For employees using a company car, the new fuel rates for use from 1 December are as follows: Engine Size Petrol LPG Diesel Amount per mile (in pence) 1400cc or less 12 8 9 1401cc to 1600cc 14 9 9 1601cc to 2000cc 14 9 11 Over 2000cc 21 14 14 For the purpose of … Continue reading Advisory Fuel Rates from 1st December 2019
The term ‘qualifying car’ is widely used and misunderstood. Car dealers may well tell potential buyers that it means you are able to reclaim the VAT. However, is that always the case? Generally, the input tax on the purchase of a motor car is blocked, unless the car is to be used for one of … Continue reading Does ‘Qualifying Car’ Always Mean ‘VAT Recoverable’?
Earlier this year, a report suggested that half a million people could be paying ‘unnecessary’ tax on their state pension. The issue arises where someone carries on working beyond state pension age. At 65, state pension age is now the same for women as for men. It rises to 66 in October 2020 and is … Continue reading Reviewing Your State Pension
The Institute for Fiscal Studies (IFS) recently published a report which revealed that more people are being 'dragged into higher rates of tax' as a result of tax thresholds failing to rise in line with the rate of inflation. The report states that, in 2007, the year before the top income tax threshold of £150,000 … Continue reading IFS States High Earners ‘Increasingly Hit by Lack of Indexation’
Research carried out by the National Centre for Social Research (NCSR) and the Institute for Fiscal Studies (IFS) recently found that there is a ‘staggering lack of awareness’ of the inheritance tax (IHT) implications of making a financial gift. Below we outline the gifting rules and the IHT implications. Annual £3,000 exemption Every year, an … Continue reading The Inheritance Tax Implications of Gifts
Company car tax rates increased in April 2019, as standard. However, the rates are set to fall from 6 April 2020 for cars with CO2 emissions of up to 69g/km. The Government has announced that in the 2020/21 tax year there will be no benefit in kind on company cars with zero emissions. Further, no … Continue reading No Company Car Tax on Zero Emission Vehicles in 2020/21
After a period of some uncertainty, HMRC has confirmed that the Enterprise Management Incentive (EMI) regime remains unchanged, and recent research has served to underline the importance of the scheme. What is an EMI? An EMI scheme is an approved employee share scheme which allows employers to offer share options to key employees as a … Continue reading Considering Enterprise Management Incentives
With the value of homes continuing to increase over the past decade, and with the majority of housing wealth now being owned by older households, inheritance tax (IHT) continues to be an issue for many, despite the introduction of the residence nil-rate band (RNRB). Recent figures have revealed that IHT receipts reached a record high … Continue reading Inheritance Tax: Is Your Estate Covered?
For those submitting P11Ds, 6 July 2019 will mark the deadline for reporting relevant benefits and expenses provided in 2018/19. It is important to ensure that any mileage payments made to directors and employees are within the HMRC approved rates if you want to avoid a benefit in kind. For business travel in an employee’s … Continue reading Employment Benefits: Mileage Payments
Employers should take care not to overlook the provision or reimbursement of mobile phone costs when determining whether a benefit in kind applies, as mobile phone costs are only exempt in certain circumstances. A mobile phone will be exempt from reporting if the employee is provided with only one mobile phone or sim card, and … Continue reading Employment Benefits: Mobiles Phones