In 2015 the government announced major plans to modernise the tax administration system by introducing digital services for tax. There are three main strands to these proposals, as follows:
Our sister company Friar Gate currently has a vacancy for a Part Time Administration Assistant - for full details visit:
FGIFS - Administration Assistant
We thought it was time for a new Ashgates look! We hope you like it..
We now look a little crisper and more modern but other than our logo and colours, we remain the same Ashgates you have always known.
Our new look was driven by our Director of IT, Jon Woliter and his IT team, who have designed and delivered our new look through all forms of media, from our website & app to our printed letterhead. We specifically knew our previous logo was not befitting to modern digital publications and as we wanted to release a new mobile friendly website, we took the opportunity to refresh our whole look at the same time.
If you wish to discuss ways the Ashgates IT team can help you, please get in touch - 01332 380691 or www.ashgatesit.co.uk.
Following consultation the government has issued further details of the new Lifetime ISA account which is expected to be available from April 2017.
In summary the account will be available to adults under the age of 40 and 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the government bonus, can be used to buy a first home at any time from 12 months after opening the account and can be withdrawn from age 60 completely tax free.
The new Lifetime ISA is designed to allow flexible saving for first time buyers and those wishing to save for their retirement.
Further details of the new Lifetime ISA are as follows:
HMRC recently lost a first tier tribunal case on the recovery of VAT on the purchase of six cars.
Although most VAT registered businesses are able to recover the VAT on the purchase of commercial vehicles the rules for the recovery on a car state two conditions must be met:
• the vehicle must be used exclusively for business purposes and
• it is not made available for private use.
In the case of Zone Contractors Ltd the court accepted that six cars were not available for private use which allowed the business to successfully recover the VAT on the six cars.
The business had a strongly worded contract of employment that prevented employees from using company cars for private travel. This was the crucial factor in this case and allowed the business to recover over £27,000 in input VAT on the purchase of six new cars. The tribunal was satisfied that the cars were wholly used for business purposes and were not available for private use. The tribunal also rejected HMRC’s argument that the company had failed to demonstrate that the cars were not available for private use.
Other factors which were relevant:
Internet link: Tribunal decision
The National Minimum Wage (NMW) is a minimum amount per hour that most workers in the UK are entitled to be paid. NMW rates increases come into effect on 1 October 2016.
• the rate for 21 to 24 year olds will increase by 25 pence to £6.95 per hour
• the rate for 18 to 20 year olds will increase by 25 pence to £5.55 per hour
• the rate for 16 to 17 year olds will increase by 13 pence to £4.00 per hour
• the apprentice rate will increase by 10 pence to £3.40 per hour.
The mandatory National Living Wage (NLW) applies for workers aged 25 and above. This is £7.20 an hour.
NLW and NMW rates will in the future be uprated every April starting in April 2017.
Penalties may be levied on employers where HMRC believe underpayments have occurred and HMRC may ‘name and shame’ non-compliant employers.
National Living Wage hits small business costs
According to research, 47% of small business owners blame increased wages following the introduction of the NLW as the main contributor to rising costs.
The research, carried out by the Federation of Small Businesses (FSB), revealed that a third of FSB members claim that the NLW has led to a small increase in their wage costs while one in five have said that their staff costs have increased significantly. Although 59% of FSB members absorbed the increased costs through reduced profitability, 35% have increased prices, 24% reduced staff hours and 23% cut investment.
HMRC have updated their guidance on payroll reporting including what employers should include on the Full Payment Submission (FPS) and Employer Payment Summary (EPS) returns.
Please contact us if you would like help with your payroll.
Internet links: ACAS article FSB press release Payroll guidance