November

15 November 2018

Welcome to the Exceed monthly newsletter.

  • Autumn Budget 2018 – Income Tax Rates & Allowances
  • Autumn Budget 2018 – Annual Investment Allowance
  • Autumn Budget 2018 – Private Residence Relief
  • What are National Insurance credits?
  • Autumn Budget 2018 - VAT registration and deregistration thresholds
  • Tax to pay if you exceed the annual pensions allowance
  • Anti-money laundering rules
  • Autumn Budget 2018 - Minimum wage increases
  • The end of late payments by large organisations?
  • Genuine messages from HMRC
  • New style £50 note to be introduced
  • Government grants towards home electric charging points
  • Help to Save scheme
  • Tax Diary November/December 2018
  •  
    Autumn Budget 2018 – Income Tax Rates & Allowances Income Tax

    The Chancellor has confirmed that from 2019-20 the personal allowance will increase to £12,500 (an increase from the current £11,850 allowance) and the basic rate limit to £37,500. As a result, the higher rate threshold will increase to £50,000 from April 2019.

    These increases deliver on the government’s manifesto commitment to increase the basic personal allowance to £12,500 and the higher rate threshold to £50,000 by the end of the current Parliament a year ahead of schedule. The Chancellor also set the personal allowance at £12,500 and basic rate limit at £37,500 for 2020-21 and confirmed...

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    Autumn Budget 2018 – Annual Investment Allowance Capital allowances

    The Chancellor’s announcement of a temporary five-fold increase in the Annual Investment Allowance (AIA) will be welcomed by many small and medium sized businesses looking to incur significant capital expenditure on plant and machinery.

    The Annual Investment Allowance (AIA) was permanently set at £200,000 for all qualifying expenditure on or after 1 January 2016. The announcement by the Chancellor provides for a temporary increase in the allowance to £1 million for a 2 year period from 1 January 2019 to 31 December 2020.

    The AIA allows for 100% first year tax relief for qualifying expenditure...

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    Autumn Budget 2018 – Private Residence Relief Capital Gains Tax

    As a general rule, there is no Capital Gains Tax (CGT) on a property which has been used wholly as a main family residence. This relief from CGT is commonly known as Private Residence Relief. Conversely, an investment property that has never been used as a main residence will not qualify.

    Two changes to the way Private Residence Relief works were announced as part of the Budget measures. The Chancellor confirmed that two ancillary reliefs are to be amended, potentially reducing the amount of CGT relief available on the sale of a relevant property.

    1. Currently, if a property has been occupied at...
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    What are National Insurance credits? National Insurance

    National Insurance credits can help qualifying applicants to fill gaps in their National Insurance record. This can assist taxpayers to build up the amount of qualifying years of National Insurance contributions which can increase the amount of benefits a person is entitled to, such as the State Pension.

    For example, National Insurance credits may be available to:

    • those looking for work,
    • who are ill, disabled or on sick pay,
    • on maternity or paternity leave,
    • caring for someone or
    • on jury service.

    Depending on the circumstances, National Insurance credits may be applied automatically or an...

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    Autumn Budget 2018 - VAT registration and deregistration thresholds Value Added Tax

    The Chancellor confirmed in his Budget speech that the taxable turnover threshold that determines whether businesses should be registered for VAT, will be frozen at £85,000 for a further 2 years from 1 April 2020 until 31 March 2022. The taxable turnover threshold that determines whether businesses can apply for deregistration will also be frozen at the current rate of £83,000 for the same time period.

    Businesses are required to register for VAT if they meet either of the following two conditions:

    1. At the end of any month, the value of the taxable supplies made in the past 12 months or less has...
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    Tax to pay if you exceed the annual pensions allowance Pension

    The annual allowance for tax relief on pensions has been fixed at the current level of £40,000 since 6 April 2014. The previous allowance was £50,000 and prior to 6 April 2011, the annual allowance was as high as £255,000.

    The annual allowance is further reduced for high earners. Those with income in excess of £150,000 will usually have their allowance tapered. For every complete £2 their income exceeds £150,000 the annual allowance is reduced by £1, up to a maximum reduction of £30,000 for individuals whose income is over £210,000.

