Tag Archives: HMRC advice

  1. Self-assessments: new points-based penalty system to be introduced by HM Revenue & Customs?

    It looks like HM Revenue & Customs may be introducing some changes to late filing penalties based on proposals put forward for the Finance Bill 2018-19. As the rules currently stand, an automatic £100 penalty is issued for failure to submit a self-assessment tax return on time. These penalties can increase significantly depending on how…

  2. Rent-a-Room Relief for Absent Landlords

    If you are thinking of working away from home for a while and taking in a lodger to look after the house and pay you some rent, HMRC says you can receive up to £7,500 per year tax free. However, this tax relief is only available if the letting income is from the only or…

  3. Unpaid Invoices and Tax Deductions

    You may have bad debts for your latest accounts which you have ignored. Can you claim tax relief on these? You accountant can prepare your tax returns and company accounts to the best of their knowledge according to the information you provide, but may not be aware of your bad debts. These need to be…

  4. Making Company Car Purchases Cost Effective for Family Members

    In April 2018 the tax and National Insurance (NI) charges for company cars rose again. The maximum charge did not increase but the carbon dioxide (CO2) emissions bands moved so that the majority of company car drivers will pay more in 2018/19 and in 2017.18 for the same car. However, if you use your business…

  5. Carers Who Sleep Over Could be Entitled to National Minimum Wage

    Hiring your own personal car assistant can be a life-changing decision, but for many it is their first experience of becoming an employer – often without realising it. The home-based and personal nature of the work makes the employment relationship much more intense than in the conventional workplace. One of the difficulties encountered is how…

  6. VAT Margin Scheme

    If your company buys and sells second-hand goods you may be eligible to use a VAT Margin Scheme. A VAT Margin Scheme taxes the difference between what you paid for an item and what you sold the same item for. VAT is paid at 1/6 (16.67%) of the difference (margin). Business overheads, repairs and parts/accessories…

  7. At Risk of a Surprise Tax Investigation? Be Protected with FeeWise

    The number of tax enquiries has dramatically increased over the last few years, resulting in more and more people having their tax scrutinised. Any tax payer can be targeted by HMRC to check they are paying the right amount of tax and this can lead to lengthy and expensive enquires , sometimes lasting for years….

  8. Claiming Tax for Upgrading Your Travel

    If you upgrade your usual standard or economy class travel so you can work en route, can you claim a tax deduction for the extra cost? Usually, you are allowed to claim a tax deduction for the cost of travelling on business. If you are a director or employee and the employer pays for or…

  9. Changes to Tax on Company Loans to Directors and Shareholders

    All loans to directors and shareholders (participators) from a company must now be taxed under Section S455 of the Corporation Tax regulations. The aim of this change is to prevent company directors avoiding personal tax and national insurance contributions by paying themselves via loans which are not repaid, rather than taking a salary or dividends….

  10. End of Year PAYE Filing, Minimum Wage and Workplace Pension Increases

    It’s that time of year where we need to think about your end of tax year filing for your PAYE Scheme. This is what you must ensure is processed by the deadlines stated below: Send your final full payment submission to HM Revenue & Customs by 19th April 2018 All PAYE liabilities should be paid…

  11. Changes to Buy To Let Tax Rules

    If you are a higher-rate taxpayer you can no longer offset all your mortgage interest against rental income before calculating the tax due. This will lead to higher tax bills even if you have not seen your income increase. The reduction in relief is being phased in between now and 2020 and will be replaced…

  12. Changes to the Ways you can Pay your Tax

    We like to keep you up-to-date with news from HMRC so here is the latest information for you: From 15th December this year you will no longer be able to pay your tax bill at a Post Office Branch. This is particularly bad timing as it coincides with the January self-assessment payment rush. The contract with…