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Are you taking advantage of trivial benefits?

17/06/2021

The trivial benefits in kind (BiK) exemption applies to small non-cash benefits like a bottle of wine or a bouquet of flowers given occasionally to employees. By taking advantage of the exemption employers can simplify the treatment of BiKs whilst at

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How are dividends taxed?

17/06/2021

The dividend tax allowance was first introduced back in 2016 and replaced the old dividend tax credit with an annual £5,000 dividend allowance with tax payable on dividends received over this amount. The tax-free dividend allowance was reduced to

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Are you a landlord that owes tax to HMRC?

17/06/2021

The Let Property Campaign provides landlords who have undeclared income from residential property lettings in the UK or abroad with an opportunity to regularise their affairs by disclosing any outstanding liabilities whether due to misunderstanding

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Building a new home and VAT

17/06/2021

The VAT DIY Housebuilders scheme is a special scheme that enables someone building their own home to benefit from special VAT rules that allow the qualifying construction costs of new homes and certain conversion works to be zero-rated. The scheme

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Self-employed NIC charges

17/06/2021

There are two types of National Insurance contributions (NICs) payable by the self-employed. These are known as Class 2 NICs and Class 4 NICs. Class 2 NICs are paid by all self-employed taxpayers unless they earn under the Small Profits Threshold

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Agent Dedicated Line relaunched

17/06/2021

HMRC has confirmed that the Agent Dedicated Line (ADL) that offers priority access to HMRC staff has been relaunched on a trial basis from 14 June 2021. HMRC has also made it clear that the ADL is not expected to be used to handle certain types of

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Tax when you sell a business property

10/06/2021

There are various methods at your disposal to reduce or delay the amount of Capital Gains Tax (CGT) when you sell a property that has been used for business purposes. For example, Business Asset Rollover Relief allows for deferral of CGT on gains

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Private residence relief

10/06/2021

There is usually no Capital Gains Tax (CGT) to be paid when you sell your main family residence (referred to by HMRC as private residence relief) that has been used as your only or main residence. However, there are important points to consider

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Changing a company accounting date

10/06/2021

There are special rules which limit the ability to change your company’s year end date. A company’s year end date is also known as its ‘accounting reference date’ and is historically set by reference to the date the company was incorporated. Under

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Bed and breakfast – the same day rule

10/06/2021

Historically, the term bed and breakfasting (sale and repurchase) of shares referred to transactions where shares were sold and then bought back the next morning. This used to have Capital Gains Tax (CGT) benefits by crystallising a gain or a loss

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Apportionment and duality

10/06/2021

When deciding whether an expense is allowed or disallowed it is important to consider that the expenditure must be incurred wholly and exclusively for the purposes of your trade or employment. Under the legislation any expenditure not incurred

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Who can use the VAT retail schemes?

10/06/2021

VAT retail schemes are a special set of schemes used by retail businesses to account for VAT. The schemes are used by businesses that sell a significant amount of low value and/or small quantity items to the public with different VAT

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Temporary trade credit insurance scheme to end

03/06/2021

Trade credit insurance is a contract bought by suppliers to make sure they get paid even if their customers default and cannot pay the bills. This gives businesses the confidence to trade with one another. Early in the pandemic, the government

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The 7-year rule

03/06/2021

Most gifts made during a person’s lifetime are not subject to Inheritance Tax at the time of the gift. These lifetime transfers are known as 'potentially exempt transfers' or 'PETs'. These gifts or transfers achieve their potential of becoming

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Tax when you sell an asset

03/06/2021

There are special rules that must be followed when you sell an asset on which capital allowances have been claimed. Capital allowances is the term used to describe the tax relief businesses can claim on certain capital expenditure and thereby reduce

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What is distance selling for VAT purposes?

03/06/2021

Distance selling is the term used to describe supplies of delivered goods from one EU Member State to a customer in another member state who is not registered for VAT. The recipients of most distance sales will be private individuals, but they can

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Cash basis for landlords

03/06/2021

The cash basis scheme helps sole traders and other unincorporated businesses benefit from a simpler way of managing their financial affairs. Landlords can use the cash basis when recording income and expenditure i.e., recording the flow of money from

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Pre-trading expenditure

03/06/2021

There are special tax reliefs for pre-trading expenses that are incurred before a business starts trading. These could include expenses that are required to help a business prepare for trading such as buying stock and equipment, renting premises,

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How to claim tax relief on employment expenses

27/05/2021

If you are an employee that needs to buy substantial equipment to use as part of your employment you may be able to claim tax relief. In most cases you can claim tax relief on the full cost of this type of equipment. Tax relief is reduced if your

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One month left to join VAT Deferral Payment Scheme

27/05/2021

Businesses that deferred VAT payments last year have until 21 June 2021 to join the new online payment scheme. This would allow them to spread the cost of repayment over a number of months. The VAT deferral scheme is open to businesses that took the

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Check if you can claim working from home expenses

27/05/2021

If you are an employee who is working from home, you may be able to claim tax relief for some of the bills you pay that are related to your work. Note that if an employee is working at home voluntarily, they cannot claim tax relief. However, these

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Employment Status Tool

27/05/2021

HMRC’s employment status service can be used to help ascertain if a worker should be classified as employed or self-employed for tax purposes in both the private and public sector. The service has recently been updated to reflect off-payroll working

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Tax on sale of cryptoassets

27/05/2021

Most individuals hold cryptoassets (such as Bitcoin) as a personal investment, usually for capital appreciation in its value or to make purchases. HMRC is clear that these holdings will usually be subject to Capital Gains Tax (CGT) when:

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Tariff suspension on certain imports

27/05/2021

The UK government has announced plans to introduce a new tariff suspension scheme. This new scheme will help UK firms become globally competitive. This will be done by allowing companies to request that duties be partially or wholly reduced for a

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Encourage staff to get the COVID-19 vaccine

27/05/2021

The government is calling on all employers to make a commitment to help employees get the COVID-19 vaccine, including during working hours, to drive vaccine uptake across the UK. To support this, the government has produced a toolkit so that

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Acas publishes new advice on long COVID

27/05/2021

Acas has published new advice for both employers and workers on the treatment of workers who are suffering from the prolonged effects of a COVID-19 infection, now widely known as long COVID. Acas advice is that employers and workers should discuss

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Free advisory data protection check-ups and free online training on cyber security

27/05/2021

The Information Commissioner’s Office (ICO) has published a new blog about free advisory check-ups that it is offering to help small businesses make the best use of their personal data. Small organisations, including small businesses, small

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Tax Diary June/July 2021

27/05/2021

1 June 2021 - Due date for Corporation Tax due for the year ended 31 August 2020. 19 June 2021 - PAYE and NIC deductions due for month ended 5 June 2021. (If you pay your tax electronically the due date is 22 June 2021) 19 June 2021 - Filing

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No time for head in the sand tactics

26/05/2021

Companies that are still claiming the Coronavirus Job Retention Scheme grants, now known as the furlough scheme, will have hard choices to make come the end of September when the present scheme ends. Unless business activity picks up between now and

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Record keeping for limited companies

20/05/2021

Limited companies are required to hold a wide range of company and accounting records. This includes details of directors, shareholders, company secretaries and the results of any shareholder votes and resolutions. The company must also keep a

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