Braving The Shave!!

One of our team members, Gillian, is soon to be ‘Braving the Shave’ to fundraise for MacMillan Cancer Support!!

Gillian is raising funds and awareness for this very worthy cause in memory of her best friend, Sara Barker, and another friend’s husband, Grahame Booth – both of whom lost their battles with cancer.

The shave is taking place on Saturday 12th October – and we’ll be sure to share the ‘after’ pictures as soon as possible!

The pic above shows Gillian’s current hairstyle (lots of long hair) – so the shave will be a dramatic – and rather cold – change as we head into the winter months!

To find out more about the fundraising effort, and to donate to this fantastic cause, please take a look here: https://bravetheshave.macmillan.org.uk/shavers/gillian-humphrey

 

 

In The Press…

You may have spotted us in the latest Craven Herald and the July edition of Aspire magazine! But if not, please read on for the published article…

 

There’s been a lot going on for Skipton-based accountancy firm, Shepherd Partnership, who recently relocated to new premises at Carleton Business Park…and appointed a new director!

The long-established practice, which provides personalised support to local business owners and individuals, relocated to their new offices to offer an enhanced visitor experience, and to accommodate a recent period of growth. Staff and clients are now benefiting from a comfortable, modern office space and state-of-the-art meeting rooms; all kitted out with a range of high-tech equipment.

Managing Director, Adam Dutton, said, “As well as being fantastic for us, the move also signifies a positive time for Skipton’s business community. Despite what’s going on in the wider economy (avoiding the ‘B’ word!), we are seeing no decline in activity in any areas of business. The region as a whole – and Skipton in particular – is continuing to develop and grow.”

In addition to the move, the firm were thrilled to simultaneously appoint Heather Langtree, an experienced accountant who joined the firm in 2015, to her new role as director.

“Heather has a wealth of experience and a portfolio of clients who trust and respect her knowledge and advice. She will enhance our leadership team whilst continuing to provide informed advice and opportunities to local businesses.”, explained Adam.

Heather added, “I believe Shepherd Partnership provide an unrivalled and personalised service. I am excited to drive the business forward in my new role… and in our new home. Our team were unbelievably helpful in making the move a success; from packing, unpacking and sorting out IT and phone systems, to welcoming visitors to the new premises.”

After visiting the new offices and talking to the team, it’s clear Shepherd Partnership’s focus is on clients’ success – and they have a real desire to make Skipton a thriving business hub. To discover more, take a look at their website, or get in touch to arrange a visit to their fabulous new location.

WE’RE MOVING!

We’re delighted to announce our upcoming move to fantastic new premises!

In February 2019, we will relocate to purposely designed and newly refurbished offices at Carleton Business Park, Skipton.

This is an exciting development for The Shepherd Partnership and we can’t wait to welcome you – our clients and contacts – there in the near future.

Watch this space for further updates…but please get in touch if you have any questions in the meantime.

Please CLICK HERE to download a map of our new location.

Our new address will be:

Carleton Business Park

Skipton

BD23 2AA

Recognising phishing emails and texts from HMRC

We often hear of phishing scams involving apparent communication from HMRC.

Phishing is the fraudulent act of emailing a person in order to obtain their personal or financial information such as passwords and credit card or bank account details. These emails often include a link to a bogus website encouraging you to enter your personal details.

HMRC have just updated their guidance; explaining how to recognise genuine contact from them, and how to tell when an email or text message is phishing or bogus.

Click here to read the guidance.

OTS calls for ‘urgent review’ into how UK tax system affects businesses

MTD

OTS calls for ‘urgent review’ into how UK tax system affects businesses

In a new report, the Office of Tax Simplification (OTS) has called for the government to carry out ‘urgent work’ in order to simplify the business tax system for UK firms.

The OTS report focused on businesses owned by individuals and families, and examined how the tax system affects firms at each of the key stages of their development, from starting-up to disposal or cessation. The OTS’s stated aim was to ‘highlight the complexity entrepreneurs face when seeking to establish or grow a business’.

In the report, the tax reliefs and charges that apply to new and growing businesses were examined in order to ascertain how well they operate and whether they achieve their objectives.

The OTS concluded that the reliefs and charges would ‘benefit from an overhaul to reduce complexity’, which would help to make reliefs ‘more accessible’ to firms.

The regulatory body has urged the government to consider streamlining or simplifying a number of key reliefs in order to better help entrepreneurs in starting up and expanding their businesses.

