Archive for the ‘Uncategorized’ Category

Borderline benefits

Thursday, April 19th, 2018

Now that Scotland and Wales have their very own stamp duty taxes buying a house in the border areas between Wales and England, and Scotland and England, raise some interesting planning options.

Consider Llanymynech, a village that straddles the border between Powys (Wales) and Shropshire (England). The amount of stamp duty payable on an identically priced house, say £179,000, would cost the buyer £1,080 in Stamp Duty Land Tax if bought in the English side of the village, but no Land Transaction Tax would be payable for an equivalently priced house in the Welsh side of the village. A definite incentive to buy in this price bracket the Welsh side of the border.

If you live in the Scotland/England border areas and you are contemplating the purchase of an expensive property and your budget is £1m, you may want to consider the following numbers:

  • Buying in Scotland would cost you £78,350 in Land Transaction Tax, and
  • Buying in England would cost you a mere £43,750 in Stamp Duty Land Tax.

Scotland has also set its own Income Tax rates for 2018-19. So, depending on the amount of your income, you may pay more or less income tax depending which side of the border you choose to live.

These border considerations will need to be considered as our regions gain more autonomy over their local taxes. They unfortunately add another raft of regulation that will have to be considered when planning on the situation of your residence (in border areas) for stamp duty and income tax in the years to come.

Broadband fibre gets rates boost

Wednesday, April 18th, 2018

The Telecommunications Infrastructure Act 2018 paves the way for full-fibre broadband and future 5G communications by enabling 100% business rates relief for operators who install new fibre on their networks. In other words, the Act incentivises operators to invest in the broadband network.

Apparently, the secondary legislation has been laid, firing the starting gun on the scheme which will see communications providers exempt from business rates on new fibre for 5 years, backdated to 1 April 2017.

Local Government Minister, Rishi Sunak, said:

From the country’s most rural locations, to our big cities, we want everyone to benefit from fast, affordable and reliable broadband.

With this new legislation now in place, people can expect the rapid installation of new fibre, paving the way for better connectivity across the country.

From making it easier to work from home to allowing digital businesses to flourish, our measures are creating the right conditions for more high-skilled, high-paid jobs of the future.

Hopefully this cash incentive will help to close the loop and provide the many “fibre vacant zones” with much needed high-speed broadband. According to government sources, by driving improvements in the speed, service quality, security and reliability of broadband services, the Act will help transform the way modern businesses work together, reach their consumers and target their export markets.

As well benefiting businesses, full fibre broadband will also increase internet speeds for households and enable users to access more services online with multiple devices. For example, simultaneously streaming high definition TV and films, playing online games, and working from home quicker and more reliably.

Of course, increased funding is one thing, it will be interesting to see if remote businesses still obliged to access the internet at pre-broadband speeds, will finally get a high-speed connection on which all our businesses benefit.

Common-sense prevails

Thursday, April 12th, 2018

Imagine that you have no interest in computers or computing. That Facebook and Twitter sound like racehorses running in the 2.30 at Haydock Park. Further, imagine that the thought of having to deal with computers pushed you into a severe anxiety state.

Ms Naylor, the Company Secretary of a flooring company, fitted this profile. For many years she had filed paper monthly contractor’s returns to HMRC and had never missed a deadline. When the returns were converted to an online filing version from April 2016, she was thrown into the computer age and with unfortunate consequences.

For months she tried to fathom out how to register for online filing and was constantly delayed by the non-arrival of an elusive activation code from HMRC; repeated tries at getting support from various help lines failed to prompt the code to appear in the mail, letterbox mail that is.

With each passing month late filing penalties were accruing, and Ms Naylor’s health started to fail. The anxiety she experienced resulted in visits to her local cardiology clinic for various tests, and still the access code failed to arrive even when the application process was repeated, this time with help from her daughter – newly returned from university.

Eventually, after many months of frustrating delays, she and her daughter managed to complete the login process and file all the outstanding returns.

With what remained of her over-stretched nervous system, Ms Naylor appealed against the multitude of financial fines on the basis she had a reasonable excuse – no knowledge of computers and poor health.

After considering the arguments from both sides, the court ruled to quash the fines, and allowed Ms Naylor’s appeal. Phew… A victory for common-sense.

Apparently, Ms Naylor did not seem to receive much help from her professional advisor. Can we just confirm that any clients reading this post can be assured that we are computer literate and very willing to help if you have problems dealing with the online world.

How long should you keep your records?

Monday, April 9th, 2018

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. For example, if you sent your 2017-18 tax return online by 31 January 2019, you must keep your records until at least the end of January 2024. Records for this purpose includes those relating to personal income etc.

If you send your tax return more than four years after the deadline, you will need to keep your records for fifteen months after you submit your tax return.

If you keep your tax records on a computer, make sure you have sufficient backups of your data to meet these requirements. If you change software during the record retention period, you may need to print relevant reports if you are unable to maintain access to data backups.

If you run your business as a limited company you must keep records for six years from the end of the last company financial year they relate to, or longer if:

  • they show a transaction that covers more than one of the company’s accounting periods,
  • the company has bought something that it expects to last more than six years, like equipment or machinery,
  • you sent your Company Tax Return late, or
  • HMRC has started a compliance check into your Company Tax Return.

If you are not in business, the minimum period is 22 months after the 31 January filing deadline and at least 15 months after filing if later.

Tax Diary April/May 2018

Monday, April 9th, 2018

1 April 2018 – Due date for corporation tax due for the year ended 30 June 2017.

19 April 2018 – PAYE and NIC deductions due for month ended 5 April 2018. (If you pay your tax electronically the due date is 22 April 2018)

19 April 2018 – Filing deadline for the CIS300 monthly return for the month ended 5 April 2018.

19 April 2018 – CIS tax deducted for the month ended 5 April 2018 is payable by today.

30 April 2018 – 2016-17 tax returns filed after this date will be subject to an additional £10 per day late filing penalty.

1 May 2018 – Due date for corporation tax due for the year ended 30 July 2017.

19 May 2018 – PAYE and NIC deductions due for month ended 5 May 2018. (If you pay your tax electronically the due date is 22 May 2018)

19 May 2018 – Filing deadline for the CIS300 monthly return for the month ended 5 May 2018.

19 May 2018 – CIS tax deducted for the month ended 5 May 2018 is payable by today.

31 May 2018 – Ensure all employees have been given their P60s for the 2017-18 tax year.

 

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