We pass on our huge congratulations to Dan Burnell (ABS Semi-Senior) and Stacey White (ABS Trainee), who have this week passed their ACCA - F4 Law exams!
Congratulations to Dan Burnell and Steph Blount who are the latest members of our team to become Xero Certified.
Our team of Xero experts continues to grow. If you would like to see how your business could benefit from Online Accounting, please visit our Xero page for more info.
Are you due some VAT back on your businesses pension scheme costs?
In the past HMRC have always taken the view that investment management services provided in respect of assets in a pension scheme were liable to 20% VAT. However following the recent outcome of tax cases heard in the European Court, their policy relating to some of the services provided was found to be incorrect.
If a pension scheme qualifies as a special investment fund (SIF) then the element of fees paid relating only to the management of these investments should be VAT exempt. A SIF is a fund that has more than one member and more than one investment, and where members share the risk of these investments. There is the possibility of going back 5 years to reclaim the VAT on the element of these costs.
If you think you may be affected by the above then you should contact your pension scheme to see if a VAT refund is due for you.
HMRC have issued a series of consultation documents outlining further plans for the government’s Making Tax Digital (MTD) initiative. HMRC have published six consultation documents on MTD. The six consultations set out detailed plans on how HMRC propose to make tax digital and to simplify the tax system. The consultations look at the following areas:
‘This new system will make the UK’s tax administration more efficient and straightforward and will offer businesses greater clarity when it comes to paying their tax bills.’
However professional bodies have expressed their concerns about HMRC’s proposals. Frank Haskew, Head of the Tax Faculty at the Institute of Chartered Accountants in England and Wales, said:
‘This is not the time to be rushing through fundamental changes to business processes that are likely to result in major upheaval and extra costs, especially when the business benefit to the UK has not been clearly demonstrated.’
Under the Government’s plans, the changes to the tax system will be introduced gradually between 2018 and 2020. We will keep you informed of developments.
Internet link: GOV.UK MTD
HMRC have issued an update of their guidance on how to recognise genuine HMRC contact be it via email or text.
They have also issued a warning regarding two telephone scams that they are aware of.
The details of the two phone scams are as follows:
Internet links: HMRC guidance Employer Bulletin
The government is being urged by both pension providers and banks to delay the April 2017 launch of the new Lifetime ISA as they are warning that they will not be ready to offer the savings product by this time.
A new Lifetime ISA introduces a new type of savings account for adults under the age of 40. Individuals will be able to contribute up to £4,000 per year and receive a 25% bonus from the government. Funds, including the government bonus, can be used to buy a first home at any time from 12 months after opening the account, and can be withdrawn from age 60 completely tax-free.
Further details of the new account, which is expected to be available from 2017, are as follows:
In the article published by This is Money pension providers Aegon and Standard Life have stated that they have delayed their plans until final details regarding the Lifetime ISA are released.
The Financial Conduct Authority (FCA) is yet to consult on the initiative. Steven Cameron, Pensions Director at Aegon, stated that a consultation is ‘likely to take three months’ to carry out.
Meanwhile, a spokesperson for Standard Life said: ‘As we want the Lifetime ISA to be a success, we would prefer that its launch is delayed until providers receive more detail on the product and how it is to be implemented.’
The Treasury is expected to confirm full details in the autumn.
Internet link: Article