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Aug 20

Brexit risk assessment

 

Many companies have already started a formal risk assessment to clarify how their supply lines and costs would be affected, and this is a process that we would recommend that all businesses consider, and as soon as possible. Even if your business has no direct trade with the EU, many of your customers and suppliers will, and this indirect linkage will have ramifications for your sales and costs post Brexit.

Trying to double guess the antics in parliament is a seemingly fruitless endeavour. If we are going to survive the disengagement with the EU it would be wise to join the ranks of those businesses that are planning for all eventualities.

If you are still unsure how to proceed with a formal review of your Brexit planning, please call, we can help you consider your options

Aug 20

Reconsider cycle to work scheme

The government have recently announced that they are to extend the criteria for an approved, and therefore tax-effective, cycle-to-work scheme as part of their drive to reduce pollution and CO2 emissions in urban environments.

E-bikes have an integrated motor that helps a cyclist pedal, allowing them to reach speeds of up to 15.5 mph in the UK. They are seen as a game changer for their potential to make it easier for older or less fit people to make cycling a part of their commute.

The refreshed guidance will make it easier for employers to provide bicycles and equipment including e-bikes worth over £1,000, by making it clear that FCA authorised third party providers are able to run the scheme on their behalf.

According to their press release, the government is also working to drive down emissions across all modes of transport, committing to end the sale of new conventional diesel and petrol cars and vans by 2040, investing in hybrid trains, doubling investment in cycling and walking since 2010, and launching the £2.5 billion Transforming Cities Fund which will develop innovative public transport schemes in some of England’s biggest cities.

Employers who draw their workforce from the local community might like to take a fresh look at adopting a formal scheme for their business.

Mar 19

Tax Diary March/April 2019

1 March 2019 - Due date for Corporation Tax due for the year ended 31 May 2018.

2 March 2019 – Self assessment tax for 2017/18 paid after this date will incur a 5% surcharge.

19 March 2019 - PAYE and NIC deductions due for month ended 5 March 2019. (If you pay your tax electronically the due date is 22 March 2019)

19 March 2019 - Filing deadline for the CIS300 monthly return for the month ended 5 March 2019.

19 March 2019 - CIS tax deducted for the month ended 5 March 2019 is payable by today.

1 April 2019 - Due date for Corporation Tax due for the year ended 30 June 2018.

19 April 2019 - PAYE and NIC deductions due for month ended 5 April 2019. (If you pay your tax electronically the due date is 22 April 2019)

19 April 2019 - Filing deadline for the CIS300 monthly return for the month ended 5 April 2019.

19 April 2019 - CIS tax deducted for the month ended 5 April 2019 is payable by today.

30 April 2019 – 2017-18 tax returns filed after this date will be subject to an additional £10 per day late filing penalty.

Mar 19

Limitations of tax relief when you sell your home

 It is a commonly held point of view that when you sell your home you won’t pay any tax, and in particular, that you won’t pay any Capital Gains Tax on the difference between the purchase and sales prices.

Unfortunately, there are circumstances when this is not true. For example, you may have some tax to pay if you have let all or part of your house for part of your period of ownership.

There is also a restriction on the amount of land you can sell as part of your home/garden tax-free. Presently this is 5,000 square metres (just over one acre). And if you sell your home and retain part of the garden to sell at a later date, the subsequent sale of the land will attract a Capital Gains Tax charge.

You may also incur a tax cost when you sell your home if you have used part of the property exclusively for business purposes – this would not include non-exclusive use, such as using a spare bedroom or study as a part-time home office.

Issues may also occur if you sell your UK home while you are non-resident for UK tax.
If you are unsure of the tax status of your home for tax purposes, by all means call to discuss your options.

Mar 19

Changes to Minimum Wage Rates

From April 2019, minimum pay rates will increase as set out below.

  • National Living Wage (NLW) rates for workers aged 25 and over - from £7.83 to £8.21 per hour.
  • National Minimum Wage rates:
    • workers aged 21–24 — from £7.38 to £7.70 per hour
    • workers aged 18–20 — from £5.90 to £6.15 per hour
    • workers aged 16–18 — from £4.20 to £4.35 per hour
    • apprentice rate — from £3.70 to £3.90 per hour.

The accommodation offset rate will rise to £7.55.

This should mean that a full-time worker aged 25 and over on the NLW will receive an annual pay increase of £690.
Employers are reminded that these rates are not optional. HMRC police the National Minimum Wage and NLW regulations and employers found to be in breach will be subject to penalties and have to repay any arrears to affected employees.

Mar 19

Last call for VAT traders to prepare for new filing regulations

As we have mentioned before in this newsletter, VAT returns filed for periods commencing on or after 1 April 2019, may need to be filed using the new Making Tax Digital (MTD) protocols. The new filing obligations will apply to VAT registered businesses with turnover above the current VAT registration limit, £85,000.

To comply with MTD firms will need to file their returns – for periods commencing on or after 1 April 2019 – using software that can link with HMRC’s MTD servers.

Readers affected, and who have not yet considered their options, should take advice, and quickly. We can offer advice on the use of appropriate software, but time is running out. Avoid last minute challenges and call now to discuss your options.

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