The rules around how the "taxable income" value of a car provided to an employee haven't changed for a while. The basic calculations are still the same, however in the next couple of years the relevant percentage of the "manufacturer's list price" that is charged to tax is changing according to the level of carbon dioxide emissions. The upcoming changes may provide a bit of a tax shock on some cars that are only a few years old.
You may also consider providing an employee with a van instead of a car. But when is a van not a van? The answer is more complicated than you think, and the authorities are starting to pay more attention to this question.
You can read all about these issues in our new information leaflet: www.ashgates.co.uk/taxupdate-carsandvans.html
HMRC is warning that taxpayers could face penalties if they fail to declare their income on foreign assets before new ‘Requirement to Correct’ legislation comes into force.
HMRC is urging UK taxpayers to come forward and declare any foreign income or profits on offshore assets before 30 September 2018 to avoid higher tax penalties.
HMRC is working with more than 150 software suppliers who have said they will provide software for Making Tax Digital for VAT (MTDfV) in time for April 2019.
From 1 April 2019, businesses will be mandated to use the MTDfB system to meet their VAT obligations under MTDfV. Only businesses with a taxable turnover above the VAT threshold (currently £85,000) will be required to use MTDfV, however HMRC is piloting the new system, on a small scale, from April 2018.
HMRC has published the latest edition of the Employer Bulletin.
Our own Ian Johnson and some of the Ashgates employees visited one of our clients Beckside Care Farm last week. Beckside Care Farm recently named one of their first born Alpacas after Ian due to their appreciation for the work he has done, and this was the first time they had met.
Beckside Care Farm was able to give the group a tour of the farm which included feeding the various animals and sharing some of their amazing success stories.
We would like to say a huge thank you to Beckside Care Farm for having us and we look forward to visiting again in the future.
You can visit their website for more information by clicking here.
HMRC have published the updated rates for mileage claims on company cars that take effect from 1 September 2018. For the first time they have announced a rate applicable to electric cars, but hybrid vehicles continue to be treated as either petrol or diesel.