Category Archives: Bedford

Updated Key Guides published 23rd August 2018


Updated Key Guides published 23rd August 2018

UPDATED KEY GUIDES

Whilst most of us bask in the hottest summer for over half a century, the government is busy running consultations and trying to prepare for what Brexit will eventually mean. But that is no reason for us not to be busy, whilst we await the announcements of the Budget, and the result of the negotiations.

The latest update for our Key Guides series brings you fully revised guides giving you essential explanations of key topics across business, tax and retirement planning. We understand how confusing it can be to get a clear understanding of how complex rules and reliefs affect you, so our guides will give you everything you need to get started in one place.

Our current update includes new examples, tables, graphics and case studies throughout, to make each topic as accessible and easy to get to grips with as possible. The new range will give you real world examples of complex rules and calculations, including fresh advice on inheritance planning and gifts.

Investing tax-efficiently

  •  New example on timing of CGT gains and losses
  •  Added reference to the OTS review of savings and investment income tax

 Making Tax Digital

  • Updates on latest timetable announcements from HMRC
  • Updated section on MTD pilot schemes
  • Restructured to focus on VAT and preparing for MTD

Pensions tax planning for high earners

  • New clarification and example on tax on pension withdrawals
  • New example on SIPP borrowing for property investment
  • Clarification on income tax relief on contributions in Scotland

Starting and selling a business

  • New tables covering:
  • Business financing options
  • Advantages and disadvantages to limited company structure
  • Payment options on sale of a business
  • Loan notes
  • VAT treatment of going concerns

Strategies for a high-tax environment

  • New example highlighting differing CGT rates between residential property and other assets
  • New graphic on maximum tax-free income allowances
  • Updated OBR forecasts

Working through personal service companies

  • New table summarising tax deadlines for deemed salary under IR35 rules
  • Restructuring of ‘Tax planning and pitfalls’ section
  • Summaries of recent IR35 rulings
  • New section on consultation on IR35 rules in the private sector

Estate planning

  • New example on the application of lifetime gifts and gifts from normal income

The latest Key Guides can be downloaded here:-

Tax Planning for High Earners

Tax Planning for High Earners

Estate Planning

Estate Planning

Making the most of Fringe Benefits

Making the most of Fringe Benefits

Strategies for a High Tax Environment

Strategies for a High Tax Environment

Investing Tax Efficiently

Investing Tax Efficiently

Making Tax Digital

Making Tax Digital

Personal Service Companies

Personal Service Companies

Starting and Selling a Business

Starting and Selling a Business

For more information contact Paul Southward or your usual KSK contact.

Paul Southward


KSK Business Update April 2018


KSK Business Update April 2018

KSK BUSINESS UPDATE

KSK Business Update April 2018

KSK are pleased to bring you the latest edition of our Business Update publications.

We have entered the 2018/19 tax year with, for the first time in years, no new tax changes. This new, and much more relaxed, state of affairs was introduced by the Chancellor, who used his Spring Statement to review forecasts and announce consultations.

With the clock ticking on Brexit negotiations, and two full Budgets delivered in 2017, it’s easy to see why Mr Hammond decided to focus on future changes rather than continue to make changes. With this spirit in mind, we are taking the opportunity to look ahead to key events such as the impact of Brexit on businesses and what rising pension contributions mean for you.

Finally, furthest ahead of all, our feature this edition is Don’t put off your inheritance tax planning. Sir Ken Dodd delivered one final punchline to HMRC when he married his long-term partner just before he died. The inspiration to take is that that Sir Dodd had made clearly proper plans to leave the best for his family.

Other topics we’re covering include:

  • Pension contributions offset tax gains Despite tax changes for 2018/19 reducing the amount paid n tax, the increases to auto-enrolment pension contributions will wipe out the gains.
  • Is import VAT coming after Brexit? With less than a year to go before the UK leaves the EU, what will happen to businesses importing goods from the EU?
  • Good news and bad news for the EIS and VCTs New risk-to-capital rules are changing the way investments in venture capital work.Closing the gap on equal pay With organisations now required to publish their gender pay gap data, how can employers improve the situation?

