With the introduction of VAT on private school fees coming into force from 1 January 2025, how prepared are you and what are you doing about it?
It’s crucial to assess your readiness and take proactive steps now. 

It can be a misconception that you must wait until January to file your tax return.

Self-employed taxpayers should notify HMRC as soon as practicable when they begin working for themselves. HMRC must be officially notified by 5 October following the end of the tax year so that a self-assessment return can be issued on time and to avoid any unnecessary penalties.

There are a number of reasons why you might need to contact HMRC  about changes in your income. 
HMRC’s guidance states that this could happen because you:
•    did not realise you needed to tell HMRC about it;
•    were not sure how to declare it; or
•    did not declare it because you could not pay the tax.

There are a number of reasons why you might need to contact HMRC  about changes in your income. 
HMRC’s guidance states that this could happen because you:
•    did not realise you needed to tell HMRC about it;
•    were not sure how to declare it; or
•    did not declare it because you could not pay the tax.

The Inheritance Tax residence nil rate band  (RNRB) is a proportion of an estate on which tax is payable at a rate of zero percent for married couples and civil partners (per person) when their main residence is passed down to a direct descendent such as children or grandchildren after their death. 

The Inheritance Tax residence nil rate band  (RNRB) is a proportion of an estate on which tax is payable at a rate of zero percent for married couples and civil partners (per person) when their main residence is passed down to a direct descendent such as children or grandchildren after their death. 

The Non-resident Landlord (NRL) Scheme is a special scheme for the UK rental income of non-resident landlords. This includes companies or trustees whose 'usual place of abode' is outside the UK. HMRC classifies a person living abroad for 6 months or more per year, as a non-resident landlord. This is the case even if the person is a UK resident for tax purposes.

HM Revenue and Customs (HMRC) is waiving late filing and late payment penalties for one month giving Self-Assessment taxpayers extra time (if required) to complete their 2020 to 2021 tax return and pay any tax due. 

If you do not pay your tax bill on time and cannot make an alternative arrangement to pay, HMRC can take ‘enforcement action’ to recover any tax you owe.

If you decide to become self employed, it is vital that you register with HMRC by 5th October following the end of the tax year in which you became self employed.  If you do not follow this process, you may be liable to a penalty based on the tax that is due to HMRC.

There are many expenses and benefits in kind which will need to be reported, however there are some exemptions for expenses associated with working from home. 

The tax that is claimed back by the charity is funded by the tax paid by the donor. This is only applicable where the donor has paid more tax in the year than is claimed back by charities and community amateur sports clubs on donations. Problems can arise if the donor’s income falls, such that they are not classed as a taxpayer or pay less tax than is claimed back on the donation.

The update now puts the onus of the SDS (Status Determination Statement) on medium or large companies using contractors. Companies which HMRC defines as a small company will not have to complete the SDS.

HMRC is encouraging married couples and people in civil partnerships to sign up for a tax break this year.

Employed and Self-Employed persons can take advantage of tax breaks on their time working from home. 

Organisations were able to take advantage of the Coronavirus VAT payment deferral scheme in 2020 but with a repayment deadline approaching HMRC have made these options available for those which still need to pay.

With the continued changes coming from HMRC to the building and construction industry, there is yet another major change on its way which will affect both customers and suppliers who are CIS and VAT registered. 

In October, HMRC increased the threshold of self assessment liabilities from £10,000 to £30,000 for individuals setting up Time to Pay arrangements.

HMRC have today announced that Self-Assessment customers will not receive an automatic penalty for filing their 2019-20 tax return late, provided it’s filed online by 28‌‌ ‌February 2021. 

In an effort from HMRC to be more transparent about the use of taxpayers’ funds and deter fraudulent activity, they will be publishing information about employers who claimed from the Coronavirus Job Retention Scheme (CJRS) for periods starting on or after the 1 December 2020.

HMRC must prepare for busiest month with self-assessment deadline looming 

HMRC have announced that businesses who deferred VAT payments between between 20 March and 30 June 2020 and still have payments to make can opt in to the new VAT deferral payment scheme when it launches later this year.

Those who have still not submitted all of their self-assessment filing information will need to complete their 2019-20 tax return as soon as possible as the 31 January 2021 moves closer.
 

Most employers who are eligible will be aware that the furlough scheme (the Coronavirus Job Retention Scheme) has been extended.

Many smaller businesses will not have the resources to train and employ their own customs clearance staff in which case you may have to consider using a customs agent or broker. 

What is postponed accounting?

