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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.

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.

Reminder to submit details for Benefits in Kind

11 Apr, 2018

Employers are reminded that the deadline for submitting the 2017-18 forms P11D, P11D(b) and P9D is 6 July 2018. P11D forms are used to provide information to HMRC on all Benefits in Kind (BiKs), including those under the Optional Remuneration Arrangements (OpRAs) unless the employer has registered to voluntarily submit payroll benefits. This is known as payrolling and removes the requirement to complete a P11D for the selected benefits. However, a P11D(b) is still required for Class 1A national insurance payments.

Court rules on online filing penalties

11 Apr, 2018

The Construction Industry Scheme (CIS) is a set of special rules for tax and national insurance (NI) for those working in the construction industry. Businesses in the construction industry are known as 'contractors' and 'subcontractors'. The scheme applies mainly to contractors and subcontractors involved in construction.

Access to Work grants increase by £15,000

09 Apr, 2018

Following new measures introduced in Parliament, from 1 April 2018 disabled workers can now benefit from a £15,000 rise in Access to Work grants to assist them at work. Such workers can now claim up to £57,200 annually to help pay for the additional support that they may need in the workplace, which is over £15,000 more than the previous cap of £42,100.

Overseas online VAT abuse

04 Apr, 2018

The new Fulfilment House Due Diligence Scheme (FHDDS) opened for online applications on 1 April 2018. The FHDDS is part of a package of measure to combat the abuse of VAT rules by online traders based outside the European Union.

Fulfilment houses that store any goods imported from outside the EU on behalf of others, need to apply for approval from HMRC. These businesses will be required to perform proper due diligence on the goods they fulfil and their overseas clients under the umbrella of the FHDDS.

Online access to personal tax account

04 Apr, 2018

HMRC has issued an update of what can be dealt with by accessing and using a personal tax account (PTA). The PTA works like an online bank account to allow taxpayers to review all their details in real time.

HMRC has confirmed that the following services are currently available on the PTA:

What is the settlement legislation?

04 Apr, 2018

The settlements legislation is contained in s.624 ITTOIA 2005. The legislation seeks to ensure that where a settlor has retained an interest in property, in a settlement, that the income arising is treated as the settlor’s income for tax purposes. A settlor can be said to have retained an interest if the property or income may be applied for the benefit of the settlor, a spouse or civil partner.

In general, the settlements legislation can apply where an individual enters into an arrangement to divert income to someone else and in the process, tax is saved.

What is your principle private residence?

04 Apr, 2018

As a general rule, there should be no capital gains tax (CGT) to be paid on a property which has been used solely as the main family residence (referred to by HMRC as one’s principle private residence). Conversely, an investment property which has never been used as a private residence will not qualify for relief. However, there is a significant amount of HMRC guidance and case law in this area which help highlight the somewhat ambiguous nature of the rules. For example, your house could also include one or more outbuildings which may or may not benefit from CGT relief.

The GDPR is coming

04 Apr, 2018

There are now just 7 weeks to go until the new data protection regulations become law on 25 May 2018. The new provisions known as the General Data Protection Regulation (GDPR) represent a step change in data protection regulation, that will impose much stricter controls over the way that businesses collect, store and manage the personal data of customers, suppliers, staff and other contacts. For many businesses, the new rules are more onerous than the current Data Protection Act (DPA) rules.

New requirements, not in the present Data Protection Act 1998, include:

Changed circumstances, change your Will

04 Apr, 2018

We have published articles before discussing the importance of making a will and ensuring that your assets are divided amongst your beneficiaries in the way best suited to your personal wishes. One of the most important reasons for doing so, is to ensure that you do not die intestate (without a will) where the intestacy rules will decide how your estate is distributed.

HMRC’s guidance on making a will makes an important recommendation that you should review your will every 5 years and after any major change in your life, such as:

What is your Principal private residence?

04 Apr, 2018

As a general rule, there should be no capital gains tax (CGT) to be paid on a property which has been used solely as the main family residence (referred to by HMRC as one’s principal private residence). Conversely, an investment property which has never been used as a private residence will not qualify for relief. However, there is a significant amount of HMRC guidance and case law in this area which help highlight the somewhat ambiguous nature of the rules. For example, your house could also include one or more outbuildings which may or may not benefit from CGT relief.

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