Mercer & Hole’s Business blog - General business

There has been a lot of argument in the past as to when production costs can be treated as part of continuing R&D, rather than just the making of a product for onward sale.  HMRC’s position used to be that production could never be treated as R&D if the product was actually sold to a customer. However, HMRC has now issued draft guidance on production costs which can benefit from R&D tax credits. The guidance sets out the general principle that – “R&D takes place when a...

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HMRC has recently issued a consultation on a possible change to the PAYE system to give closely connected employers the option of being treated as a single entity for PAYE purposes. This is known as PAYE Pooling. Apparently HMRC wants to establish the level of interest amongst employers for pooling and see if it could reduce administration time or costs. The full document can be found here. Cathy Corns is a tax adviser and a partner at Mercer & Hole. The views given in this blog are personal to the author, if you would like to discuss the...

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HMRC has issued a new factsheet on complaints.  This sets out what you can do if you are unhappy with HMRC’s service. It covers when and how to complain, and sets out the information you should include. The full factsheet can be found here. Cathy Corns is a tax adviser and a partner at Mercer & Hole. The views given in this blog are personal to the author, if you would like to discuss the contents of this post with Cathy you can call her on 01908 605552. Email Cathy Corns  ...

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The European Commission has approved, for State Aid purposes, the increase in the Enterprise Investment Scheme (EIS) income tax relief rate to 30% in respect of investments made in EIS qualifying companies on or after 6 April 2011. It has also approved the individual investment limit from £500,000 to £1 million in respect of investments made on or after 6 April 2012. These changes were announced in the 2011 Budget. The rate increase was included in Finance Act 2011, with the increase in the individual investment limit scheduled to be included in the 2012 Finance Act. Cathy Corns is a tax adviser and a partner...

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HMRC has updated its scale rate expenses details for accommodation and subsistence payments to employees travelling outside the UK. HMRC has agreed that employers may use the benchmark rates published on its website when paying expenses to employees whose duties require them to travel abroad, without the need for the employees to produce expenses receipts. The latest rates can be found here. Cathy Corns is a tax adviser and a partner at Mercer & Hole. The views given in this blog are personal to the author, if you would like to discuss the contents of this post with Cathy...

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The Government has announced that its second wave of enterprise zones will be located in the following locations: Humber Estuary Renewable Energy Super Cluster; Daresbury Science Campus in Warrington; Newquay AeroHub in Cornwall; The Solent Enterprise Zone at Daedalus Airfield in Gosport; MIRA Technology Park in Hinckley, Leicestershire; Rotherwas Enterprise Zone in Hereford; Discovery Park in Sandwich, Kent and Enterprise West Essex in Harlow; Science Vale UK in Oxfordshire; Northampton Waterside; Alconbury Airfield near Huntingdon in Cambridgeshire; and Great Yarmouth in Norfolk, and Lowestoft in Suffolk. The intention is that businesses locating in these areas will benefit from a full...

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Four Enterprise Zones have been set up in Birmingham, Bristol, Leeds and Sheffield with the intention of accelerating local economic growth and creating new jobs. The zones will benefit from discounts on business rates, new superfast broadband, lower levels of planning control and the potential to use enhanced capital allowances. The Government will announce the location of a further ten Enterprise Zones shortly. Cathy Corns is a tax adviser and a partner at Mercer & Hole. The views given in this blog are personal to the author, if you would like to discuss the contents of this post with Cathy...

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The Government has stated that it is committed to making the reforms necessary to support its ambition for a more predictable, stable and simple UK tax system.  In the 2011 Budget the Chancellor announced that the Government would consult on the integration of income tax and National Insurance Contributions (NICs). Historically there have been two different systems for income tax and NICs with different periods and bases of charge. These impose costs and complexity on employers, and in the Government’s opinion effectively cost taxpayers due to the administration burden on HMRC. The Government believes that integration...

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Relief on capital spend on plant, etc., has been changed a lot over the last few years. Just as a reminder, the “standard” annual writing down allowance reduced to 20% (from 25%) in April 2009 and goes down again to 18% from April 2012. Meanwhile, the annual writing down allowance on long life assets increased to 10% (previously 6%) from April 2009 and no changes to the rate have yet been announced. The 100% Annual Investment Allowance was introduced at £50,000 in April 2009, increased to £100,000 in April 2010 and reduces to £25,000 from April 2012. Timing is crucial in maximising allowances and it is important to review...

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HMRC has recently published two new toolkits providing guidance on Company Losses and Chargeable Gains for Companies. There are now 19 toolkits in total, to date, covering a wide range of tax issues affecting individuals, businesses, companies, trusts and estates. All toolkits can be downloaded free from HMRC’s website Cathy Corns is a tax adviser and a partner at Mercer & Hole. The views given in this blog are personal to the author, if you would like to discuss the contents of this post with Cathy you can call her on 01908 605552. Email Cathy Corns ...

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