August

2 August 2018

Welcome to the Exceed monthly newsletter.

  • HMRC security deposit regime to be extended
  • 1 million couples can still claim £900 tax refund
  • Claiming Income Tax if you have stopped work
  • Rent-a-room relief to be modified
  • Will I pay tax when coming to the UK?
  • What is Business Asset Rollover Relief?
  • Beneficiaries of tax exempt pension benefits to be extended
  • A round up of some non-taxable payments and benefits
  • Low emission lorries to pay lower levies
  • Spousal tax reliefs for unmarried couples?
  • New points-based late filing penalties
  • How to challenge your Council Tax listing
  • Tax Diary August/September 2018
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    HMRC security deposit regime to be extended Corporation Tax

    The security deposit legislation is to be extended to both Corporation Tax and Construction Industry Scheme (CIS) deductions from April 2019. The security deposit regime allows HMRC to require security from high-risk businesses where there is a serious risk that taxes owed will not be paid.

    At present HMRC’s security deposit powers only apply to VAT, PAYE and National Insurance Contributions, Insurance Premium Tax (IPT) and some environmental and gambling taxes. This measure will give HMRC the power to require securities in relation to Corporation Tax and CIS deductions.

    There are many reasons...

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    1 million couples can still claim £900 tax refund Income Tax

    The marriage allowance allows couples to share part of their personal tax-free allowance in certain circumstances. The marriage allowance is available to married couples and those in a civil partnership where one partner has an unused personal allowance and their spouse/partner only pays Income Tax at the basic rate.

    HMRC has published a press release to remind eligible taxpayers to apply for the allowance and benefit from a tax refund of up to £900. Although 3 million couples have already applied for the allowance, it is estimated that there are still a further 1 million married and civil...

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    Claiming Income Tax if you have stopped work Income Tax

    HMRC issues guidance that covers what you need to do if you stopped work. The guidance covers the main reasons that you might have stopped work, for example, being made redundant or leaving your job.

    If you have been made redundant then you may have overpaid tax as a result of your redundancy payment. HMRC may in some cases refund you any overpaid tax before the end of the appropriate tax year. A claim can be made using form P50 if you are not claiming benefits and not going to work for at least 4 weeks.

    However, you can’t get a tax refund straight away if you are receiving any of the following:

    • ...
     Read more  


     
    Rent-a-room relief to be modified Income Tax

    The publication of the draft Finance Bill 2018-19 includes legislation to change the way the rent-a-room relief scheme works. Following last year's Budget, a consultation was launched by HM Treasury to examine the design of the rent-a-room scheme.

    When the relief was first launched it was intended to be used where one bedroom in a house was rented out to a lodger for medium to long-term lets, however this has changed as more and more people rent out rooms online for short term lets using property portals and apps (such as AirBnB).

    The new legislation will introduce a new test that must be...

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    Will I pay tax when coming to the UK? Income Tax

    The statutory resident test (SRT) is used to determine if someone is resident in the UK for tax purposes when coming to the UK. Historically, residence in the UK was determined by being in the UK in excess of 182 days in any tax year (6 April to 5 April) or by being resident in the UK for an average of 91 days in any tax year, taking the average of the tax year in question and the three previous tax years.

    This changed with the introduction of the SRT from 6 April 2013. The SRT consists of the three separate tests which are intended to provide greater certainty as to a taxpayers residency...

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    What is Business Asset Rollover Relief? Capital Gains Tax

    Business Asset Rollover Relief allows taxpayers to delay paying Capital Gains Tax (CGT) on gains when they sell or dispose of certain assets and use all or part of the proceeds to buy new assets. The relief means that the CGT due on the gain of the old asset is postponed. The amount of the gain is effectively rolled over into the cost of the new asset and any CGT liability is deferred until the new asset is sold.

    Where only part of the proceeds from the sale of the old asset is used to buy a new asset, a partial rollover claim can be made. It is also possible to claim for provisional rollover...

