December

6 December 2018

Welcome to the Exceed monthly newsletter.

  • Directors’ loans – tax consequences for your company
  • Child Benefit penalties under review
  • Directors’ loans - tax consequences for the director
  • What is a Personal Tax Account?
  • Claim tax relief for job related expenses
  • When to report and pay Capital Gains Tax
  • ISAs and Inheritance Tax
  • Inheritance Tax if you live abroad
  • VAT reverse charge construction industry
  • Business rates support for the High Street
  • Options if you are owed money
  • Finance (No.3) Bill published
  • Claim £2,500 broadband voucher
  • Tax Diary December 2018/January 2019
  •  
    Directors’ loans – tax consequences for your company Corporation Tax

    There are tax consequences for both companies and directors relating to the issue of director’s loans. We will examine below some of the implications if a company facilitates loans to a director. A director’s loan comprises not just an actual loan, but can also include other payments made by the company for the personal benefit of a director such as personal expenses paid for on a company credit card. These amounts are usually posted to a director’s loan account (DLA).

    When and if your company has to tell HMRC about a director’s loan, depends on when the loan is repaid. Any company loans to...

     Read more  


     
    Child Benefit penalties under review Income Tax

    The High Income Child Benefit Charge (HICBC) came into force in January 2013. It applies to taxpayers whose income exceeds £50,000 in a tax year and who are in receipt of child benefit. The charge claws back the financial benefit of receiving child benefit either by reducing or removing the benefit entirely.

    HMRC has confirmed that it is reviewing cases where a failure to notify penalty was issued for the tax years 2013-14, 2014-15, and 2015-16, to taxpayers who did not register for HICBC. HMRC will review cases for these years and consider issuing penalty refunds to taxpayers that had a...

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    Directors’ loans - tax consequences for the director Income Tax

    An overdrawn director's loan account is created when a director (or other close family members) 'borrows' money from their company. Many companies, particularly 'close' private companies, pay for personal expenses of directors using company funds. Where these payments do not form part of a director’s remuneration, they are usually posted to the director’s loan account (DLA).

    The DLA can represent cash drawn by a director as well as other drawings by a director (including personal bills paid by the company). Whilst it is quite common for small company accounts to show an overdrawn position on a...

     Read more  


     
    What is a Personal Tax Account? Income Tax

    Personal Tax Accounts (PTAs) were launched in 2015 and works as an online resource to allow taxpayers to review and update their details in real time. For many routine requests and services using the PTA can avoid having to phone or write to HMRC.

    Every individual in the UK that pays tax has a PTA, but taxpayers must sign up in order to access and use the service. This can be done using either the Government Gateway or a GOV.UK Verify account.

    HMRC has confirmed that the following services are currently available on the PTA:

    • check your Income Tax estimate and tax code;
    • fill in, send and view a...
     Read more  


     
    Claim tax relief for job related expenses Income Tax

    Employees who use their own money to buy things they need for their job can sometimes claim tax relief for the associated costs. It is usually only possible to claim tax relief for the cost of items used solely for their work.

    There is no tax relief available if your employer pays you back in full for an item you have bought for work. In addition, you cannot claim tax relief if your employer has provided you with a suitable item, but you want a different or upgraded model. For example, you are provided with a mobile phone for your work, but you want to use a newer and more advanced model and...

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    When to report and pay Capital Gains Tax Capital Gains Tax

    The annual Capital Gains Tax (CGT) exemption for individuals is £11,700 for 2018-19. A husband and wife each benefit from a separate exemption. Same-sex couples who acquire a legal status as civil partners are treated in the same way as married couples for CGT purposes.

    CGT is normally charged at a simple flat rate of 20% and this applies to most chargeable gains made by individuals. If taxpayers only pay basic rate tax and make a small capital gain, they may only be subject to a reduced rate of 10%. Once the total of taxable income and gains exceed the higher rate threshold, the excess will...

     Read more  


     
    ISAs and Inheritance Tax Inheritance Tax

    New rules were introduced by the Government in 2015 that allow for the spouse or civil partner of a deceased ISA saver to benefit from additional ISA benefits. Under the rules, if an ISA saver in a marriage or civil partnership dies, their spouse or civil partner inherits their ISA tax advantages.

