Mercer & Hole’s Business blog - Personal Tax
Salary Sacrifice
Date: 20th July, 2012 | Author: Cathy Corns | Comments: 0
HMRC has issued updated Q&As on salary sacrifice, specifically on pension schemes in light of auto enrolment starting later this year. For full details see HMRC’s website. ...
Scots plan separate tax agency
Date: 6th July, 2012 | Author: Cathy Corns | Comments: 0
The Scottish government has announced its intention to set up a separate Revenue Scotland agency after HMRC highlighted practical issues on the devolution of tax-raising powers. Apparently lower corporate and personal tax rates are a key part of Scottish Nationalist first minister’s Alex Salmond’s economic policy, and his preference is to set up a separate tax body to administer tax collection. The problems on determining residence and liability would be interesting, or challenging, depending on your view. ...
Tax Calculator
Date: 20th June, 2012 | Author: Cathy Corns | Comments: 0
HMRC has now issued a tax calculator that you can use to work out what tax and national insurance you are due to pay, and to check that tax paid is correct. There is also a breakdown of how revenues are spent. The calculator is available on the website within HMRC’s list of available calculators or as an app. ...
Change to UK Swiss Tax Agreement
Date: 7th June, 2012 | Author: Cathy Corns | Comments: 0
Just a quick update on changes to the UK Swiss Tax Agreement. The UK has exercised its option to increase the rate of withholding tax to be applied in the agreement with Switzerland (which is scheduled to come into effect from 1 January 2013). The rates will increase to between 21% and 41%, previously 19% to 34%. The increased rates increase the uncertainty over what the liability under the agreement may be. It is indicative of HMRC’s approach following on the heels of the Budget announcement that an effective flat rate inheritance tax charge of 40% will apply to any undeclared Swiss assets after 1 January 2013. ...
HMRC help on pension contribution records
Date: 27th April, 2012 | Author: Cathy Corns | Comments: 0
The annual allowance for tax relief on pension contributions now stands at £50,000 pa, but with scope to carry forward unused relief. HMRC has launched a new tool to help people keep track of what they have paid and how much of their annual allowance has been used. The calculator can be used to work out what unused annual allowance may be available to carry forward from up to three years before the 2011/12 tax year. The Pension savings annual allowance calculator can be found here. ...
Car Benefits
Date: 23rd April, 2012 | Author: Cathy Corns | Comments: 0
From 6 April 2012 only cars with CO2 emissions in the band 76-99g/km will be taxed at 10% of list price. Those with CO2 emissions of 100g/km will be taxed at 11% with the percentage increasing in 1% steps for each additional 5g/km. From 6 April 2013 the 10% list price band will reduce again to 76-94g/km. A car with CO2 emissions of just 115g/km will then be taxed at 15% of list price. If you choose to drive a low emissions company car for tax reasons you may need to reconsider your position. ...
Increased penalties on personal tax returns
Date: 20th April, 2012 | Author: Cathy Corns | Comments: 0
The automatic penalty for failing to file personal tax returns by 31 January was £100. You should, however, be aware that if returns have not been filed by 30 April an automatic £10 per day penalty kicks in and runs for 90 days. Still higher penalties are due if the failure to file continues beyond the end of July, up to a tax-geared amount of 5% of the liability shown on the return (or £300 if greater). ...
2012/13 tax codes
Date: 20th February, 2012 | Author: Cathy Corns | Comments: 0
HMRC will be issuing employees and directors annual coding notices for 2012/13 between January and March 2012. Co-enveloping notices of coding, i.e. placing two P2s in one envelope, will continue where a taxpayer is due to receive more than one form. HMRC believe this means that about 96% of taxpayers will receive one envelope. However, you should note that HMRC no longer send copy notices of coding to tax agents, so if you want your adviser to check your code, you need to sent it to them. ...
Clegg: Raise income tax threshold ‘further and faster’
Date: 15th February, 2012 | Author: Cathy Corns | Comments: 0
Nick Clegg has said that he wants to accelerate plans to raise the personal allowance to £10,000. He wants the government to go “further and faster” in raising the level at which people start paying income tax. The government has already promised to raise the personal allowance to £10,000 by the next election, set for 2015. ...
It’s all a balancing act
Date: 14th May, 2008 | Author: Cathy Corns | Comments: 0
Yesterday, the Chancellor announced changes to the personal tax system in response to the furore over the abolition of the 10p rate of tax. Gordon Brown's "prudence" concept seems to have been abandoned as, in his new role, he has to balance the polls rather than the books. The government is apparently borrowing £2.7 billion to fund a tax cut that is much broader in scope than simply addressing those affected by the loss of the 10p rate. The personal allowance for the current is being increased by £600 to £6,035. So far so good - but then the basic...
