By Katie Business Advice • Insights 0 Comments

New package to support and enforce self-isolation

This scheme is for lower income earners who cannot work from home and have lost income as a result.  This is an NHS Test and Trace Support payment of £500 and applies to employees who are required to self-isolate. This starts from 28 September 2020. The scheme will be administered by local authorities and is expected to be in place by 12 October 2020. Employees who were required to self-isolate from 28 September will receive a backdated payment once the scheme is set up.   Please note that this is a one off payment to the employee only.

There is no information as to how this will be administered as yet but as soon as we have any further information, we will let you know.  It may be that the local authority will contact all people eligible.

New fines for those breaching self-isolation rules will start at £1,000 – bringing this in line with the penalty for breaking quarantine after international travel – but could increase to up to £10,000 for repeat offences and for the most egregious breaches, including for those preventing others from self-isolating. More information can be found here.

Need more information?

Has the coronavirus affected your business? Do you have staff members in self-isolation? We have been extremely busy helping clients old and new get through this period. We offer a wide range of services which are unique to your business 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.  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 • Insights 0 Comments

    Stamp duty cuts

    Second home buyers and buy-to-let landlords welcome stamp duty land tax cut. 

    Although the temporary increase in the Stamp Duty Land Tax (SDLT) threshold to £500,000 was aimed at those buying their main residence, it also benefits those buying a second or subsequent property where there is a 3% supplementary charge. Thus, the rate of SDLT on a second home costing up to £500,000 is now 3%. Previously, the rate was 3% up to £125,000, then 5% up to £250,000 and then 8% up to £825,000. So the SDLT on a second home costing £400,000 is now £12,000 compared to £22,000 if the purchase had completed before 8 July 2020.

    Note that there are different thresholds and rates of Land and Buildings Transaction Tax for properties located in Scotland and Wales.

    Need more information?

    Do you need further guidance on the stamp duty cuts? We offer a wide range of services which are unique to you. 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.

    Our fantastic team at A&C Chartered Accountants are here to help.

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      By Katie Insights • Tax Advice • Tax News 0 Comments

      Another reason to sell property before 6 April 2020

      Are you thinking of selling your property? If the draft legislation issued for consultation last year is enacted in the next Finance Act there will be important changes to private residence relief for disposals after 5 April 2020.

      Firstly, the exemption for the final period of ownership will be reduced from 18 months to 9 months. This applies where a former main residence is disposed of and is intended to give relief where the owner has moved to another main residence until the former residence is sold i.e. “bridging”. Note that for many years this additional allowance was 36 months that led to a tax planning strategy referred to as “second home flipping” which HMRC are seeking to counteract.

      The second change will be the abolition of letting relief except for situations where the taxpayer lives with the tenant. This generous relief currently provides an exemption of up to £40,000 per owner where the former main residence is rented out.

      As a result of these two proposed changes you might want to consider disposing of a property before 6 April 2020 if you were planning to take advantage of these CGT reliefs.

      Need more information?

      Our team of chartered accountants have a wealth of experience in the property sector and 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.

      Our fantastic team at A&C Chartered Accountants are here to help.

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        By Katie Business Advice • Insights 0 Comments

        Dispute resolution through arbitration

        Arbitration is the process of bringing a business dispute before a neutral third party in order to resolve the situation.

        Arbitration is a form of alternative dispute resolution (ADR), used in place of litigation in the hope of settling a dispute without the time and expense of going to court.

        The process begins when two parties agree to settle their dispute through arbitration. The decision may also have been made for them by the addition of an arbitration clause to a contract that both parties have signed. The third party, an arbitrator, hears the evidence brought by both sides and makes a decision. Sometimes (usually) that decision is binding on the parties. It is worth noting that there is generally no appeals process, unlike in court proceedings.

        There are various benefits to settling a dispute through the use of arbitration. The speed and informality of the arbitration process are major reasons why many businesses select arbitration over litigation. In many cases, arbitration can be a shorter process, and if no lawyers are needed, it can be less costly.

        The two parties to the arbitration can also have control over the selection of the arbitrator. This differs to a court case where the judge and jury selection is out of the hands of the two parties. Finally, arbitration hearings are private and the results are not on public record. This can save face for both parties who may not want to publicise their dispute.

        More businesses are including arbitration clauses in their agreements and contracts as a way to quickly and quietly resolve disputes. These clauses can help to protect businesses from expensive court cases while still giving customers and third parties an avenue to resolve disputes.

        Need more information?

        We 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.

        Our fantastic team at A&C Chartered Accountants are here to help.

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          By Katie Insights • Tax News 0 Comments

          Radio presenter wins IR35 personal service company case

          In a recent case involving a radio presenter working for TalkSport, it was decided that the presenter would not have been an employee if directly engaged. A key factor was that the the level of control over the presenter fell far below the sufficient degree required to demonstrate a contract of service.

          The accountancy bodies have been lobbying the government to take the decision of the judges in this and the recent case involving Lorraine Kelly into consideration when they update the CEST software used to determine employment status.

