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Revised advisory fuel rates 1 September 2015

Posted by: CarolineMeredith on September 1st, 2015

H.M. Revenue and Customs (HMRC) have published the latest advisory fuel rates relating to mileage payments for business travel in company cars. These are as follows:

Engine size Petrol LPG
1400cc or less 11p ↓ 7p ↓
1401cc to 2000cc 14p ↔ 9p ↔
Over 2000cc 21p ↔ 14p ↔

 

Engine size Diesel
1600cc or less 9p ↓
1601cc to 2000cc 11p ↓
Over 2000cc 13p ↓

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 September 2015. However for the first month employers may continue to use the previously published rates if they choose to.

These rates will be reviewed again in August 2015 and any changes made will be effective from 1 September 2015. The revised fuel rates will be published on the fuel rates page on the HMRC website when they are released.

Advisory fuel rates can be used to calculate the following:

  1. Reimbursement to employees of fuel used for business travel in a company car;
  2. Repayment by employees of fuel used for personal travel in a company car;
  3. Allowable input VAT claims on business mileage claims in personal cars made by employees.

A more detailed explanation of the use of these rates is on the HMRC website.

The rates applying for earlier periods are also on the HMRC website.

If you have any questions regarding the use of advisory fuel rates or mileage payments please contact us.

Filed under: Business, Company, Employers, PAYE, Self Assessment, Tax, VAT

Revised advisory fuel rates 1 June 2015

Posted by: edwinsmith on May 31st, 2015

H.M. Revenue and Customs (HMRC) have published the latest advisory fuel rates relating to mileage payments for business travel in company cars. These are as follows:

Engine size Petrol LPG
1400cc or less 12p ↑ 8p ↔
1401cc to 2000cc 14p ↑ 9p ↓
Over 2000cc 21p ↑ 14p ↔

 

Engine size Diesel
1600cc or less 10p ↑
1601cc to 2000cc 12p ↑
Over 2000cc 14p ↓

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 June 2015. However for the first month employers may continue to use the previously published rates if they choose to.

These rates will be reviewed again in August 2015 and any changes made will be effective from 1 September 2015. The revised fuel rates will be published on the fuel rates page on the HMRC website when they are released.

Advisory fuel rates can be used to calculate the following:

  1. Reimbursement to employees of fuel used for business travel in a company car;
  2. Repayment by employees of fuel used for personal travel in a company car;
  3. Allowable input VAT claims on business mileage claims in personal cars made by employees.

A more detailed explanation of the use of these rates is on the HMRC website.

The rates applying for earlier periods are also on the HMRC website.

If you have any questions regarding the use of advisory fuel rates or mileage payments please contact us.

Filed under: Employers, PAYE, Self Assessment, Tax, VAT

HMRC campaign – credit card sales

Posted by: edwinsmith on April 30th, 2015

HMRC are currently running a campaign aimed at taxpayers who accept card payments for goods or services who have not declared all their UK tax liabilities.

HMRC has details of all credit and debit card payments to UK businesses which they can use to identify individuals and businesses who may not have paid what they owe.  If you have not declared all your income and HMRC catch you, you will have to pay the undeclared tax, a penalty of up to double the tax you owe, and you could even go to prison if they pursue a criminal prosecution.

It is important for individuals to use this campaign to come forward and declare all their income under a ‘voluntary disclosure’ in order to obtain best terms for penalties. Under this campaign an individual will have four months to pay any additional liabilities from the date they receive HMRC’s acknowledgement of their notification.

Further information can be obtained here on HMRC website or please contact us for further advice.

Filed under: Business, Individuals, Self Assessment, Tax

Changing your business address or name? Who and how to notify.

Posted by: edwinsmith on August 11th, 2014

LIMITED COMPANIES – change of registered office

If you are changing your registered office address you need to complete form AD01.  This can either be done on line at Companies House or by post.  The corporation tax department of HMRC gather data from Companies House on change of registered address and so it should filter through to the corporation tax office.  However, it would be advisable to check with them that it has been updated.

BUSINESSES WITH AN HMRC ONLINE BUSINESS TAX DASHBOARD

The dashboard can be used to update three business taxes.

  1. Corporation tax or self-assessment
  2. PAYE for employers
  3. VAT

If you do not have a business dashboard account but you are registered on line for corporation tax, VAT or PAYE then you can use your on line account to register a change of business address.  Please note the corporation tax office will not accept a change in the registered office address as this needs to be done through Companies House first as mentioned above.  Agents on line accounts do not have the facility for informing HMRC of a change of address.

If you do not have an on line account then you will need to inform HMRC for the following taxes as follows:-

VAT 

Complete form VAT484, section 1, and forward to HMRC at the address shown on the form.  This form can be downloaded from the HMRC website.

PAYE

Employers should write to HMRC at the following address:-

H.M. Revenue and Customs – Customer Operations Employer Office, BP 4102, Chillingham House, Benton Park View, NEWCASTLE-UPON-TYNE, NE98 1ZZ.

 

Further information can be obtained on HMRC website or please contact us.

