New figures show that a quarter of estates paying Inheritance Tax (IHT) are investigated by HMRC

The response to a Freedom of Information (FoI) request has revealed that as many as one in four estates that are liable for IHT are investigated each year. In 2018-19, more than 5,500 investigations were launched by HMRC into the approximately 22,000 estates that had to pay the tax. Despite the introduction of the Residence Nil Rate Band (RNRB) effectively increasing the IHT threshold when Read more…

Principal Private Residence Relief and Lettings Relief changes due in April 2020

The start of the next tax year in April 2020 will see key changes come into effect in respect of Principal Private Residence Relief (PPR) and Lettings Relief, both of which can be used to soften the impact of Capital Gains Tax (CGT) on property disposals. From next April, Lettings Relief will be restricted to property owners who share occupancy of a property with their Read more…

Employment Allowance to be restricted from next year

At the moment businesses and charities of all sizes can benefit from Employment Allowance. However, from the start of the new tax year in April 2020, the allowance will only be available to employers with a secondary National Insurance Contributions bill in the current tax year of less than £100,000. Employers need to ensure that they update their payroll systems accordingly and cease to select Read more…

Summer childcare costs cooldown with Tax-Free Childcare

The Government wants to remind working parents that they could be entitled to up £2,000 per child per year to help with the costs of childcare, including regulated holiday clubs during the school holidays. The six weeks summer holiday can often be a strain for working families who rely on childcare, but the Government says that there are now more than 68,000 childcare providers that Read more…

Construction businesses only have weeks left to prepare for the VAT reverse charge

Businesses in the construction industry now have only a matter of weeks left to prepare for the new VAT domestic reverse charge regime. These new rules will be enforced from 1 October 2019, significantly changing the VAT affairs and tax liabilities of companies in the construction industry. The domestic VAT reverse charge will apply to all business-to-business supplies of services between VAT-registered businesses, where recipients Read more…

Government’s draft IR35 legislation contains important changes

After much anticipation, the Government has now published its draft legislation for the off-payroll working (IR35) rules, which will be enforced in the private sector from 6 April 2020. The latest policy document for the private sector shares a number of similarities with that already in force in the public sector. However, it does introduce a few new changes which contractors and businesses should be Read more…