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…

Last year saw an important change to the way tax-deductible business expenses, which are paid to employees, are dealt with. Until the beginning of the 2016-17 tax year, employers who did not have a dispensation from HM Revenue & Customs (HMRC) were required to report benefits and expenses paid to employees. Now, these dispensations have been abolished and such expenses are no longer reportable to Read more…

Landlords should be aware of the different rules which apply to furnished holiday lets and private rented properties, as the tax implications can be enormous. Privately rented properties that are not a principal private residence, and therefore do not qualify for principal private residence relief, are normally subject to capital gains tax at 18 per cent or 28 per cent on disposals – a cost Read more…

A range of provisions which allow civil penalties to be levied against residential landlords who commit offences under the Housing Act 2004 came into effect last month. Local authorities are now empowered to levy fines of up to £30,000 against landlords for offences including failing to comply with an improvement notice, breaches of HMO licensing, HMO management, selective licensing and overcrowding rules. Landlords will receive Read more…

The announcement of a snap general election to take place on 8 June 2017 had an immediate impact on some of the most eye-catching announcements from the Spring Budget, with the parliamentary wash-up seeing key clauses dropped from the Finance Bill. Making Tax Digital, as well as changes to the Money Purchase Annual Allowance and Dividend Tax Allowance all fell victim to the need to Read more…

Small business users of the VAT Flat Rate Scheme who have low costs may see the rate they pay drastically increase under new changes, which came into effect at the beginning of this month. The Flat Rate Scheme was created to simplify businesses’ record keeping, by making it easier for smaller companies to figure out their bill. VAT is usually calculated using a two stage Read more…

A number of prominent UK collection agencies appear to be closely monitoring liquidations and issuing some businesses and individuals who have purchased goods and services from now-liquidated companies with unexpected payment notices. In some cases, such notices may demand interest and compensation on invoices backdated as far as six years. It would appear that such agencies are effectively approaching liquidators to purchase the rights to Read more…