The OTS has highlighted 12 key observations, focusing on two main areas: the operation of the Seed Enterprise Investment Scheme (SEIS), Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) schemes; and Entrepreneurs’ Relief (ER), capital gains tax (CGT) gift relief and inheritance tax (IHT) reliefs for business.

The organisation has invited the views of businesses and the industry, and will ‘consider some of the areas touched upon in more depth in the future’.

Paul Morton, Tax Director at the OTS, said: ‘This paper takes a significant first step towards meeting the pressing need to undertake a detailed review of the tax system as it operates across the business lifecycle.

‘It is aimed at helping the businesses that are the lifeblood of the UK economy to maximise their opportunities and to make the system clear and simple to understand and use.’

Research suggests 70% of individuals ‘unaware of inheritance tax nil-rate band’

Research suggests 70% of individuals ‘unaware of inheritance tax nil-rate band’

Research carried out by Canada Life has suggested that a significant amount of individuals ‘do not know the threshold’ for the standard inheritance tax (IHT) nil-rate band. Canada Life found that 70% of those surveyed did not know the standard nil-rate band threshold, which currently sits at £325,000.

55% of those questioned do not know the rate at which assets above their available nil-rate band are taxed, the data also revealed.

Meanwhile, an additional 38% do not believe that their main home is liable for IHT. Canada Life has warned that many families in the UK could face ‘unexpectedly high’ tax bills as a result.

‘There is a disturbing lack of knowledge which will undoubtedly translate into unnecessarily high inheritance tax bills,’ said Karen Stacey, Head of Distribution Services at Canada Life.

‘Unless people learn more about taxes and actively plan the future of their estate, the government is in line for a large, ongoing and often unnecessary windfall.’

Meanwhile, Chancellor Philip Hammond has commissioned the Office of Tax Simplification (OTS) to review the UK’s IHT regime, and make suggestions as to ways in which the tax can be simplified.

In a letter to the Chair of the OTS, the Chancellor acknowledged that the IHT regime is ‘particularly complex’, and suggested that the review focus on the technical and administrative issues surrounding the tax.

Mr Hammond also said that the review should examine how existing gifts rules interact with the IHT system, and consider whether the current rules cause taxpayers to rethink their decisions when it comes to investments and transfers.

A ‘scoping document’ for the review into IHT will be agreed and published ‘in due course’, the OTS said.

As your accountants we can help you to plan to minimise the IHT due on your estate – please contact us for further advice.

Government outlines VAT proposals for post-Brexit Britain

Businesses groups have voiced concerns over government proposals to amend the way in which EU imports will be treated following the UK’s withdrawal from the EU in 2019.

Plans to change the VAT rules are included in the Taxation (Cross-Border Trade) Bill 2017-19, which is currently making its way through Parliament. The proposals could see UK businesses being required to pay VAT upfront in cash to HMRC.

Currently, goods imported from the EU are treated as ‘acquisitions’ for tax purposes, meaning that VAT is not paid until the products have been sold to the end consumer. However, if the UK exits the Customs Union, goods from the EU will be treated in a similar way to other imports.

The British Retail Consortium (BRC) has warned that the proposed changes could create ‘additional burdens’ for UK businesses. Commenting on the Bill, the BRC stated: ‘If the Bill becomes law without any commitment to inclusion within the EU VAT area, UK businesses will become liable to pay upfront import VAT on goods being imported from the EU27 for the first time.

‘Liability for upfront import VAT will create additional cashflow burdens for companies, as well as additional processing time at ports and border entry points attached to the customs process.’

Meanwhile, the Chair of the Treasury Select Committee, Nicky Morgan, has written to the head of HMRC, Jon Thompson, urging him to address the BRC’s concerns.

Ms Morgan stated: ‘I have written to HMRC to seek clarification on the costs to businesses and consumers arising from this legislation, the options being considered to mitigate these costs and the likelihood of the UK participating in the EU VAT area as part of its end-state relationship with the EU.’

As your accountants, we can help you with your VAT obligations. Please contact us for advice and assistance.

Strategies for saving tax ahead of the 5 April year end

With the end of the 2017/18 tax year approaching, now may be the ideal time to think about strategies to help mitigate your tax liability. There are many different options to consider so do contact us for further advice.

