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HMRC to stop accepting personal credit cards

18 Oct, 2017

HMRC has confirmed that they will no longer accept payments with a personal credit card from 13 January 2018. This includes payments for income tax, PAYE, VAT and many other taxes. This is due to the implementation of the EU second Payment Services Directive (PSDII). This legislation makes a number of reforms to the way payments by, debit and credit cards, direct debit, credit transfers, standing orders and other digital payments are made.

Overdrawn director’s loan account

18 Oct, 2017

An overdrawn director's loan account is created when a director (or other close family members) ‘borrows’ money from their company. Many companies, particularly 'close' private companies, pay for personal expenses of directors using company funds. Where these payments do not form part of a director’s remuneration they are usually posted to the director’s loan account (DLA).

The DLA can represent cash drawn by a director and payment of other personal bills and expenses. 

Capital allowances when you sell an asset

11 Oct, 2017

Capital allowances is the term used to describe the tax relief businesses can claim on certain capital expenditure and thereby reduce the amount of their taxable profits. Most ‘capital’ items, such as equipment, vehicles, machinery etc, last for a reasonably long time and the tax rules do not allow you to automatically deduct the full cost of such items in one go. There are different rules that apply to different types of capital expenditure such as 100% First-Year Allowances (FYA) for certain energy-saving plant and machinery.

Employing someone to work in your home

11 Oct, 2017

When you employ someone to work in your home, it is your responsibility to meet their employee's rights and deduct the correct amount of tax from their salary. This can include domestic staff such as a nanny, housekeeper, gardener or carer. The rules are different if the person is self-employed or paid through an agency.

If you employ anyone they must:

Check your National Insurance record online

11 Oct, 2017

HMRC offers an online service to check your National Insurance record online. In order to use the service, you will need to have a Government Gateway account. If you don’t have an account, you can apply to set one up online.

By signing in to the 'Check your National Insurance record' service you will also activate your personal tax account. The personal tax account can be used to complete a variety of tasks, from updating an address, managing your child benefit and completing your self assessment return.

Your National Insurance record online will let you see:

Land Registry property alert service

11 Oct, 2017

HM Land Registry's property alert service is a free (for up to 10 registered properties) service to help protect property from fraud. The counter-fraud security measure was introduced by the Land Registry to monitor registered properties, where there is a concern that it might be subject to a fraudulent sale or mortgage.

Tax implications on divorce or separation

11 Oct, 2017

When a couple is separating or divorced it is unlikely that they are thinking about the tax implications. However, as the dust begins to settle it is important that the tax consequences of the break-up are given proper consideration.

Do you pay tax on assets or cash you inherit?

11 Oct, 2017

As a general rule, inheritance tax (IHT) is collected from a person’s estate when they die and can also be payable during a person’s lifetime on certain trusts and gifts. There is normally no tax to be paid if the value of the estate is below the IHT nil rate threshold of £325,000. There is also a new IHT main residence nil-rate band (RNRB) that was introduced in April 2017. The RNRB will ultimately allow for a £175,000 per person transferable allowance for married couples and civil partners when their qualifying main residence is passed down to children after their death.

Tax on foreign income

04 Oct, 2017

Income Tax is generally payable on taxable income received by individuals in the UK, including earnings from employment, earnings from self-employment, pensions income, interest on most savings, dividend income, rental income and trust income.

However, if you are resident in the UK you will also need to pay UK Income Tax on your foreign income, such as:

Self-employed - claim rate per mile for use of car

04 Oct, 2017

There are simplified arrangements in place for the self-employed (and some partnerships) to claim a fixed rate deduction for certain expenses where there is a mix of business and private use. The simplified expenses regime is not available to limited companies or business partnerships involving a limited company.

The simplified expenses include a flat rate per mile claim for use of a car. The present rates - that can be used instead of working out the actual costs of buying and running your vehicle (insurance, repairs, servicing, fuel) - are:

Benefits and limitations of the VAT Flat Rate Scheme

04 Oct, 2017

The VAT Flat Rate scheme (FRS) has been designed to simplify the way a business accounts for VAT, and in so doing, reduces the administration costs of complying with the VAT legislation.

Self-Assessment e-filing deadline

04 Oct, 2017

As existing Self-Assessment tax filers will be aware, the deadline for online submission of your 2016-17 Self-Assessment tax return is 31 January 2018. This is also the date that the payment is due for the balance of any Self-Assessment liability for 2016-17, and the due date for any payment on account due for the current 2017-18 tax year.

There are penalties for late Self-Assessment returns including an automatic £100 penalty for submitting a late return even if there was no tax to pay or the tax due was paid on time.

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