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
The State Pension – will you qualify?
To receive the new state pension you have to have paid a minimum of 10 years National Insurance Contributions (NIC). To receive the full state pension, you need to have paid in for at least 35 qualifying years. Qualifying years don’t have to be paid consecutively, so...
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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...
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Xitax Accounting Solutions
A group of MPs has called on the government to tax the profits of social media businesses.
The All Party Parliamentary Group (APPG) on Social Media and Young People's Mental Health and Wellbeing recently published a report which outlined the impact of social media on the health of young people.
The APPG has suggested creating a Social Media Health Alliance, which would be funded by a 0.5% tax on the profits of social media companies. MPs hope that the money would be used to fund research and help 'draw up clearer guidance' on the impact of social media on health and wellbeing.
The government has delayed its planned increase in probate fees indefinitely.
The delay has been attributed to 'pressure on Parliamentary time' caused by Brexit debates and votes.
The increase in fees had been set to take effect from 1 April 2019, but HMRC recently made the decision to postpone the rise. Under government plans, the proposed probate fees are as follows:
Value of estate & proposed fee
Up to £50,000 or exempt from requiring a grant of probate - £0
£50,000 to £300,000 - £250
£300,000 to £500,000 - £750
£500,000 to £1m - £2,500
£1m to £1.6m - £4,000
£1.6m to £2m -£5,000
Above £2m - £6,000
While the changes are pending, a temporary process is in place for applying for probate, and estates will not incur the higher fees if applications are made before the fee changes take effect.
A spokesperson for HMRC said:
'Probate registries will accept applications before processing by us as long as they are assured the inheritance tax (IHT) forms from us will be coming shortly.
'Our processes aren't changing, it's just that probate registries will be willing to accept applications before our processing is done when normally it would need to be after.'
The forms P11D which report details of benefits and some expenses provided to employees and directors for the year ended 5 April 2019, are due for submission to HMRC by 6 July 2019. The process of gathering the necessary information can take some time, so it is important that this process is not left to the last minute.
Employees pay tax on benefits provided as shown on the P11D, generally via a PAYE coding notice adjustment or through the self assessment system. Some employers 'payroll' benefits and in this case the benefits do not need to be reported on forms P11D but employers should advise employees of the amount of benefits payrolled.
In addition, regardless of whether the benefits are being reported via P11D or payrolled the employer has to pay Class 1A National Insurance Contributions at 13.8% on the provision of most benefits. The calculation of this liability is detailed on the P11D(b) form. The deadline for payment of the Class 1A NIC is 19th July 2019 (or 22nd for cleared electronic payment).
HMRC has produced an expenses and benefits toolkit. The toolkit consists of a checklist which may be used by advisers or employers to check they are completing the forms correctly.
If you would like any help with the completion of the forms or the calculation of the associated Class 1A NIC please get in touch.
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