Monday, 15 April 2019

April 2019 Tax Tips & News


Welcome...

To April's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.

If you need further assistance just let us know or you can send us a question for our 
Question and Answer Section.

We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.

Please contact us for advice in your own specific circumstances. We're here to help!
April 2019
· Treasury under pressure to debate probate 'tax'
· Making Tax Digital update
· Employee mileage allowances
· NMW and NLW increases take effect
· April questions and answers
· April key tax dates
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Monday, 11 March 2019

March 2019 Tax Tips & News


Welcome...

To March's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.

If you need further assistance just let us know or you can send us a question for our 
Question and Answer Section.

We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.

Please contact us for advice in your own specific circumstances. We're here to help!
March 2019
· HMRC reaffirm income tax charge on winding up
· Checking directors' expenses
· Voluntary disclosures
· Employer responsibilities for tips
· March questions and answers
· March key tax dates
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HMRC reaffirm income tax charge on winding up
HMRC have published Spotlight 47, which provides guidance on tax avoidance schemes that try to avoid the income tax charge on distributions when a company is being wound up.

In recent years, HMRC have endeavoured to prevent schemes being used by shareholders to take advantage of more favourable capital gains tax rates when extracting value from their company.

Until 6 April 2016, under arrangements known as 'phoenixism', an individual shareholder who intended to carry on the company's activities could arrange matters enabling them to wind up the company and receive the company's undistributed profits. The profits would be classed as capital distribution (subject to capital gains tax rates), rather than a dividend or other income distribution (subject to higher income tax rates). The individual would then carry on the same or similar activity, often using a newly-formed company.

To counter this perceived avoidance, in 2015 HMRC introduced Targeted Anti-avoidance Rule(TAAR) legislation to prevent individuals from gaining a tax advantage by winding up companies, to make sure any distribution in the winding up is taxed as income, rather than being subject to capital gains tax.

Some scheme promoters have recently claimed that they can get around the TAAR legislation by making an artificial modification of the arrangements (for example by selling the company to a third party rather than winding it up). However, HMRC are adamant that such schemes do not work because:

- in many cases, the actual outcome is that the individual is receiving distributions in a winding up - as the individual carries on trading using a different vehicle these schemes are within the scope and purpose of the TAAR legislation; and
- phoenixism arrangements that claim to involve payments to shareholders taxed as capital instead of income are caught by the TAAR, or other provisions.

HMRC have said that they will investigate any attempts to avoid the income tax charge. If it is claimed that the phoenixism TAAR does not cover the arrangements, HMRC will consider whether the General Anti-abuse Rule (GAAR) applies to these schemes.

Penalties

HMRC have reaffirmed that a severe penalty regime exists in relation to such schemes - transactions after 14 September 2016 where the GAAR applies will be subject to a 60% user penalty. Moreover, for transactions entered into on or after 16 November 2017, any person who enabled the use of these sorts of schemes may be subject to a penalty as an enabler of an abusive scheme. The penalty amount will be equal to the amount of consideration they received for enabling the arrangements. The user may also be subject to penalties for filing an inaccurate return, with penalties of up to 100% of the undeclared tax.

For further information, see HMRC Spotlight 47 
here.

Tuesday, 26 February 2019

February 2019 Tax Tips & News


Welcome...

To February's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.

If you need further assistance just let us know or you can send us a question for our 
Question and Answer Section.

We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.

Please contact us for advice in your own specific circumstances. We're here to help!
February 2019
· MTD pilot opens to all
· Maximising the benefit of Gift Aid donations
· The 'section 455 charge'
· Anti-malware: Free vs Home vs Business
· February questions and answers
· February key tax dates
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Wednesday, 30 January 2019

January 2019 Tax Tips & News

Welcome...

To January's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.

If you need further assistance just let us know or you can send us a question for our 
Question and Answer Section.

We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.

Please contact us for advice in your own specific circumstances. We're here to help!
January 2019
· Make the most of tax efficient savings offers
· Can an employer still claim the EA?
· Considering capital expenditure?
· VAT: Supplies of digital services to consumers in the EU
· January questions and answers
· January key tax dates
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Wednesday, 19 December 2018

December 2018 Tax Tips & News


Welcome...

To December's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.

If you need further assistance just let us know or you can send us a question for our 
Question and Answer Section.

We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.

Please contact us for advice in your own specific circumstances. We're here to help!
December 2018
· Company vans update
· VAT reverse charge in the construction industry
· PGLs for employers
· HMRC warn of tax scams targeting university students
· December questions and answers
· December key tax dates

PLEASE NOTE:
Our offices will be closed for the Christmas and New Year holidays from 5pm on Friday 21st December 2018 until 9am on Wednesday 2nd January 2019.

Wishing you a very Merry Christmas and a Happy New Year!

Thursday, 29 November 2018

November 2018 Tax Tips & News

Welcome...

To November's Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.

If you need further assistance just let us know or you can send us a question for our 
Question and Answer Section.

We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.

Please contact us for advice in your own specific circumstances. We're here to help!
November 2018
· Apprenticeship levy to help smaller firms
· High Income Child Benefit Charge
· Making use of the trading allowance
· Software requirements under MTD
· November questions and answers
· November key tax dates
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Friday, 2 November 2018

Autumn Budget 2018


Welcome...

To Autumn Budget 2018, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.

If you need further assistance just let us know or you can send us a question for our 
Question and Answer Section.

We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.

Please contact us for advice on your own specific circumstances. We're here to help!
Autumn Budget 2018
· Summary
· Individuals
· Business
· VAT
· Indirect taxes
· Administration and other matters
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