Recently there have been a number of important changes to the way in which income from properties are taxed. Predominantly these changes affect owners of residential properties, however, changes to Stamp Duty Land Tax will impact commercial properties.
With respect to residential properties from 6 April 2016, the wear and tear allowance available to landlords of furnished residential lettings, has been abolished and replaced with a deduction for the actual cost of replacing furnishings. The wear and tear allowance was given at 10% of the net rents received in respect of fully furnished let properties. Some landlords who do not spend this amount over the course of a year on actual renewals costs may see an increase in taxable rental profits. (more…)
Seven new trainees have joined the firm and will be based at offices in Cardiff, Newport and Swansea, where they will undergo a three-year training programme to become qualified chartered accountants. (more…)
Month two of our “keeping your charity on the right track” publication examines the finance function and how it reports to board.
All too often we hear trustees claim “I don’t understand the finance reports” and then rely on other trustees to keep the charity finances on the straight and narrow. This is why it is important for finance to communicate with the board to understand the appropriate level of information the board requires and the depth of expertise on the board to deal with evaluating the information. (more…)
The CRS is an international standard for the automatic exchange of information and has been developed by the Organisation for Economic Cooperation and Development (OECD).
The rules, designed to prevent tax evasion, have been implemented in the UK by HMRC after an EU directive passed the OECD agreement into law. They are due to be implemented on 31st May. (more…)
This time of year is for many, the last chance to ensure that we take advantage of planning opportunities that can save significant tax, but that will be lost if ignored.
For those with dividend income, the change to tax on dividends is key. Previously, dividends included a 10% tax credit which covered any basic rate tax liability. This has now changed.
Dividends no longer carry a 10% tax credit, although the underlying company continue to pay Corporation Tax on their profits. The first £5,000 of dividends are exempt to Income Tax. However, any excess will be taxed at your marginal rate. For basic rate taxpayers the rate is 7.5%, for higher rate taxpayers the rate is 32.5% and for highest rate tax payers 38.1%. (more…)
The apprenticeship levy requires all employers operating in the UK, with an annual pay bill of over £3million, to pay a 0.5% levy on their monthly pay bill. It comes into effect from 6 April 2017 and will apply to both public and private UK employers across all sectors.
The levy was announced by the Government in July 2015, reformed to encourage employers to offer apprenticeships in order to meet their skills and workforce requirements via funded training. (more…)
We have previously looked at the roles for accountants in dispute resolution and forensic accounting is another area where accountants can provide expert support and advice.
Forensic accounting is the investigative process by which financial information is gathered, analysed and presented in a clear, unambiguous way, with conclusions as to events and outcomes. It is similar to a due diligence process, although the scope is often narrowed to a particular area of concern, which is investigated in much more detail, rather than a broader investigation into areas of potential risk. Common situations for engaging a forensic accountant include suspected theft or fraud, insurance claims for loss of earnings e.g. from a fire, or the losses incurred with the breach of a non-compete clause.
Theresa May’s declaration that the UK is to leave the single market brings with it a whole host of VAT and Customs Duty challenges which we recommend that businesses start planning for now, as there will be increased compliance and complexity to deal with. (more…)
Month one of our ‘Keeping your charity on the right track’ publication examines the effectiveness of the board. Far to often we read on the Charity Commission website about investigations that find the board of trustees lacking in some way. This article gives an overview of the role of the board, what makes an effective board and some checklist ideas to progress your move to better governance over the next 12 months.
The Not for Profit sector is dealing with continued challenges from numerous directions. Changing legislation is placing a cost burden onto organisations already struggling with funding issues. Governance continues to be key in maintaining and developing a successful organisation, being alive to taxation changes has become imperative and the charity regulators are adopting a more rigorous approach.