Here are some thoughts on tax, money, accountancy, financial stuff and, to lighten the mood, music and maybe some humour.
Please join the conversations with whatever is on your mind but keep it courteous and “family” rated. Everything is moderated so comments will be expunged if they go too far.
Take care and good luck to everyone in whatever you choose to do in life.
UK residents who own holiday homes in Spain will suffer after brexit as the Spanish tax system is harsh on non EU/EEA people.
For example…… rents received in Spain by UK resident individuals (or companies):
Pre brexit – deductions are allowed for most property costs and tax is charged at 19%.
Post brexit – NO deductions allowed, tax of 24% is levied on gross rental income.
There are many other nasty Spanish tax consequences of brexit.
Be warned everyone.
This is NOT advice of any kind but simply a “heads up” to highlight an issue.
The “Help To Buy” ISA investment opportunity ends on 30th November 2019.
If you don’t get one before that date then you won’t be able to.
Open an account with just £1 in it, to keep your foot in the door, and you can add more later if you want.
This from Martin Lewis will explain……
Good luck and pass on the tip to any family or friends who may benefit from it.
The chancellor’s statement on 13 March confirmed two things about the timing of Making Tax Digital (MTD)………….
1. MTD for VAT will go ahead as planned from April 2019….BUT ….
2. MTD will NOT be made mandatory for any other taxes or businesses in 2020 as was originally feared.
My guess is not that HMRC are being generous in any way. More likely they know they cannot possibly be ready for any more MTD upheavals that soon.
For those of you in the construction industry who may not know. This is a BIGGIE.
A new VAT “reverse charge” will be introduced in the UK for building and construction services with effect from 1st October 2019.
It is designed to combat VAT fraud in the building and construction sector.
From 1st October 2019 a customer within the construction industry CIS scheme, who purchases a supply of construction services, will have to pay the supplier’s VAT charge directly to HMRC rather than paying it to the supplier.
This prevents the supplier from charging the customer what purports to be VAT then absconding with the VAT, not paying it to HMRC.
Example of new rule – NOW, you carry out CIS work for another company. You send them an invoice plus VAT. They pay you.
AFTER the change your invoices will need to be worded according to the new rules and the paying company must pay your VAT charge straight to HMRC, not to you.
Supplies made to “end users”/final customers, supplies made between “connected parties” and supplies between landlords and tenants will all be excluded from the new rules.
This reverse charge will only affect supplies made at the standard or reduced rates where payments are required to be reported through the CIS.
The construction services covered by the reverse charge are those falling within the usual definition of “construction operations” in CIS. This is a wide definition which includes construction, alteration, repair, extension, demolition or dismantling of buildings or structures and infrastructure such as roads, railways and waterways. It also includes painting and decorating.
The process involved, the way in which VAT invoices are to be worded and the way these invoices are recorded in your VAT Returns will change from the start of this new rule.
Please take whatever steps you believe are necessary so you don’t forget. Perhaps some diary notes would be helpful.
NB: a few specified services are excluded from this change including professional services of architects, surveyors and certain consultants.
Good luck and do call us if you need any help with this.
BUDGET SUMMARY 29.10.18
There is much Budget news online. Some of the aspects impacting on individuals and small companies listed below in bullet points.
Remember …other new tax legislation was already planned to come into effect so what’s mentioned below is the new stuff from yesterday.
Hammond had plenty of “will be”, “in the future” and so on. Very little “now”.
Budget plans dependent on a Brexit deal. If no deal then who knows what will happen? Most likely some sort of “emergency” Budget speech next March.
For now …….
Comment …these tax changes put more in the hands of the higher paid than the basic rate taxpayer though this is mitigated somewhat by increases in National Insurance.
Good examples of that the Budget may mean in individual situations……
Capital Gains Tax
(No changes to the 36-month final period exemption available to disabled people or those in a care home.)
Pensions and ISAs
Business equipment investment
Other business note
Stamp duty and housing
Other general Budget notes …..
Lastly ….a new commemorative 50p coin to be issued to mark the UK’s departure from the EU. No comment.
This is another Making Tax Digital (“MTD”) update …..the taxman has FINALLY agreed what a good idea it would be to contact all VAT registered taxpayers, advisors and others to warn them about the upcoming start of MTD.
Only 6 months to go before kick off but, hey, better late than never I suppose. I know some will say “too little, too late”.
Their tweet said …”VAT registered businesses with a taxable turnover above the VAT threshold (£85,000) will need to keep digital VAT records and send returns using #MTD compatible software from April 2019.”
There are exceptions and workarounds to make this MTD journey simpler than it sounds but the main issue is that the necessary software to do the job is STILL not available. Many software companies say their products will be “ready” for launch day but who knows what will happen between now and then?
For example Jon Thompson (Chief Exec and Permanent Secretary of HMRC) says that HMRC will make a decision, at their October board meeting, as to whether or not MTD for VAT goes ahead as planned next April.
It might not even happen. (Gets my vote)
Amongst a raft of “consultation documents” published by HMRC for discussion is this >> new powers enabling HMRC to get your personal financial information without telling you.
No notification would be provided and there would be no right of appeal to the data access.
The bank or any other third party possessing the data to be accessed (including building societies, solicitors, accountants, estate agents and more) would be legally prohibited from telling you that HMRC requested and was given access to your private data.
These powers are not just for tax assessment but also proposed for debt collection purposes and other (unnamed) functions.
These proposals are at the consultation stage before implementation. Any responses from “stakeholders” will be accepted until October 2018.
Interested in the detail? It’s here……
Might be a good idea to lobby your MP if you don’t agree with this.