17 Jan 2017
Among the various VAT schemes available to smaller businesses, it's fair to say that the most popular in recent years has been the Flat Rate Scheme (FRS). This allows a trader, with annual VATable turnover of no more than £150,000, to join the Scheme and to account for VAT using a simple calculation based on a specified percentage of turnover – that percentage determined by the industry sector.
When FRS was ...(more)21 Oct 2016
We live in an increasingly digital world, with online shopping, banking, games and social media. Under MTD, HMRC propose to transform the UK tax system into one of the best digital tax services in the world resulting in the 'death of the annual tax return'.
What is proposed?
With certain limited exceptions (see below) all businesses and landlords will be compelled to:
keep digital records using HMRC compatible software and apps
submit digital updates ...(more)27 Jul 2016
Companies and groups can restructure in many different ways and for many different reasons. Where private companies are concerned a restructuring can often occur where an existing shareholder wishes to exit the business and realise the value of his or her shareholding. This can happen for any number of reasons but frequently, retirement might be the reason or there is a divergence of views for the direction the business is ...(more)27 Jul 2016
Introduced to encourage and reward innovation, R&D tax credits are one of the most attractive tax reliefs available, often resulting in significant cash repayments from HMRC.
What’s even better news is that a lot more activities are eligible for the scheme than you might think.
How do I know what I can and can’t claim under the scheme?In a nutshell, you must be able to demonstrate to HMRC that your product or ...(more)20 Apr 2016
As you know, we recently sent out a general Budget update following the March Budget announcements, but we thought it would be useful to further examine these, and to expand a little on some of the changes specifically affecting companies.
Corporation Tax Rates
As you already know, the rate of corporation tax, which is currently 20% is going to reduce to 19% from 1 April 2017. The change announced in this Budget affects the previously mooted decrease to ...(more)18 Mar 2016
Willy Wonka (Gene Wilder) - 1971
Wise words from the fictional confectioner, played by Wilder in the 1971 hit film ‘Willy Wonka & The Chocolate Factory’, but would he see the sense in a sugar tax, designed to cut the amount of added sugar in soft drinks? As his entire world was based on a constant supply of sugar, we think it would take some time for this piece of wisdom ...(more)04 Mar 2016
Harry Callahan (aka Dirty Harry)
There’s a good chance that most of us at some point have used this quote from Clint Eastwood’s famously gritty detective, but considering how well loved the line is, people often mis-quote it without realising, and get it wrong. We tend to say ‘Do you feel lucky, punk?’ when the actual line is ‘You’ve got to ask yourself one question. Do I feel lucky? Well, do ...(more)20 Jan 2016
Many experts are predicting big changes to tax relief on pensions, possibly with effect from the next Budget in March. Changes already announced will restrict relief for higher earners from 6 April. Now may therefore be the time to get as much money into your pension as you can, especially as changes announced in the Autumn Statement enable many people to top up their pensions in 2015/16 at a higher ...(more)27 Oct 2015
The recent Budget, on 8 July 2015, announced changes to the taxation of dividends which will apply from 6 April 2016.
The New Rules
The tax legislation has not yet been published but it has been announced that the deemed 10% tax credit currently attributed to dividends will disappear.
The new rates of tax which will apply to dividends are as follows:
Current effective rate of dividend tax
New ...(more)23 Jul 2015
The media is full of stories about what new tax raising powers will be devolved to Scotland and it’s been well publicised that, from 6 April 2016, Scotland will be able to set its own rate of income tax for Scottish taxpayers. So what does this mean exactly?
Well, the position will be that the main UK rates of income tax may be reduced by 10p in the £1 for Scottish ...(more)