HMRC are calling on powers to recoup taxes from directors, which their companies have failed to pay due to insolvency. Directors are being asked to repay overdrawn loan accounts and dividends that have been withdrawn where there were insufficient retained profits. HMRC were seen to exercise their powers in the case of Parmar v HMRC [2016]. … Continue reading HMRC Look to the Directors of Failed Companies
Category: Tax
If you are self-employed and your accounting date is not 31 March or 5 April, i.e. in line with the tax year, then you could have overlap profits. Overlap profits are best illustrated through an example, so let us use a business which commences on 1 July 2016 and prepares its first set of accounts … Continue reading Business Cessation or Change of Accounting Date? Don’t Forget Overlap Relief
For the first time in around 800 years, Wales will shortly be implementing the devolution of taxation to the Principality. From 1 April 2018, Land Transaction Tax (LTT) will replace Stamp Duty Land Tax (SDLT) in Wales. Although the new LTT operates on a similar basis to SDLT, some of the rates and bands will … Continue reading A New Era in Taxation for Wales
With 5th April fast approaching, here are some tax planning suggestions you may like to consider before the end of the tax year. Income Tax and Capital Gains From 6th April the Personal Allowance increases to £11,850 and the Capital Gains annual exemption to £11,700. This provides opportunities to defer income and gains to the … Continue reading Year End Tax Planning
With the Dividend Allowance set to be cut from £5,000 to £2,000 from April 2018, we consider how investors can help to mitigate the impact of the change. A brief overview 2016 saw significant changes to the rules on dividends, with the introduction of a new Dividend Allowance (DA) of £5,000 per annum, as well … Continue reading Planning for the Dividend Allowance Cut
If you would like to discuss any of the topics mentioned in our newsletters, please don't hesitate to contact us on 01633 871122. Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
For employees using a company car, the new fuel rates for use from 1 March are as follows: Engine Size Petrol LPG Diesel Amount per mile (in pence) 1400cc or less 11 7 9 1401cc to 1600cc 14 8 9 1601cc to 2000cc 14 8 11 Over 2000cc 22 13 13 For the purpose of … Continue reading Advisory Fuel Rates from 1st March 2018
As a part of their continuing drive to become one of the most digitally advanced tax authorities in the world, HMRC have been working with private and public partners with a view to tackling the problem of fraudulent text messages. Text message fraud has been on the increase over the past few years, with taxpayers … Continue reading HMRC to Tackle Scam Text Messages
With the 31st January Self-assessment filing deadline just gone, HMRC have published their list of top excuses for late filing. Each year, HMRC publish the ludicrous excuses from taxpayers who miss the deadline, seeking to appease the taxman and avoid penalties. Last year’s top excuse of “my tax return was on my yacht, which caught … Continue reading Out of This World Excuses for Late Returns
HMRC has succeeded after a decade-long battle with department store, Littlewoods over compound interest. Between 1973 and 2004, Littlewoods overpaid millions in VAT and, although they were refunded the sum plus simple interest, they took legal action seeking compound interest for the “mistake in law”. The law states that ‘where a taxable person has overpaid … Continue reading HMRC Victorious in VAT Dispute Over Compound Interest
