Originally announced as a minor change in Phillip Hammond’s October 2018 Budget an alteration to the rules regarding Research and Development Tax Relief could have major implications for some businesses.
At present current Research and Development Tax Relief regime allows loss making companies to ‘surrender’ losses arising from research and development activity for a tax credit. This tax credit has become particularly important for start up or early stage companies – where cash flow is often a key concern.
Already an integral part of the firm, it is with great pleasure we announce our talented Associate Ben Houston has now been appointed Partner.
Ben began his career as a trainee with us in 2011 and has continued to show his commitment and talent as his career progressed within Burgess Hodgson.
Our Senior Partner Steve Sutton commented:
“Ben has shown dedication and his progress within the firm is very well deserved. We welcome him as our new Partner and being a part of the future of Burgess Hodgson”.Read More
The Chancellor’s 2019 Spring Statement gave the government the opportunity to consider the longer-term fiscal challenges ahead of Brexit, and initiate consultations on how these can be addressed.
Following this, Burgess Hodgson have put together a PDF which provides an overview of the updated forecasts for the UK economy and public finances, which we trust you will find useful.Read More
HMRC have published further details on how import / export procedures will change should a ‘no deal’ Brexit occur on the 29 March 2019. This guidance has been set out in a letter issued to many businesses in the last few days – the full text of the letter can be viewed at: https://bit.ly/2J05CtU
Proposed changes to VAT arising on a ‘no deal’ Brexit are a significant relaxation to the current VAT rules – these changes are known as postponed accounting. Currently where goods are imported to the UK from outside the EU they are required to pay UK VAT when these goods arrive in the UK. This currently presents a cash flow challenge for businesses as this VAT is not generally recovered for several months.Read More
- HMRC is to delay sending out late filing penalty notices, usually sent out in February, to taxpayers who failed to file their self-assessment tax return by 31 January, until April 2019.
- HMRC has blamed this decision on Brexit
- The £100 penalty will still be due, but the taxpayer won’t know that they have been charged.
- HMRC says the latest date that late filing penalties for 2017/18 tax returns will be issued is 30 April.
- If a self-assessment tax return is over three months late, for example not logged as received by HMRC, by 1 May, daily £10 penalties are charged for every additional day the return is late. If the return is six months late,then another automatic late filing penalty is issued, at the rate of £300 or 5% of the outstanding tax, whichever is the greater sum.
- Penalties apply even if there is no tax liability outstanding
- If you have yet to file your tax return you should do it as soon as possible otherwise you will incur significant penalties if you wait for further prompting from HMRC
- Surcharges also apply to late paid tax liabilities.
The deadline for Disguised Remuneration (DR) scheme users to reach a settlement with HMRC to ensure that the 2019 Loan Charge does not apply is now only six weeks away. Users of DR schemes must settle historic tax liabilities or repay the relevant loans ahead of 5 April to avoid the 2019 Loan Charge.
DR schemes are a wide variety of structured, and complex, tax avoidance schemes where income was drawn as some form of loan rather through traditional routes such as dividends or salaries. HM Revenue and Customs have put in place various measures to restrict the use of these schemes over recent years and the most recent measure is what is termed the 2019 Loan Charge. (more…)Read More
From 6 April 2019 all employers will be required to include on payslips the number of hours worked by an employee for which they are being paid, but only in situations where the employee’s pay varies as a consequence of the time worked.
Where this applies, the number of hours paid for on this basis (i.e. on the amount of time worked) must be shown. Any other hours do not need to be shown (although of course best practice would be to show them). For example, where a worker has a fixed salary each month, and works variable overtime with additional pay at an hourly rate, only the hours of overtime need to be shown.
The hours can be shown either as a single total of all such hours in the pay period, or they can be broken down into separate figures for different types of work or different rates of pay. It should be clear which pay period they were worked in, but only need to be shown for pay periods which begin on or after 6 April 2019.Read More
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