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DIARY DATES OF MAIN TAX EVENTS APRIL/MAY 2018

Tax Diary

CGT TO BE PAID EARLIER ON PROPERTY DISPOSALS IN 2020

Estate Planning

HMRC are consulting on the mechanism for collecting CGT on residential property disposals from April 2020, when the tax will be due within 30 days of completion. This will be instead of the normal payment date of 31 January following the end of the tax year and is yet another attack on buy to let […]

FORM P11Ds TO INCLUDE BENEFITS PROVIDED BY SALARY SACRIFICE

Employers

Employers need to report all Benefits in Kind (BiKs), including those under the Optional Remuneration Arrangements (OpRAs) or “salary sacrifice” arrangements, to HMRC on form P11D from 6 April 2018, unless they are registered to voluntarily payroll benefits. OpRAs are where an employee gives up the right to an amount of earnings in return for […]

TAX ADVANTAGE OF EMI SHARE OPTION SCHEMES LAPSES

Employers, Tax

HMRC have advised companies to consider delaying the grant of Enterprise Management Incentive (“EMI”) share options until fresh State Aid approval has been granted by the EU. As the UK Government were late in applying for an extension (12 months’ notice is required) the existing approval expired on 6 April 2018 and EMI share options […]

TAKING A LODGER? DON’T FORGET TO CLAIM “RENT A ROOM” RELIEF

Money Matters, Tax

HMRC are carrying out a review of rent a room relief to discover whether the scheme, introduced back in 1992 provides the right incentives for the rental market. The current scheme exempts from tax, gross rents up to £7,500 where rooms within the taxpayer’s main residence are rented out. Most accountants that responded to the […]

HMRC LOSE IR35 CASE

Employers, HMRC

In the February newsletter we reported the Tax Tribunal decision involving Christa Ackroyd Media Ltd, a company set up by a TV presenter to supply her services to the BBC, where it was held that the IR35 personal service company rules applied to the arrangements. In a recent case involving a night manager on a […]

CHANGES TO TERMINATION PAYMENTS

Employers

Care is always required when employees are made redundant or payments are made on the termination of employment. Not only are there employment law considerations, there are also important tax implications and this is an area where professional advice is strongly recommended to avoid unnecessary pitfalls. The tax treatment of these payments changed from 6 […]

DIARY DATES OF MAIN TAX EVENTS APRIL/MAY 2018

Tax Diary

Date What’s Due 1/04 Corporation tax payment for year to 30/6/17 (unless quarterly instalments apply) 5/04 End of 2017/18 Tax Year. 2018/19 tax year starts 6 April 2018 19/4 PAYE & NIC deductions, and CIS return and tax, for month to 5/04/18 (due 22/04 if you pay electronically) 30/04 VAT for Returns ended 28/02/18 (due […]

TAX EFFICIENT EXTRACTION OF PROFIT FROM COMPANIES FOR 2018/19

Tax

The new tax year means that many directors of family companies will be considering the most tax efficient method of paying themselves. For many years accountants and tax advisors have suggested that director/shareholders should extract profit by paying themselves a low salary with the remainder of their income being extracted in the form of dividends. […]

CASH AND DIGITAL PAYMENTS IN THE NEW ECONOMY

HMRC, Money Matters

One of the announcements in the Spring Statement was the possible demise of the 1p and 2p coins and the £50 note, but for different reasons. It seems that more and more of us are paying for small transactions such as our morning coffee by using contactless payments. Those who do pay in cash and […]