Pearson May Blog

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Tax benefits of making pension contributions

October 14, 2019

The tax benefits of making pension contributions can be significant and although there have not been any major changes in this area in recent
years, it is always useful to recap the main tax benefits. This article looks at personal pensions. These can be set up by individuals, or Employers
can set up group personal pension plans.

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Tips for minimising inheritance tax - Lifetime gifts

September 6, 2019

Some statistics have recently been issued by H M Revenue and Customs (HMRC) which indicate that, in the 2018/19 financial year, the average
Inheritance Tax (IHT) bill was £200,000 and, with the current main rate of IHT having remained at 40% for some time now, IHT is a tax which can
generate significant sums for HMRC. So, what can you easily do to minimise your IHT bill? Giving away money by way of gift can be relatively
straightforward and I have highlighted below some helpful tips, but these are by no means an exhaustive list and, as always, each individual’s
circumstances will be different and specific advice tailored to your needs is essential.

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Should I extract the profits from my limited company?

August 9, 2019

There are various profit extraction strategies for owner managed companies and it is important that these are reviewed on a regular basis to take
in to account changes in circumstances of directors/shareholders and in tax rates and rules. So which are the best options for you and your limited
company? I set out below some of the options available:

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Making Tax Digital for VAT - Act Now!

July 1, 2019

1 April 2019 finally saw the introduction of Making Tax Digital (MTD) for VAT, which will affect all VAT registered businesses with an annual
taxable turnover above the registration threshold of £85,000. If you haven’t yet taken any action then it may not be too late but you must act
now to comply with the MTD regulations. I have set out below some common frequently asked questions which may assist you.

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Making a gift? Don't forget to tell the Taxman!

June 1, 2019

Most readers have probably heard of Capital Gains Tax (CGT) but how much do you know about the situations in which CGT is charged?
You could be forgiven for thinking that CGT is only payable when you sell an asset which is chargeable to CGT (e.g. a rental property) and
realise a ‘profit’ on the sale. But did you know that CGT can also be payable when you make a gift of an asset to, say, a family member? You
are not alone if this comes as a surprise to you and it is therefore worth examining some such situations that may give rise to an unexpected
CGT liability.

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Reporting benefits and expenses provided

May 1, 2019

As we have now passed the end of another tax year, attention may well be increasingly focussed on the completion of Tax Returns for the year
ended 5 April 2019 and annual accounts for those businesses with a March (or 5th April) year end. However, businesses shouldn’t forget that
there is a more pressing deadline for completion of forms P11D ‘Expenses and Benefits’ in respect of the year ended 5 April 2019. These forms,
together with the annual Employer Declaration form P11D(b), must be submitted to HM Revenue & Customs (HMRC) by 6 July 2019 and a copy
of the form P11D must be passed to the employee in question by the same date.

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The new Tax Year

April 1, 2019

Although Brexit continues to dominate most of the headlines at the moment, the start of the new financial year on 6 April always bring with
it a number of changes to various tax thresholds, some of which may make the headlines and others which may not, but all of which will be
important to most taxpayers and employers alike. I have summarised five such changes below:

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The end of the Tax Year

March 1, 2019

As the end of another tax year approaches, a post Brexit agreement has still to be reached with the EU. Consequently, the implications of Brexit
on the UK taxation system in the longer term are yet to be determined. However, the 2018/19 tax year itself has seen relatively few changes
to the taxation system and even a reversal of policy.

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Inheritance Tax - The residence nil rate band

February 1, 2019

The Residence Nil Rate Band first came in to effect on 6 April 2017 and is being phased in gradually so that, by April 2020, certain
individuals could potentially see a reduction in their Inheritance Tax bill of up to £140,000.

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Tax Return Deadline

January 10, 2019

Chancellor Philip Hammond has delivered his second Autumn Budget, exactly five months before Britain is due to leave the European H M
As I am sure most people are aware, 31 January 2019 is the online filing deadline in respect of Tax Returns for the year ended 5 April 2018.

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