News
It’s important to be up-to-date, HMRC is constantly evolving.
We continuously research and update our knowledge. As part of that, we share our insights and findings. Read our news articles; we hope you will find useful information.
If you have any questions or enquires, please don’t hesitate to get in touch.
Latest News
Tax benefits of being married
Since the Valentines day is only a few days away, I thought it is the perfect time to highlight some of the tax advantages of being married. Inheritance Tax (‘IHT’) IHT is charged at 40pc on estates that are worth more than £325,000. If you are married or in a civil...
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Businesses urged to prepare for post-Brexit Customs Declarations
HMRC is urging VAT-registered UK businesses which trade exclusively with the EU to be prepared for a no deal Brexit. In a letter sent to 145,000 affected businesses, HMRC explains changes to Customs, Excise and VAT procedures in the ‘unlikely event’ that the UK leaves...
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MTD for VAT – pilot extended to all eligible businesses
HMRC has extended its Making Tax Digital for VAT (MTDfV) pilot scheme to all eligible businesses. For most businesses, compliance with the regulations is mandated for VAT return periods beginning on or after 1 April 2019. However, MTDfV for some ‘more complex’...
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Budget Key Tax Highlights
The Chancellor Philip Hammond presented his second Autumn Budget on Monday 29 October 2018. In his speech he stated that ‘austerity is coming to an end - but discipline will remain’. He also promised a ‘double deal dividend’ if the Brexit negotiations are successful...
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HMRC warning: time to declare offshore assets
HMRC is warning that taxpayers could face penalties if they fail to declare their income on foreign assets before new ‘Requirement to Correct’ legislation comes into force. HMRC is urging UK taxpayers to come forward and declare any foreign income or profits on...
read more Making Tax Digital for VAT
HMRC has published further information on Making Tax Digital for VAT (MTDfV). The VAT notice sets out some further details of the MTDfV regime, which will ultimately require taxpayers to move to a fully digital tax system. Under the rules, businesses with a taxable...
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The Insolvency Service has urged individuals saving for retirement to protect their pension pots from criminals and ‘negligent trustees'.
Research carried out by the Service found that criminals use a range of tactics to convince savers to part with their funds, including persuading individuals to access their pension and invest in unregulated schemes.
Pension scam victims lost an average of £91,000 to criminals in 2018, according to Financial Conduct Authority (FCA) research. Criminals often use cold-calls and offers of free pension reviews to convince their victims to comply.
The Insolvency Service has urged savers to be wary of calls that come out of the blue; seek financial advice before altering their pension arrangements or making investments; and not be pressured into making decisions about their pension.
Consumer Minister Kelly Tolhurst said:
'If you are approached to make an investment from your pension, always do your homework and seek independent advice, if necessary, to help you make an informed decision.
'The government continues to work closely with the Insolvency Service who are working to clamp down on rogue companies targeting vulnerable people.'
Since the Valentines day is only a few days away, I thought it is the perfect time to highlight some of the tax advantages of being married.
Inheritance Tax (‘IHT’)
IHT is charged at 40pc on estates that are worth more than £325,000. If you are married or in a civil partnership, all assets can be passed on to a surviving spouse without any IHT being applied.
The nil rate band of the first deceased can also be transferred to the surviving spouse. When the second spouse dies, both partners’ allowance can be utilised when passing assets on to the next generation. This means married couples can leave £650,000 to their children before IHT is applied.
Wedding gifts to the happy couple from friends and family can be tax effective. Parents can each gift up to £5,000, and grandparents up to £2,500, without facing any tax implications
Capital Gains Tax
Each individual is entitled to an annual Capital Gains Tax allowance for each tax year, currently this is £11,700. Married couples can transfer capital assets between them without giving rise to CGT liability, and can take advantage of both of their annual allowances. This is also useful where one partner pays tax at a higher tax rate than the other. It is possible to transfer assets such as property which generates an income, from the higher tax-rate taxpayer to the lower rate taxpayer.
Income tax
The marriage tax allowance started on 6 April 2015 allows married couples and civil partners to transfer up to 10% of their personal income tax allowance to their partners. This can reduce tax liability up to £238. This will not benefit couples where one pays tax at a higher rate, or both are using their personal tax free personal allowances.
Pension
A spouse is eligible for any widow's pension if their husband or wife dies, this does not happen automatically when the couple aren't married.
Contact us if you have any tax questions, or if you are looking for an accountant, quote VS2019 to receive 10% discount on your first year's accounting fees by appointing us as your accountant.
HMRC is urging VAT-registered UK businesses which trade exclusively with the EU to be prepared for a no deal Brexit.
In a letter sent to 145,000 affected businesses, HMRC explains changes to Customs, Excise and VAT procedures in the ‘unlikely event’ that the UK leaves the EU without a Brexit deal.
HMRC’s letter advises businesses to take three actions ahead of ‘Brexit Day’ on 29 March 2019:
Register for a UK Economic Operator Registration and Identification (EORI) number.
Decide whether a customs agent will be used to make import and/or export declarations, or whether declarations will be made by the business via software.
Contact the organisation responsible for moving goods (for example, the haulage firm) in order to ascertain whether the business will need to supply additional information to complete safety and security declarations, or whether it will need to submit these declarations itself.
A report jointly published by HMRC and the National Audit Office (NAO) recently revealed that approximately 55 million customs declarations are currently made by British businesses every year. This figure may rise to 255 million when the UK leaves the EU.
HMRC intends to write to businesses in the future in order to instruct them on any additional actions they will need to take, and when. We will keep you informed of developments.
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