 

We will bring you another update in a few months.  Meanwhile take in the full Business Update publication here:-

Business Update Summer 2018

If you have any queries about your tax or business, contact Paul Southward or your usual KSK contact.

Paul Southward


Business Update – Spring 2018


Business Update – Spring 2018

Just as we near the final deadline for filing 2016/17 tax returns our thoughts turn to year ahead and the developments that are likely to affect individuals and businesses. With these thought in mind we have prepared our latest Business Update publication highlighting some of these developments.

Some of the changes were announced in the November Budget where we saw “spreadsheet” Phil take a more cautious approach after the spin and backtracking that marred his Spring Budget.

Amongst the high-profile announcements were the abolition of stamp-duty for first time buyers, coupled with more investment in construction for the housing market, a cash injection of £2 billion for the NHS, a promise to look at how taxation can reduce plastic waste and an extension of the Young Person’s Railcard up to age 30.

But as well as these friendly soundbites, there were significant changes announced in specific areas. The feature story in our Spring newsletter, Company car costs to increase with new emissions charges, looks into the details of the increases to emissions charges over the coming years. With benefit-in-kind taxes paid on 960,000 company cars in 2015/16, lots of companies will be affected. The changes also show the government’s efforts to encourage companies to reduce their carbon footprint, but could lead to significantly increased costs for employers. If you’re looking to replace a company car over the coming years, or a car fleet, there may be some surprises in store.

Other topics we’re covering include:

CAPITAL GAINS TAX

  • Indexation changes hit corporate capital gains The Budget introduced a freeze on indexation relief which affects corporate capital gains from January 2018, which means larger tax bills for incorporated landlords looking to sell property.

BULLYING

  • Making bullying and harassment a thing of the past After countless very high-profile allegations it is clear this issue needs to be properly addressed, so have you got robust policies and procedures in place?

VAT

  • VAT registration thresholds frozen from April 2018 Ahead of a major consultation on the VAT rules, the government is freezing registration thresholds for two years.

WORKERS RIGHTS

  • More holiday rights for self-employed workers More developments from the ‘gig economy’ are seeing rights to paid annual leave guaranteed for all workers.

SPRING STATEMENT

  • We will bring you another update after the Chancellor’s Spring Statement. Please do get in touch if you think you may be affected by any of the topics raised here.

You can access the Business Update Spring 2018 here:-

Business Update

If you have any queries relating to your business or personal tax affairs please do not hesitate to contact Paul Southward or your usual KSK contact.

Paul Southward


Autumn Budget 2017


AUTUMN BUDGET 2017

The Chancellor’s second Budget of 2017

Mr Hammond will probably be pleased if commentators decide that his Autumn Budget was a steady-as-she-goes, broadly modest Budget. After the national insurance u-turn he was forced to make after his March Budget this year, that was probably his aim.

In any case, for a variety of economic and political reasons, the Chancellor announced a relatively modest net tax giveaway of just under £1.6 billion for the coming tax year.

His main attention-seeking move was to give first time buyers an exemption from stamp duty land tax on the first £300,000 of value for properties worth up to £500,000. Rumours – probably from the Treasury itself – had trailed changes along these lines, and the new relief represents more than a third of his net giveaway.

With income tax, the changes were much less dramatic – increasing both the personal allowance and the higher rate threshold by 3% – the standard inflation-linked increase. ISA investors saw their main ISA and lifetime ISA investment limits frozen and only children saw a small increase in their specialist ISAs. There was better news for pension savers who enjoyed a £30,000 increase in the lifetime allowance and thankfully no cuts to the annual allowance.

Several measures were designed to introduce much more of a focus on risk investment for venture capital trusts, enterprise investment schemes and seed enterprise investment schemes.

Most Chancellors tend to cram all the painful announcements into Budgets at the start of a Parliament; for a range of reasons, Mr Hammond decided that he did not need – or perhaps couldn’t afford – to do this.

