Newsletter

HM Revenue & Customs (HMRC) has modernized Child Benefit claims by introducing a fully digital process, as detailed in their official announcement dated January 3, 2024:

Being a separate legal entity, the money within a company’s bank account belongs to that company, not the owners or directors. Tempting though it is for a business owner to help themselves to the company’s profits, they cannot do so unless it is declared as a dividend or paid as a salary or pension.

In the dynamic realm of cryptocurrency, staying informed about evolving tax regulations is paramount. Here’s a concise breakdown of key considerations and recent developments provided by HMRC:

The tax legislation states that a deduction from rental profits is allowable for expenses incurred ‘wholly and exclusively’ for the purposes of the business. This short and general provision has resulted in uncertainty and case law disputes between taxpayers and HMRC over the years.

As the festive season approaches, it’s crucial to ensure that the joy of your staff Christmas party doesn’t lead to unexpected tax liabilities. Here’s a quick guide to potential tax pitfalls and how to navigate them:

Growth: No recession, 110 measures to be put in place. The Office of Budget Responsibilities (OBR) says this will raise business investment, reduce inflation, and get more people back into work.

It is a valuable inheritance tax (IHT) relief, allowing certain types of business assets to be passed on 100% IHT-free. There is also a 50% rate of relief for other eligible business assets that do not qualify for the 100% rate.

The process of restoring a dissolved company in the UK can vary depending on the specific circumstances and the duration since the company’s dissolution. Below are the general steps for restoring a dissolved company:

Group Relief is a tax provision that allows companies within the same corporate group to share tax losses and certain other tax attributes. In essence, it enables profitable group members to offset their profits with the losses of other group members, reducing their overall tax liability.

In our interconnected world, it’s increasingly common for individuals to have income sources or financial assets located globally. These may include foreign employment, rental income from properties abroad, dividends from foreign investments, or even pensions from overseas employers.

Contributing to a pension scheme is a smart financial move that not only helps secure your retirement but also comes with valuable tax advantages. When you make contributions to a registered pension scheme, you have the opportunity to benefit from tax relief, which effectively boosts your savings.

Receiving gifts or assets from parents who are not UK residents is a common scenario, especially in today’s interconnected world. While such gifts can be a source of financial support or a way to pass on family wealth, it’s essential to understand the potential inheritance tax consequences.

Child Benefits are payments made by the government to support parents or guardians in raising their children. These payments are typically made on a monthly or weekly basis and can provide essential financial assistance for families.

The exemption for parking provision and expenses under section 237 ITEPA 2003 exempts the provision, reimbursement, and payment of parking at or near the employee’s workplace.If an employer were to provide, reimburse or pay for parking facilities and then recover this from the employee’s gross earnings under a salary sacrifice arrangement, the exemption no longer applies, and the provision becomes taxable.

A clear and fair shareholder agreement can help prevent unnecessary disputes from arising. At its simplest, a shareholder agreement governs the rights, obligations, and responsibilities of the shareholders in a company. The content of the agreement can and should vary, depending on the needs and goals of the shareholders, and the nature of the company itself.

Private limited companies, whether they trade or not, must file annual accounts with Companies House each year, including dormant companies. A penalty is automatically imposed if the accounts are late. Penalties range from £150 to £1,500 depending on how late accounts are filed.

The Let Property Campaign gives you an opportunity to bring your tax affairs up to date if you’re an individual landlord letting out residential property in the UK or abroad and to get the best possible terms to pay the tax you owe.

It is not uncommon for car dealers to tell buyers that their businesses can recover the VAT on the purchase of an electric car. This is not the case; the block on input recovery on internal combustion cars applies equally to electric and hybrid cars.

You must be a first-time buyer to put the Lifetime ISA towards your first home. A first-time buyer is someone who does not own, and has never owned, a home anywhere in the UK or the rest of the world.To be able to be eligible for the government bonus, you must have opened a Lifetime ISA at least 12 months ago.

Government support includes the enterprise investment scheme (EIS) and its sibling, the seed enterprise investment scheme (SEIS) – venture capital schemes designed to encourage, by means of attractive tax reliefs, shareholding investment in growing companies. According to the EIS Association, nearly £30 billion has been invested in more than 53,000 companies since the schemes were created in 1994 and 2012 respectively.

Deduction is allowed from earnings for an expense if the employee is obliged to incur and pay it as a holder of the employment, and the amount is incurred wholly, exclusively and necessarily in the performance of the duties of the employment. It should be noted that the general rule does not apply to travel expenses, which have their own set of rules.

In a family company scenario, it can be tax-efficient to make salary and dividend payments to family members to utilise their unused allowances and lower-rate tax bands. However, when it comes to paying dividends, there are potential tax traps to avoid.

Your property is a dwelling if all or part of it is used, or could be used, as a residence, for example a house or flat. It includes any gardens, grounds, and buildings within them. Some properties are not classed as dwellings. These include hotels, guest houses, boarding school accommodation, hospitals, student halls of residence, military accommodation, care homes and prisons.

A business will have a visit from a VAT inspector for one of two reasons; a routine visit after selection by the HMRC computer based on the type of business and the level of turnover, or if the business has an unexpectedly large VAT repayment.

