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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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Managing sick pay couldn’t be easier

HMRC have designed a new online guide for employers that’s interactive, easy to use and available when you are.
Suitable for new employers and those wanting to refresh their knowledge, the guide covers:

• periods of incapacity for work (PIW)
• waiting days
• qualifying conditions
• linking periods
• how much to pay and for how long
• managing attendance
• occupational sick pay.

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Making Tax Digital

We have created our own guide to help you understand how Making Tax Digital might affect you.

Click here to download your guide

 

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Is your business eligible for Research and Development (R&D)?

There are tens of thousands of pounds being lost in tax relief by eligible companies every year. This reflects the common misconception that Research and Development (R&D) is confined to manufacturing, tech giants or research laboratories. In reality, businesses are often undertaking #R&D in their day-to-day activity, driving innovation and moving the industry forward without realising. Get in touch to find out more.

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HMRC release statistics on Corporation Tax for 2018

HMRC have released detailed statistics on the Corporation Tax system for 2018. The statistics show Corporation Tax receipts of £56 billion – an increase of 11% on 2016/17. There were almost 1.5 million companies recording Corporation Tax liabilities . Around 8,000 companies had Corporation Tax liabilities of in excess of £500,000 – and contributed around 58% of the Corporation Tax collected.

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Appeal allowed in part in recent tax tribunal case regarding Capital Allowances

A complex recent tax case to the First Tier Tribunal has found partially in the tax payers favour. The case involved construction of a hydro-electric power facility near Loch Ness. The total cost of the scheme was around £300 million – the taxpayer claimed £260 million qualified for Capital Allowances. HMRC accepted that £34 million qualified but the balance of £227 million remained in dispute. The tribunal found partially in the tax payers favour – but given the amounts involved an appeal to a higher tribunal is likely.

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Tax case: Penalties issued by HMRC found to be invalid even though taxpayer had agreed to paperless contact

The taxpayer had registered for Self Assessment on the HMRC website and agreed to paperless contact from HMRC. Subsequently the taxpayer omitted to submit her 2015/16 tax return and HMRC began to issue penalties for late filing. The penalties were issued by way of messages to a secure mailbox on the HMRC portal. It was not until the penalties reached £1,200 that the tax payer received written notification of the penalties. The First Tier Tax Tribunal reviewed the case in July 2018 and found that the penalties were invalid as they were notified electronically.

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Government produces guidance on VAT system if ‘No Deal’ Brexit

As part of the publications regarding the planning for a ‘No Deal’ Brexit the government has published details of the plans for the VAT system. The intention is to maintain the VAT system as closely as possible to the current system. The biggest potential change would be that the government would introduce ‘postponed accounting’ on all goods (both from the EU and outside the EU) brought to the UK. This measure is intended to avoid gridlock at the ports – and particularly for those bringing in goods from outside the EU is a relaxation of the current rules.

The position for those exporting from the UK is more difficult and a ‘No Deal’ Brexit will mean goods sent to the UK will potentially be subject to EU VAT and Duty in the destination country.

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