Robert Ogle Chartered Accountant a leading firm of accountants

News

Budget 2017

Please read this in conjunction with the summer budget 2015.

The main points are:

From 6th April 2017 the individual tax free allowance will rise to £11,500 & higher rate tax will become due on income exceeding £45.000 (see below for allowances from 6th April 2016)
A Savings Allowance on bank & building society income means that the first £1,000 of interst received by basic rate tax payers will be taxed at 0%, higher rate the first £500 with no allowance for those on the top rate. This income is included when determining whether the allowance is £1,000, £500 or nil.
The rate of Corporatio Tax will fall from the current rate of 20% to 19% for the financial year commencing on 1st April 2017 & to 17% bcommencing 1st April 2020.
Class 2 (self employed) National Insuramce contributions are abolished from April 2018. Details of how the self employed will access contributory benefits will be issued in due course by the government.
From April 2017 a new allowance of £1,000 for property & trading income wherby individuals will not have to declare or pay tax. Those with income above the allowance will calculate their taxable profit either in the normal way or by deducting the relevant allowance.
Capital Gains Tax rates, currently 18% to the extent that the income tax basic rate is unused & 28% thereafter is to be reduced to 10% % 20% for any gains other than those from properties not qualifying for Principal Private Residence relief & carried interest which remain the same. The 28% rate still aplies to ATED related chargeable gains accruing.
Procedural changes to benefits & expenses apply from 6th April 2016, there will be a statutory exemption for payment of certain expenses such as travelling & subsistence removing the requirement for them to be declared on form P11D. The £8,500 threshold below which employees did not pay income tax on benefits has been removed.
The NIC Employment Allowance is increased from April 2016 from £2,000 to £3,000 but are no longer available to companies where the owner/director is the sole employee although the second employee can be a part time employee such as the spouse providing administrative support.
From April 2017 public sector bodies & agencies responsible for operating the tax rules for off-payroll working through limited companies Liability to pay the correct taxes moves from the workers own company to the body or agency/third party paying the company. A clearer & simpler set of tests are to be introduced.
A change to Stamp Duty Land Tax applies fro 1st April 2016 whereby a surcharge of 3% ia added to the rates on all residential property purchases over £40,000 where the purchase owns another property. If there is only one other property which sold within 18 months of the new purchase this 3% is reclaimable from HMRC. This is aimed at buy to let purchases but will affect the financing of purchases wher an individuals home is not sold either when or before the new home is purchased.

Budget 2016

Please read this in conjunction with the summer budget 2015.

The main points are:

From 6th April 2017 the individual tax free allowance will rise to £11,500 & higher rate tax will become due on income exceeding £45.000 (see below for allowances from 6th April 2016)
A Savings Allowance on bank & building society income means that the first £1,000 of interst received by basic rate tax payers will be taxed at 0%, higher rate the first £500 with no allowance for those on the top rate. This income is included when determining whether the allowance is £1,000, £500 or nil.
The rate of Corporatio Tax will fall from the current rate of 20% to 19% for the financial year commencing on 1st April 2017 & to 17% bcommencing 1st April 2020.
Class 2 (self employed) National Insuramce contributions are abolished from April 2018. Details of how the self employed will access contributory benefits will be issued in due course by the government.
From April 2017 a new allowance of £1,000 for property & trading income wherby individuals will not have to declare or pay tax. Those with income above the allowance will calculate their taxable profit either in the normal way or by deducting the relevant allowance.
Capital Gains Tax rates, currently 18% to the extent that the income tax basic rate is unused & 28% thereafter is to be reduced to 10% % 20% for any gains other than those from properties not qualifying for Principal Private Residence relief & carried interest which remain the same. The 28% rate still aplies to ATED related chargeable gains accruing.
Procedural changes to benefits & expenses apply from 6th April 2016, there will be a statutory exemption for payment of certain expenses such as travelling & subsistence removing the requirement for them to be declared on form P11D. The £8,500 threshold below which employees did not pay income tax on benefits has been removed.
The NIC Employment Allowance is increased from April 2016 from £2,000 to £3,000 but are no longer available to companies where the owner/director is the sole employee although the second employee can be a part time employee such as the spouse providing administrative support.
From April 2017 public sector bodies & agencies responsible for operating the tax rules for off-payroll working through limited companies Liability to pay the correct taxes moves from the workers own company to the body or agency/third party paying the company. A clearer & simpler set of tests are to be introduced.
A change to Stamp Duty Land Tax applies fro 1st April 2016 whereby a surcharge of 3% ia added to the rates on all residential property purchases over £40,000 where the purchase owns another property. If there is only one other property which sold within 18 months of the new purchase this 3% is reclaimable from HMRC. This is aimed at buy to let purchases but will affect the financing of purchases wher an individuals home is not sold either when or before the new home is purchased.

