Blog
Tax Efficient Profit Extraction
Posted 1st June 2018 at 4:32 pm
If you are a director of a family company then you will want to make sure that you are extracting profits from your business in a way that is the most tax efficient. Whether this is by salary, dividends or pension contributions (for future use). The reduction in the dividend allowance for 2018/19 and changes to the rates and allowances will impact on directors of personal and family companies looking to extract profits in a tax-efficient manner. As always, the optimal strategy will depend on circumstances. It is generally beneficial to take a small salary, particularly where the recipient... Read more
GDPR Day Arrives
Posted 25th May 2018 at 4:22 pm
The day we have all been waiting for has finally arrived. The 25th May, or ‘GDPR Day’ as it will forever be known, is in full operation with businesses all over the world effected. Now, we know you’re probably sick of hearing about it by now and you have inevitably had an influx of emails from everyone you have ever contacted to stay in touch, but it is all for good reason. With GDPR in place individuals have more control than ever of their personal data, however, the change has put a lot of pressure on companies, particularly small... Read more
Employing Family Members
Posted 18th May 2018 at 4:12 pm
A recent case in the first-tier tribunal has highlighted what can become a problem area for business owners. Hiring staff you know you can trust is hard to find so many business owners look closer to home and look at hiring family members who can contribute their skills. In this article we discuss some examples of where companies have gotten it wrong and we’ll tell you what you can do to prevent issues arising when employing family members. Nicholson Case Alan Nicholson, a central heating salesman, hired his son to help build up an internet business. While working for... Read more
Requirement to Correct (RTC)
Posted 11th May 2018 at 4:19 pm
What is the Requirement to Correct? The Requirement to Correct is an obligation for taxpayers with assets overseas to correct any problems with their historic UK tax position. HMRC will seek out those who do not comply, whether it was through genuine mistake or carelessness or deliberate action. To avoid incurring high penalties for non-compliance, taxpayers need to disclose any known or suspected unpaid tax on assets, income and activities in other countries and transfers from the UK to other countries. What should you know? No matter what amount of unpaid tax there is, it will need to be... Read more
PAYE Compliance Health Checks
Posted 4th May 2018 at 11:05 am
In recent years there has been a large increase in employer compliance visits by HMRC. Due to this there has been a significant rise in penalties charged for non-compliance as employers’ struggle to keep up with the changes of legislation. In recent months it is evident that employers who are using off payroll workers are being targeted by HMRC to question the status of workers. What is a PAYE Compliance Check? No matter the size of your business, you could receive a letter from HMRC and have to face the stress and scrutiny that comes with a PAYE... Read more
New Payment Date for Capital Gains Tax on Residential Property Disposals
Posted 27th April 2018 at 3:35 pm
As announced in the Autumn statement the government are now taking consultations on the payments of Capital Gains Tax for residential property disposals due to be enforced from April 2020. As stated in the announcement, a payment on account of CGT will be made when a residential property is disposed of, such as by giving it away, or sold. This will remain similar to the current system which applies when non-residents dispose of UK residential property. The changes will mainly affect those disposing of a second home or rental property. Payment will need to be made within 30 days... Read more
Year End Procedures for your Payroll
Posted 16th April 2018 at 2:12 pm
We here at ER Grove know that payroll can be quite complex with lots of things to remember and constant changes. That’s why we’ve put together some of the important information so that you completely understand the end of year procedures and make sure your payroll is administered seamlessly and smoothly. The final EPS for the tax year informs HMRC that you are satisfied all year to date values have been successfully recorded and transmitted to HMRC, and that this will be the final submission they will receive for the tax year. All PAYE schemes must submit a final... Read more
Tax-Free Childcare Opens to Parents of Under 12’s
Posted 29th March 2018 at 2:23 pm
HMRC has now announced the extension of tax-free childcare accounts to under 12’s. Parents can now get up to £2,000 a year towards childcare costs, if their youngest child is under 12. The scheme has been launched in a bid to help working parents with the cost of childcare. Parents, including the self-employed, can apply for the tax-free childcare scheme online and reduce their childcare costs by up to £2,000 per child per year, or £4,000 for disabled children. The scheme, initially launched in April 2017, has been gradually rolled out to parents, with all eligible parents now able to... Read more
RATES AND ALLOWANCES
Posted 16th January 2018 at 12:27 pm
With the new year brings many changes and in this post, you can find out all about the tax rates and allowances that will apply for the year 2018/19 as well as changes to the income tax bands for Scottish tax payers. Personal allowance The personal allowance increases to £11,850 for the 2018/19 tax year. As for 2017/18, the personal allowance is reduced by £1 for every £2 by which adjusted net income exceeds £100,000. This means that anyone with income in excess of £123,700 in 2018/19 will not receive a personal allowance. Marriage allowance The marriage allowance... Read more
Making Tax Digital: Reporting requirements for charities
Posted 22nd December 2017 at 11:51 am
Making Tax Digital will come into effect from April 2019 for businesses above the VAT threshold, whereas smaller businesses who fall under this threshold will not need to keep digital records or report to HMRC quarterly, for other taxes until 2020 at least. With all the updates there has been some confusion over what these new changes will mean for charities. The Charity Tax Group (CTG) recently met with HMRC and it has now been confirmed that at present there is no MTD charity exemption for VAT, but there will be an exemption for corporation tax. MTD for corporation tax... Read more