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    Beneficiaries of tax exempt pension benefits to be extended Employee Benefits

    The draft Finance Bill includes a new measure that will help modernise the tax treatment of employer paid premiums for the provision of death in service life assurance products for their employees.

    Currently, these premiums are only tax-exempt if the named beneficiary is a member of the employee’s family, or a member of their household. This includes the employee's spouse or civil partner, parents, children and members of the employee’s household (such as domestic staff). As the law stands, if the beneficiary is not a member of the employee’s family or household, the premiums paid by the...

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    A round up of some non-taxable payments and benefits Employee Benefits

    Although the government is continually clamping down on non-taxable payment and benefits for employees, there remains an eclectic list of expenses that are tax exempt.

    Some of the non-taxable benefits include the following:

    • Annual parties. An annual Christmas party or other annual event offered to staff generally is not taxable on those attending, provided that the average cost per head of the function does not exceed £150. There are qualifying criteria that must be followed to ensure that there will be no taxable benefit charged to employees.
    • Equipment for disabled employees. Benefits provided...
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    Low emission lorries to pay lower levies HMRC notices

    The government has confirmed plans to introduce a lower rate of the HGV road user levy for lorries that meet the latest Euro VI emissions standards. This measure is intended to incentivize vehicle operators to move towards newer, cleaner vehicles and to reduce emissions from HGVs and improve air quality. Lorries which meet the Euro VI standard produce 80% less nitrogen oxide emissions than many older vehicles.

    Lorries that do not meet the latest emissions standard will pay a higher rate of the HGV road user levy. The changes are set to come into force on 1 February 2019. The levy was first...

     Read more  


     
    Spousal tax reliefs for unmarried couples? General

    In a unanimous decision, the Supreme Court has decided that the law preventing opposite sex couples from entering into a civil partnership breaches the European Convention on Human Rights (ECHR). The appellants in this long running case are an opposite sex couple with a conscientious objection to marriage.

    The crux of this case centred on the issue that when the law was changed in 2013 to allow same-sex couples to marry, the older civil partnership rules remained the same. This meant that only two people of the same sex could enter into a civil partnership whilst both same-sex and opposite sex...

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    New points-based late filing penalties General

    The Finance Bill 2018-19 draft legislation includes a new measure to introduce a points-based penalty system for certain regular (e.g. monthly, quarterly and annual) returns that are filed late. The introduction of a points system was first announced at Autumn Budget 2017 and will operate in conjunction with HMRC's Making Tax Digital (MTD) initiative.

    The changes will initially apply to regular VAT and Income Tax self-assessment obligations. Corporation Tax late filing penalties are not included within the scope of the current proposed legislation. However, it is the government's intention to...

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    How to challenge your Council Tax listing General

    The Valuation Office Agency (VOA) is a government body in England and Wales and an executive agency of HMRC. The Agency values properties for the purpose of Council Tax and for non-domestic rates in England and Wales. The council tax bands were set on 1 April 1991 for England, and on 1 April 2003 for Wales and range from Band A - F.

    If you believe that your council tax listing is incorrect, you can challenge this with the VOA. A new version of the Council Tax challenge form to submit to your council tax listing has recently been published. This form is used if you believe that your council tax...

     Read more  


     
    Tax Diary August/September 2018 Tax Diary

    1 August 2018 - Due date for Corporation Tax due for the year ended 31 October 2017.

    19 August 2018 - PAYE and NIC deductions due for month ended 5 August 2018. (If you pay your tax electronically the due date is 22 August 2018)

    19 August 2018 - Filing deadline for the CIS300 monthly return for the month ended 5 August 2018.

    19 August 2018 - CIS tax deducted for the month ended 5 August 2018 is payable by today.

    1 September 2018 - Due date for Corporation Tax due for the year ended 30 November 2017.

    19 September 2018 - PAYE and NIC deductions due for month ended 5 September 2018. (If you pay your...

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    Best wishes,

    The Exceed Team
    Exceed CA Limited     Bank House, 81 St Judes Road, Englefield Green, Surrey, TW20 0DF, United Kingdom
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