Accountancy Blog

IR35 – what you need to know

A brief guide to the tax implications of IR35.

IR35 is the shorthand name for tax rules concerning the provision of personal services through intermediaries.

These rules came into effect on 6 April 2000, but they were significantly amended from 6 April 2017 for contracts involving public sector bodies.

There are now two different applications of IR35 – for the private sector, and for the public sector. HMRC also refers to circumstances which may fall within IR35 as “off-payroll working”.

The Revenue is currently consulting on how to change the way IR35 is applied in the private sector, to align with the public sector rules.

These changes are likely to take effect from 6 April 2019, but that commencement date is not certain. More…

Travel & subsistence – it’s quite complicated

Your obligations for reporting travel expenses.

Many employees need to travel as part of their job for various reasons, whether it’s acquiring new customers, working with current ones or attending conferences and events.

The system of benefits and taxation surrounding this essential economic activity is classed as ‘travel and subsistence’ in the eyes of the taxman.

This involves a business reimbursing its employees, directors or partners for meals, accommodation or other general expenses, and claiming back tax where there is a valid receipt. More…

Entrepreneurs say they need more support

Four out of five entrepreneurs in the UK believe the government could do more to support their small business, research claims.

Aldermore surveyed 1,799 people, including 642 small business owners, and found 79% of respondents believed existing initiatives did not provide enough support to SMEs.

Apprenticeship levy funds go towards the training of apprentices, but only 36% of SMEs polled were aware of the funding and only 4% had accessed this form of government support.

A similar pattern emerged with capital allowances, with 27% of respondents aware of the scheme and only 5% utilising it to support their business. More…

Deadline for reporting benefits in kind nears

Most employers are currently getting their houses in order when it comes to reporting employee benefits and expenses ahead of the 6 July 2018 deadline.

At the end of the tax year, employers may need to inform HMRC if any taxable benefits were handed out to members of staff over the previous 12 months.

These include company cars, health insurance, non-business travel or entertainment expenses, and assets provided by an employer that have significant personal use.

Each taxable employee benefit is calculated differently, depending on the type of expense or benefit provided. More…

Making Tax Digital delay blamed on Brexit

HMRC has delayed rolling out digital services for individuals, such as the simple assessment and dynamic coding changes.

The move was announced in an email sent to stakeholders, which confirmed the delay was down to a shift in key priorities driven by the need to free up civil servants for Brexit.

Jon Thompson, chief executive at HMRC, said:

“We feel the need to take a step back and look carefully at what we could, and should, deliver in light of those [Brexit] challenges. More…

Landlord costs could increase due to legislation

A new ban on tenant fees could push costs of more than £80 million onto landlords, government figures have shown.

The tenant fees bill, which was published on 2 May 2018, includes a ban on all fees charged to tenants apart from rent, deposits, and certain necessary costs.

A government impact assessment confirms that “the main costs fall on landlords and letting agents” as a result of the changes, with landlords expected to absorb £82.9 million in the first year. More…

Tax planning for 2018/19 – the facts

How to reduce what you owe the taxman.

Nobody wants the taxman to take more than his fair share, and planning your finances early on can ensure you adopt the most tax-efficient strategy for the months and years ahead.

Effective tax planning will help protect your wealth and any assets, ready to pass on when the time comes, while also providing you with peace of mind.

Our complex tax system has a variety of reliefs and allowances to enable you to reduce your tax liabilities with HMRC and help you navigate your way to a wealthier future, but where do you start? More…

The company car benefit – or not?

What’s new for 2018/19?

Despite year-on-year tax rises, company cars remain a popular benefit.

While the tax cost of expensive high-emission cars can be eye-watering, by choosing carefully it’s possible to enjoy the convenience that comes with a company car for a relatively low tax cost.

So, as the new tax year gathers steam, what’s changed for 2018/19? More…

Funding and cashflow – we can help

Difficulty accessing funding is causing around one in four small and medium-sized firms to miss out on business opportunities, research shows.

A survey by Aldermore of 1,004 senior decision-makers in SMEs revealed that 23% had missed out on at least one new business opportunity due to lack of funding in the past 12 months.

The issue shows no signs of improvement, with 4% more businesses reporting this problem since the same survey was conducted in 2017. More…