To view the KSK Autumn Budget 2017 summary click here:-

Autumn Budget 2017

If you have any queries regarding your tax affairs or matters raised in the Budget contact Paul Southward

Paul Southward


Autumn Budget 2017


Autumn Budget 2017

KEY POINTS

If the chancellor was asked to produce a Budget that would not rock the political boat, then it looks as if that is what he has delivered. The total net cost of his policy decisions for 2018/19 was a little over £6 billion with just £1.585 billion attributable to tax policy decisions.

The main tax changes announced were as follows:

  • First time buyers (outside Scotland) will pay no stamp duty land tax on the first £300,000 of the purchase price for a home provided its value does not exceed £500,000. Gains on disposals of all UK property (including commercial property) will be subject to UK tax on gains by non-UK residents accruing from April 2019.
  • The corporate indexation allowance will be frozen from January 2018, so that companies will no long benefit from relief for inflation after this date on their capital gains.
  • The VAT registration threshold will be frozen at £85,000 for 2018/19 and 2019/20.
  • Online marketplaces will become jointly and severally liable for the unpaid VAT of all UK traders, as well as overseas traders.
  • Relief for venture capital trusts, enterprise investment schemes and seed enterprise investment schemes will be focused on companies where there is a real investment risk. A number of other provisions will tighten up the rules for these investments.
  • The existing diesel supplement for diesel company cars will be increased from 3% to 4% from April 2018 for cars that do not meet the RDE2 emissions limits. The fuel benefit and van benefit charges will increase in line with RPI (and vehicle excise duty) from April 2018.
  • There will be a number of changes to business rates, including: bringing forward to 2018 the switch in indexation from RPI to the generally lower CPI; retrospective legislation to deal with the impact of the so-called ‘staircase tax’ by recalculating valuations and qualification for small business relief to the position in the period before April 2010; increasing the frequency of revaluations to every three years after the next valuation due in 2022.
  • The pension lifetime allowance will be increased from £1 million to £1.03 million from April 2018. There will be no change to the annual allowance.
  • The ISA limit will be frozen at £20,000 and the LISA limit at £4,000, but the junior ISA and child trust funds will rise to £4,260 from April 2018.
  • The income tax personal allowance will rise to £11,850 and the higher rate tax threshold for the UK (excluding non-savings, non-dividend income in Scotland) will rise to £46,350 for 2018/19.
  • There will be a raft of provision against tax avoidance and evasion. The government will consult on further measures to tackle non-compliance with the intermediaries legislation (often known as IR35) in the private sector. A possible step will be to extend the recent public sector changes to the private sector.
  • The government will also consult on reforming the taxation of trusts.

Business Update – Winter 2017


Business Update – Winter 2017

Our Winter Business Update

Trick or Treat?

Arrives just as the days are drawing in and the first chills of Northern winds sweep across the lands.

This could be a somewhat fitting backdrop for the Chancellor’s Budget due to be delivered on 22nd November 2017.

Having ridden the weakening storms brought about by a series of hurricanes that wreaked havoc across the Caribbean and southern US, we now have to contend with a Budget delivered in the maelstrom of political and economic climate shaped by Brexit negotiations and political weeping and wailing.

As rumours swirl around whether Mr Hammond’s Budget speech will include measures to help young people in the housing market, our feature this edition is Are you getting it right on rent?. Up to 2 million people act as landlords, renting out property in a variety of situations. Not all of them realise the tax responsibilities that come with that position, however, and HMRC has been looking into some common errors and misunderstandings

Check out our Winter Business Update here:-

Business Update – Winter 2017 download

Business Update – Winter 2017

Our other stories include:

  • Keeping up with employment changes The September Finance Bill includes new rules around termination payments, plus backdated confirmation of the cut to the money purchase annual allowance.
  • Wherever you lay your hat? New domicile changes Some non-doms may be classed as deemed domiciled across all taxes without realising their status had been changed from April 2017 in legislation contained in the second, September Finance Bill
  • Planning for the dividend allowance cut Also reappearing in the second Finance Bill is the cut to the dividend allowance from £5,000 to £2,000 scheduled for April 2018. Director/shareholders are likely to be affected
  • Making Tax Digital moves again The government appears to have listened to concerns around the implementation of Making Tax Digital and extended the timetable.

