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Tax

December 14, 2020 by Megan Joyce Leave a Comment

Since 6th April 2020 if you have sold a UK property or land in the UK you must report and pay any Capital Gains Tax that is due to HMRC within 30 days of the completion of the sale.

You will need to report the sale of:

  • UK holiday homes
  • properties that have been let as rental properties in the UK
  • properties that have been inherited in the UK

You may not have to report the sale of:

  • properties that you use as your main home

You do not have to report the sale of foreign properties that are not in the UK within the 30 day deadline but you will have to report this on a Self-Assessment Tax Return if you are a UK resident.

All sales must be reported using a new HMRC online service and if you do not report a sale within the 30 day deadline, you may be sent a penalty as well as having to pay interest on any amounts that are due to HMRC.

If you are thinking of selling a property in the future or you have completed in the last 30 days then please contact our team with any queries that you may have and we will be happy to help. 

(E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk  

Filed Under: Blog, News & Insights, Tax Tagged With: Tax

September 14, 2020 by Megan Joyce Leave a Comment

The scheme was announced to help both small and medium sized business recover from the negative financia

There is no doubt that 2020 is proving to be massively different to any of the predictions given by tax advisers at the start of the year. After three years of wall to wall Brexit coverage, a worldwide pandemic has changed the business landscape beyond recognition and there is the inevitable speculation amongst business leaders that there will need to be an increase in taxes… but what will this look like? 

In July, Chancellor Rishi Sunak commissioned the independent Office of Tax Simplification to review how Capital Gains is paid by individuals and smaller businesses. This has naturally led to a nervousness around whether this will lead to a Capital Gains Tax increase. Of course, this is purely speculation and every year around the presentation of the annual tax budget, rumours of tax changes are rife, many of which never materialise.

Other areas which might see changes are the various reliefs available for selling our main residences, our businesses and certain other assets, such as vintage cars, which at the moment are exempt.

We should not forget that there have already been some changes in April 2020 to Capital Gains Tax on residential properties, with the key change being that tax is now due to be reported and paid within 30 days of the completion date. In the grip of the pandemic, the Government did announce a relaxation to this rule with penalties only being charged for completions after 31st July 2020.

What should the public do to prepare?  

Firstly, there is no doubt that the Government will be watching the economy very carefully before making changes to taxes. It is important not to take action based on speculation or rush into a decision without all of the facts. 

Our advice is that people should take the opportunity to review their affairs and seek professional help if needed. 

How can we help?

We have dedicated Personal & Corporate Tax departments, who offer a free no obligation meeting.  In our initial meeting we learn about your plans for the future and identify areas in which we can help you to meet your short and long-term financial goals.  

If you would like to arrange a meeting, please contact us on our details below. 

 (E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk  

Filed Under: Blog, News & Insights Tagged With: Tax

September 4, 2020 by Sophie Wright Leave a Comment

Am I eligible for the Childs Trust Fund?

If you were born between 1st September 2002 and 29th January 2011 you may be entitled to receive some money from HMRC! 

Who are the HMRC?

HMRC stands for Her Majesty’s Revenue and Customs and they are essentially a team within the Government that is responsible for collecting peoples taxes and make sure everyone is paying the correct amount of tax and simply collection of all the money that pays for the UK’s public services. These public services include paying police officers, firemen and nurses and doctors working for the NHS.

What is a Childs Trust Fund?

A Childs Trust Fund is a pot of money that the HMRC created for babies born between 1st September 2002 and 29th January 2011 in order to help make sure they have some form of savings for when they reached the age of 18 and became an adult.

This week marks the first day, 18 years later, from when the first Childs Trust Fund was made available, and therefore those turning 18 will be able to claim their money saved in their ‘pot’.

Do I have a ‘pot’ waiting for me?

If you were born between the above dates then there will be a savings pot saved for you! If you ask your parents or guardian they may have the details but do not worry, if they weren’t aware of the scheme you may still be able to receive a sum of money to receive on your 18th birthday! HMRC automatically enrolled eligible babies to the scheme and puta minimum of  £250 into the account.

How to I make the most out of the Childs Trust Fund?

If you are not 18 yet, it is still possible to save more money in to the account.

With the trust fund the more you put in creates potential for the money you will get out. Some people might choose to invest their pocket money or ‘spend half and save half’ of their Birthday or Christmas gift money. The fund is an investment, meaning it may grow in value over time and the amount you put in may or may not have increased by the time you come to cash it in.

