If the answer is yes, now is the time to review tax relief claimed for business travel. more »
We have long warned our clients about the dangers of using dividend waivers to pay more to another shareholder. more »
The Gov’t announced plans in the Budget to remove the exemption from capital gains tax on the sale of the main residence for non-UK residents.
Further consultation in under way to determine the best way to achieve this for the proposed start date of April 2015.
Rumours are now circulating that the final measure will also apply to all UK taxpayers also to avoid discrimination against EU residents.
It seems very unlikely that all UK taxpayers will be subject to tax on the sale of their home but it may become necessary to make an election to retain this…watch this space for further details.
HMRC are consulting on plans to prevent non-residents continuing to claim a UK personal allowance.
The personal allowance has been gradually increased over recent years and is now worth £10,000 per person. Under the current regime, provided you are a citizen of the EEA, you are able to claim this allowance to offset against UK source income.
Under the proposals only UK residents & those living overseas who have ‘strong economic connections’ to the UK will be able to claim. As yet no definition of these terms has been released.
The proposal is likely to have implications for expats living overseas who have UK rental properties and / or UK source pension income. Watch this space for further details.
The Annual Investment Allowance was temporarily increased from £25,000 to £250,000 for qualifying assets purchased between 1 January 2013 and 31 December 2014.
However, instead of reducing it again, the Chancellor announced a further temporary increase from £250,000 to £500,000 for expenditure incurred between 1 April 2014 and 31 December 2015.
This gives 100% tax relief on the purchase of capital assets including plant & machinery, fixtures & fittings, computer equipment and motor vehicles (except cars).
This offers a great opportunity to invest in your business funded by a reduction in your tax bill so plan now to get the most from this generous relief.
George Osborne’s budget speech delivered more changes than initially expected. There were some nice surprises, however for some of the announcements it will take time before we see the benefit or the real detail behind the headlines.
Coined as a budget for the Movers, Doers and Savers the key highlights include:
• Annual Investment Allowance to double from £250,000 to £500,000 and extend to 31 December 2015
• ISAs – individual tax free limits for stock/shares ISAs and cash ISAs scrapped and replaced by single £15,000 tax free limit on 1 July 2014
• 15% SDLT applied to residential properties costing £500,000+ purchased through a company on/after 20 March 2014
• NIC allowance available against first £2,000 of employer’s NIC paid during 2014/15 and onwards
For more detail or a copy of our Budget slides, click here or contact Lesley Sutton on 01484 550 037.
If you missed our Budget Breakfast this morning then please download Revell Ward Chartered Accountants – Budget 2014 slides.
George Osborne’s budget 2014 speech delivered more changes than had been initially expected. There were some nice surprises (e.g. the AIA increase) however some of the announcements will take some time before we see the benefit.
Coined by Mr Osborne as a budget for the Movers, Doers and Savers the key highlights are worth a review to see which apply to you:
- Annual Investment Allowance (AIA) to double from £250,000 to £500,000 and extend to 31 December 2015
- R&D tax credit relief for loss making companies to increase from 11% to 14.5% on 1 April 2014
- Corporation tax for large companies reducing from 23% to 21% on 1 April 2014 and to 20% on 1 April 2015 to align with small companies rate
Personal / PAYE taxes
- Personal Allowance to rise from £9,440 (2013/14) to £10,000 (2014/15)
- Income tax band at which pay 20% income tax to reduce from £32,010 (2013/14) to £31,865 (2014/15)
- NIC allowance available against first £2,000 of employer’s NIC paid during 2014/15 and onwards
- Under 21s to be removed from NICs from April 2015
- Married couples/civil partners to be able to transfer between them up to £1,050 of personal allowance from April 2015 where both are basic rate tax payers
Pensions and savings
- ISAs – individual tax free limits for stock/shares ISAs and cash ISAs scrapped and replaced by single £15,000 tax free limit on 1 July 2014
- Savings starter rate to reduce from 10% to 0% and be available on first £5,000 of savings from April 2015
- Pension drawdown restrictions loosening from 27 March 2014
- New Pensioner Bond paying market leading rates to be available from January to all people over 65
- Pension scheme annual contributions relief cut from £50,000 (2013/14) to £40,000 (2014/15)
- Pension scheme tax-free lifetime allowance for the value of your pension pot cut from £1.5m (2013/14) to £1.25m (2014/15)
- 15% SDLT to be applied to residential property purchased through a company were property cost £500,000 and is purchased on/after 20 March 2014; £2m threshold currently applies to such purchases pre-20 March 2014
- SEIS scheme time limit removed to make permanent the income and capital gains tax reliefs available from 2014/15 onwards
- Capital gains tax relief on last 36 months of residential property that has been your main residence at some point reducing to 18 months from April 2014
- Increase in VAT registration limit to £81,000 from 1 April 2014 (was £79,000)
- Relief for air ambulance fuel announced
- Change in place of supply rules for electronically provided services announced
- Proposed change to prompt payment discounts
- Proposed changes to VAT avoidance disclosure regime
Watch this space for more detail on the individual reforms and email email@example.com if you would be interested in attending our Breakfast Budget Seminar on Friday and/or to receive the Seminar Slides.
Most businesses get an employer compliance review every few years.
The review might be aimed at payroll but it is unlikely to be restricted to just that. Other documentation including accounting records, expense claims and directors loan account statements may also be reviewed.
Areas of particular interest to HMRC include:
Employed v self-employed status; NIC calculations in respect of directors; mileages records, pool cars and travel expenses; entertaining and gifts; salary sacrifice schemes and issues surrounding overseas workers/UK employees working overseas.
If you have concerns in respect of any of the areas listed above and / or if you are due to have an employer compliance review, seek advice in advance to make sure you are fully prepared.
If you would like to know more or are concerned about how this may affect you then call Lesley Sutton on 01484 538351.
This is the tax relief that we all rely on to exempt the profit on our home from tax when we sell it. The rules are changing…
If you own a property that was your main residence at some point previous but you have not yet sold it, you are currently entitled to continue to claim the principle private residence relief exemption for the last three years (36 months) of your ownership, regardless of more »