HMRC is advising tax payers to declare foreign income or profits on offshore assets before 30 September to avoid higher tax penalties.
If taxpayers have offshore income and gains then HMRC must be notified of an intention to disclose by the 30 September – they will then have 90 days to collate the full disclosure and pay any tax due. From 1 October 2018 HMRC will have access to more information on international assets held by UK tax payers under the information sharing mechanism known as the Common Reporting Standard (CRS).
To date 17,000 tax payers have notified HMRC of offshore assets.Read More
From April 2019 employers will be required to include on payslips the number of hours worked by the employee for which they are being paid, but only in situations where the employee’s pay varies as a consequence of the time worked.
The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 was laid before parliament on 8 February 2018 and comes into force on 6 April 2019.
This instrument amends section 8 of the Employment Rights Act 1996 (c. 18), adding to the list of particulars which must be included in the itemised pay statement which an employee has a right to be given.Read More
HMRC have announced the outcome of a consultation on the future of Rent a Room Relief. The relief came under review due to changes to the nature of the private rented sector in recent years. The outcome of the consultation is that Rent a Room Relief will remain in close to its current form apart from some additional regulation. The additional regulation is intended to ensure that the relief remains targeted at those letting out a spare room in their own home.
Rent a Room Relief has been established since 1992 and currently allows individuals to earn up to £7,500 per year tax free from letting a spare room in their house.Read More
HMRC have confirmed that the SDLT return and payment deadline will be reduced to 14 days from 30 days. This will be effective from April 2019.
The main impact will be on conveyancers and solicitors who submit the SDLT returns and arrange payment on behalf of property purchasers.Read More
The Public Account Committee have issued an update report on progress in tackling online VAT fraud. In October 2017 the Public Accounts Committee reported that UK businesses were being hit hard by overseas competitors selling through online platforms that did not register for VAT.
Since then HMRC have taken steps to improve the position – including working with online marketplaces. It is believe that 27,000 traders have become VAT registered in this period because of this new approach but compliance with UK VAT rules remains inconsistent. HMRC rules on sales through online marketplaces mean that overseas traders should register for UK VAT if their turnover exceeds £70,000 per year.Read More
Did you know….
We provide advice and compliance services for U.S. Tax Returns to cover:
- Preparation and submission of Federal and State Tax Returns
- Foreign Bank Account Reports (FinCEN 114) and Foreign Asset Reporting
- Foreign reporting for ownership of non-U.S. corporations or partnership interests
- Filing under the IRS streamlined procedure
- Advice regarding Double Taxation Relief
For more information or any enquiries please contact us at USTax@burgesshodgson.co.uk
HMRC have announced an alliance with the tax authorities in Canada, United States, Netherlands and Australia to tackle international tax crime and money laundering. The alliance, known as the J5, will share intelligence and expertise to target those involved in international tax crime. All 5 countries are considered to face similar threats such as organised crime groups and wealthy offshore tax evaders who are well resourced and have access to professional enablers to hide income and assets using the global financial system.Read More
HMRC have published analysis of tax collection from Benefits in Kind which show that for the 2016/17 year the total tax raised has increased by 18% to £3.3 billion.
The main drivers of the increase is higher rates of tax on company cars, the increasing cost of private medical insurance and a tougher approach to the taxation of company vans. Company cars in particular have seen a significant increase with total tax collection increasing from £1.5 billion to £1.85 billion.Read More