Hart Parry, Author at Hart Parry
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A guide to Autumn Budget 2017

A SIMPLE GUIDE TO THE BUDGET 2017 This is a basic guide, prepared by ACCA’s Technical Advisory team, for members and their colleagues or clients. It is an introduction only and should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained, where necessary. The budget message from the Chancellor was that ‘the economy that continues to grow, continues to create more jobs than ever before and continues to confound those who seek to talk it down’. You can read the individual measures and details of some of the numerous consultations below. Rates and allowances 2017/18 2018/19 £ £ Income tax rates – (non-dividend income) 0% lower rate tax – savings rate only Up to 5,000 Up to 5,000 20% basic rate tax 11,500 to 45,000 11,851 to 46,350 40% higher rate tax 45,001 – 150,000 46,351 – 150,000 45% additional rate tax Above £150,000 Above £150,000 Scottish Income tax rates – (non-dividend income) 0% lower rate tax – savings rate only Up to 5,000 Up to 5,000 20% basic rate tax 11,500 to 43,000 11,500 to 43,000 40% higher rate tax 43,001 – 150,000 43,001 – 150,000 45% additional rate tax Above £150,000 Above £150,000 Personal allowance Personal allowance 11,500 11,850 The Scottish government budget will take place on 14 December 2017.   Marriage allowance From 6 April 2018 the transfer of £1,185 of a personal allowance to a spouse or partner or deceased partners is available. The inclusion of deceased partners applies from 29 November 2017 and can be backdated 4 years, subject to conditions.  Dividend allowance The tax-free dividend...

Newsletter Winter 2017

Newsletter | Budget-Winter 2017   Winter Newsletter Budget – How will it affect you? Listening to the budget, it doesn’t sound as if much has immediately happened to Income Tax, VAT, Capital Gains Tax, Corporation Tax or Inheritance Tax. Over the next few days the detailed documents will be released – and as always the devil is in the detail – http://www.hartparry.co.uk/guide-autumn-budget-2017/ Changes to pensions auto-enrollment The Pensions Regulator (TPR) reports that in the first part of 2017 alone, 136,000 small and micro employers began complying with their new responsibilities under the pensions auto-enrolment regime. That’s an average of one every 57 seconds. But with change ahead, it’s important to keep up to date with developments. The latest important deadline is 1 October 2017, as the regime enters a new phase, with no lead-in time for new employers to comply. From 1 October, any employer taking on staff for the first time immediately comes within the rules. Those who have employed staff before 30 September 2017 have different deadlines – see the ‘Duties Checker’ section on the TPR site, goo.gl/TXS6T5 Ongoing duties The first step in employer compliance involves assessing staff on the basis of age and earnings. Staff aged between 22 and State Pension age, who earn over £10,000 pa, (£833 per month or £192 weekly), must be put in a pension scheme, to which both employer and employee contribute. But employer involvement doesn’t stop there. If staff don’t need to be put into a scheme, there’s still a declaration of compliance to be made, and ongoing duties, including keeping track of employees’ age and earnings each time they are paid,...

Newsletter Autumn 2017

Making Tax Digital for Business: plans delayed The government’s much-publicised plans for Making Tax Digital for Business (MTDfB) have taken a radical new direction, giving businesses longer to get ready for change. MTDfB involves not just mandatory quarterly updates to HMRC, but also makes digital accounting records compulsory. For some unincorporated businesses, including landlords, April 2018 was the proposed start date. There has been much concern about the entire plan, particularly the very rushed timescale. There is now a lengthier period to prepare and initially, MTDfB will be limited just to the VAT regime. New timeline The timeline now proposed makes MTDfB mandatory from April 2019 for businesses with turnover over the VAT threshold (£85,000 at present). They will have to keep digital records, but only for VAT purposes. Such businesses will be able to provide quarterly updates for other taxes if they wish. Similarly, businesses with a turnover below the VAT threshold can choose to make quarterly updates voluntarily. 2020 is the next date in the MTDfB calendar: HMRC say this is the earliest that businesses and landlords will be required to keep digital accounting records and make quarterly updates for taxes other than VAT. New Tax-Free Childcare (almost) up and running The new Tax-Free Childcare scheme is now half way through its roll-out period. The first round of applications began in April 2017 and by the end of the year all eligible parents can apply. Potentially annual childcare costs of up to £10,000 per child can be met by £8,000 of payments by the parents and £2,000 by the government. For a disabled child, the maximum top-up payments...

6 April 2017 – Attention Landlords

It was almost two years ago in the Summer Budget 2015 that the then Chancellor, George Osborne, announced restrictions to income tax relief for interest costs incurred by landlords of residential properties. The proposals became law in November 2015 but it is only from the 6 April 2017 that these provisions came into effect. In the 2017/18 tax year, the restriction of interest relief to basic rate of tax will apply to 25% of the interest with 75% of the interest getting relief against rental income in the normal way. Landlords will therefore first see the effect in the calculation of their tax liabilities for 2017/18 – the balancing payment for which is due 31 January 2019. A higher rate taxpayer will, in principle, get 5% less relief for finance costs (ie one quarter of 40% higher rate less 20% basic rate). 5% doesn’t sound much but it can be worse than this due to 25% of the interest not being deductible from income. So total income may cross a threshold such as: £50,000 – in which case Child Benefit may be clawed back £100,000 – in which case personal allowances may be reduced. The restrictions are only going to get worse, so please talk to us if you want clarification on any aspect of these rules. HMRC’s Making Tax Digital project also has an impact on many property businesses from 6 April 2017. The government considers that all unincorporated businesses except for the larger property business will benefit from using the cash basis rather than the usual accruals basis and so is proposing to make this the default...

Making Tax Digital

It is just 7 weeks until HMRC start their pilot scheme of Making Tax Digital (MTD), this is where as a minimum businesses will be required to report their figures each quarter rather than annually as now.  The full system is due to be rolled out from 6 April 2018 – Sole Traders and Landlords being the first to be mandated to do this, followed the next year by partnerships and lastly limited companies  by 2020. There is still a lot of detail to be resolved, and we are already busy planning what we need to do to help you be compliant with the new system.  We will be requesting your assistance in due course, in making it possible for your returns to be both accurate, on time and without penalty.  There may need to be changes to the way you keep your records, both to meet the new regulations and also to help us be able to meet the new deadlines for you. For those of you that are VAT registered, you are already a long way there, and it will not be such a big change, and by 2019 your VAT return and Making Tax Digital returns will be one and the same, HMRC have indicated their intention to combine the 2 returns – so watch this space – lots of changes ahead – we are here to help you smoothly through them. VAT Flat Rate Scheme changes The government considers that some businesses with ‘limited costs’ are obtaining too much advantage in using FRS as, although they correctly use the flat rate appropriate to their trade...