Reducing your personal tax liability…

Are you making the most of your tax-free personal allowance (PA)? Individuals are entitled to their own PA, which is set at £11,500 in 2017/18. Therefore, if your spouse or partner has little or no income, you could stand to benefit by spreading your income more evenly to ensure that each PA is being fully utilised.

Some married couples may also be eligible to transfer 10% of their PA to their spouse under the Transferable Tax Allowance, or ‘Marriage Allowance’. It means £1,150 may be transferred in 2017/18, which could help to reduce a couple’s tax liability by up to £230 in this financial year. Certain rules apply.

And despite relatively low interest rates, for many individuals ISAs are still an attractive tax-free way to save. For 2017/18, the overall subscription limit for ISAs is £20,000, of which no more than £4,000 can be deposited into a Lifetime ISA. With a range of ISAs to choose from, you have until 5 April 2018 to make your 2017/18 ISA investment.

… and your business’s tax bill

Are you maximising claims for capital allowances? The majority of businesses are able to claim a 100% Annual Investment Allowance on the first £200,000 of expenditure on most types of plant and machinery (except cars). In many cases, a purchase made just before the end of the current accounting year will mean that the allowances are available a year earlier than if the purchase was made just after the year end.

Business owners may also wish to consider tax-efficient ways in which they can extract profit from their business. There are many ways to achieve this. Some may opt to take dividends instead of a salary or bonus, as these are paid free of national insurance contributions. Others may wish to talk to us about incorporating their business, while employer pension contributions can be another tax-efficient means of extracting profit.

As always, it is important to seek our advice before taking action. For more information on tax-saving strategies to implement ahead of the 5 April 2018, please visit the Hot Topics section of our website.

Government proposes replacing self assessment penalties with new points-based system

The £100 penalty regime for filing a late tax return could be scrapped and replaced with a new ‘driving licence-style’ points system, HMRC has revealed.

Under the current system, taxpayers who fail to submit their tax return by the 31 January deadline are liable to an instant £100 fine, with further penalties applying for prolonged delays.

Under new plans being considered by the tax authority, taxpayers who miss the self assessment filing deadline could receive points instead of an immediate fine. Only those taxpayers accruing too many points would then be penalised. Individuals would also see points wiped from their record after a set period of time.

It is thought that around 840,000 taxpayers missed the filing deadline in the last tax year.

The new ‘holistic’ approach is intended to focus on taxpayers who persistently break the rules rather than those who make genuine errors of judgement.

The proposals are included in the Treasury’s Red Book, which states: ‘The government will reform the penalty system for late or missing tax returns, adopting a new points-based approach. It will also consult on whether to simplify and harmonise penalties and interest due on late payments and repayments’.

HMRC intends to consult on the plans, and must seek approval from Parliament. If approved, the new points-based system could undergo a phased introduction for different taxes.

However, some experts have warned that the abolition of the £100 late filing penalty could have ‘unintended consequences’.

The Association of Taxation Technicians (ATT) warned that a new points system could generate anomalies, and has urged the government to ensure that the consultation details exactly how the new system would work, in order to avoid such anomalies.

We can help to ensure that your tax returns are filed accurately and on time – please contact us for further assistance.

Finance Bill confirms Dividend Allowance reduction

The publication of Finance Bill 2017-19 ushers back in a raft of measures that had previously been dropped from Finance Bill 2017.

One such measure is the forthcoming reduction in the Dividend Allowance, which is set to fall from £5,000 to £2,000 next April. With 2.7 million individuals in receipt of dividend income, many are likely to feel the effects of the change.

Chancellor Philip Hammond stated that the cut would help to ‘address the unfairness’ that may be associated with the tax advantage enjoyed by director-shareholders.

The Chancellor initially announced the plans in the 2017 Spring Budget, but the measure was dropped from Finance Bill 2017 to pave the way for the General Election.

The reduction is likely to affect director-shareholders who opt to take dividends on top of a salary. It may also have consequences for savers with investments in stocks and shares worth £50,000 or more outside of an Individual Savings Account (ISA). According to HM Treasury, the average loss is expected to be around £315 – but it could be significantly more for individuals paying tax at the higher or additional rate.

Other measures reintroduced to Finance Bill 2017-19 include the planned reduction in the pensions Money Purchase Annual Allowance (MPAA), which has fallen from £10,000 to £4,000. The measure is being enforced retrospectively, and has been backdated to the beginning of the 2017/18 tax year.

The Finance Bill also outlines a framework for VAT reporting, under the government’s new Making Tax Digital initiative.