HMRC Proposes EFRBS Settlement by 31 December
HMRC has proposed the EFRBS Settlement offering employers a direct opportunity to settle the tax arising on Employer Financed Retirement Benefit Schemes (EFRBS).
HMRC recently announced this settlement opportunity by writing to affected customers giving them the chance to settle open enquiries without the need to engage in time consuming litigation – an offer, HMRC claim, intended to minimise costs to both customers, and themselves.
Under the terms of the settlement offer, you have until 31 December 2013 to consider the options put forward by HMRC and register your interest in any one of them (registering interest at this stage won't commit you to settling).
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Top Tips on RTI for SMEs
Back in April 2013 HMRC introduced Real Time Information (RTI) PAYE reporting, a new system designed to improve the accuracy of returns while ensuring employers such as yourself are paying the correct amount of tax.
Unlike in the previous system whereby you would submit an end of year return to HMRC with the full tax liability of each employee, under RTI PAYE reporting you're required to submit information to HMRC regarding employee pay and deductions each time a payment is made – unless you employ fewer than fifty employees and some are paid more frequently than once a month.
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Inheritance Tax Numbers Expected to Double
There is expected to be a sharp rise in the number of estates affected by the controversial inheritance tax (IHT).
Experts have warned that the number of estates expected to be caught by inheritance tax is likely to double by 2016/17 – from 21,000 in 2012, to an expected 42,000 in 2017.
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Autumn Statement: Full Report from Tax Agility
Further to our blog posted yesterday, we are pleased to provide a full report of the Autumn Statement, highlighting the main items affecting both SME business owners and individuals.
Delivering the 2013 Autumn Statement, the Chancellor said the latest forecasts from the Office for Budget Responsibility proved that “Britain’s economic plan is working” but warned that the “job is not done.”
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Autumn Statement: Key Points for Individuals and SMEs
Earlier today George Osborne, Chancellor of the Exchequer, delivered his Autumn Statement to Parliament.
Following are a summary of the key points affecting both SME business owners and individuals, taken from today's statement.
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Automatic Information Exchange Agreed for Offshore Disclosure Facilities
Earlier this year, Offshore Disclosure Facilities (ODF) were agreed between the UK government and the governments of Jersey, Guernsey, and the Isle of Man, designed to last between April of this year and 30 September 2016. During this period Financial Intermediaries in these three dependent territories are to be contacting people who they believe may be eligible to participate in the facility.
In the latest update to these agreements in October this year, the governments have now agreed to an automatic and spontaneous exchange of information between the UK and the relevant offshore government, from 2016 onwards.
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SEIS Investment Injects £82m Into Start-Ups
The SEIS (Seed Enterprise Investment Scheme), put forward by Chancellor George Osborne in 2011 and formally launched in April 2012, is designed to help small, early-stage or start up companies raise equity finance by encouraging individual investors with the prospect of receiving 50% of their investment back as income tax relief.
In the eighteen months since its introduction, over 1,100 companies across the UK have raised over £82 million in funding through SEIS investment, with the average amount of investment being raised currently at £72,000, according to HMRC.
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How The Cap on Income Tax Reliefs Affects You
Last year the Chancellor announced the government was intending to introduce a cap on currently unlimited income tax reliefs, due to take effect from the tax year 2013-14. This cap has now been put into place, with HMRC having since published guidance on the new rules.
The cap has been set at either £50,000, or 25% of your adjusted total income for the current tax year (whichever is the greater number).
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What The New Flat Rate State Pension Means for You
The government has proposed the introduction of a simple, single-tier flat rate state pension in the hope of removing complex elements out of the current State Pension system and encouraging a greater number of people to save for retirement.
According to The Department for Work and Pensions, in the new system – which incorporates a merger of the basic state pension with the state second pension – the single-tier pension is expected to be worth approximately £145.40 per week for a single pensioner, compared to the current state pension of £110.00 per week (alongside means-tested top-ups).
The Pensions Bill, which contains the provisions to bring forward the flat rate state pension as part of the State Pension system, was introduced to the House of Commons in May of this year, and is currently going through parliament.
What is the UK and Swiss Tax Cooperation Agreement?
With the HMRC having recently sent out their first batch of warning letters to Swiss Account Holders, I though it may be useful to recap the details of the UK and Swiss Tax Cooperation Agreement.
The new information-sharing agreement was made between UK and Switzerland and came into force on 1 January 2013. The agreement covers undeclared Swiss bank accounts held by UK residents. This agreement changes the way that banking will be conducted in Switzerland and the information sharing enables HMRC to find out about Swiss offshore accounts held by UK taxpayers.
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