From April 2013 most employers (and from October 2013 all employers) will be required to submit PAYE information to HMRC as the information is processed. The process acronym, RTI, short for “Real Time Information”, is a new way for employers to report their employees’ pay and tax details. According to HMRC it will make it […]
Share reorganisations and CGT
If you exchange shares in your company for shares or debentures in the same or a different company as part of a company reorganisation, what are the tax consequences? If certain share reorganisation tax rules apply, the reorganisation is not treated as a disposal of the original shares. Essentially the new shares or debentures stand […]
VAT special scheme exit rules
Two of the VAT special schemes can provide particular advantages for smaller businesses. The Flat Rate Scheme (reviewed in our June 2012 newsletter) can reduce overall VAT payable, especially for traders that are subject to the lower Flat Rate percentages. Cash Accounting allows you to defer payment of VAT added to your sales until the […]
Recent house flipping case
The case in question involved a couple who inherited a second home from a deceased parent. They complied with the usual filing deadlines and sent an election to have the second property considered as their principal private residence for the week before it was sold on 19 October 2007. If successful, the election would have […]
Payments to directors
Any payment made to a director as part of their remuneration package is generally subject to tax that is usually collected via the PAYE system. The payments made by the employer are allowable expenditure and reduce the employer’s taxable profits. However, many smaller limited companies pay personal expenses on behalf of directors. These personal expenses […]
Tax Diary July/Aug 2012
1 July 2012 – Due date for corporation tax due for the year ended 30 September 2011. 6 July 2012 – Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs. 6 July 2012 – Deadline for submitting form 42 (reporting of transactions in employment related securities). 19 […]
VAT refund for self build
It is possible to register a self-build application for VAT purposes and reclaim any VAT charged on certain materials and services paid out. In a recent tax case an individual and his partner decided to build a new home for themselves and two children from a previous relationship. The building was actually two separate buildings […]
July 2012 – busy month…
Although we have summarised the various filing and tax payment deadlines for July in the tax diary it is worth looking at the detail – July is a busy month. 6 July 2012 Filing deadline forms P11D, P9D and P11D(b) 2011-12. As this newsletter is being published on 5 July we sincerely hope that readers […]
Tax dodgers beware
At the end of May 2012 HMRC announced that six new taskforces had been created to target tax evasion in a number of specific locations: • Indoor and outdoor markets in London• Taxi firms in Yorkshire and East Midlands• Property rentals in East Anglia, London, Yorkshire and the North East• Restaurants in the Midlands These specialist teams are trained […]