We think you would all agree that the regime for taxing employee benefits and expenses is unduly complex.
The good news is that HMRC have undertaken a review and have identified the following areas for review:
A recent HMRC case highlights the importance of good record keeping; in this instance in relation to properties.
“We are not sure if what we do is unique enough to be considered R&D”
A small privately-owned software development company with 30 employees had been trading for many years. Despite earning only modest profits, typically £30,000 a year, they had never thought to apply for R&D tax credits.
After taking advice, their corporation tax bill of £6,200 was eliminated and instead they received a cash refund of £80,000, a total cash flow saving of £86,000.
R&D tax reliefs are among the most under claimed tax incentives currently available meaning thousands of eligible companies are losing out on significant tax benefits. more »
With a 100% success rate our R&D offering is second to none. Not only do we have in-house expertise in preparing and submitting claims, we also work with industry experts on more specialist claims to ensure we can service any client’s needs. more »
If spouses jointly own a rental property it is common for the one who pays the least tax to declare rental profits to HMRC. more »
Companies operating in the creative sector may qualify for a new generous tax incentive From 1 April 2013. more »
In a previous tax chat we advised you that HMRC were looking at underpaid tax on the sale of second homes.
Only your one main residence will qualify for tax exemption all other properties, whether lived in, rented out or used as a holiday home are subject to capital gains tax on sale.
We are aware that HMRC are actively pursuing this campaign and have seen a number of cases where additional tax is payable.
If you think you should have paid tax on a property sale or receive enquires from HMRC about a sale, please contact us as soon as possible.
HMRC will be issuing a reminder to parents on higher incomes who continued to receive child benefit after 7 Jan 2013 that they need to register for Self-assessment by 5 Oct 2013 or risk incurring a penalty.
If your income is over £50,000 and you or your partner received child benefit in 2012/13, you will need to complete a self-assessment tax return for the 2012/13 tax year.
People who stopped child benefit payments before 7 January 2013 do not need to take any further action.