fpdteam, Author at Bennetts Accountancy

Tax exempt accommodation costs

14th December 2023 by fpdteam

There are special rules for the provision of living accommodation for employees. In most cases, employees will pay tax on any living accommodation provided by an employer unless they qualify for an exception.

However, where an employee qualifies for an exemption, there is no tax to pay on the provision of living accommodation. The definition of living accommodation includes houses, flats, houseboats, holiday homes and apartments. It does not include hotel rooms or board and lodgings.

An exception for living accommodation will usually apply in the following cases:

If it is domestic or personal
- Accommodation is exempt if both:
  - you are an employer who is an individual, for example a sole trader; and
  - you are providing it for someone because they are a close relative – even if they happen to work in your business.
If it is provided by a local council
- Accommodation is exempt if a local council provides it on the same terms that it provides housing to non-employees.
If it is necessary or usually provided for the job
If it is needed for security

Other charges and costs

If the accommodation you provide is exempt, you do not have to report Council Tax, water and sewerage charges to HMRC, or pay National Insurance and tax.

Source:HM Revenue & Customs| 11-12-2023

Help to pay your tax this month

14th December 2023 by fpdteam

If you are having trouble paying your tax on time you may be eligible to receive support from HMRC by applying for an instalment payment plan. An online payment plan for self-assessment tax bills can be used to set up arrangements for paying tax liabilities of up to £30,000.

The large majority of taxpayers, who are due to make payments on 31 January 2024, could qualify to implement a Time to Pay arrangement online.

Taxpayers that want to use the online option must have filed their latest tax return within 60 days of the payment deadline and intend to pay their debt within the following 12 months or less. Taxpayers that qualify for a Time to Pay arrangement using the self-serve Time to Pay facility online, can do so without speaking to an HMRC adviser.

Taxpayers with self-assessment tax payments that do not meet the above requirements need to contact HMRC to formally request a Time To Pay arrangement. These arrangements are agreed on a case-by-case basis and are tailored to individual circumstances and liabilities.

HMRC will only offer taxpayers the option of extra time to pay if they think they genuinely cannot pay in full but will be able to pay in the future. If HMRC do not think that more time will help, they can require immediate payment of a tax bill and start enforcement action if no payment is forthcoming.

Source:HM Revenue & Customs| 11-12-2023

What data do organisations hold about you?

11th December 2023 by fpdteam

If you are concerned that an organisation is holding personal information you have a legal right to ask for a copy of the information that they hold about you.

If it is a public organisation, write to their Data Protection Officer (DPO). Their details should be on the organisation’s privacy notice.

If the organisation has no DPO, or you do not know who to write to, address your letter to the company secretary.

How long it should take

The organisation must give you a copy of the data they hold about you as soon as possible, and within one month at most.

In certain circumstances, for example particularly complex or multiple requests, the organisation can take a further two months to provide data. In this case, they must tell you:

within one month of your request; and
why there’s a delay.

When information can be withheld

There are some situations when organisations are allowed to withhold information, for example if the information is about:

the prevention, detection or investigation of a crime;
national security or the armed forces;
the assessment or collection of tax; or
judicial or ministerial appointments.

An organisation does not have to say why they are withholding information.

How much it costs

Requests for information are usually free. However, organisations can charge an administrative cost in some circumstances, for example if:

you are asking for a large amount of information; or
your request will take a lot of time and effort to process.

Source:Other| 10-12-2023

Planning changes to boost solar rollout

11th December 2023 by fpdteam

Homes and businesses will be able to install rooftop solar panels more easily, under new rules that were recently announced.

Changes to permitted development rights rules will mean more homeowners and businesses will be able to install solar panels on their roofs without going through the planning system.

Currently those who have to go through the planning system are having to wait over eight weeks and face extra costs.

The move will encourage more people to install solar panels on their properties, slashing their energy bills in the process and cutting down on harmful emissions.

Energy Security and Net Zero Minister Graham Stuart MP said:

“… we are cutting through red tape to make it easier for businesses to install solar panels on their rooftops.

