Archive for the ‘Tax’ Category

HMRC is putting more taxpayers at risk of inquiry as it ramps up its data collection activities – this time by asking lawyers for information

Posted on: May 24th, 2018 by Leighton Reed No Comments

Ordinary taxpayers are becoming increasingly at risk of an inquiry as HMRC ramps up the amount of data it collects and looks for new sources of information for use in its investigations.

Recently, HMRC has been collecting data on taxpayers by submitting information requests to professional services firms, such as lawyers and financial advisers, asking for confidential information on their clients. There was 19% rise in the number of these requests last year to 1,507, up from 1,276 in 2015/16. (more…)

Making Tax Digital – What does it all mean?

Posted on: May 15th, 2018 by Leighton Reed No Comments

Our Making Tax Digital team examine the questions you may have whilst highlighting some key points that you should be aware of.

MTD will take effect from 1 April 2019 for VAT purposes only for all businesses (unincorporated, companies, LLPs and charities) with turnover above the VAT threshold (currently £85,000). This means that for the first VAT return period beginning on or after 1 April 2019 all VAT registered businesses with turnover above the VAT threshold will be required to:

  • maintain digital records, and
  • send their VAT information directly to HMRC using compatible software.

(more…)

Selected businesses begin Making Tax Digital testing

Posted on: May 10th, 2018 by Leighton Reed No Comments

A number of selected small businesses have begun submitting tax returns under HMRC’s Making Tax Digital (MTD) pilot scheme.

The Revenue asked for businesses to step forward and trial the digital process from April 2018.

HMRC is monitoring the progress of businesses and sole traders, who have been submitting tax returns to help shape the system before it’s rolled out for VAT only next year. (more…)

Company cars: What’s new for 2018/19?

Posted on: May 10th, 2018 by Sarah Curzon No Comments

Despite year-on-year tax rises, company cars remain a popular benefit.

While the tax cost of expensive high-emission cars can be eye-watering, by choosing carefully it’s possible to enjoy the convenience that comes with a company car for a relatively low tax cost.

So, as the new tax year gathers steam, what’s changed for 2018/19? (more…)

Personal tax planning

Posted on: May 10th, 2018 by Leighton Reed No Comments

How to reduce what you owe the taxman.

Nobody wants the taxman to take more than his fair share, and planning your finances early on can ensure you adopt the most tax-efficient strategy for the months and years ahead.

Effective tax planning will help protect your wealth and any assets, ready to pass on when the time comes, while also providing you with peace of mind.

Our complex tax system has a variety of reliefs and allowances to enable you to reduce your tax liabilities with HMRC and help you navigate your way to a wealthier future, but where do you start? (more…)

EMI Share Option Schemes – Current Hold on Tax Benefits

Posted on: April 18th, 2018 by Leighton Reed No Comments

The HMRC tax approved Employee Management Incentive (EMI) Share Option Scheme is the most widely used by small and medium sized (SME) companies.  As an approved scheme EMI offers very valuable tax benefits along with commercial flexibility enabling the design to align business and employee goals.  (more…)

VAT Inspections in the Legal Sector

Posted on: April 18th, 2018 by David Holden No Comments

The 2017 case involving Brabners Solicitors and in particular the VAT treatment of online search fees has been well documented.  At MHA Broomfield Alexander, we have seen evidence of HMRC’s targeted approach in visiting firms to follow up on this issue.  (more…)

Clipping the wings of phoenix companies

Posted on: April 10th, 2018 by Sarah Curzon No Comments

A guide to measures which discourage ‘phoenixing’ of companies.

Companies can fail for several reasons and, for the most part, these aren’t the result of wrongdoing by the directors. For this reason, it’s perfectly legal to start a new company after an old one has become insolvent.

However, there are a number of rules that surround carrying on a similar business through a new company after the original company has gone into insolvency.

Known as ‘phoenixing’, this practice transfers the business, but not the debts, of the insolvent company to a new company.

But what is the problem with phoenixing, and what does the law say about it? (more…)

Thinktank wants major reform of ‘inefficient’ tax system

Posted on: April 10th, 2018 by Sarah Curzon No Comments

The tax system in Britain should be replaced with a single rate on all forms of income, claims a thinktank. 

A report by the Institute for Public Policy Research (IPPR) has outlined its recommendations to improve the British tax system.

In order to make the system more “progressive and efficient”, the proposed reforms would involve two elements. (more…)

From sole trader to a limited company

Posted on: April 9th, 2018 by Sarah Curzon No Comments

What to expect from incorporating your business.

With a new tax year upon us, many sole traders will be reviewing their business structure and considering whether it’s worth switching to a limited company.

There’s no denying that incorporating a business proved popular in 2017, with Companies House reporting a 7% rise in the number of actively trading companies – bringing the UK total to 1.9 million. (more…)