The closure of a company can be costly, and there will be various practical financial matters to attend to: for example, if there are staff they may be entitled to redundancy pay; there will possibly be VAT deregistration; the submission of final accounts and tax returns to HMRC (Companies House does not require final accounts); making final creditor payments (possibly including to HMRC); ensuring all debtors have paid; possibly selling company assets; and finally closing the bank account.

If you’re an employer and provide expenses or benefits to employees or directors, you must usually:Report them to HM Revenue and Customs (HMRC)
Pay tax and National Insurance on them.

It is common for family members to be employed within owner-managed businesses. When employing family members, taxpayers need to be aware that where remuneration is set at an uncommercial rate, HMRC may seek to disallow a portion of the expense when computing their taxable profits.

The section 455 tax charge is a specific tax charge levied on a close company where a loan to a ‘participator’ (normally a shareholder) is not cleared by the corporation tax due date falling nine months and one day after the end of the accounting period.

When starting a business, it is usually as self-employed or as a partnership. As the business grows, working through a company may be considered for several reasons (limited liability being one of the more important).

Owner-managers can extract funds from the company in various ways. Typically, the working shareholders may well, in addition to drawing a normal salary, decide whether to extract surplus profits by means of a bonus or dividend.

The current late payment and repayment interest rates applied to the main taxes and duties that HMRC currently charges and pays interest on are : Late payment interest rate — 7% from 31 May 2023. Repayment interest rate — 3.5% from 31 May 2023.

HMRC is raising awareness of the tax treatment of termination payments related to Income Tax and National Insurance Contributions (NIC). Several changes have been made to these rules over the past five years, which HMRC wants to remind accountants and employers to consider when finalising severance packages.

When you’re UK resident you’re normally taxed on the arising basis of taxation. This means that all your worldwide income and gains will be taxable in the UK. Therefore, even if your foreign income and gains have already been taxed in another country, they will still be taxable in the UK, and you must declare all of your foreign income and gains on your tax return.

The Apprenticeship Levy was first announced in the Summer Budget 2015 and it was later confirmed in the Autumn Statement 2015 that the levy would be introduced from 6 April 2017. Primary legislation was subsequently included in the Finance Act 2016, Pt. 6 (s. 98 – s. 121) and secondary legislation (Income Tax (PAYE) Regulations 2003, Pt. 7A) was inserted with effect from 6 April 2017.

The term ‘travel expenses’ includes the actual costs of travel together with any subsistence expenditure and other associated costs that are incurred in making the journey. Tax relief is available only where travel is in the actual performance of the duties or where it’s necessary.

You may be able to claim tax relief for additional household costs if you have to work at home for all or part of the week.You can claim tax relief if you have to work from home, for example because: Your job requires you to live far away from your office.Your employer does not have an office.

Cut the basic rate of income tax to 19%, Currently, people in England, Wales, and Northern Ireland pay 20% on any annual earning between £12,571 to £50,270,
45% higher rate of income tax abolished ,One single higher rate of income tax of 40% from April next year.

A Director’s Loan Account (DLA) is “Money taken from your company’s accounts that cannot be classed as salary, dividends or legitimate expenses”. In many cases, Directors are unaware that even owe money to the company.

The Scheme is a government backed initiative set up to help UK businesses of any size access Business Loans and other kinds of finance so they can recover after the pandemic. The new scheme replaces previous schemes such as CBILS and the Bounce Back Loan Schemes that ended on the 31st March.

Since they were introduced in May of last year (2020), more than one million Bounce Back Loans have been approved, with more than £30bn of funding landing in the accounts of the UK’s small businesses. However, for some businesses, even these attractive loans will not be enough to save them. That’s why it’s so important that you understand the potential implications if you default on the loan and your business enters liquidation.

HMRC has issued Revenue and Customs Brief 7 (2021) to explain its policy concerning the VAT treatment on the cost of charging of electric vehicles when using charging points situated in various public places.

The articles of association set out the rules according to which a company must be run and administered. The articles of association form a contract of membership between the company and shareholders. They regulate a variety of matters such as Liability of shareholders, Directors, Shares and distributions, Decision making by shareholders, Administrative provision.

Remember life before umbrella services? We love that we’ve made a difference to your pay life! Well, now you can help others save time and get paid correctly & faster. IR35 does not have to be too taxing, Oasis Umbrella Ltd has got a brilliant & customised way to help you ease your contracting journey.

Oasis Umbrella is pleased to announce that we are the newest member of the FCSA. Oasis Group proudly accredited by the FCSA which means it has become the latest Accredited Member of the Freelancer and Contractor Services Association (FCSA), demonstrating that it fully complies with the membership body’s strict codes of compliance and have achieved accreditation for our bespoke umbrella services.

HMRC has issued Revenue and Customs Brief 7 (2021) to explain its policy concerning the VAT treatment on the cost of charging of electric vehicles when using charging points situated in various public places.

Oasis Group is delighted to announce an engrossing webinar featuring a broad overview of the R&D Tax Credits, Capital Allowances & Grants in the UK. Do you have questions on your mind- If the new capital allowances ‘super-deduction’ is actually super? Or how to maximize tax relief? Tax refunds available to you.