Tag: HMRC
Over the past few months we have blogged about the issue of corporate entities and the benefits of a business considering different structures, which may include an LLP or a limited company. Limited liability partnerships (LLPs) are a popular choice for those providing professional services because although they may not be as tax efficient as a limited company, they offer greater flexibility.
It is common for LLPs to have a ‘secondary’ band of partners, usually known as salaried partners. These partners will typically receive a salary and may perhaps be allocated a small share of business profits, they are usually treated as self employed and HMRC have not generally challenged this status. Now however, in line with HMRC’s strategy to close as many ‘loopholes’ of (what it regards as) tax avoidance as possible, there are some important changes to be aware of. (more…)
May 14, 2013
HMRC has recently turned its attentions to property owners and investors with the launch of new taskforces and initiatives to recover additional tax revenues. Firstly, aimed at buy-to-let landlords in the South East, HMRC currently has a taskforce monitoring the activities of landlords whose self assessment tax returns may not reflect the value of their property portfolios. If you have rental property and think you may have underpaid tax, please seek professional advice. This particular initiative is not accompanied by an opportunity for landlords to avoid penalties for outstanding tax owed and any declarations should be treated with caution to avoid further enquiries being opened. (more…)
April 9, 2013
Each year at Budget time we consider how positive the announcements are for owner managed businesses in particular. For instance, the news of the corporation tax reduction to 20% from 2015 is for those paying the main rate and not relevant for small businesses. Similarly the extension to the ‘above the line’ R&D tax credits initiative is also for larger companies only. This blog has also been published in Growth Business magazine. (more…)
March 21, 2013
Time is running out very quickly for self-employed people who sell directly to customers and who haven’t paid all the tax they owe. They have just two weeks left to voluntarily come forward to HMRC and pay their dues. This time limited Amnesty will expire on February 28th 2013, so if you think you might owe unpaid taxes, you should act quickly to avoid penalties. (more…)
February 18, 2013
We are living in an era of greater financial equality than in the past, which means that spouses or partners are more able, in these enlightened times, to be ‘discreet’ with one another over the exact amount of their earnings. These days, many couples prefer not to disclose salary details to their partner and where they do maintain a joint account, may simply do so for household budgeting.
This practice is a result of many years of growing equality, which has now been delivered a side swipe by the Treasury by the introduction of some rather over-complicated changes to child benefit payments. A by-product of these changes is that the income levels of many individuals will be made clear to their partner, whether they want them to or not. (more…)
November 27, 2012
HMRC has confirmed it plans to re-start the Business Record Checks programme originally launched last year from November 26th. This time, it says it’s going to be taking a “fresh approach” to visits, which are aimed at SME business owners based in London and the South East.
(more…)
November 21, 2012
Usually, when the big supermarkets save money, they advertise the fact that they give it back to their customers in the form of price cuts. That same logic is unlikely to be adopted by HMRC, which hopes to save at least £7.5 billion a year when it introduces Real Time Information (RTI) from April 2013. These savings are expected to be realised through reduced incidence of benefit fraud and a more efficient tax collection system. (more…)
November 19, 2012
Last week’s news was full of stories relating to major companies – Starbucks, Apple, Facebook and most recently, eBay – and the low tax bills they are able to sustain. Despite appearances what these organisations do to reduce their tax liabilities is perfectly legitimate, allowable under the transfer pricing rules. It is a valid tax planning strategy because for the most part, these multinational businesses have their European operations based in Ireland, where the rate of corporation tax is much lower. (more…)
October 24, 2012
As part of RJP’s ongoing analysis of new HMRC tax initiatives, we discuss the latest to potentially affect our clients. Two new HMRC anti-fraud campaigns are underway to collect additional revenues from taxpayers who have under-declared their income levels. (more…)
September 13, 2012
Company away days happen for many reasons and fall under a variety of labels, from annual conference, business strategy review, team building event, or a simple company away day. According to a leading law firm, HMRC are about to start charging employers and employees additional tax and national insurance contributions when businesses host company away days for their employees. In particular, if there is a large social or fun element to a company day, it is likely to be treated as a treat and taxed as a benefit. (more…)
August 15, 2012
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