I want to have more control of my Trust Fund

If you are 16 you are able to take over control of the Child Trust Fund account and whilst you cannot withdraw any money until you are 18, you will be able to meaning you would be responsible for putting money into the account instead of your parent or guardian. You would also be responsible for contact your Child Trust Fund provider should you ever have any questions.

I am about to turn 18, what happens next?

On your 18th Birthday you will be allowed to take out the money from the account. It is then your choice what you do with the money! You may choose to spend it on supplies for uni or you may choose to reinvest it into an adult savings account.

For more information click here.

(E) enquiries@advaloremgroup.uk  (T) 01908 219100

Filed Under: Blog, News & Insights Tagged With: Tax

August 3, 2020 by Sophie Wright Leave a Comment

Stamp Duty

The Chancellor announced that he will enforce temporary reductions in residential property Stamp Duty Land Tax Rates (SDLT) between 8th July 2020 – 31st March 2021, which is of great benefit to those currently looking to get onto the property ladder or purchase a new property. You will only pay SDLT on the amount that you pay for the property above £500,000. This rate applies to both first time buyers and existing homeowners. The temporary SDLT rates are:

                                             Property or lease premium or transfer valueSDLT Rate
Up to £500,000Zero
The next £425,000 (Costing £500,001 to £925,000)5%
The next £575,000 (Costing £925,001 to £1.5 million)10%
The remaining amount (Costing above £1.5 million)12%


The existing rules for first time buyers are temporarily replaced by the reduced rates shown above. 

If purchasing an additional property, there is a 3% higher rate, which applies on top of the above rates. For example, on a buy-to-let or second home, the temporary rates become:

Property or lease premium or transfer valueSDLT Rate
Up to £500,0003%
The next £425,000 (Costing £500,001 to £925,000)8%
The next £575,000 (Costing £925,001 to £1.5 million)13%
The remaining amount (Costing above £1.5 million)15%


Businesses buying residential property worth less than £500,000 will also benefit from these changes at the additional 3% SDLT rate.

As of the 1st April 2021, the reduced rates shown in the above tables will revert to the rates of SDLT that were in place prior to 8 July 2020.

For further details on the SDLT temporary changes click here:

https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates

Green Homes Grant

The Government has set aside £2 billion for homeowners in England to make green home upgrades. Homeowners in England will be able to apply for vouchers from the  The Green Homes Grant scheme, to pay for improvements such as loft, wall and floor insulation. This could save some households hundreds of pounds a year on their energy bills and create thousands of jobs for tradespeople. This is aimed to help to boost home efficiencies.

The Government has not yet announced a timescale for this scheme. 

(E) enquiries@advaloremgroup.uk  (T) 01908 219100

Filed Under: Blog, News & Insights Tagged With: Tax

August 3, 2020 by Sophie Wright Leave a Comment

George Bruce – Senior Business Development Manager

Since lockdown, those working from home have found themselves saving money on daily expenses such as travel, lunches and the daily coffee purchasing. However, these costs may have been reattributed to other outgoings that align with working from home, such as business telephone calls or electricity and heating bills.

If you have been forced to work from home (not if you’ve chosen to work from home), then you may be able to claim tax relief on some of the bills you have had to pay, due to working from home on a regular basis. 

How much can I claim?

HMRC have put in place a ‘blanket’ costing approach in order to pay everyone as quickly and efficiently as possible, rather than working out exact electricity bill costs vs usage. 

HMRC now allows you to claim up to £6 per week of expenses without having to provide bills or paperwork as evidence. This doesn’t directly mean you save £6 a week but instead you save the tax you would have paid on it. From 6th April 2020, this works out to be £1.20 a week for a basic rate taxpayer, or £2.40 a week for a higher rate taxpayer. 

In order to make a claim you must have had to work from home (haven’t chosen to do so) and incurred extra costs due to working from home. It is also possible to claim more than £6 per week, but you have to provide paperwork to support your claim. 

If your employer does choose to provide a ‘working from home allowance’, that would be tax free up to £6 per week, which means you can’t make an additional claim for tax relief on top. 

How can I claim?

If you normally complete a Self-Assessment tax return, you can include your claim details on there. If you do not complete a Self-Assessment, you can claim by completing a P87 form, either online or by post. 

