Insights

New rules on pricing transparency for solicitors have been published, and come into effect on 6 December 2018. The rules have been put in place following recommendations from the Competition and Markets Authority. Firms that fail to meet the requirements could face disciplinary action.

New data shows that HMRC’s tax take has been bolstered by more successful investigations into individuals and SMEs. The investigation units that focus on those small businesses and individuals collected £16 extra in taxes for every £1 spent on their investigatory staff in 2016/17, up on the £15 collected the year before.

A recent accountancy survey highlighted that 60% of college and university students can’t explain terms like: ISA, bonds, shorting, hedge funds, index tracker fund and derivatives.

When it comes to personal tax, there are always issues that get us accountants excited (well relatively!). Three current hot topics are: Claiming for tax deduction of clothing, Making Tax Digital (MTD) and VAT campaign  reduce the VAT rate in the hospitality and tourism industries.

The trust registration service (TRS) last year caused all sorts of issues. So, we’re disappointed that the scope of the existing Trust Register is to be extended in 2020 by yet another EU directive.

In my recent blog, Solicitors and SAR audits – common problems, I discussed some common problems I’d noticed in this year’s SAR audits. Here, I’ll discuss how to tackle other key issues.

Given the current political situation and the furore caused by the removal of the Business Asset Taper Relief (BATR) in 2008, it may be a surprise if Capital Gains Tax Entrepreneurs’ Relief (ER)  is abolished next week. However, don’t rule out some tinkering with the existing rules.

We previously reported that from 1 April 2019, VAT registered businesses with a turnover above the VAT registration threshold (currently £85,000) will be required to keep digital records, and submit their VAT returns via the Making Tax Digital for Businesses (MTDfB) system.

Changes have been introduced to the annual allowance for pension contributions. This change has had significant impact on medical practitioners who are contributing to the NHS scheme.

I hadn’t given it much thought until last year but, up until about 2011, the Default Retirement Age (DRA) was 65 for men and 60 for women. The ending of the DRA, and the requirement for age equality, has had a significant impact on older workers. The exception is for those lucky enough to be able to retire early due to having a significant pension pot!

Like many businesses, you’ve been filing your VAT returns online and have kept your records in line with HMRC requirements. However, HMRC are changing those requirements and introducing Making Tax Digital (MTD).

HM Revenue & Customs (HMRC) collected £832 million in extra tax through investigations into inheritance tax, charitable donations and trusts last year. This shows how HMRC are approaching non-compliance from all possible angles and, as a result, almost all taxpayers are at risk of investigation from the taxman.

The scenario is a common one: Mr Smith owns some rental properties. During a tax year he wanted to buy a new home for himself. He raised the funds by remortgaging one of his rental properties. The interest charged on the new loan was claimed as a deduction against his rental income.

As another season of Solicitors Accounts Rules (SAR) audits draws to a close, I’ve observed some trends and key problem areas that keep cropping up. In this blog and my next, I’ll discuss how to avoid or overcome these common problems.

HMRC recently held a consultation requesting views on the proposed introduction of a reverse charge mechanism to combat VAT fraud in the construction sector.  Following its conclusion and analysis of feedback, HMRC have published draft legislation in the form of a Statutory Instrument, which will become section 55A of the VAT Act 1994 with effect 1 October 2019.

It may seem obvious but selling shares in a company will generate either a gain or a loss, which means you need to think about Capital Gains Tax. Calculating the capital gain on shares sales is very straightforward.

Is your current business structure still right for you? Circumstances may change so it’s important to review your structure from time to time. In recent years, the driver might well have been saving ‘tax’, which prompted many businesses to become limited companies. 

Over recent months, we’ve seen a variety of media reports of tax avoidance and evasion; from global international businesses not appearing to pay their fair share of tax, to celebrities who become involved in “schemes” that promise that no tax will be payable in exchange for a management fee. 

HM Revenue & Customs (HMRC) have taken to highlighting their recent success rate in court actions and litigation in warning letters to taxpayers, deterring them from letting the case reach court. This has led to more and more taxpayers settling up with HMRC to avoid lengthy and expensive court cases.

Communication in the workplace has changed and video conferencing, skype, laptops and mobile phones have made flexible working the new normal. It isn’t at all unusual for employees to work from home using their existing personal phone and internet connections for business. So, is it possible for employers to reimburse them for any extra costs?

Have you noticed that a number of legal firms are changing or talking about changing their structure and have you wondered why? From the conversations we’ve had with legal firms, there seem to be several reasons.

HMRC have been targeting restaurant and takeaway businesses as they believe they are more likely than most to under-declare income. 

Place yourself in a buyer’s shoes; what aspects of your business really stand out and make it attractive for them to buy? It could be such things as intellectual property, product or service benefits, locations, brand and reputation, price point, market knowledge and customer service levels.

HM Revenue & Customs’ (HMRC) Executive Chairman Edward Troup has warned taxpayers that HMRC will not compromise when taking legal action against them.

If you’re compulsorily VAT registered, from 1 April 2019, your business must comply with new Making Tax Digital for VAT rules or potentially face fines of up to 15% of your annual VAT bill under the default surcharge regime.

Read on to find out what you should be doing now to prepare for the transition.

From April 2017, there were significant changes to the tax relief you can get for mortgage interest on property lettings.

What are the changes and how will they affect landlords? Read our blog to find out.

I’m sure you’ve all heard of the Government’s plans for Making Tax Digital (MTD) but do you know the implications for you? I suspect that many small businesses are painfully unaware of how MTD might impact on their business administration in the foreseeable future.

HMRC are introducing a new legal ‘requirement to correct’ undeclared UK tax liabilities on offshore matters or transfers by 30 September 2018.  If you have something to declare to HMRC then don’t wait.  Act on it now by either getting in contact with us, or getting in contact with HMRC directly. 

Capital gains tax (CGT) gets reported on your self-assessment tax return for the year. The filing deadline and due date for payment is 31 January following the end of the tax year. So, with the deadline following standard self-assessment procedures, why are so many non-residents being hit with late filing penalties?

Are you confused and befuddled by the talk of cryptocurrencies? I must say that I am/was definitely confused by the concept, but I have no doubt that the whole idea will develop over the coming years and it will be as normal as Pounds and Euro’s.