Filed under: Business, Company, Employers, PAYE, Self Assessment, VAT

Agency and temporary workers – agency legislation changes from 6 April 2014

Posted by: edwinsmith on July 7th, 2014

From 6 April 2014 a worker is classified as an employee (and hence subject to PAYE) of an agency if all of the following conditions are met: 

  1. the worker must personally provide services, (which are not excluded services) to the client, and
  2. there must be a contract between the client (or a person connected with the client) and a person who is not the worker, the client or a person connected with the client (that is, “the agency”) and under or in consequence of that contract: (i) the worker’s services are provided, or (ii) the client or any person connected with the client pays, or otherwise provides consideration for the services, and
  3. the worker must be subject to (or to a right of) supervision, direction or control (by any person) as to the manner in which they provide their services, and
  4. remuneration receivable by the worker in consequence of providing the services does not constitute employment income/employed earners earnings before the provisions of the agency legislation are applied.

If it is held that the manner in which the worker provides the services is not subject to (or to the right of) supervision, direction or control by any person the agency must keep and be able to show evidence to that effect.

The agency legislation will not apply in the following circumstances: 

  1. if the remuneration the worker receives in consequence of providing the services is otherwise chargeable as employment income before the agency legislation is applied, or 
  2. when the worker is legitimately self-employed. There is an associated record keeping requirement to demonstrate when this is applicable, or 
  3. where it can be shown that the worker is not subject to (or to a right of) supervision, direction or control by anyone, as to the manner in which they provide the services. There is an associated record keeping requirement to demonstrate when this is applicable, or
  4. if the worker provides their services wholly in their own home, or on other premises which are not controlled or managed by the client, unless the worker is required to do so at those premises because of the nature of the services and work being provided to the client, or 
  5. if the worker provides their services as an actor, singer, musician or other entertainer or as a fashion, photographic or artist’s model.

The last three points are referred to as ‘excluded services’ in the new legislation.

Penalties have been introduced for the keeping and preserving of records and returns.

Prior to 6 April 2014 the conditions for the agency legislation to apply included the condition for an agency contract to exist between the worker and the agency but this is not included in the new conditions.

Self employed individuals may now find themselves classified as an employee of the agency under the new legislation. If you are ceasing self employment and require assistance with the cessation then please contact us. If you require further advice please also contact us.

Filed under: Business, Company, Employers, Individuals, Self Assessment

Withdrawal of renewals basis for residential let property

Posted by: edwinsmith on June 10th, 2014

The renewals basis which allowed for tax relief on white goods, furniture and soft furnishings for residential let property has been withdrawn from 6 April 2013 for income tax and 1 April 2013 for corporation tax.

This relief was one of the extra statutory concessions that have been available for some time but HMRC are now withdrawing these concessions.

The withdrawal of the renewals basis concession is causing some concern to tax advisers and tax payers but we have detailed below what we believe will be the affect of the withdrawal of this concession.

This will not affect furnished residential let property where the wear and tear allowance (10% statutory allowance) is available as detailed in our online article tax-relief-on-wear-and-tear-of-furniture-let-property for fully furnished lettings.

However the withdrawal of the renewal basis will affect unfurnished residential lettings. Capital allowances are not allowable against income from unfurnished residential lettings. Therefore the costs of replacing any free standing equipment (such as a fridge freezer) in an unfurnished residential property will not be deductible as an expense.

Where white goods are fitted such as integrated hobs and ovens then these will be recognised as part of the entirety of the property and so would be deductible as a repair when replaced.

Small items such crockery, rugs i.e. low cost furnishings would be tax deductible from income from unfurnished residential lettings.

For full details on HMRC updated guidance on repairs concerning furnished, part furnished and unfurnished lettings see HMRC - Property businesses deductions - repairs and renewals.

Please contact us for further advice tax implications of income from let properties.

Filed under: Company, Individuals, Self Assessment, Tax

Tax tables 2014-15

Posted by: edwinsmith on May 9th, 2014

The latest version of our tax tables document has been published on the publications and useful links page.

 

Filed under: Business, Capital Gains Tax, Charities, Individuals, Inheritance Tax, National insurance, PAYE, Self Assessment, Tax, VAT

HMRC – Second incomes campaign

Posted by: edwinsmith on April 28th, 2014

HMRC have introduced another campaign that targets individuals who supplement there main source of income (usually employment) with an additional income from working for themselves that has not previously been declared and taxed .

This would be classed as a second income for the purposes of this campaign and would include income from activities such as:

  1. Consultancy fees –training, property plans etc.
  2. Organising parties and events
  3. Providing services like taxi driving, hairdressing or fitness training
  4. Making and selling craft items
  5. Buying and selling goods eg market stalls, car boot sales, eBay trading etc

The purpose of the campaign is to provide an incentive for individuals to make a voluntary disclosure of a second income in order to obtain best possible terms from HMRC.

If HMRC discover by their own means an undisclosed second income then penalties incurred by the individual may be higher and the individual could face criminal prosecution.

An individual will have 4 months (from the date of HMRC receiving notification) to calculate and pay the tax owed but if more time is needed to pay then a call to the HMRC help line (0300 123 0945) should be made.

HMRC can be notified by completing D01 - Second incomes campaign notification form  and follow instructions on submission of form (either online or post).

Once acknowledgement has been received by HMRC then complete D02 Second incomes campaign disclosure form and follow instructions on submission of form (either online or post).

Full details of campaign including a helpful video on what is deemed a second income can be found at HMRC second incomes campaign.

Please contact us if you require any assistance or advice concerning the second incomes campaign.

 

Filed under: HMRC campaigns, Individuals, Self Assessment, Tax
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