Monthly Archives: February 2014

Employers have been warned recently that schemes setting out to avoid payment of wages to employees at the minimum rates set by the National Minimum Wage regulations will be penalised. Currently, employers found lacking in this area will be required to make up the unpaid wages and pay fines which can be up to 50% […]

Since the 1990s fees for playing at not-for-profit sports clubs has been exempt for VAT purposes. However, HMRC has asserted that only club members’ playing fees are exempt for VAT purposes. Any visiting players have paid VAT included in their green fees. Clubs who have charged the same amount to members and visitors have therefore […]

Many victims of miss-sold Payment Protection Insurance are unaware that they need to declare any interest they received as part of their settlement on their tax return. HMRC have commented: "The interest may or may not have had tax already deducted depending on the type of company making the payment of the interest. "If banks […]

There has been significant press coverage recently suggesting that companies are hoarding cash. It would seem that this is one of the contributory factors affecting low levels of business investment. Directors are loath to part with their hard won cash reserves. For private company shareholders and shareholders with a significant stake in Plcs this may […]

The Law Society is concerned that if the present changes to LLP taxation are enshrined in the forthcoming Finance Act 2014, decisions will have to be made for tax, rather than commercial reasons. For example members may be required to introduce capital purely to comply with changes in tax law. There are also fears that […]

According to a recent CBI report UK companies rely too heavily on debt finance. It said that 50% of small and medium sized businesses used bank loans and more than one-third used overdrafts. Of the remainder only 3% use equity finance: the European average is 7%.  Smaller UK businesses seem to associate equity funding with […]

 1 February 2014 – Due date for Corporation Tax payable for the year ended 30 April 2013.  19 February 2014 – PAYE and NIC deductions due for month ended 5 February 2014. (If you pay your tax electronically the due date is 22 February 2014.)  19 February 2014 – Filing deadline for the CIS300 monthly […]

In a recent tax tribunal case a tax payer was denied Capital Gains Tax relief for the cost of improvements to a property as he could provide no evidence of his expenditure to the court. The court came to the conclusion that the taxpayer had made improvements and were somewhat dismayed by his inability to […]

Employers that provide a company car and pay for the employees’ private fuel create tax, NIC and administrative issues for both parties. Employers will be liable for Class 1A National Insurance charges on the taxable benefit created by the provision of the car and payment of private fuel; unless the employee fully reimburses the private […]

If you are self-employed, as a sole trader or in partnership, and if we assume that your business year end is 31 March, then the profits you earn in the year to 31 March 2014 will form the basis of your tax payments on account for the tax year 2014-15 (unless the year to 31 […]