Auto Enrolment Update

Small businesses are now approaching their staging dates. If they don't have arrangements in place thay can be subject to fines of £400. If you haven't done anything yet ring this office immediately.

Summer Budget 2015

The main points are:

The tax on dividends will increase by 7.5% from 6th April 2016, a personal dividends allowance of £5,000 will be introduced but will utilise taxpayers tax free & basic rate allowances.
Interest paid on rental properties will be restricted to basic rate from April 2017. This change will also mean that interest paid is not a deduction when calculating child benefit eligibility.
The 10% wear & tear allowance for furnished rental properties is to be abolished & replaced with a statutory renewals basis from April 2016. Consultation is currently taking place.
The Annual Investment Allowance is to be reduced from £500,000 to £200,000 for expenditure incurred after 1st January 2016.
The personal tax allowance is fixed at £11,000 for 2016/17 & 11,200 for 2017/18 while the basic rate upper threshold is set at 32,000 & 32,400 respectively.
The rate of corporation tax will be 19% for the financial years commencing 1st April 2017 until it decreases to 18% from 1st April 2020.
The Inheritance tax nil rate band is fixed at £325,000 until April 2021 but a new home related nil band allowance of £100,000 is to be introduced from April 2017 & is to rise to £175,000 by 2020.

Famously we were promised a 'tax lock' during the election on the rates of income tax, VAT & national insurance, some of the above provisions show that these can be skirted round if the Chancellor so decides.

Pensions Fund Withdrawal

As from April 5th 2015 individuals over 55 can withdraw all of their defined contribution pension fund to spend as they wish. Individuals should be aware that while the first 25% of their fund can be drawn tax free the balance will be taxed as additional income ie. added to other income received in the tax year & taxed at marginal rates. This could lead to funds being taxed at 40% or even 45% & losing their personal tax allowance.

The government has also indicated that individuals who draw & spend their fund will not qualify for pensioner support benefits.

Advice should be sought before taking any action, please contact this office for assistance.

Pensions - Auto-Enrolment

Businesses are now receiving notification from the pensions regulator of their staging date & asking them to 'nominate a ccontact' to whom details & compliance requirements will be sent. This dioes not transfer responsibility for compliance from the business if somebody other than the business is nominated.

Single director companies that have no other employees are exempt from auto-enrolment.

HMRC Let Property Campaign

HMRC are currently targeting unreported property income. As part of the campaign they are offering reduced penalties for voluntary disclosure of previously undeclared income but will take a hard line if they approach you first. For more information or assistance contact us now before it is too late!

PPI & Other Financial Compensation

When received the payment is made up of two elements, compensation which is not taxable & interest which is. If he amount of interest is substantial HMRC are notified directly & are currently checking returns to ensure that in the interest lent has been declared. As the interest is often paid without a tax deduction the liability including interest for late payment & penalty can be considerable. If you have received such compensation in the last few years you should contact us immediately to ensure that your turn was complete.

RTI Penalties

Due to issues causing HMRC to incorrectly issue penalty notices they have announced that automatic penalties will be delayed. From October late submission penalties will be charged and from April 2015 late payment penalties will be charged.

