News

What you can do with your pension pot
14/08/2019 - More...
Pension Wise is a free government service that was launched in 2015 to help provide individuals with general pension advice. However, the service does not answer specific questions relating to your pension. The main advice the service provides is generic and covers what you can do with your pension pot, the different pension types, how

When you can claim back VAT on purchase of a car
14/08/2019 - More...
There are complex VAT rules that determine the amount of VAT that can be recovered when purchasing a new car. The usual rule is that when you purchase a car for your business then no VAT can be reclaimed. The main exception to this rule is when the new car is used solely for business use. This rule has been the subject of much case law

Child Benefit charge if income exceeds £50,000
14/08/2019 - More...
The High Income Child Benefit charge (HICBC) applies to a parent whose income exceeds £50,000 in a tax year and who is in receipt of Child Benefit. If both parents have an income that exceeds £50,000, the charge will apply to the highest income earner. The charge claws back the financial benefit of receiving Child Benefit

VAT and insurance claims
14/08/2019 - More...
Insurance transactions are generally VAT exempt. However, there are many issues that can arise concerning the VAT liability of certain insurance transactions. One of these issues concerns the VAT treatment of insurance claims. Insurers are unable to recover VAT incurred in obtaining replacement goods or having repairs carried out for a

When are Class 1A NICs due
14/08/2019 - More...
Class 1A NICs are paid by employers in respect of most benefits in kind provided to employees, for example, the use of a company car. There are no Class 1A employee contributions payable. Class 1A NICs are due in respect of most benefits provided to: directors and certain other persons in controlling positions, employees, members of

How do you calculate adjusted net income?
14/08/2019 - More...
To calculate adjusted net income, you will need to look at a taxpayer’s total taxable income, before personal allowances, and then deduct any trading losses, gift aid donations, gross pension contributions and pension contributions where the pension provider has already provided tax relief at the basic rate. Calculating the

Pregnant women and new parents to get enhanced redundancy protections
08/08/2019 - More...
The government has published its response to its January 2019 consultation on “pregnancy and maternity discrimination: extending redundancy protection for women and new parents” and has confirmed that it will now take action to address such discrimination. As the law currently stands, employees who are placed at risk of

Lowest paid to be eligible for sick pay
07/08/2019 - More...
A new consultation launched jointly by the Department for Work and Pensions and the Department of Health and Social Care, is seeking views on different ways in which both the Government and employers can take action to reduce ill health-related job loss. The consultation is examining a number of specific proposals including: Reforming

Visiting EU after 31 October 2019
07/08/2019 - More...
Although we have a new Prime Minister, it would seem that so far nothing has changed to bring us any closer to a Brexit resolution. In fact, it appears that a no-deal Brexit is becoming more likely as we approach the 31 October deadline. HMRC has published guidance on visiting the EU after 31 October 2019. They have said that there will

Last chance to join the Help to Buy ISA scheme
07/08/2019 - More...
The Help to Buy ISA scheme will close to new savers after 30 November 2019. This leaves less than 4 months to open an account before the product is due to be withdrawn by the Government. Once opened, account holders can continue to save in their ISA account until 30 November 2029 when accounts will close to additional contributions.

Clients exporting to EU if a no-deal Brexit
07/08/2019 - More...
If the UK leaves the EU without a deal, any UK business that exports goods to the EU will be responsible for making customs declarations (as is the case for businesses currently exporting goods outside the EU). If you have clients that trade with the EU, you should check that they have a UK Economic Operator Registration and

Working after State Pension age
07/08/2019 - More...
There are many taxpayers that have reached the State Pension age and continue to work. It should be noted that the requirement to pay any employee or self-employed National Insurance Contributions (NICs) ceases once a taxpayer reaches the State Pension age, subject to the following clarification. Taxpayers remain liable to pay any NICs

Inheritance Tax and domicile
07/08/2019 - More...
Domicile is a general legal concept which in basic terms is taken to mean the country where you permanently belong. However, determining domicile status can be complex. HMRC guidance states that domicile cannot be defined precisely, but the concept rests on various basic principles. Although domicile can change, there is generally a

NIC Act 2019 receives Royal Assent
31/07/2019 - More...
The National Insurance Contributions (Termination Awards and Sporting Testimonials) Bill has received Royal Assent, to become the National Insurance Contributions (Termination Awards and Sporting Testimonials) Act 2019. The Act aligns the employer NICs treatment of termination awards in excess of £30,000, received in connection

Duty free limits if you are travelling abroad
30/07/2019 - More...
Here is a reminder for our readers of their duty and tax free allowances if travelling abroad this summer. Travelling to an EU country Where tobacco or alcohol is brought in from another EU country, no duties or tax will be payable as long as you can demonstrate that the goods are for your own use, and that you paid the relevant taxes

Payments on account system glitch
30/07/2019 - More...
The due date for making your second payment on account for 2018-19, was the 31 July 2019. The amount that was due for payment is usually the same as that for your first payment on account made on or before 31 January 2019. If you are late making a payment on account, you will likely be required to pay interest and penalties. Issues with

VAT for business if there’s a no-deal exit from the EU
30/07/2019 - More...
With the new Prime Minister, Boris Johnson, appearing to take an increasingly hard line the chances of Britain leaving the EU without any working agreement, known as a 'no deal' Brexit, are looking increasing likely and certainly cannot be ignored. If the UK leaves the EU on 31 October 2019, without a deal, there would be

Keeping records if self-employed
30/07/2019 - More...
If you are self-employed as a sole trader or as a partner in a business partnership, then you must keep suitable business records as well as separate personal records of your income. For tax purposes, the business records must be held for at least 5 years from the 31 January submission deadline for the relevant tax year. For example, for

How to claim a personal tax refund
30/07/2019 - More...
HMRC’s annual reconciliation of PAYE for the tax year 2018-19 is well under way. HMRC use salary and pension information to calculate if you have paid the correct amount of tax. The calculation is usually generated automatically by HMRC’s computer systems on what is known as a P800 form. If you are due a tax refund for

VAT accounting after prices are changed
30/07/2019 - More...
New rules that make changes to the issuing of credit notes under certain circumstances, will come into effect from 1 September 2019. The changes have been put in place to target certain businesses who seek to create a tax advantage, by making VAT adjustments for reductions in price without refunding their customers. The change will ensure