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OTS publishes new report on the VAT system

08 Nov, 2017

The Office of Tax Simplification (OTS) provides advice to the Chancellor on simplifying the UK tax system, with the objective of reducing compliance burdens on both businesses and individual taxpayers and will draw together expertise from across the tax and legal professions, the business community and other interested parties.

New Acas guidance on dealing with stress in the workplace

06 Nov, 2017

Following the publication of its guidance for employers on managing staff who are experiencing mental health issues, Acas has now published new guidance for employers on how to support employees who are suffering from work-related stress.

The guidance highlights five indicators of stress that managers should be aware of. These are:

Change to tax relief on re-mortgaged buy-to-let property?

02 Nov, 2017

HMRC’s guidance on paying income tax when you rent out a property has been updated to reflect the new restriction on tax relief for finance charges incurred since April 2017. The tax relief on finance costs (such as mortgage interest) used to buy investment properties, is being gradually restricted to the basic rate of tax. The finance costs restriction is being phased in over four years and will be fully in place from 6 April 2020.

More than one source of self-employment

02 Nov, 2017

Any self-employed person who has more than one source of self-employment is required to pay Class 4 NICs on their total taxable profits. Class 4 NICs are paid by the self-employed as a percentage of annual taxable profits.

Class 4 NICs currently apply on assessable profits from £8,164. Between £8,164 and £45,000, NICs are payable at 9%. Any income above the Upper Profits Limit is liable to NICs at 2%.

Adjustments if you leave the VAT Flat Rate Scheme

02 Nov, 2017

Any business that has been adversely affected by the new 'limited cost trader' test that was introduced on 1 April 2017, should consider whether it will be more beneficial to leave the VAT Flat Rate Scheme (FRS) and revert to using traditional VAT accounting.

Businesses can leave the FRS at any time by notifying HMRC. To save any additional complications, this is usually done at the end of their next VAT accounting period but can be done at any time. 

Businesses must also leave the scheme:

Unpaid director’s salary taxable or not?

02 Nov, 2017

A recent First-Tier Tribunal case examined whether amounts credited to a director’s loan account were subject to PAYE and NIC deductions. The appellant company, buys and sells boats. One of the directors, who is also the chairman of the company, had made a substantial loan to the company at some point prior to April 2010.

CGT payable on sale of personal possessions

02 Nov, 2017

There are special rules concerning the payment of capital gains tax (CGT) on the sale of personal possessions also known as 'chattels'. Personal possessions are generally defined as possessions with a predictable useful life of 50 years or less and are exempt from CGT up to a disposal value of £6,000.

Are your earnings approaching £100,000?

02 Nov, 2017

For high earning taxpayers the personal income tax allowance is gradually reduced by £1 for every £2 of adjusted net income over £100,000 irrespective of age. Adjusted net income is total taxable income before any personal allowances, less certain tax reliefs such as trading losses and certain charitable donations and pension contributions.

Workers unaware of pension contribution increases

31 Oct, 2017

The current total minimum contribution to a defined contribution workplace pension scheme under the automatic enrolment provisions is 2% of qualifying earnings, with a minimum of 1% coming from the employer. The remaining 1% would then ordinarily come from the worker. However, the employer may pay in more than the 1% minimum and, in that circumstance, the worker can then pay in less, or pay in nothing at all, as long as the employer puts in enough to meet the total minimum contribution.

Gazumping may become a thing of the past

25 Oct, 2017

The Communities Secretary Sajid Javid has announced plans to make the process for buying a home 'cheaper, faster and less stressful'. This includes looking at new measures to tackle gazumping where a seller accepts a higher offer from a new buyer after already accepting an offer for less money.

Options to set off property rental losses

25 Oct, 2017

There are different categories of property rental business such as UK property businesses, overseas property businesses, UK furnished holiday businesses and EEA furnished holiday lettings businesses.

Could you claim a £662 tax refund?

25 Oct, 2017

The marriage allowance (MA) allows couples, where one partner does not fully utilise their personal tax allowance, to share a limited amount of the unutilised portion with their spouse. The MA is only available to married couples and those in a civil partnership.

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