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Jointly Held Property
From 2017/18 individual landlords won’t be able to deduct all of the finance charges they incur in their residential lettings business, for tax purposes. We set out the effect of this change in our newsletter on 3 September 2015.
PAYE Liabilities
When a company goes into liquidation leaving PAYE debts, HMRC can pursue the company directors for the unpaid tax and NIC. They do this by issuing “directions” against named directors under reg 72 of the PAYE regulations 2003 and reg 86 of the Social Security regulations 2001.
Time to Pay
The first step is to provide the taxpayer with clear information as to what tax must be paid by which date, and the consequences of not paying on time: interest and penalties. Some taxes carry higher penalties for late payment – for example a VAT surcharge of up to 15% of the late tax can be imposed even if the payment is only one day late.
Negative Earnings
When an employee receives a signing bonus on joining a company, the employment contract may specify that part of that bonus must be repaid, if the individual resigns within a set period. If the bonus is repaid, how should that be treated for tax purposes?
New ATED Rates
The annual tax on enveloped dwellings (ATED) must be paid every year by corporate owners of residential properties in the UK, where the property is worth over £500,000, and one of the reliefs or exemptions has not been claimed for the property.