Keep up to date with all the latest tax and financial news from CKLG
Latest News From CKLG Accountants
March 22, 2018
HMRC are encouraging VAT Registered Business owners to voluntarily register for ‘Making Tax Digital for Businesses’ (MTDfB) before they are required to do so. The live testing of Making Tax Digital compliant software will start in April 2018 and HMRC may ask you to join in before it becomes compulsory from April 2019. Once you’re in, you’re in! If you get an invite to join, speak to us first! Is your digital record keeping and software up to scratch?
On 1 April 2019, VAT Registered businesses will be required to enter the MTDfB regime from the first VAT period (not accounting period) that begins on or after 1 April 2019.
If your VAT turnover is less than £85,000, you will fall into MTDfB from the start of the next VAT period after your turnover exceeds £85,000. It will be important to check your VAT threshold monthly.
HMRC are serious, it will happen & we are not expecting any further delays. Are you ready?
March 16, 2018
We’ve heard the Chancellor taking stock of the British economy in his Spring Statement. It was brief; 20 minutes of discussion around growth and productivity, public finances and new tax consultations on VAT, Corporation Tax and Trusts.
In January 2018, the Chancellor wrote to the Office of Tax Simplification to review Inheritance Tax (IHT). Simplification, smoother processes and a review of routine estate planning opportunities is on the cards!
Did you know that the
- £3,000 annual IHT gift exemption has been the same since 1981?
This would be around £11,000 had it increased with the cost of living.
- IHT-free allowance on death has been £325,000 for the last 9 years?
Had it risen by inflation, it would be over £400,000.
It’s no wonder booming house prices and rising stock markets have increased the IHT take.
To help ease your IHT burden
- Consider IHT exempt gifts of capital and spare income during your lifetime.
- Larger sums can be given away but remain ‘potentially chargeable to IHT’ until 7 years have lapsed; be mindful of other tax implications.
- The ‘Residence Nil Rate Band’ may help if you leave your family home to your descendants. It’s an additional IHT free sum of £125,000 from April 2018 (capped at £175,000 from April 2020) but it’s complex and not available to everyone.
- Consider funding your retirement by cashing in ISAs which are liable to IHT rather than spending pension savings which may be exempt.
- Bank Business and Agricultural Property Reliefs by gifting qualifying assets.
There are over 200 tax consultations in progress. Those alongside changes to your family circumstances make it important to plan ahead; call CKLG on 01223 810100 and ask to speak to one of our private client tax specialists.
March 15, 2018
Tuesday's Spring Statement saw Chancellor Phillip Hammond taking stock of the British economy. It was a brief affair; 20 minutes of discussion around growth and productivity, public finances and a handful of new tax consultations.
In time, we may see changes to VAT, Corporation Tax payable by big tech companies and the taxation of trusts being made simpler, fairer and more transparent. A consultation on the introduction of a levy on ‘single use’ plastic is expected to address the huge concern over the damage plastic does to our environment.
On 19 January 2018, the Chancellor wrote to the Office of Tax Simplification to order a review of Inheritance Tax. Simplification and smoother processes; combined with a review of routine estate planning (including gifting) is also on the cards.
There are over 200 consultations already in progress; please call us on 01223 810100 to discuss how these could affect you.
February 22, 2018
We are delighted to be sponsoring Newmarket Hockey Club and their training bibs this season.
We're also very much looking forward to cheering on our very own Stef Heslop and Sarah Haird in their upcoming matches.
February 6, 2018
If you have used a crowdfunding arrangement to raise money for your business, you may need to account for VAT on the reward packages offered to your investors. The VAT treatment varies according to exactly what the investor is entitled to receive as a reward.
HMRC treats the rewards as pre-payments, or as vouchers to exchange for your products or services. The voucher is treated as being “sold” to the investor either when the money is invested, or when the reward is given. There may be a long period between these two events, so it is essential to look at the detail of the transaction in each case.
Our VAT experts can help you get the VAT reporting right for your business from day 1, please conatct us on 01223 810 100.
February 3, 2018
When you make a significant donation to an organisation, rather than an individual, you should check whether any inheritance tax (IHT) is payable on that gift. Contrary to popular belief IHT is payable on gifts made during a person’s lifetime, if the gift is not covered by a specific exemption.
There are exemptions for gifts made to; political parties, charities, housing associations, and made for national purposes or maintenance of historic buildings. The gift may fall within your annual exemption of £3,000, or be covered by your nil rate band of £325,000. In other circumstances IHT at 20% may be due.
Please contact us to discuss any inheritance tax planning concerns you have.
January 23, 2018
With the end of the 2017/18 tax year fast approaching CKLG Accountants Cambridge are pleased to be able to share with you our Year End Tax Guide. The Guide highlights the potential tax planning measures that you may wish to consider or take for yourself or your business before 5 April 2018.
- Personal Allowances and Relief's
- Pension Contributions
- Inheritance Tax
- Capital Gains
- Corportation Tax
- Entrepreneurs’ relief
January 17, 2018
Where an individual does not have sufficient income to utilise their Personal Allowance (PA) in full, the Marriage Allowance enables them to transfer 10% of their PA to their spouse or civil partner. It is only available if both individuals were born after 5 April 1935 and neither spouse is a higher rate taxpayer.
The Personal Allowance for the current 2017/18 tax year is £11,500. Therefore, the Marriage Allowance is worth £230 for this year (£1,150 x 20%). However, it has to be specially claimed and many people have been put off by the online application process. In fact, you can claim the allowance by calling HMRC on 0300 200 3300, or can make the claim in writing.
Once the claim has been accepted, it remains in place for future tax years while the marriage continues, unless the claim is revoked. The claim for Marriage Allowance can also be backdated to cover all years from 2015/16 if the couple were married in those earlier years.
January 15, 2018
Make sure you are fully aware of any changes to UK tax rates, reliefs and allowances affecting you and your business for 2018/ 2019.
January 9, 2018
For the current 2017/18 tax year, the first £5,000 of dividends you receive are taxed at 0%, as that amount is covered by your Dividend Allowance. This allowance will be reduced from £5,000 to £2,000 with effect from 6 April 2018. This may affect the amount of tax you pay on the dividends you receive in the 2018/19 tax year.
Where your company’s shares are held by a number of your family members, to take advantage of the Dividend Allowance, you may need to review this share structure and amend it if necessary before 6 April 2018. Changing share ownership can give rise to tax charges, so please ask us for advice before cancelling or issuing new shares.