Employers PAYE & RTI

Real Time Information (RTI) will mean that employers will have to inform HMRC online about employees wages & deductions every time they make payment! This is to be introduced for most employers in April 2013 & all by October. This system enables the government to get information direct about benefit claimants but also enable them to identify late payment of PAYE & issue penalty notices much more quickly. Because information is submitted on a regular basis the P35 end of year return will no longer be required although employees must still be issued with P60's forms P11D returns of benefits will still be required.

Very small employers (9 or less employees) will be able to use the HMRC free basic PAYE tool, every body else will require their own software to be updated . Contact us for more details.

PRIVACY NOTICE

1. PURPOSE OF THIS NOTICE

This notice describes how we collect and use personal data about you, in accordance with the General Data Protection Regulation (GDPR), the Data Protection Act [1998 OR 2018] and any other national implementing laws, regulations and secondary legislation, as amended or updated from time to time, in the UK (‘Data Protection Legislation’).

Please read the following carefully to understand our practices regarding your personal data and how we will treat it.

2. ABOUT US

Robert Ogle - Chartered Accountant, is an accountancy & tax advisory firm

For the purpose of the Data Protection Legislation and this notice, we are the ‘data controller’. This means that we are responsible for deciding how we hold and use personal data about you. We are required under the Data Protection Legislation to notify you of the information contained in this privacy notice.

We have appointed a Data Protection Officer. Our Data Protection Officer is our Data Protection Point of Contact and is responsible for assisting with enquiries in relation to this privacy notice or our treatment of your personal data. Should you wish to contact our Data Protection Point of Contact you can do so using the contact details noted at paragraph 12 (Contact Us), below.

3. HOW WE MAY COLLECT YOUR PERSONAL DATA

We obtain personal data about you, for example, when:

you request a proposal from us in respect of the services we provide;]
you engage us to provide our services and also during the provision of those services;
you contact us by email, telephone, post for example when you have a query about our services; or
from third parties and/or publicly available resources (for example, from Companies House)].

4. THE KIND OF INFORMATION WE HOLD ABOUT YOU

The information we hold about you may include the following:

your personal details (such as your name and/or address);
details of contact we have had with you in relation to the provision, or the proposed provision, of our services;
details of any services you have received from us;
our correspondence and communications with you;
information about any complaints and enquiries you make to us;
information from research, surveys, and marketing activities;

5. HOW WE USE PERSONAL DATA WE HOLD ABOUT YOU

We may process your personal data for purposes necessary for the performance of our contract with and to comply with our legal obligations.

We may process your personal data for the purposes necessary for the performance of our contract with our clients. This may include processing your personal data where you are an employee, subcontractor, supplier or customer of our client.

We may process your personal data for the purposes of our own legitimate interests provided that those interests do not override any of your own interests, rights and freedoms which require the protection of personal data. This includes processing for [marketing, business development, statistical and management purposes].

We may process your personal data for certain additional purposes with your consent, and in these limited circumstances where your consent is required for the processing of your personal data then you have the right to withdraw your consent to processing for such specific purposes.

Please note that we may process your personal data for more than one lawful basis depending on the specific purpose for which we are using your data.

If you refuse to provide us with certain information when requested, we may not be able to perform the contract we have entered into with you. Alternatively, we may be unable to comply with our legal or regulatory obligations.

We may also process your personal data without your knowledge or consent, in accordance with this notice, where we are legally required or permitted to do so.

6.Data retention

We will only retain your personal data for as long as is necessary to fulfil the purposes for which it is collected.

When assessing what retention period is appropriate for your personal data, we take into consideration:

the requirements of our business and the services provided;

any statutory or legal obligations;

the purposes for which we originally collected the personal data;

the lawful grounds on which we based our processing;

the types of personal data we have collected;

the amount and categories of your personal data; and

whether the purpose of the processing could reasonably be fulfilled by other means.

Change of purpose

Where we need to use your personal data for another reason, other than for the purpose for which we collected it, we will only use your personal data where that reason is compatible with the original purpose.

Should it be necessary to use your personal data for a new purpose, we will notify you and communicate the legal basis which allows us to do so before starting any new processing.

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