Tax / 90 posts found
Unmarried couples to qualify for spousal tax breaks?
In a landmark decision, the Supreme Court has ruled that discriminating on the basis of sexual orientation, or a decision to live together rather than marry, is a breach of human rights. Presently, couples need to be in a formal civil partnership or married to be able to claim the raft of tax benefits available. These advantages include: Transfers of chargeable assets between civil partners and married couples is free of capital gains tax and inheritance tax. In appropriate circumstances spare personal allowances can be transferred from one partner to the other. In the case taken to [...]
Why don’t they join up the dots?
According to HMRC, around three million couples across the UK have boosted their finances by claiming the Marriage Allowance, but more than a million married and civil partnered couples are still eligible for the free tax break worth up to £238 a year. Thanks to the start of the new tax year couples can backdate their claim and boost a potential tax refund to a possible £900. HMRC further announced: Applying for Marriage Allowance is quick and easy and once an application is complete it’s processed immediately. The new online form takes fewer than ten minutes to fill out and [...]
HMRC launch further Help-to-Save consultation
Following an earlier period of consultation, HMRC have published draft legislation along- side a further technical consultation document, setting out proposals for the main features, processes and requirements of the new Help-to-Save accounts scheme, which is set to commence in 2018. Help-to-Save will be targeted at working families on low incomes to help them build up their savings. The scheme will be open to around 4 million individuals who either receive universal credit and have minimum weekly household earnings equivalent to 16 hours at the national living wage, or receive Working Tax Credit (WTC). Help-to-Save will work by providing a [...]
October 2017 Q&A
Q. My mother gave my daughter £5,000 on 1 May 2013. She had not made any other gifts in previous years. Unfortunately my mother passed away on 1 September 2017. How much of the gift she gave to her granddaughter is chargeable to inheritance tax? A. Since your mother did not make any other gifts, the gift she made to your daughter will be covered by inheritance tax annual exemptions - £3,000 for 2013/14 plus her unused exemption brought forward from 2012/13 (£3,000 available). Q. I am a self-employed builder. I carried out a job for a customer and invoiced him for £750. [...]
Making Tax Digital for Business: update
In July, the Government confirmed that the Summer Finance Bill would be published in September, with the measures dropped from the pre-election Finance Bill being reintroduced in more or less the same form, from the initially planned commencement dates. Clauses dropped from the pre-election bill and expected to be brought back include those on Making Tax Digital (MTD), although the implementation date for income tax is being postponed. There is widespread agreement that Making Tax Digital for Business is the right approach for the future. However a number of concerns about the pace and scale of change have been raised. As a [...]
Double glazing salesmen was self-employed
Employment status tax cases often make the headlines in the professional press and the June 2017 case of Tomlinson was no exception. In this case, the First-tier Tribunal found that a double glazing salesman (Mr Malcolm Tomlinson) was self-employed and not an employee as he had claimed. As with most employment status cases, this case focused on the details of the terms on which Mr Tomlinson was engaged with the company. Many facts of the case pointed towards a self-employed status, including the fact that there was no written contract in place and Mr Tomlinson was not required to give notice of [...]
Paying Class 2 NICs
Whether or not Class 2 National Insurance Contributions (NICs) can be paid depends on whether an individual falls within the definition of a 'self-employed earner' for NIC purposes, and if so, whether profits are in excess of the existing small profits threshold (£6,025 for 2017/18). The definition of a self-employed earner is defined as someone 'who is gainfully employed in Great Britain otherwise than in employed earner's employment (whether or not he is also employed in such employment)' (SSCBA 1992, s 2(1)(b)). A person who is regarded as self-employed for income tax purposes, and who is taxed on the profits [...]
September 2017 Q&A
Q. I have two small businesses which are treated as a group for VAT purposes, so we only submit a single VAT return covering both entities. Are we eligible to use the Flat Rate Scheme? A. Unfortunately not. If you are part of a VAT group, or are eligible to join an existing VAT group, then you cannot use the Flat Rate Scheme (FRS). There is also a rule which stops 'associated' businesses joining the FRS. A business is 'associated' with another business if: one business is under the dominant influence of another; two businesses are closely bound by financial, economic and [...]
Paying voluntary NICs
There are various reasons as to why gaps may arise in an individual's national insurance contributions (NIC) record, for example, because that person has been on low earnings for several years, they have been living abroad, or because they have been unemployed and have not been claiming benefits. In certain circumstances therefore, it may be possible, and beneficial, to pay voluntary Class 3 National Insurance Contributions (NICs) as this can safeguard entitlement to a future state retirement pension and certain other state benefits. Broadly, voluntary contributions may be paid for any tax year in which the individual is aged over [...]
SDLT on second homes
Stamp Duty Land Tax (SDLT) is payable on the purchase of residential property in increasing portions of the property price above £125,000. Current rates of SDLT on individual and additional properties are as follows: Purchase price up to £125,000 - SDLT rate Zero; additional property rate 3% The next £125,000 (portion from £125,001 to £250,000) - SDLT rate 2%; additional property rate 5% The next £675,000 (portion from £250,000 to £925,000) - SDLT rate 5%; additional property rate 8% The next £575,000 (portion from £925,000 to £1.5m) - SDLT rate 10%; additional property rate 13% The remaining amount (portion above [...]