To May’s Tax Tips & News, our newsletter designed to bring you tax tips and news to keep you one step ahead of the taxman.
If you need further assistance just let us know or you can send us a question for our Question and Answer Section.
We are committed to ensuring none of our clients pay a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.
Please contact us for advice on your own specific circumstances. We’re here to help!
Forms P11D and P9D
The forms P11D and P9D need to be submitted to HMRC by 6 July 2015 where expenses or benefits were provided to your employees in 2014/15, which are not covered by a dispensation, or are not otherwise exempt from tax. If the forms are not submitted on time, HMRC will issue penalties. – read more >>
Cancelling VAT or VAT-MOSS Registration
If you registered for UK VAT in order to operate VAT-MOSS for your overseas sales of digital services to non-business customers, you may now find that the administration for such sales is just not worth the hassle. If so you may want to deregister for both UK-VAT and VAT-MOSS, and restrict your sales to UK-based consumers, or businesses located anywhere outside the EU. – read more >>
The annual tax on enveloped dwellings (ATED) now applies to residential properties worth over £1m that are owned by a company, or a partnership with one or more corporate members, or in some cases a unit trust. – read more >>
Have you received a letter from The Pension Regulator (TPR) telling you to “ACT NOW” to prepare for auto-enrolment? The letter gives you just a few weeks to nominate a contact to receive communications about auto-enrolment, with the threat of fines or prosecution if you don’t take action. – read more >>
Workplace Pensions: Pensions’ Regulator Warns Small and Micro-Employers To Plan Ahead To Avoid Enforcement Action.
Do you run a small or micro-business? Does your company employ up to 30 members of staff? If you do then as accountants we think it’s only right to warn you that unless you act swiftly and auto-enrol onto one of the new workplace pension schemes before October, 2015, then you could face enforcement action. – read more >>
Many SMEs Are Unwilling To Invest In Their Business and Are Sitting On Cash Stockpiles, Claims ICAEW.
If the reports we hear from governing authorities are correct, then the UK and its small businesses are in for a brighter tomorrow.
After a prolonged period of decline, business confidence is starting to grow in line with the improving economy. Moreover, this is not just a blip in the opinion of the CBI. Its latest economic forecast suggests that the UK economy will continue to “gather momentum” during and beyond the next quarter. – read more >>
May Question and Answer Section
Q. I live in France and I am about to sell my former home in the UK, which has been let out since I emigrated in August 2001. Do I have to pay tax in the UK on the gain?
A. As you have lived abroad for nearly 14 years you will probably be treated as “non-resident” in the UK for tax purposes, but we need to check that with a few more questions. If you are a non-resident, the gain would generally be exempt from UK capital gains tax (CGT).
However, a new non-resident CGT applies to gains made on the disposal of residential property for 6 April 2015. This new tax only applies to the property of the gain falling after 5 April 2015. So if you sell the property fairly shortly after April 2015 there should be little gain to tax, and the first £11,100 of the gain will be exempt from tax.
Q. I am the sole director of my own company and will take a salary of £10,600 this tax year. How much dividend can I extract from the company this year without paying higher rate tax?
A. Assuming your company makes sufficient profits you can take out net dividends of £28,606 (90% of £31,785), without breaking into the 40% tax band.
Q. My Dad is nearly 90 years old and has an income of £26,000. My Mum who is 85, has an income of less than £10,000. Can my Mum transfer some of her unused personal allowance to my Dad in 2015/16?
A. Unfortunately, the transferable allowance of £1,060, doesn’t apply to people who were born before 6 April 1935. Your father will already receive the married couple’s allowance, which is worth up to £816.50 for 2015/16. The transferable allowance is only worth £212 (£1,060 x 20%), so he is better off with the married couple’s allowance.
May Key Tax Dates
2 – Last day for car change notifications in the quarter to 5 April – Use P46 Car
19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/5/2015
31 – Deadline for copies of P60 to be issued to employees for 2014/15