These allowances have been available for years, but awareness has grown since the pandemic forced many offices to close.

For further details, please see the Government Guidance on Employees Working at Home 

(E) enquiries@advaloremgroup.uk  (T) 01908 219100

Filed Under: Blog, News & Insights Tagged With: Tax

May 7, 2020 by Sophie Wright Leave a Comment

We are in the process of sending out our annual P11D checklists summaries to our clients to gather information about any taxable benefits that may have been provided over the 2019/20 tax year.

What are taxable benefits?

If you provide certain benefits to any company employees or directors then they may generate a taxable benefit that need to be reported to HMRC.

Below are some examples of taxable benefits:

Ø  Business Mileage – if paid above HMRC approved rates

Ø  Company Cars & Vans

Ø  Interest free loan

Ø  Private medical / Dental insurance

Ø  Assets provided for personal use

Ø  Personal payments – e.g. school fees, gym membership, home phone charges

 

Ø  Company credit cards provided for personal use

Ø  Living Accommodation

Ø  Relocation Expenses

Ø  Trivial benefits – there are different limits for employees and Directors

Ø  Shares at less than Market Value

Ø  Mobile Phones

 

Business Mileage

If the company pays mileage for business use of a personal car ABOVE 45p per mile for the first 10,000 miles and 25p thereafter please provide details of the number of miles paid and the rate applied for each employee.

Company Cars

If company cars have been made available to employees or a member of their family to use privately, please let us know and we will request further details

Company Vans

If the company provided a van to employees or a member of their family to use privately and paid for the fuel.

Please note that personal use does not include:

  • Home to site trips that are exclusively for business (including very small detours such as to buy a newspaper)
  • Very few small, local personal trips such as to take a mattress to the tip (limited to no more than 2 per year)

Interest Free Loan

If an employee has been provided with a loan which exceeds £10,000 in the year then please let us know and we will request further details.

Assets provided for personal use

If employees are provided with assets which they can use for personal use (which are not listed elsewhere in this blog) please let us know and we will request further details.

This includes furniture provided in company accommodation.

Please note that this does not include:

  • The use of an asset where private use is not significant
  • 1 mobile phone per employee that is in the company name

Living Accommodation

If employees have been provided with living accommodation that is owned or rented by the company please let us know and we will request further details.

Relocation Expenses

If any expenses have been paid by the company for the relocation of an employee above £8,000 then please provide details of the amounts paid for each employee.

Mobile Phones

As above 1 mobile phone provided per employee that is in the company name is not a taxable benefit.

If you reimburse any calls that have been made on an employees personal mobile phone then this is a taxable benefit and we will need details of the amounts paid for each employee.

Trivial Benefits

There is a statutory exemption for ‘trivial benefits’ given to an employee.

A trivial benefit is one that:

  • Costs £50 or less to provide (including VAT)
  • If it is a retail store voucher that is not convertible into cash
  • Isn’t a reward for service e.g. Birthday, Christmas, Wedding anniversary etc.
  • Isn’t in the terms of the employee’s contract
  • Is not reimbursed

There is no limit on the number of trivial benefits that can be provided in the tax year for an employee.

Where the individual is a director of a close company the total value of trivial benefits cannot exceed £300 per annum.

Examples of common trivial benefits are:

Ø  Christmas Hampers

Ø  Fireworks

Ø  Vouchers for high street stores

Ø  Tickets to the theatre

Ø  Tickets to a football game

Ø  Wedding Anniversary champagne

 

How are these benefits reported?

Details of these benefits have to be entered into a software which will generate forms P11D & P11D(b).

A P11D is generated for each employee and needs to be distributed to each individual by the employer by 6th July 2020, the amount that is reported will be included in the employees’ tax code which will be updated once HMRC have received the submission.

A P11D(b) is generated for each company which reports the total taxable benefits from all employees. This has to be submitted to HMRC by 6th July 2020. There will be Class 1A NIC due on this amount which is calculated at 13.8%. This is payable by the employer and must be paid by 19th July 2020 (if payment is made via cheque) or by 22nd July 2020 if payment is being made electronically.

 

If you have provided any of the above items or have any queries then please contact us and we will be able to inform you whether anything needs to be reported to HMRC.

(E) enquiries@advaloremgroup.uk or (T) 01908 219100

 

Filed Under: Blog, News & Insights, Tax Tagged With: Tax

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