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Insolvency Hierarchy Changes

From 6 April 2020, insolvency legislation will be amended to move HMRC up the creditor hierarchy for the distribution of assets in the event of insolvency. HMRC will be made a secondary preferential creditor in respect of certain tax debts held by a business (this includes individuals and partnerships) on behalf of their customers and employees. This includes VAT, PAYE income tax and CIS deductions. The rules will remain unchanged for taxes owed by businesses themselves, such as corporation tax and employer National Insurance contributions....

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PAYE Late Filing and Late Payment Penalties

HMRC has confirmed that it will continue its risk-based approach to payroll Real Time Information (RTI) late filing and late payment penalties this tax year. Rather than late filing and late payment penalties being issued automatically, HMRC will continue to issue them on a risk-assessed basis during 2019/20. HMRC has also confirmed that penalties for 2019/20 will be issued from September 2019. The August issue of the Employer Bulletin confirms: ‘HMRC will not charge penalties automatically for 2019/20, provided a Full Payment Submi...

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Private Residence Relief Changes

The government published draft legislation for the next Finance Bill including draft clauses on the changes to Private Residence Relief (PRR). The draft legislation is subject to consultation which closed on 5 September 2019. Following consultation this Spring, changes are proposed to the Private Residence Relief (PRR) regime from April 2020. For properties that have not been occupied throughout the period of ownership, available deductions for capital gains tax purposes will be limited as follows: • The final period exemption will be r...

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Staff Success

STAFF SUCCESS We would like to acknowledge the achievements of the below members of staff, for their hard work and dedication to their studies. The Partners are delighted with the results and would like to congratulate you on your efforts!   Chandlers Ford: Elizabeth Potts ACA Certificate level exams: Accounting, Assurance, Principles of Taxation, Management Information Ryan Page ACA Certificate level exams: Business & Finance, Management Information, Law Tom Yates AAT Level 4 exams: Management Accounting: Dec...

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Trusts with Small Amounts of Savings Incomes

In the latest Trusts and Estates Newsletter, HMRC has confirmed the continuation of the interim arrangement for interest reporting. In 2016, the requirement for payers to deduct tax at source on bank and building society interest was removed and income from these sources is now paid gross. Due to this change, trustees and personal representatives had increased reporting requirements. HMRC introduced an interim arrangement so trustees do not have to submit returns, or make payments under informal arrangements, where the only source of inco...

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Updated Guidance on Spotting HMRC Scammers

HMRC has updated their list of example websites, emails, letters, text messages, WhatsApp messages and phone calls used by scammers and fraudsters to obtain an individual’s personal information. The guidance can be used to help you decide if a contact from HMRC is genuine and provides examples of the different methods that fraudsters use to get individuals to disclose personal information. You can also read about how to recognise genuine contact from HMRC, and how to tell when an email is phishing/bogus. Click here for genuine contac...

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