£50 note gets new lease of life
The Treasury has confirmed that the £50 note will continue to be part of the UK’s currency, and further, that the Bank of England will reissue it as a new modern polymer note. According to Treasury sources this will help clamp down on crime.
Childcare scheme update
The childcare voucher and directly contracted childcare schemes closed 4 October 2018. In time, these schemes will be replaced by the roll-out of the new Tax-Free Childcare: this offers parents £2,000 per year per child towards approved childcare costs. (This is extended to £4,000 for disabled children.)
Reporting tips for building contractors
HMRC recently published a list of helpful reminders regarding the submission of monthly returns to HMRC. This article lists some of the points highlighted.
Making Tax Digital timeline
As many readers of our newsletter will be aware, HMRC is moving forwards with their digitisation of taxpayer VAT and Income Tax reporting requirements under their much publicised Making Tax Digital (MTD) initiative. We have reproduced below recent announcements made by HMRC on this issue.
Increase in the Annual Investment Allowance
The Annual Investment Allowance (AIA) is being increased from 1 January 2019 to £1m from the present base level set some years ago of £200,000. The increase is due to be available for two years, until 31 December 2020. At this later date, the AIA will presumably return to the £200,000 limit.
Autumn Budget - Business Tax Changes
Corporation Tax rates to remain at 19% for the financial year beginning 1 April 2019.
Autumn Budget - Duty Changes
Tobacco duty increases confirmed
The rates for duty for all tobacco products increased by inflation plus 2% from 6pm, 29 October 2018.
Autumn Budget - Housing
Rent-a-room relief change cancelled
The expected change to require shared occupancy to qualify for rent-a-room relief is not to be introduced.
Autumn Budget - Personal Tax and Miscellaneous
Personal Tax allowance
The personal Income Tax allowance for 2019-20 will be increased to £12,500 (2018-19 £11,850). It will remain at this increased level for two years.
Tax diary October/November 2018
1 October 2018 - Due date for Corporation Tax due for the year ended 31 December 2017.
Passport issues if a “no-deal” Brexit
Guidance on the use of a British passport to travel abroad after 29 March 2019, if there is a “no-deal” Brexit, was issued by government last month. The pertinent facts are reproduced below:
What is a reasonable excuse?
HMRC is still required to obtain certain returns from you even if there is no income or tax to declare. Failure to submit will likely trigger late filing penalties and unfortunately, pleading ignorance of your obligations to file “nil” returns is not a reasonable excuse.