2015 Budget Statement Highlights

19 March 2015 •

In the final Budget Statement of this Parliament, the Chancellor announced a number of new changes as well as reaffirming those introduced in his 2014 Autumn Statement.  Here is our initial reaction and overview of some of the key points that could affect you and your business.

You can also watch our video round up featuring Damian Talbot and Francis Kershaw.

“Help to Buy” ISA – This was one of the key changes announced in the Chancellor’s Budget to give help to first time buyers in raising deposits for house purchases.  Broadly, investments made into the ISA will be “topped up” by a 25% contribution from HMRC.  The example given was £12,000 invested by the taxpayer will be uplifted by a £3,000 injection by the Government.

Entrepreneurs Relief Changes – The announcements made in the 2014 Autumn Statement regarding the restriction on the availability of E.R. to Goodwill recognised that incorporation of a business will be included within the Finance Bill 2015.

Personal Savings Allowance – The Chancellor announced that from April 2016 the first £1,000 of interest earned on cash deposits will be tax-free for basic rate taxpayers.  This allowance will be restricted to £500 for higher rate taxpayers.

Class 2 National Insurance Contributions – This class of NIC currently paid by self-employed taxpayers is to be abolished over the next Parliament.  However, Class 4 NIC, which is also paid by the self-employed, is to be reformed accordingly.

Remittance Basis Charge – As announced in the Autumn Statement, new rates for UK resident/non-domiciled individuals utilising the remittance basis will be introduced from 6 April 2015. Individuals who have been resident in UK for more than 17 of the last 20 years will now incur a £90,000 remittance basis charge if they wish to utilise the remittance basis.

In addition, the £50,000 remittance basis charge which is incurred by UK resident/ non-domiciles who have been resident in the UK for more than 12 years has been increased to £60,000.

Personal Allowance – The personal allowance is to increase to £10,800 from April 2016.

Lifetime Allowance – The Lifetime Pension Allowance is to decrease from £1.25M to £1M.

Annuity Changes – Pensioners are to be able to effectively “sell back” their annuities without incurring a punitive tax charge.

Inheritance Tax and Deeds of Variation – There is to be a review of the use of Deeds of Variation to mitigate Inheritance Tax obligations over the next Parliament.  It is unclear at this time if this is to address specific contrived schemes or will be part of an overall review of IHT.

The end of the Annual Tax Return? – Over the course of the next Parliament the Treasury is intending to end the annual requirement to file tax returns for individuals.  It is unclear how an alternative system might work and we await further information with bated breath.

If you would like to explore what this Budget Statement could mean for you and your business please call 020 7731 6163 to talk to one of our tax team, you can also download our updated 2015 / 2016 tax card.
 

Going to extreme lengths – long standing Warrener Stewart client Martin Hartley takes the FA Cup to the southernmost point of the Globe

02 March 2015 •

As the football teams prepare for the Sixth Round of FA Cup fixtures this weekend the prestigious FA Cup continues it’s on its trip of a lifetime.

As part of the ‘Every game’s an adventure’ scheme; multi-award winning photographer, Martin Hartley who has been a client of Warrener Stewart’s for the past 10 years, took the cup on his South Pole expedition. He was lucky enough to take the cup on its own ‘adventure of a lifetime’ in between the third and fourth rounds. The iconic silver cup travelled with him in a kit bag on his latest expedition to the southernmost point where he introduced it to a colony of penguins

Martin said; “Taking the FA Cup to the South Pole was a truly exciting and unique journey, but it was just the beginning.” Since then the cup has been boating on the Cam and on a train with Roy Hodgson up to Preston!
 

VAT and the Mini One Stop Shop (MOSS)

26 February 2015 •

An important change took place on the 1 January 2015 regarding the VAT place of supply rules in respect of digital services.

The change in rules affects Business to Customer (B2C) supplies within the EU of:

1) Telecommunication services
2) Broadcasting services, and
3) e-services

As of 1 January 2015, instead of the place of supply for these services being in the country where the Business is established it will now be the country where the Customer is located.  The old rules will continue to apply up until 31 December 2014.

A UK business supplying the above digital services to non-business customers (B2C) in other EU member states will therefore have to charge and account for the VAT according to the local VAT rules of the customers country.  To properly account for the VAT under these new rules, the affected UK businesses would normally need to register for VAT in each EU member state in which they supply such services.

