By Katie Business News • Tax News 0 Comments

Changes to paying CGT on residential property from 6 April

From 6 April 2020 there is a major change in the reporting and payment of Capital gains tax (CGT) on residential property disposals. From that date, it will be necessary to report the disposal of the property within 30 days of completion of the disposal and pay CGT on account to HMRC.

This will be a significant acceleration of the payment date as CGT is currently payable with income tax on 31 January following the end of the tax year. Hence, where completion of a property disposal takes place on 1 April 2020 CGT will be due 31 January 2021. If however completion were delayed to 1 May 2020, CGT would need to be paid on 31 May 2020.

Note that the new 30 day reporting and payment obligation will not apply where no tax is payable such as the disposal of the taxpayers private residence.

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If you need anymore guidance on capital gains tax please do not hesitate to get in touch with our dedicated team of tax accountants. We have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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    By Katie Business News • Tax Advice • Tax News 0 Comments

    Possible u-turn on pensions for high earners?

    Will there be changes on pensions? There have been many stories in the press about GPs and senior hospital doctors refusing to take on extra shifts and additional responsibilities due to the additional tax they are required to pay on the extra pension contributions paid by the NHS. A number of solutions have been put forward. There are now strong rumours that the tapering of the annual pension allowance for those with income over £150,000 may be abolished or amended for all taxpayers, not just those working in the NHS.

    Listen out for a possible announcement in the Spring Budget, together with other changes to pension tax relief.

    Health Secretary writes to UK Chancellor.

    Health Secretary Jeane Freeman has again called on the UK Government to find a permanent solution to the pension taxation issue impacting vital NHS staff and frontline services.

    In a letter, Ms Freeman urged UK Chancellor Sajid Javid to take decisive action to ensure pension and taxation rules no longer undermine delivery of frontline health services for the people of Scotland and other UK nations.

    As a result of UK Government pension taxation rules, highly experienced staff can face unexpected additional tax liabilities. This has led to some staff having to reduce their hours or retire earlier than expected.

    In response the Scottish Government introduced a temporary opt-in policy for all affected NHS staff in November 2019 to ensure crucial services are maintained as demand on the health service continues to increase.

    However, this interim measure is due to come to an end on 31 March 2020 with the end of the current financial year, and a permanent solution must be found by the UK Government.

    Need more information?

    If you need any more guidance on pensions, please do not hesitate to get in touch with our team. The team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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      By Katie Business News • Tax Advice • Tax News 0 Comments

      Changes to disguised remuneration loan charge

      There has been changes to the remuneration loan charge. The independent loan charge review, conducted by Sir Amyas Morse, was published on 20 December, having been delayed due to the general election. The loan charge was introduced to collect tax from individuals who had benefited from schemes devised to avoid PAYE and national insurance. The date that the loan was made to the individual is critical in determining whether the loan charge will apply.

      The major change, which will be legislated in the next Finance Act, is that taxpayers who took loans before 9 December 2010 will not now be subject to the loan charge. This was the day when draft legislation was published, alongside a ministerial statement, to make it clear that disguised remuneration arrangements, including loans, would be specifically taxed as earned income. The current legislation, introduced in 2018, applies retrospectively to such loans and will need to be repealed.

      Those taxpayers who took loans between 10 December 2010 and 5 April 2016 and who fully disclosed the use of the loan scheme will not be subject to the loan charge if, and only if, HMRC failed to take action because of disclosure.

      Loans taken out on or after 6 April 2016 and which were still outstanding on 5 April 2019, remain within the loan charge. Such taxpayers can now elect to spread the tax charge over three tax years from 2018/19 to 2020/21

      Need more information?

      If you need any guidance with the remuneration loan charge, please do not hesitate to get in touch.

      We offer a wide range of services and our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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        By Katie Business News • Tax Advice • Tax News 0 Comments

        Review of off-payroll working rules

        In January the government launched a four-week review of the changes to IR35 “off-payroll” working rules. These are scheduled to come into force in April, as the result of mounting criticism about the way they will operate. The review is scheduled to conclude by mid-February. From this, the government hold a series of meetings with stakeholder representative of those affected by the changes.

        It is unlikely that there will be a significant U-turn, but there may be scope for the impact of the legislation to be reduced in terms of the range of contractors to whom it will apply, or the size of businesses who will be obliged to operate it. The new rules are currently scheduled to apply to large and medium-sized businesses as defined by the Companies Act.

        Further review

        The government will also carry out a further review of the enhanced CEST tool designed to assist businesses in checking employment status and public sector bodies’ experience of applying the rules since 2017.

        Need more information?

        If you need any more guidance on the “off-payroll” working rules please do get in know. We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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          By Katie Business News • Tax News 0 Comments

          Budget day is now 11 March

          The December General Election meant that the Autumn Budget was delayed and we now know that Sajid Javed will deliver his first Budget on the second Wednesday in March which is when Budget day used to be!

          We are expecting that the tax measures in the Conservative Party manifesto will be announced again together with confirmation that changes consulted on last year will be put in place.

          Key tax announcements to listen out for include leaving the rate of corporation tax at 19% and an increase in the national insurance threshold. Unfortunately, it is unlikely that the planned roll out of the “off-payroll” working (IR35) rules to the private sector will be delayed.