Postponed accounting means that the importer does not pay import VAT when goods arrive at a port or airport instead the VAT is deferred.

With the nationwide lockdown coming to an end and tiers being re-introduced there are a lot of changes happening which may distract you from upcoming business support deadlines such as the CJRS Claims Deadline.

HMRC has confirmed that the annual parties exemption now also applies to the costs associated with virtual parties and festivities in the same way that it would for traditionally held parties.

You may have seen recent headlines about the tax affairs of Airbnb in the UK and that HMRC have charged them with an additional £1.8 million of tax following an investigation. If you are a UK citizen, or a general fan of tax payments you may think that sounds good as the company didn’t seem to be paying enough tax. But how will this change affect Airbnb hosts? 

Readers with children at university should pass on this message as students starting university this year are being warned by HMRC that they could be targeted by a fresh wave of tax scams.

CVA’s are often associated with large multi-site retailers seeking to restructure shop-lease portfolios however they are much more than this. 

The countdown has begun for this years’ paper tax return, a crucial time for around 400,000 taxpayers who are self employed or those that receive other income that requires the submission of a tax return, which is normally rental income, or interest and dividend income that is liable to income tax at more than the basic rate.

Taxpayers should take note of an important upcoming deadline – the 31 January 2020. This date marks the self-assessment tax return deadline for last year’s tax year (6 April 2018 – 5 April 2019). 

If you need evidence of employment for a claim, the following notes published by HMRC may help. 

The following press release was published by HMRC last month. Extracts are reproduced below:

New defensive controls recently deployed by HMRC have put an end to fraudsters spoofing the tax authority’s most recognisable helpline numbers.

HMRC has a new £100m weapon to help identify individuals who may not be declaring all of their income and, therefore, paying too little tax.  

A reminder that HMRC may consider extended options for settling your outstanding tax bill. The key is to contact HMRC, explain why you can’t pay on time, and discuss how you can settle any outstanding liabilities.

A reminder that HMRC may consider extended options for settling your outstanding tax bill. The key is to contact HMRC, explain why you can’t pay on time, and discuss how you can settle any outstanding liabilities.

Making Tax Digital is fast approaching; therefore it is important for mandated businesses with taxable turnover of £85,000+ start preparing for the switch over in April 2019.   The first VAT period affected is the period which begins after 1 April 2019.

Making Tax Digital is fast approaching; therefore it is important for mandated businesses with taxable turnover of £85,000+ start preparing for the switch over in April 2019.   The first VAT period affected is the period which begins after 1 April 2019.

HMRC have been writing to VAT registered businesses about Making Tax Digital for VAT, they have confirmed that all letters have now been sent.

Can we still use spreadsheets after MTD comes into force?
One of the most commonly asked questions concerning the Making Tax Digital changes coming in from April 2019 concerns whether spreadsheets count as “functional compatible software”.  The answer to this is both yes and no.

On Friday 1st February, HMRC announced that over 93% of taxpayers filed their self-assessment tax returns on time and before the 31st January deadline.

On Friday 1st February, HMRC announced that over 93% of taxpayers filed their self-assessment tax returns on time and before the 31st January deadline.

Fraudsters will disguise themselves as HMRC and other government departments/professional bodies to:
•    Obtain personal details which they will sell or use for identity theft,
•    Coax victims into handing over money,
•    Use victims’ details to steal money from their accounts. 
 

Fraudsters will disguise themselves as HMRC and other government departments/professional bodies to:
•    Obtain personal details which they will sell or use for identity theft,
•    Coax victims into handing over money,
•    Use victims’ details to steal money from their accounts. 
 

One of the most commonly asked questions concerning the Making Tax Digital changes coming in from April 2019 concerns whether spreadsheets count as “functional compatible software”.   Bridging software allows businesses to transfer the relevant VAT information from a spreadsheet directly into HMRC's MTD systems - thereby removing the need to purchase a full accounting software package - at least in the short-term. 

November is a very busy time for returns and tax payments. Below are the important dates coming up over the next month. 

November is a very busy time for returns and tax payments. Below are the important dates coming up over the next month. 

HMRC recently published a list of helpful reminders regarding the submission of monthly returns to HMRC. This article lists some of the points highlighted.
 

HMRC recently published a list of helpful reminders regarding the submission of monthly returns to HMRC. This article lists some of the points highlighted.
 

You will be aware that HMRC is moving forward with their digitisation of taxpayer VAT and Income Tax reporting requirements, under their much publicised Making Tax Digital (MTD) initiative. Below you will find the most recent announcements made by HMRC on this issue.
 

