Replace Inheritance Tax with ‘lifetime receipts tax’, argues thinktank

Replace Inheritance Tax with ‘lifetime receipts tax’, argues thinktank

With the issue of intergenerational fairness continuing to be high on the agenda, a thinktank has suggested that the Treasury returns to the drawing board when it comes to taxing bequests and inheritances. Instead of Inheritance Tax (IHT), the Resolution Foundation has floated the idea of a ‘lifetime receipts tax’, which would give individuals a lifetime tax-free allowance, with further thresholds above this amount for Read more…

Government Brexit redeployments to delay Making Tax Digital for Individuals

Government Brexit redeployments to delay Making Tax Digital for Individuals

A number of key projects at HM Revenue & Customs (HMRC) have been placed on hold to make staff available for Brexit issues, including Making Tax Digital for Individuals. The simple assessment rollout and real-time tax code changes, both part of MTD for Individuals, will not be introduced as planned according to an HMRC stakeholders email due to a “change in priorities” in the department Read more…

Twice as many workers receiving back pay through National Minimum Wage enforcement

Twice as many workers receiving back pay through National Minimum Wage enforcement

According to HM Revenue & Customs (HMRC), the number of underpaid workers getting the money they are owed under the National Minimum Wage (NMW) legislation has more than doubled. The Revenue’s latest figures show that in the 2017/18 tax year its investigators identified £15.6 million in pay owed to more than 200,000 of the UK’s lowest-paid workers. This amount was up from £10.9 million for Read more…

Employers attempting to avoid auto-enrolment penalties could have assets seized

Employers attempting to avoid auto-enrolment penalties could have assets seized

The Pensions Regulator (TPR) has announced that employers could have their businesses’ assets seized to pay their debts if they fail to pay workplace pension fines. TPR has powers to fine employers who do not comply with workplace pension rules. However, it has also confirmed that it is willing to secure court orders if the fines are not paid. Where a court order is acquired Read more…

Gifts out of income and their benefits to beneficiaries

Gifts out of income and their benefits to beneficiaries

Giving away surplus income as a gift to family members is often touted as an excellent way of planning for the future and as a way of reducing liabilities on a person’s estate. But how do the rules regarding gifts work in practice? Gifts provided from surplus income – i.e. income less usual expenditure to maintain your standard of living – are not considered as Read more…

Do I need to calculate holiday entitlement for someone working on a zero contract?

Do I need to calculate holiday entitlement for someone working on a zero contract?

In short yes all workers are entitled to holiday pay.  Most workers are entitled to 5.6 weeks paid holiday per year (28 days).  Many employers include bank holidays as part of the statutory entitlement i.e.20 days plus bank holidays. If you employ someone on a zero hour’s contracts or if you are the person responsible for aspects of HR in your company, then it’s important Read more…

270,000 late penalty notices cancelled by the Revenue

270,000 late penalty notices cancelled by the Revenue

A response to a freedom of information request has revealed that HM Revenue & Customs (HMRC) cancelled 270,000 late penalty notices in 2016. However, this figure was dwarfed by the 610,000 cancellations in 2015 and the 400,000 cancellations in 2014. The request was made by a partner in a ‘magic circle’ law firm, who was himself issued with a late penalty notice, despite having submitted Read more…

OTS calls for overhaul of ‘complex’ tax charges and reliefs

OTS calls for overhaul of ‘complex’ tax charges and reliefs

An overhaul of “the complex patchwork” of tax charges and reliefs affecting businesses throughout various stages of the business lifecycle is urgently required in order to stimulate growth among small and medium-sized enterprises (SMEs), the Office of Tax Simplification (OTS) has said. In a report published midway through April, the OTS looked closely at business taxes, charges and reliefs, identifying a number of areas in Read more…

1.3 million SMEs hoping to branch out internationally to boost growth

1.3 million SMEs hoping to branch out internationally to boost growth

An annual survey suggests that some 1.3 million UK-based small and medium-sized enterprises (SMEs) intend to branch out overseas this year in a bid to expand their horizons and fuel their growth plans. According to CitySprint’s latest annual survey of business owners and decision makers, ambitions among Britain’s SMEs remain strong despite the fact that business confidence has fallen slightly over the past few years. Read more…

Workplace pension contributions more than double

Workplace pension contributions more than double

The percentage of salary employers and employees must contribute to a workplace pension has increased from 6 April 2018. Employees will now contribute three per cent (up from one per cent) of their annual salary into a personal workplace pension, while employer contributions have increased from one to two per cent. Under the new rules, an employee earning an average salary (around £27,000) can expect Read more…