Pearson May Blog


Making Tax Digital - Are you ready?

September 1, 2018

You may have heard in the news about the Government’s plans to phase in its Making Tax Digital (MTD) system. According to HM Revenue
& Customs (HMRC), approximately £4bn per year is lost in simple VAT mistakes alone and it hopes that the introduction of MTD will assist
in reducing the errors made and thereby reduce the tax lost. Over the coming years, it is anticipated that all the main taxes will move
towards a fully digital tax system in what will represent one of the most fundamental changes to the tax system for decades.

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Rent a room relief

July 3, 2018

The rent-a-room scheme was first introduced by the Government in 1992 to encourage individuals to take in lodgers by offering them favourable
income tax treatment on the rental income received.

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Don't get caught out by Capital Gains Tax

June 3, 2018

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 & expenses provided to employees

May 3, 2018

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 2018 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 2018. These
forms, together with the annual Employer Declaration form P11D(b), must be submitted to HM Revenue & Customs (HMRC) by 6 July 2018
and a copy of the form P11D must be passed to the employee in question by the same date.

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Tax and financial changes for 2018/19

April 3, 2018

It is usually the case around this time of year that various tax changes hit the headlines, with the new “Sugar Tax” seeming to be flavour of the tax year
this time round! The start of the new financial year on 6 April does indeed usually bring with it a number of changes in various thresholds. But what
are the main changes which you need to be aware of? I have summarised five key changes below which will affect most taxpayers and employers.

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The end of the tax year

March 3, 2018

To the surprise and relief of most in the tax profession, the 2017 Autumn Budget (which took place in November 2017) was a relatively gentle
affair. At the time of writing, the Spring statement on 13 March has not yet taken place but it will be issued in response to the Office for Budget
Responsibility’s forecasts and is not intended to be a major event.

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31 January tax return filing deadline February 2018

February 3, 2018

As I am sure most people are aware, 31 January was the online filing deadline in respect of Tax Returns for the year ended 5 April 2017.
If you have missed this deadline for whatever reason then you can still file your Tax Return, but you must act sooner rather than later to remedy
the situation.

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Tax benefits pension contributions January 2018

January 3, 2018

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
(despite speculation that the Government would do so), it is always useful to recap the main tax benefits.

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February 1, 2017

Many small businesses use the VAT flat rate scheme (FRS) to simplify VAT reporting and some even gain a cash advantage from using the scheme. One of the conditions for using the FRS is that the business’s turnover (excluding VAT) must be less than £150,000 per annum.

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