01438 718118

info@rspartnership.co.uk



DIARY OF MAIN TAX EVENTS

Tax Diary

FEBRUARY/MARCH 2021 Date What’s Due 01/02/21 Corporation tax for year to 30/04/20 (unless quarterly instalments apply) 19/02/21 PAYE & NIC deductions, and CIS return and tax, for month to 05/02/21 (due 22/02 if you pay electronically) 28/02/21 VAT for Returns ended 31/12/20 (due 07/02 if paid electronically, 12/02 if paid by direct debit) 01/03/21 Corporation […]

GET READY FOR NEW OFF-PAYROLL WORKING RULES (IR35)

Employers

This time last year businesses were preparing for important changes to the rules where workers supply their services via their own personal service companies. The start date was then deferred from 6 April 2020 to 6 April 2021. The new rules are scheduled to apply to large and medium-sized businesses as defined by the Companies […]

POSSIBLE INHERITANCE TAX CHANGES

Money Matters, Tax

As reported in an earlier newsletter, the OTS suggested simplifying IHT on lifetime gifts including reducing the period of potential exemption from 7 to 5 years. Such a change would mean that the donor would only be required to survive for 5 years following a gift for the transfer to be exempt from IHT. The […]

WILL CGT RATES GO UP?

Tax

The OTS report highlighted the mismatch between CGT and income tax rates which currently encourages taxpayers to prefer to take profits as capital rather than income. This potential opportunity has been addressed recently in the case of company liquidations where there is now a targeted anti-avoidance rule. There has also been increased scrutiny of share […]

EUROPEAN PROPERTY OWNERS FACE HIGHER TAX BILLS

Tax

Now that the UK has finally left the EU some taxpayers will start to see additional tax costs. One example is where UK residents own holiday homes in EU countries that they rent out for part of the year. Owners of EU rental properties may now be required to pay more tax in those countries, […]

POSSIBLE CHANGES TO CAPITAL TAXES

Money Matters, Tax

The Office of Tax Simplification (OTS) have been asked by the Treasury to review both Inheritance Tax (IHT) and Capital Gains Tax (CGT) recently which again suggests there could be changes to those taxes that may require pre-emptive planning action.

PENSION TAX RELIEF UNDER THE SPOTLIGHT?

Tax

One area where the Chancellor could raise a substantial amount of tax would be to restrict higher rate tax relief on pension contributions. There have been recent consultations with the pensions industry and it has been suggested that the government top up might be increased to 30% but with no further tax relief. That would […]

BUDGET DAY IS 3 MARCH

Budget 2021

There has been a lot of speculation on what will be in Rishi Sunak’s second Budget in early March and whether there is any tax planning that you should consider before then. The government will have to start paying down the massive £2 trillion of borrowings at some stage. Increasing tax rates would send the […]

PASSING ON THE FAMILY HOME

Money Matters

One recent change that should be taken into consideration when drafting your Will is the additional Inheritance Tax (IHT) nil rate band for passing on the family home to direct descendants on death. We can work with your solicitor to make sure your Will is tax efficient. Now that the additional relief is fully phased […]

ADVISORY FUEL RATE FOR COMPANY CARS

Business Tips, HMRC

These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 December 2020. Where there has been a change the previous rate is shown in brackets. Engine Size Petrol Diesel LPG 1400cc or less 10p   7p 1600cc or less 8p 1401cc to 2000cc 11p (12p) 8p 1601 to 2000cc […]