You will be aware that HMRC is moving forward with their digitisation of taxpayer VAT and Income Tax reporting requirements, under their much publicised Making Tax Digital (MTD) initiative. Below you will find the most recent announcements made by HMRC on this issue.
 

HMRC is still required to obtain certain returns from you even if there is no income or tax to declare. Failure to submit will likely trigger late filing penalties and unfortunately, pleading ignorance of your obligations to file “nil” returns is not a reasonable excuse.

HMRC is still required to obtain certain returns from you even if there is no income or tax to declare. Failure to submit will likely trigger late filing penalties and unfortunately, pleading ignorance of your obligations to file “nil” returns is not a reasonable excuse.

HMRC has about-faced regarding the ban on using spreadsheets to work out your VAT return data from 1 April 2019, when the new requirement to file VAT returns using Making Tax Digital (MTD) format is introduced.

HMRC has about-faced regarding the ban on using spreadsheets to work out your VAT return data from 1 April 2019, when the new requirement to file VAT returns using Making Tax Digital (MTD) format is introduced.

From April 2019, VAT registered businesses with turnover above the VAT threshold (currently £85,000) will have to:

From April 2019, VAT registered businesses with turnover above the VAT threshold (currently £85,000) will have to:

In the recently published draft clauses that will form the basis of the Budget later this year, HMRC has outlined a significant change to the way they will be levying penalties for late filing breaches under the Making Tax Digital regulations.
 

In the recently published draft clauses that will form the basis of the Budget later this year, HMRC has outlined a significant change to the way they will be levying penalties for late filing breaches under the Making Tax Digital regulations.
 

It would seem, that HMRC is keen to plug the apparent drain from VAT receipts when contractors and sub-contractors charge their customers VAT and then go missing, keeping the VAT for themselves. This is described in legislation as “missing trader fraud”.
 

It would seem, that HMRC is keen to plug the apparent drain from VAT receipts when contractors and sub-contractors charge their customers VAT and then go missing, keeping the VAT for themselves. This is described in legislation as “missing trader fraud”.
 

Many of you may have seen the recent press regarding HMRC’s calculation errors when it comes to income ta payable for individuals in 2016/17.

Many of you may have seen the recent press regarding HMRC’s calculation errors when it comes to income ta payable for individuals in 2016/17.

Fraudsters have been creating replica versions of HM Revenue & Customs (HMRC) website and directing the public to call premium rate numbers advertised on them.

Fraudsters have been creating replica versions of HM Revenue & Customs (HMRC) website and directing the public to call premium rate numbers advertised on them.

In a recent press release, HMRC urged underpaid workers to complain as figures show that the number of workers getting the money they're owed by employers has doubled after interventions by HMRC.

In a recent press release, HMRC urged underpaid workers to complain as figures show that the number of workers getting the money they're owed by employers has doubled after interventions by HMRC.

If you are self-employed, and obliged to submit a self-assessment tax return, you must keep your tax records for at least five years after the 31 January submission deadline of the relevant tax year.

If you are self-employed, and obliged to submit a self-assessment tax return, you must keep your tax records for at least five years after the 31 January submission deadline of the relevant tax year.

A number of Isle of Wight residents’ landline numbers have been targeted in a HMRC telephone scam and this has now led to police issuing a warning to all residents on the Isle of Wight.
 

A number of Isle of Wight residents’ landline numbers have been targeted in a HMRC telephone scam and this has now led to police issuing a warning to all residents on the Isle of Wight.
 

Since 14 February 2018, tax-free childcare has become available to all remaining eligible families: parents whose youngest child is under 12. The new scheme aims to help working parents with the cost of childcare. 

According to government, it is quick and easy to apply, and parents could save thousands of pounds each year. For every £8 parents pay into their childcare account, the government will add an extra £2, up to £2,000 per child per year. HMRC has been gradually rolling out tax-free childcare since April 2017. 

Since 14 February 2018, tax-free childcare has become available to all remaining eligible families: parents whose youngest child is under 12. The new scheme aims to help working parents with the cost of childcare. 

According to government, it is quick and easy to apply, and parents could save thousands of pounds each year. For every £8 parents pay into their childcare account, the government will add an extra £2, up to £2,000 per child per year. HMRC has been gradually rolling out tax-free childcare since April 2017. 

HM Revenue & Customs has published updated guidance on the VAT treatment of grants and contracts to clarify which grants are outside the scope of VAT and which are subject to VAT.
 

