers to get ready for major PAYE changes that come into effect from April 2013.

START UP LOAN SCHEME FOR YOUNG ENTREPRENEURS EXTENDED

David Cameron has announced a boost to the government’s Start-Up Loans Scheme, with funding being increased by £30 million to £110 million over three years.

STATE PENSION REFORM

The government have announced proposals for a new single tier pension.

CHILD BENEFIT OPT OUT

The High Income Child Benefit Charge (HICBC) was introduced from 7 January 2013. It mainly applies to a taxpayer who has ‘adjusted net income’ in excess of £50,000, where either they or their partner is in receipt of Child Benefit.

DEADLINE LOOMING FOR SELF ASSESSMENT RETURNS

HMRC are reminding taxpayers that the countdown has begun to the 31 January 2013 self assessment deadline, with just days left for anyone with an outstanding 2011/12 tax return to send it online.

HMRC BANK ACCOUNT DETAILS FOR EMPLOYERS

HMRC have updated their guidance to employers on paying PAYE liabilities.

NEWSLETTER 63

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

TENFOLD INCREASE IN ANNUAL INVESTMENT ALLOWANCE
The shock announcement of the Autumn Statement was the tenfold increase in the amount of the Annual Investment Allowance (AIA).

PERSONAL ALLOWANCE FOR 2013/14
For those aged under 65 the personal allowance will be increased from the current £8,105 to £9,440.

PENSIONS SAVING
It was announced in the Autumn Statement that for tax year 2014/15 onwards:
• the annual allowance for pensions tax relieved savings will be reduced from £50,000 to £40,000

A SIMPLER TAX SYSTEM FOR SMALLER BUSINESSES
The Chancellor is to proceed with proposals to make the tax system simpler for small unincorporated businesses from April 2013.

STATUTORY RESIDENCE TEST
HMRC have announced that legislation will be introduced in Finance Bill 2013 to put the rules which determine an individual’s tax residence on a statutory basis.

GOVERNMENT MUST TACKLE RED TAPE
The CBI is calling on the Government to tackle ‘red tape’.

REMINDER TO THOSE WITH HIGH INCOME AND CHILD BENEFIT
HMRC are reminding Child Benefit recipients with higher incomes that they have a month to decide whether to stop receiving the benefit or to pay a charge on it through self assessment.

ADVISORY FUEL RATES FOR COMPANY CARS
New company car advisory fuel rates took effect from 1 December 2012.