A new additional nil-rate band of £100,000 for Inheritance Tax (IHT) on main residences, when bequeathed to a direct descendent, came into effect at the start of the new tax year in April 2017. In 2018, 2019 and 2020, this will rise to £125,000, £150,000 and £175,000 respectively, before rising in line with Consumer Prices Index (CPI) in subsequent years. The change affects estates worth Read more…

Last month more than 200,000 computers in 150 countries were infected during the WannaCry ransomware attack, including the systems of a number of NHS trusts. This cyber-attack caused mass hysteria and crippled a number of businesses and organisations – often highlighting the vulnerability of some of the world’s largest IT systems. Through their actions the hackers are believed to have extorted just £60,000 worth of Read more…

With inflation hovering around 2.7 per cent, many businesses are facing a period of higher costs and reduced consumer spending – a trend which could see average pay rises this year hit just one per cent, according to the Chartered Institute of Personnel and Development (CIPD). In its latest report, the CIPD said that this is the lowest figure for the last three years and Read more…

Corporation Tax receipts reached a record high in the 2016-17 financial year, with a total of £56 billion collected, a 21 per cent year-on-year increase. These record figures come despite the main rate of Corporation Tax falling from 30 per cent 2008 to 19 per cent in 2017-18. The most obvious driver for this increased take is the growth of the UK economy, but this Read more…

A new study from the Federation of Small Businesses (FSB) has indicated that the UK’s army of small firms will face a funding shortfall of around £3.6 billion by 2021 as a result of the UK’s withdrawal from the EU. According to the FSB’s data, around eight out of 10 SMEs have tried to access business support services over the past 12 months. Much of Read more…

If you own your own business premises, you may be entitled to claim capital allowances on some of the costs associated with the ‘intrinsic fabrication’ of the building. The ‘intrinsic fabrication’ of a building includes items such as lighting, heating, plumbing, electrics and fire safety systems. It essentially covers the items that are necessary for the business to be able to function. Capital allowances mean Read more…

Last month saw a scheme which has the potential to offer major savings on childcare costs start to be phased in. Tax-Free Childcare will be open to working families – defined as couples or individuals who are each expected to earn on average at least £120 per week – including self-employed workers. Under the scheme, for every £8 a person pays towards childcare costs the Read more…

HM Revenue & Customs (HMRC) issued a record number of court orders to seize company assets in 2016, indicating that the tax office is happy to go after all businesses suspected of tax evasion. The figures, published by Funding Options, show that the Revenue issued 3,900 applications to wind-up firms with outstanding tax bills in 2016 – up 12 per cent from the year previous. Read more…

Small-scale internet traders, including individuals and businesses who sell goods on websites such as eBay and Amazon, are being hit with ‘tougher penalties’ than larger businesses if they do not declare their income and pay the appropriate tax on their sales, according to a new study. The research, which has attracted much media attention of late, suggests that HM Revenue & Customs (HMRC) is issuing Read more…

A report published by the National Audit Office (NAO) estimates that online VAT fraud and error cost the UK somewhere between £1bn and £1.5bn in lost tax revenue during the 2015/16 financial year. Under current UK tax rules, any traders based outside the European Union (EU) who sell goods to UK customers over the internet are supposed to charge VAT if the goods are already Read more…