    The reduction in the annual allowance over recent years has...

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    Anti-money laundering rules Corporate Governance & Regulation

    The Money Laundering Regulations (MLR) are designed to protect the UK financial system and put in place certain controls to prevent businesses being used for money laundering by criminals and terrorists.

    Many businesses are monitored by the Financial Conduct Authority (FCA) or certain professional bodies. However, businesses that HMRC is responsible for supervising should be aware of the requirement to register with HMRC and the penalties for not doing so.

    HMRC is responsible for supervising the following seven business sectors:

    • Money Service Businesses (MSBs)
    • Trust or Company Service Providers...
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    Autumn Budget 2018 - Minimum wage increases Employment Law

    The Chancellor used his Budget speech to confirm that increased National Minimum Wage (NMW) and National Living Wage (NLW) rates are due to come into effect on 1 April 2019.

    The NLW first came into effect on 1 April 2016, and is the minimum hourly rate that must be paid to those aged 25 or over. From 1 April 2019 the National Living Wage will increase by 38p to £8.21. This represents an increase of almost 5%.

    The hourly rate of the NMW (for 21-24 year olds) will increase to £7.70 (a rise of 32p). The rates for 18-20 year olds will increase to £6.15 (a rise of 25p) and the rate for workers...

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    The end of late payments by large organisations? General

    The government has been trying to combat the widespread issue of large businesses abusing their position by making late payments to small businesses. This initiative has included the launch of the voluntary Prompt Payment Code (PPC) in April 2017 where over 2,000 signatories have committed to the fair and equal treatment of payments to suppliers including to smaller businesses. The PPC and other measures have helped reduce the amount owed to smaller businesses in late payments.

    However, this remains an important issue that needs to be tackled as nearly a quarter of UK businesses report that...

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    Genuine messages from HMRC General

    HMRC has issued an updated version of their online guidance on Genuine HMRC contact and recognising phishing emails and texts. The guidance provides a current list of genuine messages from HMRC. This includes email messages, text messages and telephone contacts from HMRC.

    HMRC is currently carrying out compliance checks for midsized businesses, charities and public bodies by way of a compliance check interview over the phone. If you are unsure if a request is genuine you can ask the HMRC staff member to send an email while you are on the call to confirm their identity. Their email address...

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    New style £50 note to be introduced General

    In a joint statement issued by HM Treasury and the Bank of England it had been confirmed that the £50 note is to continue to be part of the UK currency. The new £50 note will be designed and printed on polymer, a thin flexible plastic that includes a number of important new security features. Polymer notes are cleaner, safer and stronger than existing paper notes.

    We have already witnessed the launch of new £5 and £10 notes. A new £20 note featuring J.M.W Turner is expected to enter circulation in 2020. The new £50 note will follow at a future date.

    There had been speculation that the £50 note...

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    Government grants towards home electric charging points General

    Over the last number of years, the government has announced a raft of measures to encourage the use of cleaner vehicles and drive the growth of the electric car sector. Some of these measures specifically look at making more electric vehicle charging points available at workplaces and homes across the UK.

    The Electric Vehicle Homecharge Scheme (EVHS) is provided by the Office for Low Emission Vehicles (OLEV), and offers a grant of up to a 75% contribution towards the cost of installing one chargepoint up to a maximum of £500. Using a chargepoint is safer and quicker than a conventional plug...

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    Help to Save scheme General

    The Help to Save scheme for people on low incomes was officially launched in September 2018 following an 8-month trial. The scheme allows those in work entitled to Working Tax Credit and in receipt of Working Tax Credits or Child Tax Credits, to save up to £50 a month for two years and receive a 50% government bonus.

    The scheme is also open to UK residents who are claiming Universal Credit and have a household or individual income of at least £542.88 for their last monthly assessment period. Payments from Universal Credit are not considered to be part of household income.

    Payments under the...

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    Tax Diary November/December 2018 Tax Diary

    1 November 2018 - Due date for Corporation Tax due for the year ended 31 January 2018.

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

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

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

    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...

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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
    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.