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Information Commissioner’s Office announces new lawful basis interactive guidance tool

24 Apr, 2018

The Information Commissioner's Office (ICO) has announced that it has produced a lawful basis interactive guidance tool to assist businesses in determining which lawful basis is appropriate for their data processing activities.

Tax Diary May/June 2018

19 Apr, 2018

1 May 2018 - Due date for corporation tax due for the year ended 30 July 2017.

19 May 2018 - PAYE and NIC deductions due for month ended 5 May 2018. (If you pay your tax electronically the due date is 22 May 2018)

19 May 2018 - Filing deadline for the CIS300 monthly return for the month ended 5 May 2018.

19 May 2018 - CIS tax deducted for the month ended 5 May 2018 is payable by today.

31 May 2018 - Ensure all employees have been given their P60s for the 2017-18 tax year.

Renewing tax credit claims

18 Apr, 2018

Families and individuals that receive tax credits should ensure that they renew their tax credit claims by 31 July 2018. Claimants who do not renew on-time may have their payments stopped.

HMRC has started to send tax credits renewal packs to tax credit claimants and is encouraging recipients to renew their tax credits claim online. All packs should be with recipients by the end of June. A renewal is required if the pack has a red line across the first page and it says, 'reply now'.

Non-resident landlord’s scheme

18 Apr, 2018

The Non-resident landlord (NRL) scheme is a special scheme for the UK rental income of non-resident landlords. This includes companies or trustees whose 'usual place of abode' is outside the UK. HMRC classifies a person living abroad for 6 months or more per year, as a non-resident landlord. Interestingly, this is the case even if the person is a UK resident for tax purposes.

What is a PET?

18 Apr, 2018

Most gifts made during a person’s life are not subject to tax at the time of the gift. These lifetime transfers are known as 'potentially exempt transfers' or 'PETs'.  These gifts or transfers achieve their potential of becoming exempt if the taxpayer survives for more than seven years after making the gift. If the taxpayer dies within 3 years of making the gift, then the inheritance tax position is as if the gift was made on death. A tapered relief is available if death occurs between three and seven years after the gift is made.

How much does Class 4 NIC cost?

18 Apr, 2018

There are currently two types of national insurance contributions (NICs) payable by most self-employed people. These are known as: Class 2 NICs, and Class 4 NICs.

Class 2 NICs are paid by all self-employed taxpayers unless they qualify for the small earnings exception or other exemptions which remove the necessity to pay NICs. Class 2 NICs are payable at a flat weekly rate of £2.95 for the current 2018-19 tax year. Class 2 NICs count towards payments such as the basic state pension, the employment and support allowance, maternity allowance and bereavement benefits.

Don’t forget to handout P60s

18 Apr, 2018

The deadline for employers to provide employees with a copy of their P60 form is by 31 May 2018. A P60 must be given to all employees that were on the payroll on the last day of the tax year – 5 April 2018.

The P60 is a statement issued to employees after the end of each tax year that shows a summary of their pay and deductions for the previous tax year. Employers can provide the P60 form on paper or electronically.

Employees should ensure they keep their P60s in a safe place as it is an important record of the amount of tax they have paid.

Let property disclosure campaign

18 Apr, 2018

HMRC’s Let Property Campaign provides landlords who have undeclared income from residential property lettings in the UK or abroad with an opportunity to regularise their affairs by disclosing any outstanding liabilities whether due to misunderstanding the tax rules or because of deliberate tax evasion.

Claiming for job related expenses

18 Apr, 2018

Employees who use their own money to buy things they need for their job, can sometimes claim tax relief for the associated costs. It is usually only possible to claim tax relief for the cost of items used solely for work.

What plant purchases qualify for a tax allowance?

11 Apr, 2018

Most day to day business expenses can be deducted from business income when calculating your taxable profits. However, the rules are different for 'capital’ expenditure'. Capital allowances is the term used to describe the allowances which allow businesses to secure tax relief for certain capital expenditure. There are different rules that apply depending on the type of capital expenditure, and only the person who bought the item can claim a capital allowances.

We will focus below on what plant and machinery purchases HMRC say qualifies for a tax allowance.

Extra tax relief for married over 80s

11 Apr, 2018

The Married Couple's Allowance (MCA) is available to elderly married couples or those in a civil partnership, where at least one member of the couple were born before 6 April 1935 (i.e. at least 83 years old). The allowance provides for tax relief by deducting 10% of the allowance from the amount of tax due on taxable income. The MCA can reduce a tax bill to zero but cannot result in a refund of tax.

Sugar tax takes the sweetness out of soft drinks

11 Apr, 2018

The new Soft Drinks Industry Levy came into effect with the start of the new tax year on 6 April 2018. The Levy commonly known as the 'sugar tax', has been put into effect to help combat the excess use of sugar especially by children.

Since the introduction of the sugar tax, many soft drink manufacturers have already reformulated their recipes to reduce the amount of sugar in soft drinks. Over 50% of manufacturers have already reduced the equivalent of 45 million kg of sugar per year from drinks.

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