Tenth anniversary of first Debt Relief Order
Debt Relief Orders (DROs) were first introduced in April 2009. The DROs assist people who have small levels of assets and insufficient surplus income to deal with debts under £20,000. In a news release published by the Insolvency Service we are told that in the last 10 years, more than 254,000 DROs have been approved for people with debts averaging £9,400.
A DRO normally runs for 12 months after which the debts are written off. There are also restrictions during the DRO period, for example ... read more
Estate Agents targeted
HMRC has launched an unannounced crackdown on money laundering regulation non-compliance by estate agents. This clampdown resulted in over 50 visits by HMRC staff to estate agents across England that were suspected of trading without being registered as required under money laundering regulations.
This crackdown includes targeting those who are trading without registering appropriately as well as those who may not be meeting their obligations in line with the money laundering regulations. One ... read more
Job related expenses you can claim against your tax
If you are an employee and use your own money to buy things that you need for your job, you may be able to claim tax relief for the associated costs. It is usually only possible to claim tax relief for the cost of items that are used solely for your work.
There is no tax relief available if your employer pays you back in full for an item you have bought for work. In addition, you cannot claim tax relief if your employer has provided you with a suitable item, but you want a different or upgraded ... read more
Welsh Income Tax takes effect
The start of the 2019-20 tax year marked a fundamental change to the way Income Tax is calculated for people who live in Wales. The new Welsh rates of Income Tax (WRIT) are payable on the non-savings and non-dividend income of those defined as Welsh taxpayers. The revenue from the WRIT will go to the Welsh Government.
The UK government has reduced each of the 3 rates of Income Tax – basic, higher and additional rate – paid by Welsh taxpayers by 10p. The Welsh Government has autonomy ... read more
Let Property Disclosure Campaign
The Let Property Campaign provides landlords who have undeclared income from residential property lettings in the UK or abroad with an opportunity to regularise their affairs by disclosing any outstanding liabilities, whether due to misunderstanding the tax rules or because of deliberate tax evasion.
The campaign was launched in September 2013 and does not currently have an end date. Landlords, who do not avail of the opportunity and are targeted by HMRC, can face penalties of up to 100% of the ... read more
Outline of special rules for use of vouchers and credit tokens
HMRC’s Employment Income Manual is clear that there are special rules when an employee receives goods or services by reason of their employment, that the employee does not pay for in full. The first step should always be to consider whether a voucher or credit-token was used to obtain them.
Any non-cash vouchers, for example gift vouchers or credit tokens from shops, or electronic cards (equivalent to vouchers) given to a director or employee that can only be exchanged for goods or ... read more
What is domicile?
Domicile is a general legal concept which in basic terms is taken to mean the country where you permanently belong. However, determining domicile status can be complex. In fact, HMRC guidance states that domicile cannot be defined precisely, but the concept rests on various basic principles.
Every individual must have a domicile at all times. The law ascribes a domicile to those individuals it regards as lacking capacity to choose one.
An individual cannot have more than one domicile at the ... read more
The VAT concept of business
The VAT system is policed by HMRC and there can be heavy penalties for breaches of the legislation.
There are four conditions that must be satisfied in order for an activity to be within the scope of UK VAT.
These conditions are that the activity:
is a supply of goods or services
that the supply takes place in the UK
is made by a taxable person
is made in the course or furtherance of any business carried on or to be carried on by that person
The fourth point above is a condition that ... read more
New guidance on the impact of Brexit on workplaces
Acas has published new general guidance to assist employers and employees in understanding the impact that Brexit may have in their workplace and it gives advice regarding the steps they may want to take before the UK leaves the EU.
It advises that EU membership can impact workplaces in several ways, such as:
providing goods and services to other members of the EU
using goods and services provided by other members of the EU
employing EU citizens
having UK employees work in the EU.
Many ... read more
Right to work checks for EU nationals after Brexit
The government has published new guidance which confirms that, once the UK leaves the EU and whether this is with a deal or not, there will be no change to the way EU, EEA and Swiss citizens prove their right to work until 1 January 2021. Irish citizens will continue to have the right to work in the UK and prove their right to work as they do now, for example by using their passport.
This means that:
employers should continue to conduct right to work checks on all prospective employees, ... read more