Category Archives: Tax

Tax

National insurance contributions and working overseas

Michael Morter

There are proposed changes to the national insurance system which will impact on a number of people, and in particular those who have left the UK to work overseas.

The proposal is that Class 2 national insurance contributions (NIC) will be abolished. Class 2 is £2.85 per week from 5 April 2017 and for UK residents it is normally paid by self-employed people, together with Class 4 NIC, which is charged as a percentage of profits made.

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Dividend Surprise

Hayley Stockwell

There has been much commentary in the last week or so concerning the reduction in the Dividend Allowance. This follows the Chancellor’s surprise announcement in the Spring Budget that this would be reduced to £2,000 from April 2018. It would seem an appropriate time to remind individuals that significant changes took place to the taxation of dividends at the start of this current tax year when the £5,000 Dividend Allowance commenced.

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National Minimum Wage – risk areas

Tessa Brown

With the forthcoming change in rates for the National Minimum wage (NMW) I wanted to take the opportunity to highlight a number of risks that may arise for employers.

Paying the incorrect rate

With every NMW increase there is the risk that the increase is not applied in a timely manner to your employees’ pay.

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Budget 2017 – What it means for the Not for Profit Sector

Giles Kerkham

With the vast majority of measures already being announced, and with very few sector specific announcements, there were no real surprises for the Not for Profit (NFP) sector in the 2017 Spring Budget.

Items with a NFP focus which were previously made public and will come into effect shortly include:

Amendments to Social Investment Tax Relief (SITR) – whilst the government has increased the amount of investment which can be raised under this scheme to £1.

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New ‘Transactions in Land’ legislation

Jordan Brown

After months of waiting and a lot of speculation, HMRC have finally published their guidance on property development tax and the new ‘transactions in land’ legislation that was introduced in the Finance Act 2016.

The new Property Development tax rules can apply where land or relevant property in the United Kingdom is sold at a profit.

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New tax allowances for micro-entrepreneurs

Chris Bale

From April 2017 taxpayers will be able to take advantage of two new allowances, aimed at reducing the burden (of both tax and administration) for those making small amounts of money. HM Revenue & Customs (HMRC) refer to this group of taxpayers as ‘micro-entrepreneurs’.
The allowances will allow an individual to receive income of up to £1,000 from trade plus a further £1,000 from property without having to declare this income to HMRC.

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Employment FAQs

Tessa Brown

With the end of the tax year on the horizon, employers are starting to think about the year-end reporting requirements (and if not, perhaps should be) so I thought this the ideal time to share some FAQs.

I have been subject to Construction Industry Scheme (CIS) deductions as a company. How do I get this money back from HM Revenue & Customs (HMRC)?

Your CIS deductions can be claimed as a credit against the company’s monthly PAYE/NIC bill.

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HMRC’s database increases risk of tax investigation

Richard Proctor

HMRC’s growing reliance on Connect database could mean an increasing number of innocent taxpayers face investigation.

Over 80% of all tax investigations undertaken by HMRC now follow potential leads generated by its £45 million database system, Connect, according to recent reports. The new reliance on automated systems to identify targets means that taxpayers could face an increased risk of investigation, simply for having their name thrown up by HMRC algorithms.

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