Category Archives: Key Guide

KEY GUIDES UPDATED


KEY GUIDES UPDATED

27th July 2020

As lockdown has gradually eased over the last month, including foreign travel and the opening of restaurants and pubs, albeit with ongoing restrictions, perhaps there is cause for cautious optimism. While disparities between some service industries remain, many can now book a haircut, visit a theme park, or cautiously go out to the cinema or swimming.

With the focus firmly on sustaining jobs and businesses, the Chancellor’s Summer Statement outlined additional measures designed to boost employment on the heels of a government boost of over £1.5 billion for the hard-hit arts sector. As October approaches and the end of the furlough scheme, many will be fearful that the new measures will not be enough to prevent increased redundancies.

Our latest set of Key Guides includes the impact on businesses and individuals of the changes to government Covid-19 restrictions from July and the latest on the rules surrounding the Coronavirus Job Retention Scheme. In addition, our title ‘Working with Personal Service Companies’ has become ‘Off-payroll working’ to reflect the terminology in the rules affecting both self-employed workers and the businesses that hire them, which will extend to private companies next year.

One area where there could be increased opportunities is the housing rental market. While we consider the positives from the recovery of the housing market in our Guide ‘Taxation of property’ we remain cautious about any effects a second spike of Covid-19 could bring. Our Guides ‘Pensions tax planning for high earners’ and ‘Retirement and tax’ weigh up the implications of topping up your income with pension withdrawals, as reducing your fund now could have serious consequences for future income.

If any questions arise from any of our Key Guides, please get in touch.

Follow the links to the new guides here:

Tax allowances for business investment

Here:

Making the most of Fringe Benefits

Here:

Off-payroll working

Here:

Pension tax planning for high earners

Here:

Taxation of property

Here:

Retirement and tax

Here:

Starting and selling a business

Here:

Strategies for a high tax environment

Here:

 


UPDATED KEY GUIDES – JANUARY 2020


UPDATED KEY GUIDES – JANUARY 2020

KEY GUIDES

UPDATED KEY GUIDES – JANUARY 2020

Here are the latest Updated Key Guides; we have reviewed all of the Key Guides for relevant developments, some have not needed amending but here are the Nine Updated Key Guides for your information and guidance.  Contact us if you need any further guidance and/or assistance.

You can access the whole series of KEY GUIDES through the downloads in the Recent News section of our website here: –

https://ksk.co.uk/news/

The amended Key Guides are: –

Accessing your company profits

  • An updated introduction advises that the possibility of new, environment-related taxation may be on the horizon for businesses.
  • An example regarding national insurance contribution calculations has been revised for greater clarity.
  • Information is given about the forthcoming changes to personal service company (PSC) IR35 rules for private sector businesses.
  • Updated information about the taxation of company cars, in line with the government’s environmental policies, is given.
  • A warning is also given about the need to keep abreast of Brexit developments over the coming year and its potential impacts on business planning.

KG ACCESSCOMPANYPROFITS

Making tax digital

  • Information about the types of roll-out for different areas of tax has been made clearer.
  • MTD for VAT became compulsory in April 2019, with an agreed delay to October 2019 and early 2020 for certain types of business; the key guide has been updated to reflect this deferral, explaining its implications for public sector bodies who use the GIANT system of tax reporting.
  • Fuller details about the MTD VAT situation in general have been given.

KG MTD

Making the most of fringe benefits

  • An update to the introduction makes the point that the Conservative party re-election in December 2019 makes changes to the taxation of benefits in 2020/21 very unlikely.
  • The introduction also reiterates how the company car, traditionally a popular benefit, has become less tax efficient, with the introduction of the UK’s first zero-emissions street a good indicator of the future of motoring.
  • The guide explains one way to improve efficiency is for employees to contribute up to £5,000 for a new company car which may allow them to afford a car with much lower emissions.

KG FRINGEBENEFITS

Starting and selling a business

  • Updated introduction touches on implications of the UK general election and the consequences of an orderly or disorderly exit from the EU on the UK’s economic growth
  • Updated advice regarding tailoring business plans to take EU exit into account for 2020
  • The latest information on the expansion of the IR35 rules to the private sector set for April 2020.
  • A new mention of the proposed further discounts (to 50%) to retail business rates.
  • Update to regarding the annual 2% write-off for the construction costs of commercial property which is now set to increase to 3%.
  • New mention of an increase to employment allowance.
  • Inclusion of the government’s announcement to conduct a “review and reform” of entrepreneur’s relief.

KG STARTANDSELLBUSINESSf

Strategies for a high tax environment

  • Updated information from the Office for Budgetary Responsibility has been given
  • The latest situation based on the Conservative party manifesto regarding increasing the NICs threshold has been added.
  • An additional comment regarding Entrepreneurs’ relief and the potential ‘review and reform’ it may undergo has been inserted.
  • An update regarding the abandonment of the plan to cut Corporation tax to 17% has also been added.

KG STRATEGIESHIGHTAX

Tax allowances for business investment

  • An update regarding the upcoming increase in structures and business allowance (SBA) from 2% to 3%
  • Up-to-date example figures used to explain how to calculate the annual investment allowance (AIA)

KG BUSINESSINVESTMENT

Taxation of property

  • An updated introduction touches on the performance of the housing market in 2019, the projected rise in house prices and the implications of Brexit following the general election result.
  • A change to the information on corporation tax which is now remaining at 19%.

KG TAXONPROPERTY

Working through personal service companies

  • An updated introduction touches on the forthcoming expansion to the private sector of the IR35 rules for personal service companies (PSCs), including the government’s review of the implementation.
  • Further advice on the CEST tool which has been updated by HMRC with 30 new or updated questions, in addition to a contract review process.
  • An additional section on retaining your personal service company.

