October

4 October 2018

Welcome to the Exceed monthly newsletter.

  • Childcare and compensation claims
  • Paper Self-Assessment return deadline
  • CGT record keeping
  • Receipts to cover certain expenses to be abolished?
  • Self-employed Class 2 NIC changes cancelled
  • Alert for VAT registered traders
  • Late night taxis for employees
  • Do capital gains affect tax credit claims?
  • Advice for exporters if 'no deal' Brexit
  • Advice for importers if 'no deal' Brexit
  • Help-to-Save scheme launched
  • Date announced for Autumn Budget 2018
  • Tax Diary September/October 2019
  •  
    Childcare and compensation claims Income Tax

    The Tax-Free Childcare Scheme (TFCS) helps support working families with their childcare costs. The scheme provides for a government top-up on parental contributions. For every 80p in the £1 contributed by parents, an additional 20p or 20% is funded by Government up to a maximum total of £10,000 per child per year. This gives parents an annual savings of up to £2,000 per child (and up to £4,000 for disabled children until the age of 17) in childcare costs.

    The scheme is open to all qualifying parents, including the self-employed and those on a minimum wage. The scheme is also available to...

     Read more  


     
    Paper Self-Assessment return deadline Income Tax

    The 2017-18 tax return deadline for taxpayers who continue to submit paper Self-Assessment returns, is 31 October 2018. Late submission of a Self-Assessment return will become liable to a £100 late filing penalty. The penalty usually applies even if there is no liability or if any tax due is paid in full by 31 January 2019.

    We would recommend that anyone still submitting paper tax returns, consider the benefits of submitting the returns electronically and benefit from an additional three months (until 31 January 2019) in which to submit a return.

    Taxpayers with certain underpayments in the...

     Read more  


     
    CGT record keeping 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  


     
    Receipts to cover certain expenses to be abolished? Payroll

    A new measure to remove the requirement for employers to check receipts for expense claims made by employees using the HMRC benchmark scale rates or overseas scale rates is to be introduced. The change will be included in the Finance Bill 2018-19.

    The benchmark scale rates can be used by employers to reimburse staff for subsistence expenses when they are travelling on business away from their normal workplace. HMRC lists maximum rates, but employers can choose to pay less if they so wish. The new legislation will also place the concessionary accommodation and subsistence overseas scale rates...

     Read more  


     
    Self-employed Class 2 NIC changes cancelled National Insurance

    In a surprise move, the government has announced that, following a lengthy consultation, the planned abolition of Class 2 National Insurance Contributions (NIC) will not take place in the current parliament. The announcement was made in a written statement by Robert Jenrick MP, the Exchequer Secretary to the Treasury on 6 September 2018. The withdrawal of Class 2 NICs was originally due to take place from April 2018, but had been delayed until April 2019.

    The written statement cited concerns relating to the impact on self-employed individuals with low profits. They would have suffered an...

     Read more  


     
    Alert for VAT registered traders Value Added Tax

    The deadline for businesses with a turnover above the VAT threshold to keep digital records and provide regular digital updates to HMRC for VAT purposes using Making Tax Digital (MTD) is fast approaching. From 1 April 2019, businesses with a turnover above the VAT threshold (currently £85,000) will be required to keep their records digitally (initially for VAT purposes only).

    For VAT accounting periods starting on or after 1 April 2019, businesses will need to provide their VAT return information directly to HMRC using MTD-compatible software. The deadlines for sending VAT returns and making...

     Read more  


     
    Late night taxis for employees Employee Benefits

    There is no specific requirement for employers to provide employees with transport home. Nevertheless, an employer has a duty of care to their employees, which means that they should take all steps that are reasonably possible to ensure their health, safety and wellbeing.

    Ensuring that an employee gets home safely during unsocial working hours could fall within the employers 'duty of care'. Often in these situations an employer will pay for a late night taxi for an employee to travel home from work. This can also happen where there is a breakdown in a car sharing arrangement.

    There is usually...

     Read more  


     
    Do capital gains affect tax credit claims? Tax credits

    There are special income eligibility rules for making tax credit claims. The amount and type of income you (and your partner for a joint claim) have will affect how much tax credits you might get. There is a common misconception that the only figure that needs to be provided to HMRC when applying for / renewing a tax credit claim is employment income.

    However, any taxable income from savings and investments must also be taken into account. This includes pension income, investment income, property income, foreign income and notional income. If the total of these sources of income is £300 or...

     Read more  


     
    Advice for exporters if 'no deal' Brexit European Union

    We have already examined matters that must be addressed by those importing goods to the UK if there is a 'no deal' Brexit (See previous articles). In this article we will look at the impact this would have on UK businesses exporting goods to the EU, currently known as intra-EU dispatches.

    A no-deal Brexit would see tariffs imposed on goods that the UK sends to the EU.

    It is also important to remember that the deadline for the UK and EU to make a deal is much closer than March 2019 as any agreement will need to be ratified by both the UK and the EU before that date. If the UK leaves the EU...

     Read more  


     
    Advice for importers if 'no deal' Brexit General

    The UK is set to leave the EU on 29 March 2019 and as things currently stand, it would seem that we are no closer to reaching a negotiated withdrawal agreement. The chances of Britain leaving the EU without any working agreement, known as a 'no deal' Brexit is in some ways looking increasing likely, and certainly cannot be ignored.

    The government remains confident that a deal will be reached but accepts that it would be remiss not to consider the potential scenario where there is 'no deal' outcome at the end of March 2019. With this in mind, HMRC has published some fairly detailed guidance for...

     Read more  


     
    Help-to-Save scheme launched General

    The new Help to Save scheme for people on low incomes was officially opened with effect from 12 September 2018 following an 8-month trial. The new 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 (though note that payments from Universal Credit are not considered to be part...

     Read more  


     
    Date announced for Autumn Budget 2018 General

    The Chancellor has announced that the Autumn Budget 2018 will be held on Monday, 29 October 2018. The announcement was made on the GOV.UK website. The Treasury said the Budget will set out the government’s plan to build a stronger, more prosperous economy, building on the recent Spring Statement and last year’s Budget.

    Earlier this month the Chancellor had stated before the House of Lords Economic Affairs Committee that he was not yet in a position to announce a date for the Autumn Budget 2018 saying it was 'difficult to fix'. The October date means that the Autumn Budget will take place before...

     Read more  


     
    Tax Diary September/October 2019 Tax Diary

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

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

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

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

    31 October 2018 – Latest date you can file a paper version of your 2018 self-assessment tax return.

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

     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.