As it stands, if a debt is secured against an asset, only the net value is exposed to UK Inheritance Tax (IHT). For a non UK domiciled individual’s estate, or associated trust, any unsecured debt is set off against excluded property in priority to taxable property. Both of these have lead to a variety of… Read more »
Posts By: ilyas Patel
Are accountants at risk of being sued?
It has been reported that a West Midlands Accountancy firm has been sued by the High Court for £1.4m in damages due to them failing to advise a client of the availability of tax avoidance strategies. The businessman (Mr Mehjoo) took his accountants to court on the grounds of failing to advise him to join a… Read more »
Pension Tax Relief Consultation
HMRC have published for comment and are seeking views on the draft legislation regarding individual protection from the Lifetime Allowance and have given until 2 September 2013. The consultation for 2014/15 onwards that the Annual Allowance be reduced from £50,000 to £40,000 and the Lifetime Allowance be reduced to £1.25m from £1.5m. The consultation document… Read more »
Consultation – “John Lewis” businesses
The Government is committed to supporting employee ownership and encouraging its use more widely in UK business and a consultation process is now underway on tax reliefs designed to encourage the creation of “John Lewis” style businesses. Following the independent Nuttall Review of Employee Ownership in 2012 which concluded that companies with employee ownership produce… Read more »
Tax Planning – “minimise the tax bill”
In a recent poll on attitudes to corporate tax more than 100 individuals in the UK’s leading businesses and more than 500 SME decision makers and members of the general public revealed that the business elite are almost twice as likely as SMEs to take advantage of tax planning to reduce the amount of tax… Read more »
PAYE Schemes – HMRC
It has been reported that more than 1.4 million employer PAYE schemes are now reporting to HMRC in real time which means that more than 83% pf small to medium sized business and more than 77% of micro employers have started to report PAYE in real time. HMRC have announced that it will be seeking… Read more »
HMRC – RTI
HMRC have announced that the temporary relaxation of real time PAYE rules on reporting have been extended to April 2014. The RTI system began in April 2013 and it received criticism for both stakeholders and institutes, therefore HMRC made allowances for business with less than 50 employees and allowed them to continue reporting their payrolls… Read more »
Letting Business Tax Reliefs
The tax treatment of businesses which involve the letting of property is not consistent across all taxes and tax reliefs. It’s not logical, but just because the letting business qualifies for one tax relief it will not necessarily qualify for an apparently similar tax relief. For example if you have a property letting enterprise which… Read more »
RTI Growing Pains
The Taxman is also causing RTI pains for employers and employees by issuing duff data. Incorrect NI numbers When you submit a FPS or NI number verification request (NVR), the Taxman should reply with any missing or corrected NI numbers. However, in some cases the NI numbers the Taxman has returned to employers have no… Read more »
No RTI Reports Made?
Employers were told that they had to use real time information (RTI) to report PAYE deductions from the first pay day on or after 6 April 2013. But what if there has been no pay day since 6 April, because no one has been paid? In that case RTI does apply from 6 April 2013… Read more »