Making Tax Digital for VAT (MTD) is only months away, and we understand that MTD may seem like a complex process, therefore we have compiled this article to help you understand the upcoming changes. 

The new changes are set to come into play from 1 April 2019 and will have a significant impact on those that are VAT registered. 

The Chancellor Philip Hammond presented his second Autumn Budget on Monday 29 October 2018. 

Our summary focuses on the tax measures which may affect our contractors, small businesses and personal tax clients. 

Although you may not be UK resident under the Statutory Residence Test you may earn income in the UK, for example from employment or self-employment where you carry out some work when you’re physically in the UK, or you may come to the UK on a short secondment for your overseas employer. You will normally pay UK tax on any earnings for work that you do in the UK and on any other income you have which arises in the UK, for example bank interest, rental income from UK properties. 

 

The Requirement to Correct rule was enforced by the HMRC to prove the opportunity to taxpayers that possess assets overseas to correct any issues or genuine mistakes causing them to fail to declare the correct amount of tax owed. 

There are special tax rules for rental income from properties that qualify as Furnished Holiday Lettings (FHLs). 

 

To qualify as Furnished Holiday Letting, the property must be furnished. There must be sufficient furniture provided for normal occupation and your visitors must be entitled to use the furniture. 

A great majority of contractors in the UK are using their own vehicles to commute to their customers’’ offices. If you are currently doing so, you are able to claim the HMRC’s Mileage Approved Rates (MAPs) to cover the costs of your travels. Contractors can also benefit from purchasing a company vehicle under their company name. 

There are certain tax laws that we will discuss in this blog in order to find out which option is going to be most beneficial for you and your company. 

 

Payment of corporation tax liabilities for accounting periods ended 31 July 2017. 

 

Self-Assessment 3 months late filing penalty £10 per day for up to 90 days (max £900) 

Parents whose youngest child is under 12 can now get up to £2,000 a year towards their childcare costs through Tax-Free Childcare. Tax-Free Childcare is a new government scheme to help parents with the cost of childcare, allowing parents to work or work more, if they want to. 

The Autumn Budget published on 22 November 2017 is the second budget this year. The Finance bill 2017-18 will be published on 1 December 2017. 

In this briefing, we highlight some of the key areas of interest: 

Our guide to Inheritance Tax takes you through all of the key considerations including practical advice on how to limit the amount of inheritance tax.