    Surviving spouses are able to save an additional amount in an ISA or ISAs up to the value of their spouse or civil partner’s ISA savings at the date of death. This additional allowance does not count against the surviving spouse’s/civil partner’s annual ISA subscription limit. These measures were put...

     Read more  


     
    Inheritance Tax if you live abroad Inheritance Tax

    The Inheritance Tax rules can be difficult to fathom when an expat or another person with connections to the UK living outside the country dies. The liability to Inheritance Tax in the UK depends primarily on the domicile of the deceased. If the deceased is deemed to be domiciled in the UK for tax purposes, they will generally be subject to Inheritance Tax in the UK regardless of where they died. It is important to note that this is different to being classed as a non-resident for tax purposes.

    HMRC will treat any person who has been resident in the UK for more than 15 of the previous 20 years...

     Read more  


     
    VAT reverse charge construction industry Value Added Tax

    A change to the VAT rules first announced at Budget 2018 will come into effect from 1 October 2019. This change will make the supply of construction services between construction or building businesses subject to the domestic reverse charge. The reverse charge will only apply to supplies of specified construction services to other businesses in the construction sector.

    This move is part of the government’s measures to combat what is known as missing trader fraud in the construction sector, where VAT due to HMRC is never paid by the subcontractor. This type of fraud has been common in other...

     Read more  


     
    Business rates support for the High Street Business

    The Chancellor announced a number of measures to help many failing high streets up and down the country, as they face a real threat to their existence as footfall continues to be impacted. The growing use of online shopping has caused many large retailers to close down or reduce the number of stores they run, especially in smaller towns and villages across the country.

    One of the measures introduced by the Chancellor, has been designed to help provide new rates relief for smaller retailers based in England. These small retailers are at the heart of many high streets and will grow ever more...

     Read more  


     
    Options if you are owed money Business

    It can be very difficult for small businesses to know what options are available when their customers owe them money. This can arise when business owners are uncomfortable chasing a debt for fear of upsetting their customer and losing valuable business.

    The Government has been working to tackle this issue as nearly a quarter of UK businesses report that late payments are a threat to their survival.

    After a business has continued to chase payment unsuccessfully, there are a number of options available. This includes: using a mediation service, initiating court action, sending a statutory demand...

     Read more  


     
    Finance (No.3) Bill published General

    As expected, the government published Finance (No.3) Bill on Wednesday, 7 November 2018. The Bill is so named as it is the third Finance Bill in the current special two-year session of Parliament. The Bill contains the legislation for many of the tax measures announced by the Government at Autumn Budget 2017 some of which have since been the subject of further consultation. The Bill also includes other measures that were first announced in the recent autumn Budget on 29 October 2018.

    The Bill extends to some 315 pages whilst the accompanying explanatory notes add another 266 pages. The Bill is...

     Read more  


     
    Claim £2,500 broadband voucher General

    The Gigabit Broadband Voucher Scheme was launched in March this year to help small businesses and local communities connect and gain access to full fibre superfast broadband speeds. The vouchers can be used by small businesses and the local communities surrounding them. The scheme is part of a series of Government initiatives to build nationwide full fibre broadband coverage by 2033.

    The Government invested £67 million in the scheme that was expected to run until March 2021. However, the high take-up of the vouchers, has meant that the scheme is likely to close by March 2020 or even earlier if...

     Read more  


     
    Tax Diary December 2018/January 2019 Tax Diary

    1 December 2018 - Due date for Corporation Tax due for the year ended 29 February 2018.

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

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

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

    30 December 2018 - Deadline for filing 2017-18 self-assessment tax returns online to include a claim for under payments to be collected via tax code in 2019-20.

    1 January...

     Read more  


     

     



    Best wishes,

    The Exceed Team
    Exceed CA Limited     Bank House, 81 St Judes Road, Englefield Green, Surrey, TW20 0DF, United Kingdom
    Tel (UK): +44 (0) 1784 439 955  |  Tel (World): 0370 060 0996  |   |  www.exceedca.com

    In preparing and maintaining this newsletter every effort has been made to ensure the content is up to date and accurate. However, laws and regulations change continually and unintentional errors can occur and the information may be neither up to date or accurate. Exceed CA Limited makes no representation or warranty (including liability towards third parties), express or implied, as to the accuracy, reliability or completeness of the information published in this newsletter. The articles shared with you in this email are intended to inform rather than advise. If you do or do not take action as a result of reading this newsletter, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.