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Employer deadline for providing P60s

18 May, 2017

The deadline for employers to provide employees with a copy of their P60 form is 31 May 2017. A P60 must be given to all employees that were on the payroll on the last day of the 2016-17 tax year (5 April 2017).

The P60 is a statement issued to employees after the end of each tax year that shows the amount of tax they have paid on their salary. Employers can provide the P60 form on paper or electronically. Employees should ensure they keep their P60s in a safe place as it is an important record of the amount of tax paid.

G7 Finance Ministers meeting

18 May, 2017

The G7 is a forum of seven of the largest economies in the world. Italy currently presides over the group which comprises the UK, US, Germany, France, Italy, Canada and Japan. China, Brazil and India are not included. The group has in the past been known as the G8 but Russia was ejected from the group in 2014 following the Russian annexation of Crimea.

Advance Assurance for R&D

18 May, 2017

Advance Assurance for Research and Development (R&D) tax relief claims is available to small companies making their first R&D claim. To be eligible, the companies must also have an annual turnover of less than £2million and less than 50 employees. There is no requirement to apply for Advance Assurance but by doing so applicants can ensure they comply with the R&D tax relief conditions.

In order to apply for Advance Assurance the company or agent will need to provide the following information to HMRC:

IR35 and the public sector

17 May, 2017

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 new 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.

Replacement Domestic Item relief

11 May, 2017

The wear and tear allowance that allowed landlords to reduce the tax they paid on furnished property lets was withdrawn at the end of the 2015-16 tax year. The 10% deduction was available to landlords regardless of whether furnishings in their property were replaced or not.

Employee expenses consultation

11 May, 2017

The government announced a review of the taxation of employee expenses at Autumn Statement 2016. A consultation was launched earlier this year examining the use of Income Tax relief for employees’ business expenses, including those that are not reimbursed by their employer.

Default surcharge appeal

11 May, 2017

A recent First-tier Tribunal case examined an appeal by a taxpayer against a penalty for late submission of a VAT return for the quarter ending 30 June 2016 known as a default surcharge. A VAT default surcharge is a penalty levied on businesses that submit late VAT returns. The default surcharge penalty was levied at the second highest 10% rate. The VAT payment was due on 7 August 2016 and was made eight days late on 15 August 2016. The taxpayer's grounds of appeal were that the penalty was excessive as he had not been charged penalties at the lower 2% and 5% rates.

Credit Card Sales Campaign

11 May, 2017

HMRC’s Credit Card Sales campaign continues to be available for individuals and businesses that accept credit and debit card payments and have not paid the right amount of tax due. The campaign offers the opportunity for anyone affected to bring their affairs up to date and in doing so take advantage of the best possible terms. Any individual or company that accepts credit and debit card payments should be registered with HMRC. There is currently no end date for this campaign, however anyone affected should take action to make a disclosure as soon as possible.

Inheritance Tax main residence nil-rate band

11 May, 2017

The new Inheritance Tax main residence nil-rate band (RNRB) comes into effect from 6 April 2017. The new RNRB is in addition to the existing £325,000 Inheritance Tax Nil-Rate Band (NRB) threshold.

VAT grouping rules

11 May, 2017

There are special VAT rules that allow two or more corporate bodies to be treated as a single taxable person for VAT purposes known as a VAT group. The representative member accounts for any tax due on supplies made by the group to third parties outside the group. As the group is treated as a single taxable person, you do not normally account for VAT on goods or services supplied between group members and only one VAT return is required for the whole group.

Finance Act 2017 receives Royal Assent, but with provisions omitted

09 May, 2017

The Finance Bill received Royal Assent on 27 April 2017 to become the Finance Act 2017. However, as it was fast-tracked through the legislative process to receive Royal Assent before Parliament was dissolved on 3 May 2017 for the general election, several key provisions had to be omitted. In particular, the provisions changing the law on the taxation of termination payments and reducing the annual tax-free dividend allowance from £5,000 to £2,000 were both dropped. These provisions were expected to come into force in April 2018.

Introducing Dr Jo

08 May, 2017

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