Posts Categorised: Tax

Tax on Children’s Income

Children’s income is theirs, but… For taxation purposes a child’s income (where children refers to stepchildren, illegitimate and adopted children) is theirs regardless of their age. In addition they benefit from a full personal tax allowance and are subject to all of the normal tax bands and rates. Here comes the “but”. For unmarried children under the age… Read more »

Advisory Fuel Rate for Company Cars

Changes on some engine/fuel bands The suggested reimbursement rates for employees’ private mileage using their company car have been changed by HMRC as of September 1st 2016. The previous rate is shown in brackets.  Engine Size  Petrol  Diesel  LPG  1400cc or less  10p  7p  1600cc or less  9p (8p)  1401cc to 2000cc  13p (12p)  9p… Read more »

HMRC targets salary sacrifice

Taxman goes after benefits in kind offered as part of salary sacrifice schemes. Salary sacrifice schemes are agreements between an employer and employee where salary is given up in return for a non-cash benefit. The reduction in pay means that people pay less tax and National Insurance (NI), while employers also see a reduction in… Read more »

Tax Free Childcare

Are you tax ready for the new childcare scheme? A new scheme to help families meet the costs of childcare, Tax-Free Childcare, is due to launch in early 2017. It is designed to eventually replace the Employer Supported Childcare Scheme and offers to pay working families 20% of their childcare costs. The government has issued a… Read more »

HMRC Taskforces Map

Are you on the map? HMRC’s map. Lewis Smith & Co. frequently highlights HMRC’s drive to uncover tax evasion and the knock-on impact of investigations on, completely innocent, small businesses. Now HMRC has created a site (http://hmrcdigitalpilots.com/) that shows the locations and the business sectors targeted by its investigation taskforces. These investigators reclaimed as much… Read more »

Self-Build? Reclaim VAT

New builds and property conversions could be a little cheaper The popularity of programmes such as Grand Designs shows that there is an appetite for people to create a home that’s just that bit different. What you may not have realised is that you can get a refund of VAT on building materials and services… Read more »

Concerned about tax inspections?

You don’t have to do anything wrong to be inspected HMRC has the right to investigate your financial affairs whenever it likes. Enquiries can be started entirely at random whether you have done something to arouse their suspicion or not. This means that businesses of all sizes and categories have been subject to investigations of business records,… Read more »

Quarterly Returns

Can you handle it? At the end of last year the government published a corporate report titled “making tax digital” (PDF opens in a new tab), which set out how HMRC would make the tax system “more effective, more efficient and easier for taxpayers”. A lot of what report has to say may be broadly welcomed… Read more »