- VAT treatment on Goods & Services
- LLP rules from April 2014
- Director life insurance through trust deed
- Use of Public property
- Flexible working
- Charity tax returns
- Offshore accounts
- Business finance
- Employment Allowance: up to £2,000 off your Class 1 NICs
- Abolition of Sick Pay Recovery
VAT treatment on Goods & Services
Vat is complex area, I have summarised general rule for VAT treatment on Goods & Services by Standard rated vat registered business (not flat rate or exempt and excluding activities under special vat rules) in UK. This grid should be helpful as quick reference guide.
|LLP rules from April 2014 |
Under the draft proposals, partners must satisfy one of three tests in order to maintain their status. The first option is ensuring at least a quarter of their pay is profit-dependent; the second would see them contribute at least 25% of their ‘fixed pay' to the firm's capital; or the third option is to prove they have significant influence on the overall partnership. If partners are deemed to be employees, then employer's national insurance contributions at 13.8% will be due and other employment-related tax rules, such as benefits in kind and share scheme rules, will apply to them.
|Director life insurance is not allowable expense for company BUT relative life insurance through trust deed is and it is optimal way to go. It not only save on corporation tax but also out of scope for capital gain tax rule. It is FREE to setup and does not take long to setup. Please do let me know if you are interested.|
Use of Public property
Communities and businesses can challenge the use of property owned by national or local government. They can complete a form explaining why they feel that a site is potentially surplus and could be put to better economic use.
From 6 April 2014, the right to request flexible working will be extended to all employees with 26 weeks' service.
Charity tax returns
HMRC have updated their guidance on when a charity must complete a tax return and warn that penalties can apply even if there is no tax liability.
HMRC have launched a new campaign targeting taxpayers with money hidden in offshore accounts.
The British Bankers Association (BBA) has launched a campaign to boost confidence amongst SMEs about approaching their bank to seek finance.
|Employment Allowance: up to £2,000 off your Class 1 NICs - Key facts - who can claim |
From 6 April 2014 employers can claim the Employment Allowance and reduce their employer Class 1 National Insurance contributions (NICs).
Abolition of Sick Pay Recovery under the Percentage Threshold Scheme
From 6 April 2014, employers will no longer be able to reclaim Statutory Sick Pay (SSP) as the Percentage Threshold Scheme has been abolished. The February 2014 edition of the HMRC Employer Bulletin gives more details. As such Payroll Manager will not calculate SSP recovery from 2014-15 onwards.