It is HMRC’s aim to eradicate the tax return as we know it by 2020, replacing it with a system called Making Tax Digital for businesses (“MTDfB”).
As part of the Government's plans to 'Make Tax Digital' (MTD), HM Revenue and Customs (HMRC) has introduced a new online Personal Tax Account system, which will bring an individual's tax details into one place so that they can register, file, pay and update their personal tax information online at any time.
April 2017 is the month where a whole section of companies will begin to have auto enrolment duties and this latest group takes into account any business that does not use a PAYE scheme. Although it is unlikely many of this group will have action to take given they almost certainly don’t have any employees to enrol, it is still important to ensure all regulatory duties are fulfilled such as, completing the declaration of compliance or notifying their exception to The Pensions Regular.
As we begin another tax year, we review the changes introduced by HMRC which came into effect from 6 April 2017. It is also important for employers to ensure that they report the necessary 2016/17 year end information in line with previous changes and the rules currently in place.
Self-employed individuals whose annual profits are below £6,025 for 2017/18 are not obliged to pay Class 2 National Insurance Contributions. However, voluntary Class 2 contributions (at £2.80 per week) can be made to maintain an individual’s National Insurance record and build up their entitlement to benefits such as the state retirement pension and state maternity/paternity allowances.
It is possible you may run into some complications when you come to retire and wish to claim your State Pension depending on the countries where you have worked and paid social security contributions in. Like the UK, each country has a minimum period in which Social Security contributions must be made for an individual to be entitled to their full State Pension, so if your employment has seen you working in numerous countries for shorter periods of time, it may be that you have not reached the minimum period in any one country.
Whatever the level of your tax liability, there are simple ways you can minimise the pain. Here are 10 suggestions for making your next bill slightly more manageable.
Most UK resident employers who assign employees to work overseas will have an obligation to deduct overseas wage tax from their employees as well as UK PAYE. To avoid having to deduct both UK PAYE and overseas tax from their employees’ salaries, many employers seek permission from H M Revenue & Customs (“HMRC”) to operate an Appendix 5 Net of Tax Credit Scheme.
Anderson Anderson & Brown LLP (AAB) have taken the lead to host a unique mini-series of seminars in Aberdeen and London in May this year. Talent Across Borders will address key challenges faced by senior leaders on human resources at the forefront of international business decisions.
In the Budget 2013, it was announced that a new childcare voucher scheme, Tax-Free Childcare, would be introduced to be phased in from Autumn 2015. However due to legal challenges which were raised against the new scheme by organisations under the existing Employer Supported Childcare Scheme (ESC) who were to be adversely impacted by the new scheme’s introduction, the start date was pushed back to ‘early 2017’. Despite the legal proceedings which took place, the Supreme Court dismissed the case.
There is a need for practice principals to consider selling their practice years in advance of the planned retirement date. One of the main reasons for this is that the purchaser may require the former-principal to stay on for a period of time post-sale, which could be anything up to several years, depending on the purchaser.