From April 2016 the way in which tax is applied to dividends will see substantial changes. Dividends, formerly the tax-friendly alternative to salary, will bring new tax liabilities – potentially leaving you with higher tax bills. Under these new reforms, the Dividend Tax Credit will be abolished in April 2016 and a new Dividend Tax… Read more…

The Government has considered responses to questions posed on the audit exemption threshold in its discussion paper on the implementation of the Audit Directive (2014/56/EU) and the Audit Regulation (Regulation 537/2014) and raised the audit exemption threshold. This means that companies with a turnover up to £10.2 million, a balance sheet total of up to… Read more…

During the Chancellor’s 2015 Autumn Statement, the Government announced its plans to reform tax legislation to require small businesses, the self-employed and landlords to update HMRC quarterly, rather than completing an annual tax return. The Government intends for quarterly updates to be initially introduced from 2018 and phased in fully by 2020. MPs criticised the… Read more…

The Employment Allowance that enables employers to reduce their NI bill by £2,000 is being extended from 6 April 2016 to £3,000. However, HM Revenue & Customs (HMRC) has advised that single-director companies will be excluded. The news follows a technical consultation that closed on 3 January 2016.  An extract, indicating the adjustment, was published on… Read more…

HM Revenue & Customs (HMRC) has revealed the worst excuses it has heard over the previous year from people filing late tax returns. The list, which was released ahead of the 31 January deadline for filing tax returns online, contains claims that were used in unsuccessful appeals against penalties imposed for late returns. Failed excuses… Read more…

A survey by the Federation of Small Businesses (FSB) has found that nearly half of the employers who must set up a workplace pension scheme for their staff in the next two years are confused about their responsibilities. The FSB’s survey revealed that 45 per cent of those asked were unclear on the rules relating… Read more…

The number of buy-to-let loan applications from limited companies has surged in recent months as landlords prepare for tax hikes starting in April, say mortgage brokers. The latest Buy-to-Let Index, produced by specialist broker, Mortgages for Business, found that 38 per cent of its applications by December 2015 were from limited companies, up from 15… Read more…

The Office for Budget Responsibility (OBR) has released new figures that show the number of UK families paying inheritance tax (IHT) is at a 35-year high. Surging house prices have pushed up the value of family assets above the static tax threshold, resulting in an estimated 40,100 families facing payments on their inheritance in the current tax… Read more…

From April 2016, the Department for Work and Pensions (DWP) is raising the qualifying earnings upper limit for auto-enrolment from its 2015/16 value of £42,385 to £43,000 in 2016/17. The lower limit qualifying earnings band will remain at £5,824 and the earnings trigger will be frozen at £10,000 for 2016/17. The qualifying earnings band sets… Read more…

Many UK taxpayers are now able to manage their tax affairs following the launch of Personal Tax Accounts. More than a million customers completing their self-assessment have been provided with an online Personal Tax Account (PTA) that provides a clear view of the tax paid and benefit entitlement, which will enable users to update their… Read more…