Category: HMRC

COVID-19 Update From HMRC

It seems that anywhere we look, we can’t escape the blasted Corona! Here’s the latest announcement by the chancellor, Rishi Sunak on Friday 20th March. COVID-19: support for businessesCOVID-19: guidance for employees COVID-19 support for businesses The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and…


IR35 changes for the private sector DELAYED for at least a year

On Tuesday 17th March 20200, in a surprise announcement, the Government agreed to defer the changes to IR35 and the private sector for another year. This was as a result of the negative impact caused by the COVID-19 pandemic.  Perhaps the most important point to make is that the underlying principles of IR35 will remain unchanged….


Reduced payment window for residential property gains

Currently, capital gains on the sale of residential property in the UK are reported on the self-assessment tax return and the total capital gains tax liability for the tax year is payable by 31 January after the end of the tax year. Thus, the capital gains tax on residential property gains arising in the 2019/20…


IT consultant held contract for services

HMRC’s application of the IR35 rules remains ambiguous after an IT contractor successfully appealed to the First Tier Tribunal (FTT) against a tax charge arising under the intermediaries’ legislation. In RALC Consulting Ltd v HMRC [2019] TC 07474, the FTT allowed an appeal against HMRC’s determination that IR35 applied because the ‘hypothetical contract’ between various…


Should an LLP partner be treated as a salaried partner?

As a general rule, the individual partners in a partnership are treated as self-employed for tax purposes. Consequently, they pay tax under the self-assessment system and pay Class 2 and Class 4 National Insurance contributions on their profits. However, in a limited liability partnership (LLP), some of the partners are more like employees in nature…


Using your car in your property rental business

Landlords will often use their car for the purposes of their property rental business. Where they do so, they are able to claim a deduction for the costs that they incur. Using mileage rates Where a landlord uses their car for business purposes, the easiest way to work out the amount that can be deducted…


Zero charge for zero emission cars

From 6 April 2020, the way in which carbon dioxide emissions for cars are measured is changing – moving from the New European Driving Cycle (NEDC) (used for cars registered prior to 6 April 2020) to the Worldwide Light Testing Procedure (WLTP) for cars registered on or after 6 April 2020. For an introductory period,…



Buying a property to let – the importance of keeping records from day one

For tax purposes, good record keeping is essential. Without complete and accurate records, it will not be possible to provide correct details of taxable income or to benefit from allowable deductions. Aside from the risk of paying more tax than is necessary, landlords who fail to take their record keeping obligations seriously may also find…


Tax credits – do I have to tell HMRC if my circumstances change?

Tax credits are benefit payments that are paid to people in work who are on a low income or have children. There are two tax credits – working tax credit (for those working but on a low income) and child tax credit (for those on low income, regardless of whether they are working or not,…