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Payment on account deadline

Self Assessment taxpayers are usually required to pay their income tax liabilities in three instalments each year. The first two payments are due on: 31 January during the tax year e.g. for 2016-17 the first payment on account is due on 31 January 2017. 31 July following the tax year e.g. for 2016-17 the second […]

A week is a long time in politics…

Harold Wilson’s famous idiom that a week is a long time in politics may need to be updated following the enormous changes in British politics following the Brexit vote. After David Cameron resigned, we were originally told to expect a new Prime Minister by October, this was subsequently updated to September and then unbelievably within […]

Contractor loan scheme challenged by HMRC

Under the contractor loans scheme agency or temporary employees are paid in the form of a loan from a trust or company, sometimes referred to as a remuneration trust. The companies that promote these schemes argue that the payment is non-taxable because it is a loan, and does not count as income. However HMRC’s view […]

Advice on establishing a vaping policy

Public Health England (PHE) has published framework advice for employers and businesses to help them create their own policies on the use of e-cigarettes (vaping). Vaping is not covered by the current smokefree legislation which prohibits smoking in enclosed public places and workplaces, on public transport and in vehicles used for work and therefore it […]

CIS online service issues

HMRC has reported that there are currently five issues affecting subcontractor verification through the HMRC CIS online service. These issues could affect the filing of monthly returns through online filing which is now compulsory. Whilst there are penalties for late submission of CIS contractor monthly returns one would expect HMRC to apply a light touch when […]

HMRC explore IR35 proposals

In July of last year, HMRC published a discussion document on the Intermediaries Legislation (IR35). The government believes that the current legislation is not working as effectively as it should and that there is significant non-compliance with the rules. The IR35 rules are intended to prevent the avoidance of tax and national insurance contributions (NICs) […]

VAT partial exemption

A business that incurs expenditure on taxable and exempt business activities is partially exempt for VAT purposes. In essence the business has to make an apportionment between the activities using a ‘partial exemption method’ in order to calculate how much input tax is recoverable. There are a number of partial exemption methods available. The standard […]

Finance Bill 2016

After a tumultuous period of change for the government, we have finally had confirmation from the Leader of the House that the Finance Bill will be delayed until after the summer. The Finance Bill has completed the committee stage and is scheduled to begin the Report stage on Monday 5 September 2016 after the summer […]

Late filing of Self Assessment tax returns

Taxpayers that have not yet filed their 2014-15 Self Assessment returns will have been charged an automatic £100 penalty for late submission. The penalty applied from 1 February 2016 even if no tax was due or the tax due was paid on time. However, taxpayers who were meant to file online by 31 January 2016, […]

New requirements for large businesses to publish tax strategy

Companies, partnerships, groups or sub-groups that had a turnover of £200m or more, or balance sheet over £2bn in their previous tax year, are now required to publish their tax strategy. This requirement is separate to the 2014 Organisation for Economic Co-operation and Development’s (OECD’s) ‘Country-by-Country Reporting’ model. HMRC’s guidance says the tax strategy should […]