Owner-managed businesses / 76 posts found
HMRC go live with Verify identity authentication
Gov.uk Verify, the online service taxpayers will need to use to prove their identity before accessing HMRC's digital services and other government online services, is now live. The central government platform for online identity assurance has been under development for some time by the government digital service (GDS) and has been available in a beta version. It has now passed its service assessment. It should take around ten minutes for an individual to verify their identity the first time they use gov.uk Verify, and a couple of minutes any time after that. Individuals choose from a list of companies certified [...]
June 2016 Q&A
Q I am thinking of purchasing a new house that I will use as my main residence, but I will still own other properties. Will I be liable to the new 3% stamp duty land tax (SDLT) change? A: HMRC guidance on the new higher rates of SDLT for purchase of additional residential properties explains that if a previous main residence is replaced within three years, then you will not be liable to the additional 3% SDLT charge, even though you own other residential properties. Q I commenced trading as a service provider on 1 September 2015 and now wish [...]
New credit card payment fees take effect
Clients may be interested to know that HMRC have introduced a new schedule of fees, which apply from 1 April 2016, and replace the former 1.5% fee. The new rates vary depending on the type of card used and whether the card is a personal or corporate card. Broadly, the fees for paying using personal credit cards have been reduced and the rates for corporate credit cards have increased. The new rates can be found in the schedule to The Fees for Payment of Taxes, etc. By Credit Card Regulations 2016 (SI 2016/333). For personal credit cards, the fees are [...]
New student loan plans take effect
Repayment of student loans is a shared responsibility between the Student Loans Company (SLC) and HMRC. Employers have an obligation to deduct student loan repayments in certain circumstances and to account for such payments 'in like manner as income tax payable under the Taxes Acts' (Education (Student Loans) (Repayment) Regulations 2000, SI 2000/944, reg 14). With effect from 2016/2017 there are two plan types for student loan repayments: plan 1 with a 2016/2017 threshold of £17,495 (£1,457 a month or £336 per week); plan 2 with a 2016/2017 threshold of £21,000 (£1,750 a month or £403 per week). Plan 1 [...]
May 2016 Q&A
Q1. How do I work out my share of a capital gain? I owned a quarter share in a property that was sold in 2015. It was not my main residence at any time during my period of ownership. I am trying to work out my share of the capital gain arising on the property. Do I simply divide the purchase price, sale price, and any improvement costs by four to work out how much tax I will have to pay? A: Assuming that all the improvement costs and the sale proceeds relating to this property were 25% your responsibility, [...]
Closer alignment of income tax and NICS?
The Office of Tax Simplification (OTS) has published its recommendations on the closer alignment of income tax and national insurance contributions. The report contains some bold recommendations for what would be a major reform of the UK's tax rules. At summer Budget 2015, the government asked the OTS to look at options for aligning Income Tax (IT) and National Insurance Contributions (NICs). This followed on from recommendations made by the OTS as far back at 2011, and the latest report builds on earlier work of the OTS including the reviews of small business taxation and employee expenses and benefits. Key [...]
OTS recommends simplifications for small companies
The Office of Tax Simplification (OTS) has unveiled a package of recommendations aimed at making the tax system simpler and easier to use for small companies. The report, entitled Small company taxation review contains a mix of long range structural change ideas and simpler short term administrative improvements. The recommended administrative changes include: aligning filing and payment dates, e.g. VAT and PAYE, and annual returns and corporation tax; HMRC providing extra support at weekends and evenings when more small company owners deal with their tax affairs; stopping companies providing the same information to various government departments who instead should share [...]
Guidance on SDLT Budget reforms
Following announcements made in the 2016 Budget on 16 March, HMRC have published further guidance on the changes that are being made to stamp duty land tax (SDLT), and how they affect non-residential property transactions from 17 March 2016. The changes mean that: on or after 17 March 2016, the SDLT rate for non-residential freehold and leasehold transactions will only be payable on the portion of the consideration which falls within each band (rather than tax being due at one rate on the entire value); SDLT on the rental element of non-residential leasehold transactions is already taxable on the portion [...]
Minimum Wage Increases Announced
You will be aware that the 'National Living Wage' has now come into force, requiring employers to pay employees aged 25 or more at least £7.20 an hour. Following recommendations made by the Low Pay commission, the government has also announced increases in the national minimum wage (NMW). These will take effect from October 2016. The new rates will be as follows: The rate for 21- to 24-year-olds will rise by 3.7% to £6.95 an hour. The rate for 18- to 20-year-olds will rise by 4.7% to £5.55 an hour. The rate for 16- to 17-year-olds will rise by 3.4% [...]
Employee bonus schemes in the spotlight
HMRC have recently published the latest addition to their tax avoidance guidance series, entitled Employee Bonus Schemes: Growth Securities Ownership Plan and other avoidance schemes based on contracts for difference (Spotlight 28). The Spotlight guidance confirms that, in HMRC's opinion, growth securities ownership plan schemes do not work and any payment made by an employer to an employee on the maturity of the contract for difference should be taxed as employment income and subject to PAYE income tax and National Insurance contributions (NICs). Broadly, under this type of arrangement, each employee acquires a contract for difference which entitles the employee [...]