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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

Transfer of tax allowances for married couples and civil partners

Posted by: edwinsmith on April 8th, 2015

It was announced in the 2013 autumn statement that from 6 April 2015 tax allowances could be transferred between certain married couples /civil partnerships. Where neither spouse/civil partner pays more than the basic rate of tax then a spouse/civil partner who is unable to use all their personal allowances will be able to transfer up to £1,060 of their unused allowance to their spouse/civil partner.

This benefits couples (married/civil partnerships) where one spouse/civil partner has a total income less than their personal allowance (for 2015/16 £10,600). The recipients of the allowance will be able to reduce their tax liability by up to £212 (£1,060 x 20%).

This transfer of allowances is not eligible to:

  1. Couple/civil partnerships where one/both pays tax at the higher/additional rate.
  2. Married couple already claiming the married couple allowance – this is where at least one of the couple was born before 6 April 1935.
  3. Non UK domiciled individuals who elect to pay tax on the remittance basis of tax or who would be higher rate or additional rate tax payers if their worldwide income was within the scope of UK tax.

Please contact us if you would like further assistance.

Filed under: Individuals, Tax

Revised advisory fuel rates 1 March 2015

Posted by: edwinsmith on March 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 11p ↓ 8p ↓
1401cc to 2000cc 13p ↓ 10p ↓
Over 2000cc 20p ↓ 14p ↓

 

Engine size Diesel
1600cc or less 9p ↓
1601cc to 2000cc 11p ↓
Over 2000cc 16p ↓

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 March 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 May 2015 and any changes made will be effective from 1 June 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:

Reimbursement to employees of fuel used for business travel in a company car;
Repayment by employees of fuel used for personal travel in a company car;
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, Individuals, Tax, Uncategorized

Savings interest – Changes to starting rate of tax from April 2015

Posted by: edwinsmith on March 27th, 2015

Last year the 2014 budget announced changes to the starting rate of tax for low income savers. These changes will come into effect from 6 April 2015. From this date the 10 % rate of tax on savings will be abolished and replaced with a new 0% rate. There will also be an increase in the amount of savings that can benefit from new rate, from £2,880 to £5,000.

This will mean that most individuals with a total income of less than £15,600 will not pay any tax on their savings. If someone’s total income (such as wages, pension, benefits and savings income) is less than their personal allowance, plus £5,000, they will be able to register for tax-free savings at their bank or building society. If no tax is due on savings then an individual will be able to register their bank accounts for interest to be paid without tax being deducted by completing Form 85. There is also a help sheet in this link  that will help individuals work out if they qualify for 0% starting rate

Other individuals may have some of their savings interest eligible for the 0% starting rate and some taxable at 20%. In these circumstances an individual will still have some tax deducted but be will be able to reclaim some tax from HMRC using Form R40.

For further details please see Changes to starting rate of tax for savings interest.

Please contact us for further advice or assistance with forms.

Filed under: Individuals, Tax

Checking your 2015/16 PAYE code

Posted by: edwinsmith on February 21st, 2015

HMRC have recently started issuing PAYE coding notices for 2015/16. If you believe the PAYE code is incorrect then it is now possible to inform HMRC of why you think the code is wrong online 2015-16 PAYE coding notice query form.

HMRC can still be contacted by phone to query or amend PAYE codes - Telephone: 0300 200 3300.

Please contact us if you would like to assistance with checking PAYE code number.

Filed under: Individuals, PAYE, Tax

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

Revised advisory fuel rates 1 June 2014

Posted by: edwinsmith on May 29th, 2014

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 14p ↔ 9p ↔
1401cc to 2000cc 16p ↔ 11p ↔
Over 2000cc 24p ↔ 16p ↓

 

Engine size Diesel
1600cc or less 12p ↔
1601cc to 2000cc 14p ↔
Over 2000cc 17p ↔

 

The changes this quarter are highlighted in red above.

The new rates will be effective from 1 June 2014. 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 2014 and any changes made will be effective from 1 September 2014. 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, Tax, VAT

HMRC campaign – offshore income

Posted by: edwinsmith on May 28th, 2014

HMRC are currently running a campaign aimed at taxpayers who have undeclared income and gains offshore.

New international agreements will let HMRC see more about overseas accounts. If you have not declared overseas 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.

HMRC will soon be obtaining much greater information about overseas accounts, insurance products and other investments, including those held through overseas structures. This includes details of who is holding the account or asset, or owns the entity holding the asset including their name, address, date of birth, the balance of the account and payments made into it. They will be using this information to go after those who have evaded their taxes. It is important for individuals to use this campaign to come forward and declare all their offshore income and gains in order to obtain best terms for penalties.

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

Filed under: HMRC campaigns, Individuals, Tax
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