POWER IN NUMBERS - ISSUE #28
Articles:
Off-payroll Rules for the Private Sector from April 2020
Digital Services Tax
Insolvency Hierarchy Changes
Updated Guidance on Spotting HMRC Scammers
Trusts with Small Amounts of Savings Incomes
PAYE Late Filing and Late Payment Penalties
Private Residence Relief Changes
CIS Domestic Reverse Charge for VAT - Changes Deferred until 1 October 2020
Staff Success
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The following news articles are in this issue:
CIS Domestic Reverse Charge for VAT - Changes Deferred until 1 October 2020
HMRC have announced that the start date for the CIS Domestic Reverse Charge for VAT has been deferred for 12 months. The new legislation regarding the treatment of VAT in the construction industry will now take effect from 1 October 2020. If you are a contractor or sub-contractor in the construction industry, the new rules may be relevant to your business. We have set out guidelines below about the changes to ensure that you are ready before they are implemented next year. If you have any further questions, please don’t hesitate to contact...
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Digital Services Tax
From April 2020, the government will introduce a new 2% tax on the revenues of search engines, social media platforms and online marketplaces which derive value from UK users. However, this only applies when the group’s worldwide revenues from these digital activities are more than £500m and more than £25m of these revenues are derived from UK users. Jesse Norman, Financial Secretary to the Treasury and Paymaster General, said: ‘The UK has always sought to lead in finding an international solution to taxing the digital economy. Thi...
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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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Off-payroll Rules for the Private Sector from April 2020
The government has published draft legislation for the next Finance Bill including the rules for off-payroll working in the private sector. The new rules will apply from April 2020 and the effect of these rules, if they apply to intermediaries, typically Personal Service Companies (PSC), will be: The medium or large business (or an agency paying the PSC) will calculate a ‘deemed payment’ based on the fees the PSC has charged for the services of the individual. Generally, the entity that pays the PSC for the services must deduct PAYE...
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