Increase in National Living Wage?
13/11/2019 – An independent review into the evidence on minimum wage rates has been published by the government. The review concludes that increases in the National Living Wage (NLW) have little effect on employment whilst significantly increasing the earnings of low paid workers. This was found to be the case even in countries who had the most … More...
Employing staff for the first time
13/11/2019 – There is a multitude of rules and regulations that you must be aware of when you start employing staff for the first time. A full examination of the rules is beyond the scope of this article. However, we wanted to list the following points from HMRC’s guidance which sets out some important issues to be aware of when becoming an … More...
Basic business structures
13/11/2019 – It is important to be aware of the main basic business structures available if you are considering starting a new business. There are three commonly used forms of business structure.
A sole trader – this is the simplest way of starting and running a business. However, you are personally responsible for your business’s … More...
HMRC’s tax app
13/11/2019 – A free HMRC tax app is available to taxpayers.
The APP can be used to see:
your tax code and National Insurance number
an estimate of the tax you need to pay
your income and benefits
up to 12 future tax credits payments
your Unique Taxpayer Reference (UTR) for Self-Assessment
The APP can also be used to complete a number of … More...
Tax when partnership assets are distributed in kind
13/11/2019 – Partnerships are treated as transparent for Capital Gains Tax (CGT). This means that each partner is responsible for their share of any capital gains arising on the disposal of their interests in the assets of the partnership. Each partner is treated as owning a fractional interest in each of the assets of the partnership.
It is … More...
Furnished holiday let qualifying tests
13/11/2019 – The furnished holiday let (FHL) rules allow holiday lettings of properties that meet certain conditions to be treated as a trade for certain tax purposes.
In order to qualify as a furnished holiday letting, the following criteria need to be met:
The property must be let on a commercial basis with a view to the realisation of profits. … More...
Waivers of remuneration
13/11/2019 – A waiver of remuneration happens when a director or an employee gives up their right to salary or other cash remuneration and gets nothing in return. Where the employee gets a non-cash benefit in return, this is called a salary sacrifice.
The treatment of a waiver of remuneration, when a director / employee gets nothing in return, is … More...
Last chance to claim enhanced capital allowances
13/11/2019 – There is a special scheme known as the enhanced capital allowances (ECA) scheme for energy-saving technologies. The ECA scheme enables a business to claim accelerated tax relief 100% first year allowances (FYA) on qualifying energy efficient and environmentally beneficial technologies.
The accelerated tax relief is designed to encourage … More...
Finance Bill 2019-20 shelved
06/11/2019 – The Government’s draft finance bill has been shelved as we countdown to the general election on 12 December 2019. The consultation on the draft legislation has closed, but the prorogation controversy and Brexit issues meant there was no time for the Government to respond to any of the issues raised.
The Bill contained the … More...
What is a negligible value claim?
06/11/2019 – A negligible value claim is a claim made by a taxpayer when an asset they own has become of negligible value, i.e. it is worthless or worth next to nothing. The taxpayer effectively treats the asset as having been disposed of and then immediately reacquired at the negligible value. The asset must still be owned by the person making the … More...