Removing the 1MW restriction for industrial rooftop solar will help us meet our target of 70GW of solar power by 2035 while supporting hundreds of long-term skilled British jobs, bolstering our world-leading renewables sector and reducing bills for consumers with panels.”

The changes will mean homes with flat roofs will be able to install panels without planning permission, bringing rules in line with those for businesses.

Current rules that require businesses to apply for planning permission if solar panels will generate more than one megawatt of electricity will also be scrapped, meaning organisations will be able to install more solar panels on rooftops without the delay and cost of applying for planning permission.

The Government is clear that where possible already developed land should be used for solar panels, which is why the changes will make it easier for panels to be installed in canopies above car parks, if they are over ten meters away from people’s homes.

These measures also support ambitions set out in the British Energy Security Strategy published by government last year – taking the necessary steps to combat climate change and bring greenhouse gas emissions to net zero by 2050.

Source:Other| 10-12-2023

Working from home tax relief

7th December 2023 by fpdteam

Employees who working from home may be able to claim tax relief for some of the bills they pay that are related to your work.

Employers may reimburse employees for the additional household expenses incurred if regularly working at home. The relief covers expenses such as business telephone calls or heating and lighting costs for the home-based workspace. Expenses that are for covering private and business use (such as broadband) cannot be claimed. Employees may also claim tax relief on equipment they have bought, such as a laptop, chair or mobile phone.

Employers can pay up to £6 per week (or £26 a month for employees paid monthly) to cover an employee’s additional costs if they have to work from home. Employees do not need to keep any specific records if they receive this fixed amount.

If the expenses or allowances are not paid by the employer, then the employee can claim tax relief directly from HMRC. Employees will qualify for tax relief based on their highest tax rate. For example, if they pay the 20% basic rate of tax and claim tax relief on £6 a week, they will receive £1.20 per week in tax relief (20% of £6). Employees can claim more than the quoted amount but will need to provide evidence to HMRC. HMRC will accept backdated claims for up to 4 years.

Employees may also be able to claim tax relief for using their own vehicle, be it a car, van, motorcycle or bike. As a general rule, there is no tax relief for ordinary commuting to and from your regular place of work. The rules are different for temporary workplaces where the expense is usually allowable or if and when an employee uses their own vehicle to undertake other business related mileage.

Note, that if an employee who agreed with their employer to work at home voluntarily, or if they choose to work at home, they cannot claim tax relief on the bills they have to pay. If an employee previously claimed tax relief when they worked from home because of coronavirus (COVID-19), they may no longer be eligible for relief.

Source:HM Revenue & Customs| 04-12-2023

Autumn Finance Bill 2023 published

7th December 2023 by fpdteam

The government published the Autumn Finance Bill 2023 on 29 November 2023. The Bill is officially known as Finance Bill 2023-24. The Bill contains the legislation for many of the tax measures announced in the recent Autumn Statement.

The Autumn Finance Bill will likely be followed by the main Spring Finance Bill 2024 which will be published after the Spring Budget and will cover any remaining tax measures needed ahead of April 2024.

Some of the many measures included within the Bill are:

Making full expensing permanent for expenditure on plant & machinery.
Extending the sunset clause for the Enterprise Investment Scheme and the Venture Capital Trust scheme to 6 April 2035.
Reforming the film, TV and video games tax reliefs to refundable expenditure credits.
Expanding the ‘cash basis’ – a simplified way for over four million smaller, growing traders to use a simpler method of calculating their profits and pay their income tax.
Legislating for more generous support for loss-making R&D intensive SMEs as announced in the spring.
Setting the rates of excise duty and certain environmental taxes.

The Bill received its first reading in Parliament on Monday 27 November 2023. It will now follow the normal passage through Parliament.

A separate Bill called the National Insurance Contributions (Reduction in Rates) Bill, was published on 23 November 2023 and will enact the NIC changes for employees and the self-employed as announced in the Autumn Statement.