          The Chancellor is also expected to again announce a u-turn on the 2019 loan charge following a review of the legislation by Sir Amyas Morse.

          Need more information?

          If you require any more information on the budget day please do not hesitate to contact our team. We offer a wide range of services and our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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            By Katie Business Advice • Business News 0 Comments

            Key Business Trends for 2020

            Check out our key business trends for 2020. The environment, wellbeing, mental health and technology look set to be some of the big business trends in 2020.

            As we move into 2020, businesses will have to adapt in a world that places greater emphasis on sustainable business practices. People will want to work for firms that take care of their employees in terms of their physical and mental health.

            Technology will continue to be the key enabler to allow us to work flexibly, remotely and more effectively. It looks like 2020 is set to be a busy year for businesses in the UK and internationally.

            Customers are becoming more environmentally aware. Companies like Beyond Meat, the maker of plant-based, protein-rich foods or Everlane, which creates clothes from recycled fibres and plastics, are gaining traction. People are trying to reduce their carbon footprint and are making buying decisions on the basis of the environmental credentials of businesses.

            As a result, businesses are responding by focusing on their environmental and sustainability policies. Many firms are adapting their CSR activities to include environmental projects in order to help drive the green agenda in local communities. As we move into 2020, this trend is likely to accelerate.

            On the technology side of things, machine learning and artificial intelligence (AI) are continuing to advance. The AI industry is growing and businesses have access to more powerful tools in order to create new customer experiences. For example, music-streaming service Spotify uses AI to make the listening experience more personal by creating customised play-lists for each user.

            Younger workers are putting greater emphasis on physical wellbeing and their mental health. Employers will need to adapt in order to attract the next generation of talented employees. Flexible working and wellness programmes are high on the list of priorities for Millennials and Generation Z employees. The businesses that really embrace these new trends will attract the best people.

             

            Need more information?

            If you need any guidance with the above pointers please feel free to get in touch with us. Our team offer a wide range of services which are unique to your businesses who are just getting going! Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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              By Katie Business News • Tax News 0 Comments

              Diary of main tax events January/February 2020

              Diary of main tax events for January and February 2020. Firstly, we would like to wish all of our clients a wonderful and happy New Year. Please find below the main tax events for January and February 2020.

              Date What’s Due
               

              1/01

              		 Corporation tax payment for year to 31/3/19 (unless quarterly instalments apply)
               

              19/01

              		 PAYE & NIC deductions, and CIS return and tax, for month to 5/01/20 (due 22/01 if you pay electronically)
              31/01 Deadline for Self-Assessment tax return for 2018/19 if filed online. Also the due date for 2018/19 balancing payment and 50% payment on account of 2019/20 tax.
              1/02 Corporation tax payment for year to 30/4/19 (unless quarterly instalments apply)
              19/02 PAYE & NIC deductions, and CIS return and tax, for month to 5/02/20 (due 22/02 if you pay electronically)

              Need more information?

              If you require more information on our diary of main tax events, do not hesitate to get in touch.  January is a very important deadline month. Please do not hesitate to get in touch if you need help to submit your tax return before the deadline of 31st January 2020. We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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                By Katie Business News • Tax News 0 Comments

                Finance bill should now proceed

                Now that the General Election is out of the way, the tax changes in the draft Finance Bill scheduled to take effect from April 2020 are now more likely to go ahead.

                The key tax measures “in limbo” until legislated in Finance Act 2020 are:

                – Extending the “off-payroll” working rules to the private sector

                – Restricting R&D repayable credit for SMEs

                – The proposed 2% reduction in P11d car benefits

                – Limiting CGT private residence letting relief

                If the changes to CGT private residence letting relief go ahead from 6 April 2020, it may be worth considering the disposal of a property that currently qualifies for this relief before 6 April 2020.  The “off-payroll” working rules will almost certainly proceed, even if not from 6 April 2020, and thus businesses and workers affected should prepare for the planned changes. Contact us if you need help in assessing the likely impact on your business.

                Need more information?

                If you need any additional support on the finance bill, please do not hesitate to get in touch with our team. We offer a wide range of services which are unique to your business. Our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. Our team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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                  By Katie Business News • Tax News 0 Comments

                  Conservative party elected with working majority

                  Now that Boris Johnson and his Conservative party have won the General Election will we finally “Get Brexit Done”? More importantly, can the Government now get on with running the country and sorting out urgent issues such as the NHS?

                  We are still awaiting the date of the Budget which is likely to be early in the New Year. That Budget is likely to include some of the tax measures included in the Conservative Party election manifesto. The manifesto promised that there will be no changes to the rates of income tax, national insurance or VAT.

                  The manifesto stated that the corporation tax rate would remain at 19% instead of reducing to 17% on 1 April 2020 to provide an extra £6 billion for the NHS.  Businesses would however benefit from a planned increase in the structures and buildings allowance from 2 per cent to 3 per cent. That allowance provides tax relief for the construction or renovation of commercial buildings.

                  The manifesto also announced that the national insurance threshold would be raised to £9,500 in 2020/21, from the current £8,632.

                  The party’s ambition was to raise the threshold to £12,500 in line with the income tax personal allowance.

                  Need more information?

                  If you are concerned with the election results please do not hesitate to get in touch with our team. We offer a wide range of services and our team of chartered accountants have a wealth of experience in a broad range of sectors, from construction and property to the charity sector. We work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

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