National Insurance if you work abroad20/08/2019
If you move abroad, it can often be advantageous to continue paying your UK National Insurance Contributions (NICs) in order to preserve your entitlement to the UK State Pension and other benefits. If you are working in the European Economic Area (EEA), the rules depend on your situation (see below). The EEA includes all EU countries as...More...
Tax if you work abroad20/08/2019
If you are leaving the UK to work abroad for at least one year (or permanently), there is a requirement to notify HMRC. This is done using a P85 form which should be completed and submitted to HMRC. You will also be required to submit a Self-Assessment tax return if you usually complete one, for example, if you are self-employed.
When can you increase your rental income?20/08/2019
The ability to increase the rent on private rentals is driven by the tenancy agreement. This is an agreement between the landlord and the tenant. The agreement can be written down or oral.
The tenancy can either be:
fixed-term (running for a set period of time)
periodic (running on a week-by-week or month-by-month basis)
PAYE late filing penalties20/08/2019
There are late filing penalties in place for employers that don’t report payroll information on time. The size of the late filing penalties depends on the number of employees within the PAYE scheme.
Number of employees
Monthly filing penalty per PAYE scheme
1 to 9
When are scholarships taxable as benefits?20/08/2019
The holder of a scholarship is exempt from a charge to Income Tax on income from a scholarship when receiving full-time education at a university, college, school or other educational establishment.
Please note, that the provision of a scholarship to a member of the family or household (usually a son or daughter) of a director or...More...
Taxation of miscellaneous income20/08/2019
There are special rules, known as the miscellaneous income sweep-up provisions, that seek to charge tax on certain income. This unusual provision, which is broad in scope, catches certain income that would not otherwise be charged under specific provisions to Income Tax or Corporation Tax.
Amongst the types of income covered...More...
The meaning of goodwill20/08/2019
Goodwill is a term we hear about often, but interestingly, is rarely mentioned in legislation. In fact, the term 'goodwill' is not defined for the purposes of the Capital Gains legislation in TCGA 1992.
Most definitions of goodwill are derived from case law. You could describe goodwill as the 'extra' value attributed to a...More...
What you can do with your pension pot14/08/2019
Pension Wise is a free government service that was launched in 2015 to help provide individuals with general pension advice. However, the service does not answer specific questions relating to your pension. The main advice the service provides is generic and covers what you can do with your pension pot, the different pension types, how...More...
When you can claim back VAT on purchase of a car14/08/2019
There are complex VAT rules that determine the amount of VAT that can be recovered when purchasing a new car. The usual rule is that when you purchase a car for your business then no VAT can be reclaimed.
The main exception to this rule is when the new car is used solely for business use. This rule has been the subject of much case law...More...
Child Benefit charge if income exceeds £50,00014/08/2019
The High Income Child Benefit charge (HICBC) applies to a parent whose income exceeds £50,000 in a tax year and who is in receipt of Child Benefit. If both parents have an income that exceeds £50,000, the charge will apply to the highest income earner. The charge claws back the financial benefit of receiving Child Benefit...More...
VAT and insurance claims14/08/2019
Insurance transactions are generally VAT exempt. However, there are many issues that can arise concerning the VAT liability of certain insurance transactions. One of these issues concerns the VAT treatment of insurance claims.
Insurers are unable to recover VAT incurred in obtaining replacement goods or having repairs carried out for a...More...
When are Class 1A NICs due14/08/2019
Class 1A NICs are paid by employers in respect of most benefits in kind provided to employees, for example, the use of a company car. There are no Class 1A employee contributions payable.
Class 1A NICs are due in respect of most benefits provided to:
directors and certain other persons in controlling positions,
How do you calculate adjusted net income?14/08/2019
To calculate adjusted net income, you will need to look at a taxpayer’s total taxable income, before personal allowances, and then deduct any trading losses, gift aid donations, gross pension contributions and pension contributions where the pension provider has already provided tax relief at the basic rate.
Pregnant women and new parents to get enhanced redundancy protections08/08/2019
The government has published its response to its January 2019 consultation on “pregnancy and maternity discrimination: extending redundancy protection for women and new parents” and has confirmed that it will now take action to address such discrimination.
As the law currently stands, employees who are placed at risk of...More...
Lowest paid to be eligible for sick pay07/08/2019
A new consultation launched jointly by the Department for Work and Pensions and the Department of Health and Social Care, is seeking views on different ways in which both the Government and employers can take action to reduce ill health-related job loss.
The consultation is examining a number of specific proposals including:
Visiting EU after 31 October 201907/08/2019
Although we have a new Prime Minister, it would seem that so far nothing has changed to bring us any closer to a Brexit resolution. In fact, it appears that a no-deal Brexit is becoming more likely as we approach the 31 October deadline.
HMRC has published guidance on visiting the EU after 31 October 2019. They have said that there will...More...
Last chance to join the Help to Buy ISA scheme07/08/2019
The Help to Buy ISA scheme will close to new savers after 30 November 2019. This leaves less than 4 months to open an account before the product is due to be withdrawn by the Government. Once opened, account holders can continue to save in their ISA account until 30 November 2029 when accounts will close to additional contributions....More...
Clients exporting to EU if a no-deal Brexit07/08/2019
If the UK leaves the EU without a deal, any UK business that exports goods to the EU will be responsible for making customs declarations (as is the case for businesses currently exporting goods outside the EU).
If you have clients that trade with the EU, you should check that they have a UK Economic Operator Registration and...More...
Working after State Pension age07/08/2019
There are many taxpayers that have reached the State Pension age and continue to work. It should be noted that the requirement to pay any employee or self-employed National Insurance Contributions (NICs) ceases once a taxpayer reaches the State Pension age, subject to the following clarification. Taxpayers remain liable to pay any NICs...More...
Inheritance Tax and domicile07/08/2019
Domicile is a general legal concept which in basic terms is taken to mean the country where you permanently belong. However, determining domicile status can be complex. HMRC guidance states that domicile cannot be defined precisely, but the concept rests on various basic principles.
Although domicile can change, there is generally a...More...
NIC Act 2019 receives Royal Assent31/07/2019
The National Insurance Contributions (Termination Awards and Sporting Testimonials) Bill has received Royal Assent, to become the National Insurance Contributions (Termination Awards and Sporting Testimonials) Act 2019.
The Act aligns the employer NICs treatment of termination awards in excess of £30,000, received in connection...More...
Duty free limits if you are travelling abroad30/07/2019
Here is a reminder for our readers of their duty and tax free allowances if travelling abroad this summer.
Travelling to an EU country
Where tobacco or alcohol is brought in from another EU country, no duties or tax will be payable as long as you can demonstrate that the goods are for your own use, and that you paid the relevant taxes...More...
Payments on account system glitch30/07/2019
The due date for making your second payment on account for 2018-19, was the 31 July 2019. The amount that was due for payment is usually the same as that for your first payment on account made on or before 31 January 2019. If you are late making a payment on account, you will likely be required to pay interest and penalties.
VAT for business if there’s a no-deal exit from the EU30/07/2019
With the new Prime Minister, Boris Johnson, appearing to take an increasingly hard line the chances of Britain leaving the EU without any working agreement, known as a 'no deal' Brexit, are looking increasing likely and certainly cannot be ignored.
If the UK leaves the EU on 31 October 2019, without a deal, there would be...More...