Our latest newsletter provides an update on a range of topical issues:
HMRC Construction Industry concerns
HMRC is scrutinising contractors in the construction industry for incorrect Construction Industry Scheme (CIS) deductions. Contractors must verify subcontractors' CIS status and apply correct deductions to avoid penalties.
Tax Owing?
HMRC offers Time to Pay (TTP) arrangements for businesses and individuals facing financial hardship, allowing them to set up repayment plans for overdue taxes, including penalties and interest. Online applications are available for debts up to £100,000 for businesses and £30,000 for individuals.
Extra staff for Christmas
Employers hiring temporary staff for Christmas must comply with pensions automatic enrolment rules, assessing new staff for eligibility and possibly using a three-month postponement period.
HMRC target sales of cats and dogs
HMRC is targeting individuals who earn income from breeding or selling animals, urging them to declare any income over the £1,000 tax-free trading allowance to avoid penalties.
Major change ahead for holiday lets
From April 2025, preferential tax rules for furnished holiday lettings (FHLs) will end, impacting income reporting, finance costs, capital allowances, and tax reliefs. Property owners should consider restructuring their affairs before the changes take effect.
HMRC’s New VAT Tool
HMRC has introduced a VAT Registration Estimator tool to help businesses understand the impact of VAT registration on pricing and profits. The tool is free and available on gov.uk.
Jointly owned property - get it right
A recent Tax Tribunal case highlights the importance of understanding the rules for jointly-owned property. Rental income from jointly-owned property is automatically split 50:50 between spouses unless an election is made. Professional advice is recommended to avoid penalties.
Employers: avoid unwanted attention from HMRC
Employers should ensure accurate record-keeping, timely PAYE payments, and correct employee information to avoid errors and penalties. HMRC is focusing on closing a £3 billion tax gap attributed to employer errors.
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