HM Revenue & Customs has published updated guidance on the VAT treatment of grants and contracts to clarify which grants are outside the scope of VAT and which are subject to VAT.
 

Businesses contracted to Carillion who are worried about being able to pay their tax can get help and advice from HMRC’s Business Payment Support Service (BPSS).
 

From 15th December 2017 it will no longer be possible to make payments to HMRC at the Post Office. 

If your employment requires that you obtain and maintain membership of a professional organisation, you can make a claim to set the cost against your taxable earnings for income tax purposes. As you would expect there are a few hoops you will need to jump through to claim this relief. They are:
 

If your employment requires that you obtain and maintain membership of a professional organisation, you can make a claim to set the cost against your taxable earnings for income tax purposes. As you would expect there are a few hoops you will need to jump through to claim this relief. They are:
 

HMRC has published a list of popular misconceptions that taxpayers have about letting property. We have listed below a summary of situations where you will need to declare rental earnings to HMRC:

HMRC has published a list of popular misconceptions that taxpayers have about letting property. We have listed below a summary of situations where you will need to declare rental earnings to HMRC:

A scheme using Employee Benefit Trusts (EBTs) as a means of remunerating directors and staff has been defeated by HMRC in a recent Supreme Court case.

A scheme using Employee Benefit Trusts (EBTs) as a means of remunerating directors and staff has been defeated by HMRC in a recent Supreme Court case.

A recent VAT Tribunal had to decide whether two hairdressing businesses should be treated as a single business for the purposes of VAT registration.
 

A recent VAT Tribunal had to decide whether two hairdressing businesses should be treated as a single business for the purposes of VAT registration.
 

Are you self-employed? If you are, or if you are someone who doesn't pay all their tax at source, you may need to make your second payment on account for 2016-17, due date for payment is 31 July 2017.
 

Are you self-employed? If you are, or if you are someone who doesn't pay all their tax at source, you may need to make your second payment on account for 2016-17, due date for payment is 31 July 2017.
 

In many cases, making loans to your employees or their relatives can create an obligation to report a beneficial loan to HMRC. The deemed benefit would be a taxable benefit in kind for the relevant employee, and would increase the employer’s Class 1A NIC bill at the end of the tax year.

In many cases, making loans to your employees or their relatives can create an obligation to report a beneficial loan to HMRC. The deemed benefit would be a taxable benefit in kind for the relevant employee, and would increase the employer’s Class 1A NIC bill at the end of the tax year.

The European Court of Justice (ECJ) has finally crushed hopes that more public bodies and charities engaged in cultural activities could claim VAT exemption on their admission charges. Its recent judgment in the VAT case of the British Film Institute (BFI), released in February, draws a line under an argument that has been running for the last four years.

The current tax year, 2017-18, is the last year we have to prepare for the advent of the new reporting system, Making Tax Digital for Business (MTDfB). Following the recent budget, it is now clear which businesses are going to be affected and when. Dates for implementation will be:

The current tax year, 2017-18, is the last year we have to prepare for the advent of the new reporting system, Making Tax Digital for Business (MTDfB). Following the recent budget, it is now clear which businesses are going to be affected and when. Dates for implementation will be:

HMRC published their response to the consultations that were undertaken for the Making Tax Digital (MTD) regime on 31 January 2017.  We take a look at the main points of their response and consider what this will mean for business owners. 

Making the decision whether or not to exercise the option to tax in relation to property is not always straightforward, and it is essential that the ongoing VAT and commercial implications of any options to tax are continually monitored and reviewed.

The Government and HMRC remain committed to the "Making Tax Digital" project with more information being sent online to HM Revenue and Customs (HMRC) by employers, pension funds, banks and other institutions.

The Government and HMRC remain committed to the "Making Tax Digital" project with more information being sent online to HM Revenue and Customs (HMRC) by employers, pension funds, banks and other institutions.

HMRC seem to be making progress in their attempts to discourage, and recover unpaid tax, from participators in tax evasion schemes. 

HMRC seem to be making progress in their attempts to discourage, and recover unpaid tax, from participators in tax evasion schemes. 

The “phishing” emails sent by nefarious individuals, purporting to be from HMRC, have now been joined by bogus phone calls.
 

The “phishing” emails sent by nefarious individuals, purporting to be from HMRC, have now been joined by bogus phone calls.
 

ATED is an annual tax charge, mainly by companies, that own UK residential property valued at £500,000 or above.

ATED is an annual tax charge, mainly by companies, that own UK residential property valued at £500,000 or above.