Source:HM Treasury| 04-12-2023

More time to file company accounts

7th December 2023 by fpdteam

The normal filing deadline for filing the accounts of a private limited company is nine months after the company’s financial year end. Known as the accounting reference date. For example, many companies have a year-end date of 31 March and are therefore required to file their accounts by the following 31 December. For public companies, the time limit is 6 months from the year end.

There are automatic late filing penalties if your company accounts are delivered late. The penalties depend on how long has passed from the due date for payment and whether the company is private or public.

It is possible to submit a request for more time to file company accounts. However, you can only apply to extend your accounts deadline if you cannot send your accounts because of an event that’s outside of your control – for example, because of an unexpected illness or if a fire has destroyed company records a few days before your filing deadline. An application must be made before the original filing deadline.

Source:Companies House| 04-12-2023

Help to Save scheme

7th December 2023 by fpdteam

The Help to Save scheme is intended to help those on low incomes to boost their savings. Eligible users of the scheme can save between £1 and £50 every calendar month and receive a 50% government bonus. The 50% bonus is payable at the end of the second and fourth years and is based on how much account holders have saved. The bonus is paid directly into the account holder’s chosen bank account.

This means that account holders on low incomes can receive a maximum bonus of up to £1,200 on savings of £2,400 for four years from the date the account is opened. The scheme is open to most working people who receive Working Tax Credits or Universal Credit.

Almost 450,000 people have opened Help to Save accounts since the scheme was launched in September 2018 and March 2023, with nearly £372.5 million paid into accounts during that time. This has seen the government award £146 million in bonus payments.

The scheme had been due to end in September 2023 but was extended by 18 months, until April 2025. The extension was announced as part of the Spring Budget measures earlier this year.

Source:HM Revenue & Customs| 04-12-2023

Pension Credit deadline

7th December 2023 by fpdteam

Pension Credits can provide extra income to those over State Pension age and on a low income. The credits were first introduced in 2003 to keep retired people out of poverty.

Pension Credit can top up:

your weekly income to £201.05 if you are single; or
your joint weekly income to £306.85 if you have a partner.

If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs. Not all benefits are counted as income.

Claimants who submit a Pension Credit before 10 December 2023 could be entitled to an extra £300 cost of living boost, on top of support worth an average of £3,900 per year. This is because successful Pension Credit claims can be backdated for up to three months, as long as the applicant was also eligible to receive it during that time. HMRC estimates that there are many pensioners entitled to the credit who have not yet made a claim.

Details of how to make an application for Pension Credit can be found on GOV.UK at https://www.gov.uk/pension-credit/how-to-claim

Minister for Pensions Paul Maynard said:

'We want every pensioner to receive all they help they can and with time ticking down to deadline day and the window drawing to a close, now’s the perfect time to check out our Pension Credit calculator and make sure you or your loved ones aren’t missing out on this vital support. In many cases, it’s an open goal to more money in your pocket.'

Recipients of Pension Credits will automatically get cold weather payments and are also eligible to apply for a free TV licence if they are aged 75 or over.

Source:Department for Work & Pensions| 04-12-2023

Pensioner Cost of Living Payment

7th December 2023 by fpdteam

The Cost of Living support package has been designed to help over 8 million households in receipt of mean tested benefits. The details for Cost of Living Payments due in the 2023-24 tax year were published earlier this year and have recently been updated.

Eligible recipients will receive up to three Cost of Living Payments of £301, £300 and £299 during the course of the current tax-year. This includes those receiving pension credit and these payments will be made separately from other benefit payments. The first payment of £301 was made between April-May 2023 and the second payment of £300 was paid during August-September 2023. The third payment of £299 is due to be paid during spring 2024.

An additional one-off payment of £150 or £300 will be paid to pensioners during winter 2023-24. The Winter Fuel Payment is provided by the government to help older people keep warm during winter. The amount a pensioner will receive depends on a number of factors including their age and the age of other people living with them. You can receive a Winter Fuel Payment for winter 2023-24 if you were born before 25 September 1957. HMRC completed writing to eligible recipients, at the end of November, telling them how much to expect as their payment.

Source:Department for Work & Pensions| 04-12-2023