Insights

Charitable donations – in giving you receive

Question.   I am considering giving a substantial sum of money to a charitable cause. Can I claim tax relief on charitable donations and what do I need to do?   Answer.   Broadly, where an individual gives money to a charity or a community amateur sports clubs (CASCs), and a Gift Aid declaration is made, the gift is a Gift Aid donation. The amount donated is treated as if ...

Don’t get burnt by summer taxes

Question. My daughter is home for the summer from university and has been working full-time in a small local business to help pay for the costs of university life. She has just received her first month’s wages and there has been tax and national insurance deducted from her pay. Why is this when her pay is less than her annual personal allowance and can she claim ...

PAYE – Dynamic coding has landed

Question.   I understand that HMRC have launched a new system for amending and updating PAYE codes for employees. What is this new system and how does it work?   Answer.   HM Revenue and Customs launched ‘Dynamic coding’ on 2 July 2017 with the aim of using third party information which they receive to update a taxpayer’s PAYE tax code. One of the expected positive changes will be that a ...

Planning my tax payments on account

Question:   I am due to make my 2nd Payment on Account today, 31 July 2017, to HM Revenue & Customs. My accountant advised me of my payment for the end of July some time ago but suggested that I could reduce the payment as my business profits have reduced in comparison to last year. What are the implications if I do not pay the full ...

Downsizing the family home to reduce my inheritance tax bill

Question.   We moved out of our family home recently following our retirement. One of our children has agreed to buy it from us. Will we have to pay tax on the sale of this house even though we lived in it for 20 years?   Answer.   The capital gains tax (CGT) exemption for gains made on the sale of your home is one of the most valuable reliefs ...

Renewing tax credits

Question.   I have received my tax credit renewal forms to complete before the 31st July. If I completed one last year and there are no changes to my circumstances, do I still need to complete the form?   Answer.   Tax credits claims last for a maximum of one tax year from 6 April to following 5 April. Once you have made your claim you do not have to ...

Passing on your inheritance and your place of residence – the tax minefield

Question.   I was born in Belfast and now live in Dublin. I have 2 children who both live in Dublin and I am contemplating retiring to Northern Ireland. Is there a difference between the Inheritance tax systems in the UK and Ireland?   Answer.   There is a very significant difference in the way Inheritance Tax operates in the UK and Ireland. In the UK the deceased’s estate is the ...

Selling a commercial investment property

Question.   We operate a family company and it rents the business premises from two of the directors. The property is being sold as the company is moving to new purpose built facilities. What are the VAT implications on the sale of the property?   Answer.   Sellers of commercial investment properties can avoid charging VAT at 20% on the sales price if the transaction can be treated as the sale ...

New tax penalties for tax evasion coming shortly

Question.   In September, the UK Government is expected to bring into force a new tax offence in the Criminal Finances Act 2017. What does this mean for businesses?   Answer.   The proposed new rules coming into force in September this year are remarkable and alarmingly in that it will make a business guilty as a result of the criminal conduct of its employees and others who act on ...

Builder goes South to win new work

Question.   I am a building contractor resident in Northern Ireland. To date, all of my work has been based in Northern Ireland. I recently accepted a job renovating a house in Dublin and am concerned about the Irish VAT implications of same. Can you please advise what I need to do?   Answer.   There are special VAT rules within the construction industry and the status of your customer and ...