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Spring Statement 2018

13 Mar, 2018

The Chancellor, Philip Hammond has announced that he will deliver his Spring Statement to the House of Commons on Tuesday, 13 March 2018.

This will be the first Spring Statement to take place following the government’s decision to switch to a new cycle with the annual Budget taking place in the autumn and the annual Statement taking place in the spring.

Benefits that lose tax-free status from April 2018

07 Mar, 2018

The tax and NIC advantages of certain benefits provided as part of a salary sacrifice arrangement changed from 6 April 2017. When the changes were introduced it was confirmed that all arrangements in place before April 2017 will be protected for up to a year. This means that current contracts that remained under the pre-2017 rules will now fall under the new rules from April 2018.

Tax-free trivial benefits

07 Mar, 2018

There is no tax to pay on trivial benefits in kind (BiK) provided to employees where all of the following apply:

Company fined £297,845 for paying VAT one day late

07 Mar, 2018

We have often warned our readers of the importance of submitting and paying VAT returns in a timely manner. In a recent article we wrote that it is imperative that VAT returns are submitted and paid on time as a delay of even one day can have significant consequences in the future. Unfortunately, a company by the name of Global Switch Ltd does not appear to have taken heed of our warning.

What are off-payroll working rules?

07 Mar, 2018

The rules for individuals providing services to the public sector via an intermediary such as a personal service company (PSC) changed from April 2017. The rules, known as off-payroll working rules shift the responsibility for deciding whether the intermediaries’ legislation applies, known as IR35, from the intermediary itself to the public sector receiving the service. The public sector will also be ultimately held responsible for paying taxes and penalties where an error has occurred.

Property owners lose 50% of higher rate tax relief on finance costs

07 Mar, 2018

Under new rules that came into effect from April 2017 the tax relief on mortgage costs for residential landlords is being gradually restricted to the basic rate of tax. Many landlords of residential properties that used to benefit from full tax relief on finance charges, such as mortgage interest now face higher tax bills. These changes will start to hit even harder when the amount of higher rate tax relief on finance costs is restricted to 50% from April 2018.

Wales takes over taxes starting from April 2018

07 Mar, 2018

The Welsh tax devolution will begin next month when Wales, the Welsh Government and the National Assembly for Wales, become responsible for some of the taxes paid in Wales for the first time in over 800 years. From April 2018, Wales will introduce the new Welsh Land Transaction Tax (LTT) which will replace the UK Stamp Duty Land Tax (SDLT) as well as the new Landfill Disposals Tax (LDT) which will replace Landfill Tax. This will be followed by the introduction of the Welsh Income Tax from April 2019.

Property owners’ lose 50% of higher rate tax relief on finance costs

07 Mar, 2018

Under new rules that came into effect from April 2017 the tax relief on mortgage costs for residential landlords is being gradually restricted to the basic rate of tax. Many landlords of residential properties that used to benefit from full tax relief on finance charges, such as mortgage interest now face higher tax bills. These changes will start to hit even harder when the amount of higher rate tax relief on finance costs is restricted to 50% from April 2018.

New advisory fuel rates published

27 Feb, 2018

Advisory fuel rates are intended to reflect actual average fuel costs and are updated quarterly. The rates can be used by employers who reimburse employees for business travel in their company cars or where employees are required to repay the cost of fuel used for private travel.

HMRC accepts there is no taxable profit and no Class 1A National Insurance on reimbursed travel expenses where employers pay a rate per mile for business travel no higher than the published advisory fuel rates.

Tax-free allowances for Capital Gains Tax

27 Feb, 2018

The annual exemption for Capital Gains Tax (CGT) in the current tax year is £11,300. This exemption allows taxpayers who dispose of chargeable assets such as property, stocks and shares of up to this amount, to make a tax-free gains during 2017-18.

New protection for company directors

27 Feb, 2018

The government has announced the introduction of new laws to help tackle the problem of identity fraud and personal harm for company directors. The new laws which were introduced into parliament on 22 February 2018, will allow company directors to remove their personal addresses from the UK’s official company register on Companies House. The new laws are expected to come into force by the end of summer 2018.

Claiming for cost of equipment used at work

27 Feb, 2018

Employees who need to buy substantial equipment to use as part of their employment may be able to claim tax relief. In most cases you can claim tax relief on the full cost of this type of equipment as it would be eligible for a type of capital allowance called an annual investment allowance. Any tax relief would be reduced if the employer provides a contribution towards buying the item.

The way to claim tax relief depends on the amount you’re claiming for. HMRC provides the following information on making a claim:

Claims up to £2,500

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