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HMRC publish details on postponed VAT accounting on ‘no deal’ Brexit

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.

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HMRC has stopped penalty reminder notices. Are you aware?

  • 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.
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5 April 2019 deadline looms for Disguised Remuneration scheme users

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…)

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Will your current payslip format comply with the new regulations to show hours from April 2019?

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.

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Question Time

Questions and answers with a panel of experts

Thursday 23 May 2019

8am – 10am

Canterbury Cathedral Lodge

To book email: marketing@burgesshodgson.co.uk

 

 

 

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Charity Race Night

Friday 7th June

7pm – 11pm

Westgate Hall, Canterbury

To book email: marketing@burgesshodgson.co.uk

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Well done!

More exam success @ Burgess Hodgson

 

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Pensions Lifetime Allowance – Fixed Protection Pitfalls

This article is for anyone meeting all of the following criteria:

•  Pension pot value exceeding £1m
•  Secured lifetime allowance Fixed Protection (either 2012, 2014 or 2016)
•  Employed status

If you have secured fixed protection on your pension lifetime allowance limit, beware of any employment income that you currently have.

One of the key rules of Fixed Protection is that you can no longer contribute to a pension scheme.

Automatic enrolment started back in October 2012 and since then all employers have received their staging date and should have enrolled their staff into a qualifying pension scheme.

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Research & development tax relief claims increase by 23%

According to HMRC, claims for research and development (R&D) tax relief have increased in recent years with 43,040 claims having been made in 2015-16, a 23% increase from 2014-15.

R&D tax reliefs can be claimed by companies working on innovative projects that seek to contribute to an advancement in science and technology.

R&D tax relief reached £3.7bn in 2015-16 and, according to partial data, £3.5bn has been claimed for 2016-17 so far. This number is expected to increase as more returns are processed and will be revised and complete in autumn 2019.  (more…)

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