Companies House - anti-money laundering changes

Companies House have announced that from 26 June 2017, changes will be made to UK anti-money laundering measures to help prevent money laundering and terrorist financing. The changes will increase the transparency of who owns and controls companies in the UK and will make changes to current requirements about people with significant control (PSC) information.

Initial launch of Tax-Free Childcare Scheme

The new Tax-Free Childcare Scheme (TFCS) is now available to the first tranche of working parents. The scheme has initially been made available to working parents of children that will be aged under 4 on 31 August 2017. 

Pre-election publications by HMRC

HMRC has announced via one of their blogs that readers will notice that communication will be much less than normal during the pre-election period which started at midnight on Friday 21 April and the general election on 8 June. These rules have been put in place to ensure the impartiality of the Civil Service.

Update on Finance Bill 2017

Following the Prime Minister’s unexpected announcement that there will be a snap general election on 8 June 2017, Parliament will now be dissolved on 3 May 2017. After this date, no further legislation will be passed until Parliament opens again after the election.

Government recovers Lloyds investment

The government has announced that all of the £20.3 billion invested in Lloyds during the financial crisis has now been recovered. The sale of the latest tranche of shares in the Lloyds Banking Group brings the amount recovered through sales and dividends to £20.4 billion. The government’s remaining stake has now fallen to less than 2% which is expected to be sold off in the coming months subject to satisfactory market conditions.

The Chancellor, Philip Hammond said:

Non-Resident Landlords Scheme

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.

As a general rule basic rate tax (currently 20%) must be deducted from the rent payable to a Non-Resident Landlord either by the letting agent or where there is no letting agent by the tenants (unless the rent is minimal) and the tax paid over to HMRC within 30 days of the end of each tax quarter.

Tax Diary May/June 2017

1 May 2017 - Due date for Corporation Tax due for the year ended 31 July 2016.

19 May 2017 - PAYE and NIC deductions due for month ended 5 May 2017. (If you pay your tax electronically the due date is 22 May 2017)

19 May 2017 - Filing deadline for the CIS300 monthly return for the month ended 5 May 2017.

19 May 2017 - CIS tax deducted for the month ended 5 May 2017 is payable by today.

31 May 2017 - Ensure all employees have been given their P60s for the 2016-17 tax year.

EU VAT refund scheme

The VAT paid in other EU countries is often recoverable by VAT-registered businesses in the UK, who bought goods or services for business use. The amount refundable depends on the other country's rules for claiming input tax. It is important to note that VAT incurred in foreign countries can never by reclaimed on a domestic UK VAT return.

Claiming the employment allowance

An annual employment allowance for businesses and charities, to offset against their employer's Class 1 NICs, was introduced in April 2014. The allowance can be claimed as part of the normal payroll process through RTI using an employer’s payroll software or HMRC’s Basic PAYE Tools.

The maximum amount available is currently £3,000 per year. For example, if an employer’s Class 1 NICs are £1,200 each month, in April and May the employment allowance used will be for the full amount and in June the remaining £600 would be used.

Furnished holiday lettings

The furnished holiday let (FHL) rules allow holiday lettings of properties that meet certain conditions to be treated as a trade for specific tax purposes. Individuals, partnerships, trustees and companies who let furnished holiday accommodation situated within the UK or elsewhere in the EEA can benefit from having a FHL. HMRC’s guidance on the scheme has recently been updated.

Tax codes for employees

The P9X form is used to notify employers of the tax codes to use for employees. The form shows the tax codes to use from 6 April 2017. The basic personal allowance for the tax year starting 6 April 2017 is £11,500 and the tax code for emergency use is 1150L. The basic rate limit is £33,500 except for those defined as Scottish taxpayers who have a lower basic rate limit of £31,500.

Prime Minister calls for snap election

In a shock announcement following the Easter weekend the Prime Minister Theresa May declared plans to call a snap election on 8 June. The announcement marked a seismic shift from her earlier declarations that there would be no new elections until 2020.

Her dramatic speech on the steps of Downing Street made it clear that she felt she had little choice but to hold an election to build a greater mandate to steer the UK through the Brexit negotiations.