KG PSC

You and yours – estate planning

  • An update on the shelving of probate fee changes and delays in processing applications.
  • A comment on whether the Office of Tax Simplification proposals on inheritance tax will be integrated into the March 2020 Budget is added.

KG ESTATEPLANNING

Contact Paul Southward.

Paul Southward's News Roundup


Updated KEY GUIDES now published – November 2019


Updated KEY GUIDES now published – November 2019

KEY GUIDES

UPDATED KEY GUIDES

All the Guides have been reviewed for relevant developments and some stylistic improvements. The following Guides have specific changes as detailed. If a title is not listed, then no additional substantive changes have been made for this release. The disclaimer date on the guides has been updated to reflect the date of the review.

You can access the whole series of KEY GUIDES through the downloads in the Recent News section of our website here: –

https://ksk.co.uk/news/

The amended KEY Guides are: –

Investing tax efficiently

  • The three important changes for capital gains tax on residential property which take effect from 2020/21 are now included.

Making the most of fringe benefits

  • A new introduction now includes statistics on most popular benefits and how the company car, traditionally a popular benefit, has become less tax efficient.
  • The guide explains one way to improve efficiency is for employees to contribute up to £5,000 for a new company car which may allow them to afford a car with much lower emissions.
  • Additional information on other new fringe benefit options designed to improve wellbeing such as wearable tech, counselling and flexible working hours.

Pensions tax planning for higH earners

  • Additional material on tax charges issued for breaches of the lifetime allowances to doctors, NHS staff and other professionals.

Starting and selling a business

  • Revised introduction focuses on challenges regarding business costs and those of suppliers or potential suppliers or customers.
  • For freelancers the freedom of working when and where you desire must be balanced against the discipline required and lack of sickness and holiday benefits.
  • A new section explaining the low costs associated with operating online via a website also highlights the necessity of an online presence for all businesses so customers can find offline products and services.
  • The latest information on the expansion of the IR35 rules to the private sector including recent tribunal cases.
  • The current attractive rates of CGT are highlighted, which could change following an election, so those thinking of selling their business might be wise to do so sooner rather than later.

Strategies for a high tax environment

  • Information added on the shortening of tax payment timings for residential buy-to-let sales which will affect any sales made after 5 April 2020, when tax will be due within 30 days of completion.
  • The latest figures on accelerated payments collected by the government for those involved in tax avoidance schemes are published.
  • We mention the proposals by the Office of Tax Simplification to adjust tax allowance for inflation, although other benefits would be withdrawn.

Tax allowances for business investment

  • A new section highlights the pitfalls in claiming expenditure for building owners, whether on commercial or residential properties.

Taxation of property

  • Significant reworking and revision moving the focus to upcoming changes to CGT and finance costs.
  • Updated examples on finance cost restrictions and tax charge on company dividends.
  • Additional material on furnished holiday lettings.

Working through personal service companies

  • Further examination of the complicated IR35 rules includes the reform of its application to public sector engagements and the forthcoming expansion to the private sector.
  • Advice on the CEST tool, and how to remain independent of your client, and avoid being subject to IR35.

You and yours – estate planning

  • An additional section on the July 2019 Office of Tax Simplification.

If you have any queries or need further information on topics covered by our KEY GUIDES or any other matter, contact Paul Southward.

Paul Southward's News Roundup


Key Guides April 2019


Key Guides April 2019

KEY GUIDES APRIL 2019

Updated Key Guides now available

We are delighted to make available to you our updated and freshly designed Key Guides.

All the Guides have been reviewed for changes to the 2019/20 tax year. The following Guides have specific changes as detailed. If a title is not listed, then no additional substantive changes have been made. The disclaimer date on the guides have been updated to reflect the date of the review.

A summary of the Key Guides and download links are Here:-

Accessing your company profits

  • Updates for the 2019 Budget, including the NIC thresholds, national living wage and personal allowance

Key Guide – Accessing Company Profits

Investing tax efficiently

  • Updates for the 2019 Budget, including the personal allowance, dividend allowance and capital gains allowance
  • Updated property income tax rate for 2019/20 with, a quarter of interest set against rent and the balance qualifying for the 20% tax credit.
  • Updated capital gains and capital losses example with new personal allowance.

Key Guide – Investing Tax Efficiently

Making Tax Digital

  • The latest on the MTD implementation schedule, including information on the ‘soft-landing’ phase.

Key Guide – Making Tax Digital

Pension tax planning for high earners

  • Updates for the 2019 tax year including income tax thresholds for and the UK including Scotland, the personal allowance and pension allowances.

Key Guide – Pensions Tax Planning

Retirement and tax

  • New example on state pension tax, with new 2019/20 personal allowance and state pension figures.

key Guide – Retirement and Tax Planning

Starting and selling a business

  • Updated example for the tax cost of different business structures including 2019/20 tax thresholds.

Key Guide – Starting and Selling a Business

Strategies for a high-tax environment

  • Updated government borrowing projections from the Office of Budget Responsibility.
  • Capital gains tax example updated for 2019/20 tax year.

Key Guide – Strategies for a High Tax Environment

Tax allowances for business investment

  • Updates for capital allowances claim example.

Key Guide – Tax Allowances for Business Investment

Taxation of property

  • Updated buy-to-let income example, on finance costs restrictions.

Key Guide – Taxation of Property

You and yours – estate planning

  • Update on the postponement of the probate fees increase and the IHT residence nil rate band.

Key Guide – Estate Planning

If you have any difficulties accessing the Key Guides or have any queries, contact Paul Southward.

Paul Southward