The Autumn Budget was on Wednesday 22nd November 2017 and the main tax changes are
Stamp Duty (SDLT) removed for First Time Buyers
The relief works as follows:
The relief applies to transactions on or after 22nd November 2017
A first time buyer is ‘an individual or individuals who have never owned an interest in a residential property in the UK or anywhere else in the world and who intends to occupy the property as their main residence’
Business Rates and the ‘StaircaseTax’
£2.3 billion of support has been announced.
An extra £3 billion to prepare for Brexit over the next two years
The money will make sure the government is ready on day 1 of exit. It will include funding to prepare the border, the future immigration system and new trade relationships.
£6.3 billion of new funding for the NHS
£3.5 billion will be invested in upgrading NHS buildings and improving care.
£2.8 billion will go towards improving A&E performance, reducing waiting times for patients, and treating more people this winter.
The Office for Budget Responsibility slashed its 2017 growth forecast from 2% to 1.5%.
Output, it added, would be weaker than previously thought in each of the subsequent four years.
On the 15th December 2017 you will no longer be able to pay tax at any Post Office Branch, fantastic timing! just in time for the January self assessment payment rush
The contract with Santander which allowed this method of payment expires on that date and Santander and HMRC have not reached agreement on a new contract.
To make things worse from the 13th January 2018 you won’t be able to pay by Credit Card either!
So your options will be
These changes are likely to come as shock to many taxpayers and any reduction in ways to pay can only be bad news for taxpayers!
In a company Capital Gains and Trading activity are both taxed at Corporation Tax Rates.
The downside to holding CryptoCurrency as an investment is that if you have a trading company it could put your trading status at risk for entrepreneurs relief if more that 20% of the business becomes investment related.
The best known Virtual Currency is Bitcoin and since 2014 there have been calls for tighter control of these currencies.
The European Banking Authority, the EBA, called on national supervisory authorities to discourage banks and credit institutions from buying, holding or selling virtual currencies. It called for regulation of market participants at the interface between conventional and virtual currencies. Over the longer-term, the EBA is calling for a ‘substantial body’ of regulation to be applied to virtual currency market participants, including the creation of ‘scheme governing authorities’ accountable for the integrity of a virtual currency scheme and the imposition of capital requirements. In the short term, the EBA is calling for national authorities to ‘shield regulated financial services from virtual currencies’.
Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part.
We generally recommend creating a holding company to hold property investing companies as it helps to centralise management and can give guarantees to lenders.
Many business owners have a concern that if the holding company receives dividends from subsidiaries that they will be double taxed, once in the subsidiary (before paying dividends) and then on the profit in the holding company when in receives the investment income (dividends). This would be madness!
Dividends paid to UK Holding Companies are normally exempt from Corporation Tax.
A distribution made by a UK resident company and received by a UK resident company is generally not included in the recipient company’s CT profits. Similarly, such a distribution received by a non-UK resident company trading through a UK permanent establishment is not generally included in the CT profits of that permanent establishment. However, the way in which distributions received by companies are treated for tax purposes changed from 1 July 2009:
If you thought you were going to pay your tax bill with a personal credit card in January 2018, then think again!
EU rules are forcing HMRC to change their policy in January.
You won’t be able to pay with a personal credit card from 13 January 2018.
This change was instigated by the Second Payment Services Directive (PSD2), which outlined that there could be no onward charging consumers for credit or debit cards. This includes HMRC who have said that they cannot absorb the costs of the merchant providers for credit card facilities and therefore no payments will be taken by credit card. Debit cards payments will still be possible, as the underlying costs are not as high.
This is happening at the peak of self assessment time! so it will be a nightmare for tax payers
Kenneth Moyes has been disqualified for five years from acting as a director after he withdrew cash from his football company to avoid tax payments.
Moyes’ disqualification follows an investigation by the Insolvency Service into Glasgow-based Professional Pre Season Tours Limited, which ceased trading in April 2014.
The company had been involved in arranging pre-season tours for various football clubs, including Everton, Chelsea, Liverpool, Leeds United, Sheffield Wednesday, Nottingham Forest, Norwich City, Aberdeen, Hibernian and Celtic.
The investigation found that Moyes transferred over £300,000 from the company to himself as a ‘bonus payment’ shortly before the company stopped trading. However according to the company accounts, no money was actually transferred, although it allowed him to claim a loan account debt was settled. In reality, this money had already been withdrawn for his personal use.
Investigators established that he withdrew at least £420,400 in cash from the company while it was trading, but failed to declare the full amount.
Because the fictitious transfer resulted in a nominal asset of the company being turned into a liability, it was unable to pay its obligations to HM Revenue and Customs (HMRC) in terms of PAYE and National Insurance contributions. At liquidation it owed £271,180 to creditors, of which all but £4,067 of which was to HMRC.
We all need to pay tax, those who seek to find ways round the system need to know that HMRC will find them and make them pay!
Car and Van club vehicles can be booked by members for any length of time from 30 minutes, with the flexibility to increase the booking period to anything from an hour up to a whole weekend, or longer by arrangement.
Zipvan is popular for Vans and cars, it works
Obviously at the moment some locations don’t operate Car and Van Clubs but could this be the future for vehicle usage?
It will save you having to buy or lease a vehicle and pay for insurance and maintenance.
You will need to work out a cost analysis to compare options.
What are your current costs?
What are the vehicle club costs?
Does it save money and give you greater flexibility?
According to Transport for London