We will cover the outcome from the Autumn Budget in our next, Spring, edition. Meanwhile, if you’re affected by any of the issues we explore here, do get in touch with me.

Paul Southward


Happy Birthday Charles!


Happy Birthday Charles

Charles Little of the Bedford Office celebrating the beginning of his sixty fifth year on planet earth.

 


Updated Key Guide series: April 2017


Updated Key Guide series: April 2017

KEY GUIDES

We’ve recently reviewed our series of Key Guides as usual at this time of year. These specialist publications provide you with expert content on topics ranging from starting and selling a business to strategies for a high tax environment.

With the snap general election called for 8 June, the government was particularly active in trying to push through its Finance Bill before the dissolution of Parliament. However, the record-breaking 762-page Bill ended up as a mere 148 page Finance Act as more controversial items were set aside to smooth its passing.

There is still uncertainty around some measures such as the changed money purchase annual allowance cut for 2017/18 and the projected cut to the dividend allowance for 2018/19, but both are expected to be reinstated should the government be returned on 8 June. We will certainly keep you posted at that time.

The main areas to look out for this quarter are:

  • The taxation of investments

 

We have updated the section on dividend income to reflect the Finance Act changes. We’ve added further information regarding property income and tax credits.

  • Drawing profits from a company

 

The section on the taxation of dividends has been updated. NIC, corporation tax and national living wage figures have also been updated.

  • Working through personal service companies

 

The section on IR35 rules has been updated with the latest figures. We’ve also included information on the government’s reforms to the way in which IR35 applies to public sector engagements.

  • Making the most of fringe benefits

 

The Guide has been updated to reflect the changes to salary sacrifice arrangements. Company car rates and fuel benefits have been updated.

The full set of Key Guides are as follows:

Making the most of fringe benefits

Strategies for a high tax environment

Working through personal service companies

Drawing profits from a company

Workplace pensions and auto-enrolment

Pensions and tax planning for high earners

Living abroad

You and yours – estate planning

Tax allowances for business investment

The taxation of investments

Pensions freedom – drawing from your pension

For further information on any of the topics above and to view our full set of updated Key Guides, please visit our website or click on the links. Contact Paul Southward or your usual KSK contact to discuss any issues that may affect you.


Business Update Autumn 2016


Business Update Autumn 2016

This year has been extremely significant with the surprise referendum result to leave the European Union on 23 June. The country has entered a period of uncertainty in terms of the economy so keeping up with the latest news is vital. In the autumn edition of our newsletter, we explore the most important news in the world of taxation and business and we hope you enjoy reading it.

We cover one important area in our feature this edition on changes to entrepreneurs’ relief. Entrepreneurs’ relief is important for all business owners but there have been changes that could affect directors so it’s key that you know what they are.

Our other stories include:

Tax on investments: new opportunities –

Valuable opportunities have opened up recently to save tax on investments.

Loans rates rise for close companies –

The rate of ‘temporary’ tax charged on loans to participators in close companies has been increased from 25% to 32.5%, with the increased rate applying to loans made on or after 6 April 2016.

Implications of Brexit for tax and business – The vote to leave the European Union has triggered a period of uncertainty for the UK economy. The UK’s future relationship with the EU will not be clear for some time.

As usual, there is plenty of information in the newsletter to absorb, so let us know if you’d like more information on any of these topics – we’d love to hear from you.

The link to our latest edition of Business Update can be found here.

http://goo.gl/0seH9k

Record increase in Inheritance Tax takings by the taxman hits Middle England

Inheritance tax receipts have soared to a whopping £4.7bn but as can be seen from the Dukes of Westminster you can have a billion pound estate and still be able to avoid the taxman’s clutches.

See how you can start planning to avoid inheritance taxes by checking out these articles:-

IHT Planning:-

http://goo.gl/IjqCFb

Estate Planning Guide:-

http://goo.gl/eGMka2

Contact Paul Southward or your usual KSK contact for more information.

Paul Southward