MTD for VAT  – is it all bad news?

So according to HMRC there’s no going back, MTD for VAT really is going to happen. From next April you will have to be able to file your VAT Return through ‘functionally compatible software’ – and suddenly businesses are becoming aware of what this means and the changes they might have to make just to able to carry on doing something they’ve had no problems with for years and which is a fundamental part of their business!

Is your current home earning you valuable rental income from paying guests? HMRC will now start insisting on a share of this income

‘Rent a Room Relief’ was introduced by the Government back in 1992 to encourage individuals to make spare rooms in their homes available for rent. It allowed property owners, and even tenants to let furnished rooms in their homes, and receive the associated income free of tax, albeit subject to particular income thresholds. 

Scottish Tax Reduction for UK Armed Force Personnel

Compensation because they simply have no choice of where they are posted equals another interesting development in terms of English v Scottish taxes

VAT Reclaim Opportunity for Motor Dealers

After a long period of uncertainty, HMRC have now confirmed their policy in respect of motor dealer deposit contributions (DDC). The outcome is that DDC are not subject to VAT and HMRC have invited claims from motor dealers who have historically accounted for VAT on these contributions.

Property Taxes - CGT payment window for residential property expected to be reduced to 30 days from April 2020

As reported in our recent blog, HMRC published a consultation in April 2018 regarding the payment of capital gains tax (“CGT”) when disposing of residential property.

Have your cake and eat it!

A common myth in relation to Research and Development (‘R&D’) tax relief is that qualifying activities are only undertaken by scientists in white coats. The tax definition of R&D is much wider than this, and can take place when a project attempts to achieve an advance in science or technology.

IFRS 15 - Value behind compliance

IFRS 15 ”Revenue from Contracts with Customers” has an effective date for periods beginning on or after 1 January 2018. Six months into the implementation period you should be confident of your approach, have your accounting policies up to date and the comparatives restated. Is that the case? If you are feeling less that compliant and are in the early stages of implementation here are some things to consider.

The new revenue recognition standard is one of the most significant accounting changes in the last decade and depending upon the complexity of your business  may require substantial investment of time and resource from some of your most senior people. If you are to achieve compliance, it is not just about a change to your accounting policy but will require an in-depth review and likely change to your existing processes and systems.

EIS and SEIS – The tax relief’s get tougher!

The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) offer attractive investment opportunities for individual investors which in turn allow young entrepreneurial UK companies to raise funding to facilitate growth and expansion plans.  However, the generous tax reliefs which make SEIS & EIS opportunities attractive for investors have recently become a lot more complicated to secure!

Enhanced Tax Reliefs for Vehicles

The emissions of a car purchased by a business can have a big impact on the timing of the tax reliefs that be achieved by Capital Allowances.

A Competitive UKCT System, but with Traps for Unwary

For a number of years, the UK Government has had a drive to make the UK corporation tax (UKCT) system one of the most competitive in the world. With Brexit looming, this takes an ever increasing importance: once the UK is outside the EU, having a competitive UKCT system is a vital strand that both attracts multinationals into the UK economy, and seeks to prevent corporate behaviours which aim to shift profits outwith the UK tax net.

Understanding the Value of Your Business

There are many reasons for valuing private business whether you are considering investing, selling, transferring an interest in a business, setting up a tax efficient employee ownership scheme or looking to resolve a dispute. Whatever your intention, fully understanding the value of the business in question is an important and useful exercise, allowing you to make the right decisions.

Selling your company – Entrepreneurs’ Relief traps for the unwary!

The disposal of a business should always be driven by the commercial objectives of the buyer and the seller and tax planning should not distract from this.  However, ensuring an exit is implemented in the most tax efficient manner can help bridge any commercial disparities between the two parties.  Often tax planning structures require to be put in place prior to a disposal but, without a crystal ball, it is difficult to predict when an exit opportunity will arise.  However, reviewing the existing company structure and shareholding profile should be considered to increase tax efficiencies prior to selling an entrepreneurial company.  

Statutory Shared Parental Leave & Statutory Shared Parental Pay

Shared Parental leave and Shared Parental Pay were originally introduced in 2015 and from recent studies, there has only been a small percentage of employees who are eligible have actually taken up the leave.

Optimising Employee Equity Incentives

Attracting and retaining key employees is an essential part of growing a successful business and can often prove a challenging area for entrepreneurial companies. This was featured at the recent Engage Invest and Exploit 2018 conference which highlighted that providing employees with an equity interest is usually the most effective method of achieving this.

Taxation of the Digital Economy – Changes are Coming

There is broad agreement between global Tax Authorities that the means by which companies in the digital sector can be subject to corporate tax in overseas territories has not kept pace with the manner in which many multinationals today generate profits across multiple locations. 

Company Voluntary Arrangements (“CVA”) – what are they?

We have seen a number of number of high street stores trying to restructure their businesses in recent times using a process known as a CVA. New Look, Carpetright, Mothercare, Prezzo, Byron Hamburgers and House of Fraser are amongst the well-known names that have used the process to try and reach an agreement with their creditors to reduce their cost base and turn around the loss-making parts of their businesses.

Supporting our Business Leaders and Innovators in Oil & Gas

Much has been written about adaptation, change and innovation in the Oil & Gas industry in 2017.  E&P are leading the change agenda, especially in the North Sea and we are starting to see the Oil Services sector leading the way with it comes to big data and analytics. 

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