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Construction Industry Scheme (CIS) Deductions and Joint Contracts
The Construction Industry Scheme works in a similar way to PAYE for construction firms and self-employed workers in that industry. There are three levels of CIS deduction which contractors must make when they pay a sub-contractor: 30% if the sub-contractor is not registered with HMRC; 20% if they are registered but do not have a…
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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…
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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.…
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Can Giving Away Shares Be Tax Efficient?
In the 1980s and 1990s a wide range of companies were privatised and gave many people a few shares which produce very small annual dividends. They can be seen are more trouble than they are worth, so what can be done with them? The shares could be sold but you will need a broker and…
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Buy Goods for Personal Use and Potentially Save VAT
You may believe you can reclaim VAT for any purchase you put through your business account, but you can’t. You cannot reclaim VAT on a purchase which is not for your business. However, if you purchase an item for both business and personal use, the amount of VAT which can be reclaimed depends on which…
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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…
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2018 Spring Statement Summary
We always try to keep you up-to-date with the latest changes which could affect you, so here is our summary of the Chancellor’s statement issues recently. Mr. Hammond commented that UK economic growth remains disappointing, now forecast at 1.5% growth. In addition, inflation at 3% in January was above the government’s target. However, with the…
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Landlords Forced to Improve Energy Ratings from This April
New regulations are being introduced from April 2018 which will force landlords to improve the energy ratings of their properties. This will apply to landlords of privately rented domestic and non-domestic properties in England and Wales. The idea is that properties must reach at least an Energy Performance Certificate (EPC) rating of E. This will…
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Are Your Contracts of Employment Up To Date?
You will have heard and read about recent news stories regarding contracts of employment, particularly the changes to dress code requirements. It is vital that your contracts of employment are up to date or you could have problems – expensive problems. The most publicity has been all around high heels and make-up, which may sound…
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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…
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Making Tax Digital or MTD
You may have heard or seen stories relating to some major changes that have been proposed by the government and H M Revenue and Customs. So what is MTD? It is a bold and innovative initiative to bring the UK tax system up to date for the new digital age, or so ‘they’ say. They…