Wentworths Blog

Trivial Benefits

 Please be aware of the trivial benefit rules which allow employers to give their employees trivial benefits without there being any tax incurred (either for the employee or employer). If the following conditions are met, there is no need to inform HMRC and the trivial benefit won’t count towards the employee’s taxable income or National Insurance contributions or need to be reported on the employer’s P11D (whilst still attracting a corporation tax deduction).

 It cost you £50 or less to provide

  • It isn’t cash or a cash voucher

  • It isn’t a reward for their work or performance

  • It isn’t in the terms of their contract.

 

It is important to ensure that any single benefit doesn’t exceed £50 or else the full amount will be taxable but as long as each single gift doesn’t exceed £50, there is no limit as to the number of gifts that can be given to each employee (within reason and adhering to the conditions above). For Director’s, there is a cap of £300 per annum on the total trivial benefits given i.e. 6 lots of £50 benefits. A great example of a trivial benefit might be a non-cash gift voucher for a favoured store.

 

Pre year end dividend planning

With the end of the tax year approaching on 5th April there maybe opportunities for some pre year end tax planning with regard to certain areas such as dividends, pensions and capital gains tax. Please be in touch with us if you would like to arrange a meeting to discuss any of the above prior to the end of the tax year.

 Can you afford a tax investigation by HMRC? (Sept 2017)

At Wentworths & Associates we understand that TAX is a little word with big implications. That’s why we work hard to give you the best possible advice and strategies to make tax altogether less taxing.

 

 

 

The very thought of an HM Revenue & Customs (HMRC) enquiry can be daunting but in the event that you are chosen for investigation we can help you at every step of the process.

 

 

 

We will demonstrate to HMRC that you are paying the correct amount of tax and assist with the investigative procedures. As you will appreciate this takes time, expense and flexibility on our behalf. All of which means that HMRC enquiry charges are an unavoidable addition to our regular service fees.

 

For your peace of mind, to avoid potential unexpected expenses arising from a possible tax or VAT enquiry, we can now offer you a solution - Tax & VAT Enquiry Fee Protection Service.

 

 

 

Just as you take out products to protect against the eventuality of a possible motoring accident or potential damage to the contents of your home or business, this Service protects you from the costs that arise in dealing with your HMRC enquiry.

 

 

 

 

 

 

 

In partnership with Croner Taxwise, who are market leaders in this specialist field, we have arranged comprehensive insurance cover which includes zero policy excess along with complimentary access to Employment Law and Commercial Health and Safety advice lines.

 

 

 

 

 

 

 

As a valued client we would recommend that you take advantage of this service. The cost is extremely competitive and significantly lower than the fees you will incur if investigated.  

 

 

 

 

 

Please contact us on 01344 623330 or info@wentworths.co.uk for further information.

 

 

 

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INTERNATIONAL TAX COMPLIANCE REGULATIONS - 29 August 2017

We have been required by HMRC under a statutory obligation to inform our clients about the attached leaflet.  The leaflet informs you that HMRC are gathering additional information from third parties under global information exchange agreements.  We are required to use the standard wording below and we attach HMRC’s leaflet for your reference.

It is a legal requirement that this leaflet is distributed.  The required wording provided by HM Revenue & Customs is as follow:

“From 2016, HM Revenue & Customs (HMRC) is getting an unprecedented amount of information about people’s overseas accounts, structures, trusts and investments from more than 100 jurisdictions worldwide, thanks to agreements to increase global tax transparency.  This gives HMRC unprecedented levels of information to check that, as in most cases, the right tax has been paid.

If you have already declared all of your past and present income or gains to HMRC, including from overseas, you do not need to worry. But if in any doubt, HMRC recommends that you read the factsheet attached to help you decide now what to do next.”

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/557296/client-notification-letter.pdf

We believe that what HMRC requires is entirely clear from the above wording, but should this cause any concern whatsoever, please do not hesitate to contact us to clarify matters & obtain peace of mind.

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ANNUAL TAX ENVELOPED DWELLINGS

It is important to be aware of the Annual Tax on Enveloped Dwellings. This is an annual tax payable by companies (in the main) that own UK residential property valued at more than £500,000.

An ATED return will need to be filed if your company or partnership with a corporate partner owns a property which could be considered a dwelling, in the UK and valued at more than £500,000.

A property is considered to be a dwelling if all or part of it is used, or could be used as a residence. There are certain exceptions to this such as hotels and care homes.

Returns are submitted between 1 April and 30 April for the following tax year with any relevant tax being paid by 30 April. The tax bands vary depending on the value of the property (based on the property’s 2012 value) starting at £3,500 per annum rising to £218,200 for properties worth over £20million.

In some circumstances a relief for the tax can be claimed. An example would be if the property is let to an unconnected person on a commercial basis or if the property is being developed for resale by a property developer. In these cases the tax due is nil but a relief declaration form will still need to be submitted.

Please find below a link to HMRC’s website for further guidance on this matter.

https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-returns

We would be delighted to discuss any queries or concerns you have on this matter - Jenny Smyth

 

SHOULD WORKING PARENTS BE CLAIMING CHILDCARE VOUCHERS – TO HELP PAY FOR CHILDCARE COSTS

Often, nurseries, playschools, before & after school clubs, childminders, holiday schemes etc. are registered to accept childcare vouchers towards payment for childcare.

Read more »

DO YOU HAVE ANY OUTSTANDING DEBT WITH HM REVENUE & CUSTOMS

WHAT TO EXPECT WHEN HM REVENUE & CUSTOMS DECIDE TO PAY A VISIT
SHOULD YOU OWE ANY DEBT – TAX, NATIONAL INSURANCE, VAT & EXCISE

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THE WENTWORTHS CLOUD

After one of the wettest years on record, and with 2013 seeming to be following suit, you may be wondering why on earth would Wentworth’s be talking about a “cloud”?

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