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Small amounts of property and trading income

25 Apr, 2018

There are two separate £1,000 tax allowances for property and trading income that have been available to taxpayers since April 2017.

The £1,000 exemptions from tax apply to:

Simplified expenses for the self-employed

25 Apr, 2018

There are some simplified arrangements available to the self employed, and to some partnerships for claiming 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.

Simplified flat rates can be used for working from home, and for the business costs of vehicles. This method saves having to calculate the proportion of personal and business use in the home such as for utility bills.

Should you pay tax on money or goods you inherit?

25 Apr, 2018

The surprising answer to this question is usually no. This is because inheritance tax (IHT) is usually levied on a person’s estate when they die and can also be payable during a person’s lifetime on certain trusts and gifts. If you are the heir to all or part of the deceased estate, you should not be liable to pay tax on the inheritance. Any IHT due, will normally be paid out of the deceased’s estate before any cash or assets are distributed.

Work covered by the CIS scheme

25 Apr, 2018

The Construction Industry Scheme (CIS) is a set of special rules for tax and national insurance for those working in the construction industry. Businesses in the construction industry are known as 'contractors' and 'subcontractors'. Under the scheme, contractors deduct money from a subcontractor’s payments and pass it to HMRC.

How to claim or stop claiming the employment allowance

25 Apr, 2018

The employment allowance of £3,000 per year is available to most businesses and charities to be offset against their employers Class 1 NIC bill. The allowance can be claimed as part of the normal payroll process using either HMRC’s Basic PAYE Tools or using other commercial payroll software packages. Once you have claimed the employment allowance, the claim will continue annually unless you stop making a claim. Eligible employers that have not yet done so can make a claim for the current 2018-19 tax year (as well as make a backdated claim for one further tax year).

Late filing of self-assessment tax returns

25 Apr, 2018

Taxpayers that have not yet filed their 2016-17 self-assessment returns, will have already been charged an automatic £100 penalty for late submission. The penalty applied from 1 February 2018 even if no tax was due or the tax due was paid on time.

HMRC has estimated that almost 750,000 taxpayers missed the 31 January 2018 deadline for submitting their tax returns. Taxpayers who were meant to file online by 31 January 2018, and have still not filed their 2016-17 return, are reminded that they will face far greater penalties.

New lawful basis interactive guidance tool

24 Apr, 2018

The Information Commissioner's Office (ICO) has announced that it has produced a lawful basis interactive guidance tool to assist businesses in determining, which lawful basis is appropriate for their data processing activities.

Information Commissioner’s Office announces new lawful basis interactive guidance tool

24 Apr, 2018

The Information Commissioner's Office (ICO) has announced that it has produced a lawful basis interactive guidance tool to assist businesses in determining which lawful basis is appropriate for their data processing activities.

Tax Diary May/June 2018

19 Apr, 2018

1 May 2018 - Due date for corporation tax due for the year ended 30 July 2017.

19 May 2018 - PAYE and NIC deductions due for month ended 5 May 2018. (If you pay your tax electronically the due date is 22 May 2018)

19 May 2018 - Filing deadline for the CIS300 monthly return for the month ended 5 May 2018.

19 May 2018 - CIS tax deducted for the month ended 5 May 2018 is payable by today.

31 May 2018 - Ensure all employees have been given their P60s for the 2017-18 tax year.

Let property disclosure campaign

18 Apr, 2018

Landlords that receive letting income should notify HMRC by 5 October after the end of the tax year for which you start to receive that income. So, for the 2017-18 tax year that has just ended, HMRC needs to be notified by 5 October 2018 of any letting income.

The Let property campaign, provides landlords who have undeclared income from residential property lettings in the UK or abroad with an opportunity to regularise their affairs by disclosing any outstanding liabilities, whether due to misunderstanding the tax rules or because of deliberate tax evasion.

What is a PET?

18 Apr, 2018

Most gifts made during a person’s life are not subject to tax at the time of the gift. These lifetime transfers are known as 'potentially exempt transfers' or 'PETs'.  These gifts or transfers achieve their potential of becoming exempt if the taxpayer survives for more than seven years after making the gift. If the taxpayer dies within 3 years of making the gift, then the inheritance tax position is as if the gift was made on death. A tapered relief is available if death occurs between three and seven years after the gift is made.

Claiming for job related expenses

18 Apr, 2018

Employees who use their own money to buy things they need for their job, can sometimes claim tax relief for the associated costs. It is usually only possible to claim tax relief for the cost of items used solely for work.

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