          DISGUISED REMUNERATION LOAN CHARGE REVIEW

          The Chancellor, Sajid Javid has commissioned a review of the Loan Charge to consider whether the policy is an appropriate way of dealing with disguised remuneration loan schemes used by individuals who entered directly into these schemes to avoid paying tax.

          The disguised remuneration Loan Charge was introduced to tackle contrived schemes where a person’s income was paid as a loan which did not have to be repaid instead of receiving salary, thereby avoiding tax and national insurance. Such schemes have now been successfully challenged by HMRC in the courts.

          Disguised remuneration loan schemes were used by tens of thousands of people, and concerns have been raised about the use of the Loan Charge as a way of drawing a line under these schemes and collecting tax from the beneficiaries. The government is clear these schemes do not work and that their use is unfair to the 99.8% of taxpayers who have not used them.

          Need more information?

          Our team of Chartered accountants offer a wide range of services which are unique to businesses who are just getting going! 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.

          Our fantastic team at A&C Chartered Accountants are here to help.

          Contact us below

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

            Diary of main tax events June/July 2019

            Date What’s Due
            1/06 Corporation tax for year to 31/8/18 (unless pay quarterly)
            19/06 PAYE & NIC deductions, and CIS return and tax, for month to 5/6/19 (due 22/06 if you pay electronically)
            1/07 Corporation tax for year to 30/9/18 (unless pay quarterly)
            5/07 Last date for agreeing PAYE settlement agreements for 2018/19 employee benefits
            5/07 Deadline for agents and tenants to submit returns of rent paid to non-resident landlords and tax deducted for 2018/19
            06/07 Deadline for forms P11D and P11D(b) for 2018/19 tax year. Also deadline for notifying HMRC of shares and options awarded to employees.
            19/07 PAYE & NIC deductions, and CIS return and tax, for month to 5/7/19 (due 22/07 if you pay electronically)
            31/07 50% payment on account of 2019/20 tax liability due
            31/07 Notify your pension fund administrator by this date if the additional tax on the Pension Annual Allowance Tax charge for 2017/18 is £2,000 or more and you would like the tax paid out of your fund (see earlier)
            By Katie Insights • Tax Advice • Tax News 0 Comments

            Reporting the issue of shares or options to staff

            Gifts and awards of shares in companies, often known as employment related securities (ERS) are commonly used by employers to reward, retain or provide incentives to employees. They can be tax advantaged or non-tax advantaged.

            You must notify HMRC of all new ERS schemes including one-off awards or gifts of shares by 6 July following the end of the tax year in question or you may have to pay a penalty.

            Once you have registered the share scheme you need to submit an ERS return (or nil return) even if there have been no transactions in the year otherwise the company may be liable to a penalty.

            Please contact us if you need assistance dealing with these reporting obligations.

            By Katie Insights • Tax News 0 Comments

            Diary of main tax events May / June 2019

            Diary of main tax events May / June 2019

            Date  /  What’s Due

            1/05

            Corporation tax payment for year to 31/07/18 (unless quarterly instalments apply)

            19/05

            PAYE & NIC deductions, and CIS return and tax, for month to 5/05/19 (due 22/05 if you pay electronically)

            1/06

            Corporation tax payment for year to 31/8/18 (unless quarterly instalments apply)

            19/06

            PAYE & NIC deductions, and CIS return and tax, for month to 5/06/19 (due 22/06 if you pay electronically)

            By Katie Insights • Tax News 0 Comments

            Possible changes to CGT private residence relief

            Possible changes to CGT private residence relief

            The government is currently consulting on important changes to private residence relief that are likely to be introduced from 6 April 2020.

            The two possible changes, announced in the Autumn 2018 Budget are:
            Firstly to limit to just 9 months the period prior to disposal that counts as a period of deemed occupation. The second is to limit “letting relief” to periods where the taxpayer is in shared occupation with the tenant.

            Final period exemption to be reduced

            The final period exemption was for many years three years and was always intended cover situations where the taxpayer was “bridging” and waiting to sell their previous residence. However, 36 months was felt to be too generous and was allegedly being abused by a strategy known as “second home flipping”. As a result the final period relief was restricted to the current 18 month period of deemed occupation a couple of years ago. The latest proposal is to restrict still further to 9 months although it will remain at 36 months for those with a disability, and those in or moving into care.

            Possible Lettings Relief Changes

            Lettings relief currently provides a further exemption for capital gains of up to £40,000 per property owner. The additional relief was introduced in 1980 to ensure people could let out spare rooms within their property on a casual basis without losing the benefit of PRR, for example where there are a number of lodgers sharing the property with the owner.
            In practice lettings relief extends much further than the original policy intention and also benefits those who let out a whole dwelling that has at some stage been their main residence. It is those situations that the government appear to be attacking under the proposed changes.
            Note that those who are renting their property temporarily whilst working elsewhere in the UK or working abroad are unlikely to be affected by this change as there are alternative reliefs available under those circumstances.

            Please check with us if you are likely to be affected by the proposed changes as it may be worth considering disposing of the property before the new rules are introduced from 6 April 2020.