HMRC redesign IHT100 forms to simplify reporting

HMRC recently introduced a redesigned IHT100 suite of forms, aimed at simplifying the reporting of chargeable lifetime transfers by individuals and transfers made by trusts. Previously, individuals needed to complete both an IHT100 form and a separate ‘event’ form, depending on the type of transfer. This system was complex, involving different forms for various charges, […]

The FHL regime is coming to an end: what this means for property owners

The recent confirmation of the abolishment of the Furnished Holiday Lettings (FHL) regime has brought significant changes for property owners to consider. It was announced by then-chancellor, Jeremy Hunt, in the 2024 Spring Budget, that the FHL regime will officially end from 6 April 2025 for Income Tax and Capital Gains tax and from 1 […]

Exploring the upcoming changes to Vehicle Excise Duty for electric vehicles

Vehicle Excise Duty (VED) is a crucial part of the UK’s tax system, contributing to the maintenance of our road infrastructure. As part of the government’s commitment to a fair and sustainable tax regime, significant changes are on the horizon for electric vehicles (EVs). From 1 April 2025, EVs will no longer benefit from VED […]

Navigating change: the impact of abolishing the non-dom tax regime

What is the non-domiciled status? The non-dom regime has enabled UK residents who are domiciled outside the UK to benefit from the remittance basis of taxation, where they are only taxed in the UK on their UK source income/gains and any foreign income/gains that have been ‘remitted’ to the UK. This system has provided many […]

Navigating tax rules for gifts to employees and directors

Giving gifts to your employees can be a great way to increase engagement and raise the overall morale of your team, but how much can you give before tax is incurred? And how do the rules differ if you are giving gifts to your directors? In the UK, giving gifts can potentially attract tax liabilities […]

Class 2 NIC payments incorrectly refunded by HMRC

Several reports to the Association of Taxation Technicians have highlighted unexpected refunds of voluntary Class 2 National Insurance Contributions (NICs) that were paid for the 2022/23 tax year, potentially having a detrimental effect on those self-employed individuals, who made voluntary payments, and had profits under £6,725. For voluntary Class 2 NICs to apply and provide […]

Could you be eligible for Marriage Allowance?

Marriage Allowance enables you to transfer £1,260 of your personal allowance (usually £12,570) to your husband, wife, or civil partner provided neither of you are a higher rate or additional rate taxpayer. By doing so, this reduces their tax by up to £252 in the tax year. Who is eligible?  To qualify for Marriage Allowance, […]

Have you received your full entitlement of tax relief on your pension contributions?

Most occupational pension schemes (e.g. employer operated pension schemes) typically deduct contributions under Net Pay Arrangements and personal pension schemes will make deductions under ‘Relief at Source’. However, it should be noted that this is not always the case. For example, Nest, the Government-backed workplace pension scheme, operates a Relief at Source scheme, and many […]

Recent HMRC developments and changes to Class 1 NICs for motoring expenditure

The Upper Tribunal case of Wilmott Dixon and Laing O’Rourke put the spotlight on HMRC’s interpretation of the definition of ‘relevant motoring expenditure’ (“RME”) and the disregard for Class 1 NICs. Historically, HMRC has taken a relatively narrow view on the type of motor expense payments that qualified as RME, with the Upper Tribunal taking […]

Update: HMRC cracks down on taxable side hustle earnings from online sales

The term “side hustle” is commonly used to describe any part-time endeavour with the intention to generate additional income alongside your main job, and these activities can be carried out on a large variety of marketplaces including Etsy, Airbnb, Depop, and many more.   What are the recent developments regarding side hustles? This is not […]

Are employee parties tax-free?

If the rules around social functions are followed, employee events like your end-of-year party, or your summer barbecue are tax-deductible for you, as the employer, and tax-free for your staff. Whether your party is taking place in the office, at a local restaurant or via Zoom for your remote-working teams, you can be confident that […]