Were you aware that Inheritance Tax (IHT) is due at 40% on all estates in excess of £325,000 with spouses having a combined limit of £650,000 before IHT is payable. If not, to make sure you take advantage of the planning opportunities which exist, we have produced this useful briefing to help you consider the impact that a Will (or lack thereof) can have on immediate or future IHT liabilities and how effective Will planning can help to reduce the potential IHT burden. Read our factsheet IHT

As part of HMRC’s campaigns you may come under scrutiny if you have sold anything on eBay or similar sites. Look at the indicators set out in ‘Internet Trading’ to see if you have anything to declare!

Our newsletter also includes positive news relating to tax and business. For instance, are you involved in one of the three million unincorporated businesses in the UK? If so read ‘A simple solution’ which details the work the Office of Tax Simplification is doing in looking at alternatives to help small businesses. The government are also looking to help companies through the Enterprise Investment Scheme. ‘Business angels’ will tell you more about how you or your company could benefit.

Your principal primary residence (the family home) is exempt from capital gains tax and this remains one of the most valuable CGT reliefs. However, the operation of the relief may not be as straightforward as you think. ‘The importance of occupation’ should help you to gain the maximum relief available and we are always on hand to offer advice when needed.

Winter 2011 newsletter

Budget speeches tend to be fairly uninspiring affairs. However, the background documents are usually more enlightening. To save you having to trawl through hundreds of pages of government and HMRC press releases, our summary of the main changes will quickly bring you up to speed and hopefully be a lighter read. budget 2011 Newsletter

Budget announcements contain many fundamental taxation changes which will affect business and personal lives for the year to come. Written in plain English, we have broken the summary down into the main areas of taxation, including business and corporate, employment, personal and capital. We have also included comments on the more important changes, together with any planning points that may arise.

We hope the summary will provide an invaluable update for you and help you get to grips with the changes.  However, despite HMRC’s assurances that ‘tax doesn’t have to be taxing’, recent years have seen a plethora of changes to the tax system. We are here to help you navigate and plan your way through the tax maze so please do get in touch if you have any questions.

Another area commonly under HMRC scrutiny is tax relief on motoring and travel related expenses.  In ‘Avoiding travel turmoil’ we remind you of the specific rules for self-employed individuals.

We also look at two areas concerning corporation tax. ‘- iXBRL deadline fast approaching’ looks at the changes ahead that require all corporation tax returns to be filed online and ‘Counting the costs’ looks at a new development in the rules surrounding associated companies.

There are also two areas of change from April 2011 which affect all businesses.

The first area of change concerns National Insurance Contributions (NIC) where new rates and bands apply for 2011/12 as well as changes as to when self employed Class 2 NIC is payable.

The second concerns the Bribery Act 2010 which comes into force from April 2011.  As this is applicable to every business, regardless of size, we have included a brief outline to keep you in the picture.

On the personal tax side, you may be aware of child trust fund (CTF) accounts. However, new accounts are no longer available for a child born after 3 January 2011. Instead, for children born after that date, a new savings account – the Junior ISA is to be introduced later this year.  In ‘Child savings accounts’ you can find out more.

For all this and more click Spring 2011 Newsletter

Following an announcement issued in October, our front cover focuses on the restrictions relating to tax relief on pension contributions and the bad news that some high earners could find themselves with an additional tax charge.

If you are entitled to Working Tax or Family Tax Credits, from April 2011 the rules are set to change and we have produced a summary to keep you up to date with the current position. We have also included a simple overview of R&D tax credits. Whilst the rules are complicated the rewards can be very valuable to qualifying companies.

Furnished Holiday Lettings have been a hot topic since the Labour government announced proposed changes. Whilst the legislation is yet to go through, the coalition government has published new proposals for the next tax year. If this legislation is likely to affect you please read our update.

The government is also looking to reform the PAYE system. Whilst no decisions have been taken our article ‘The Future of PAYE’ is an interesting insight into how HMRC view the future. Rules on employer provided cars are also set to change so if you are thinking of changing your car, our article ‘Reducing tax emissions’ may help you decide what to buy next!

‘Extracting profits wisely’ reviews the many options available to extract profits from a company and how to get the best tax deal!

Please contact us if you have any questions regarding any of the articles or tax planning tips we have included in our newsletter or if you would like further information on a topic we haven’t covered. Your views are always important to us and we would welcome any feedback you could give us.

A PDF version of the Winter 2010 Newsletter can be downloaded her Winter 2010 Newsletter

In his Emergency Budget speech on 22 June 2010, Chancellor George Osborne announced an increase in the standard rate of VAT from 17.5% to 20% to be effective from 4 January 2011. There are no changes to the zero or reduced rate (5%).

This article sets out some of the key issues for businesses to deal with in the run up to the standard rate change.

Click here to down load the VAT 20% Guide

Click her for a PDF version of Essential update for employers

Were you aware that expenditure on qualifying plant and machinery may obtain 100% tax relief?  This means that investment in new equipment may provide you with useful tax savings. Our article ‘Making every £ count’ explains further whilst our article ‘Curiouser and curiouser’ highlights the importance of planning in order to maximise your claims.

Our article ‘Planned changes for childcare vouchers’ summarises the current position and outlines the proposed changes announced in the final session of the previous government. However, the new coalition government may have different ideas so the changes may change again.

We rarely produce a newsletter where HMRC doesn’t get a mention and this issue is no exception as they continue to target the construction industry sector. They also feature in our article ‘Relationship with records’ as the need to keep good records grows as do the consequences for not keeping them.

We also take a look at the tax implications of borrowings between a company and its director shareholders.

Please contact us if you have any questions regarding any of the articles or tax planning tips we have included in our newsletter or if you would like further information on a topic we haven’t covered.  Your views are always important to us and we would welcome any feedback you could give us.

Please download our Summer Newsletter

Click to down load PDF version of Practical Tax Tips for the owner managed business