However, HMRC have introduced the Mini One Stop Shop (MOSS) system which will enable an affected business to submit one quarterly return and payment to HMRC to account for the overseas VAT charged to its EU customers.

In order to register for the MOSS system with HMRC, the UK business must be registered for VAT in the UK.  There are special rules available for UK business that are not registered for UK but would still be caught under the local VAT rules of the country in which their customer resides.

This will represent an additional administrative requirement for those affected businesses and if your business provides telecommunication services, broadcasting services and/or e-services to customers in EU member states then please get in touch with us at Warrener Stewart in order that we may assist you.

Time is of the essence as the first VAT MOSS return will be for the quarter ended 31 March 2015, which will need to be submitted to HMRC by 20 April 2015.  Payment of the VAT will also be due at this time.

If you have any questions regarding your tax affairs in general please do not hesitate to contact us on 020 7731 6163.
 

Foreign Account Tax Compliance Act (FATCA)

13 February 2015 •

On 30 September 2016 financial institutions in the Crown Dependencies (Jersey, Guernsey and the Isle of Man) and the British Overseas Territories (CDOTs) will automatically exchange information with HMRC in relation to UK residents holding financial assets in these CDOTs for the 2014 and 2015 calendar years.

UK resident non-domiciled individuals (RND) who have claimed the remittance basis of assessment on their tax returns can elect for the Alternative Reporting Regime (ARR) to apply and without this election, HM Revenue and Customs may receive information on these accounts and assets far in excess of what an individual is required to report on a UK tax return.

In order for the ARR to apply the following conditions must be satisfied:

1.    Reporting Financial Institution Election

The reporting financial institution must make a one-off election to their local tax authority in order to operate the ARR. The election must be received no later than:

•         30 May 2015 for Crown Dependencies (Jersey, Guernsey and the Isle of Man),
•         30 April 2015 for the British Virgin Islands and the Cayman Islands,
•         30 September 2016 for Bermuda (direct election to HMRC).

2.    UK resident, Non-Dom Annual Election

The taxpayer will be required to submit an annual election to qualify for the ARR. The deadline for receipt of the first annual election is dependent on the jurisdiction in which the accounts or assets reside and must be received no later than:

•         30 May 2015 for Crown Dependencies (Jersey, Guernsey and the Isle of Man),
•         30 April 2015 for British Virgin Islands and the Cayman Islands,
•         Awaiting official guidance with respect to Bermuda.

3.    UK resident, Non-Dom Self-Certification

The taxpayer will also need to file a self-certification no later than 28 February following the relevant tax year. Therefore, in relation to the 2014/15 tax year your self-certification must be received no later than 28 February 2016

The election must include a written and signed confirmation of the following to the reporting offshore financial institution:

• Confirmation that your UK tax return for the relevant year contains a claim or statement that you are not domiciled in the UK,
• Confirmation that your UK tax return for the relevant year includes a claim to be taxed under the remittance basis and the remittance basis charge has been paid if relevant,
• Confirmation that to the best of your knowledge and belief your domicile status and claim to be taxed on the remittance basis is not being formally disputed by HMRC.

4.    Deadline for Disclosure

Should your offshore income or capital gains derived from your offshore assets in these territories have either been incorrectly reported or not reported at all, a tax disclosure must be submitted no later than:

• 30 September 2016 for Crown Dependencies (Jersey, Guernsey and the Isle of Man),
• 5 April 2015 for all other jurisdictions.

Moreover, we would strongly advise you to contact your offshore service providers and request details in relation to your offshore interests for the calendar years 2014 and 2015 as soon as possible.

If you have any questions regarding the introduction of the above or wish to speak to Warrener Stewart about your tax affairs in general please do not hesitate to contact us.

Just too good to be true….

12 February 2015 •

Fulham based Warrener Stewart’s two runners in the Craven Cottage 10K in aid of Prostate Cancer on Sunday 8 February, Nick Morgan and Francis Kershaw, both completed the course in under an hour. 

Despite training with fellow colleague Ryan O’Conner, he sadly missed the race due to technical difficulties, so the Warrener Stewart Chartered Accountant's team was bolstered by Nick’s son and one of his son’s friends. Not to be out done by his father, son Rick Morgan and his friend James Roach, raced around the Fulham road course to beat his father back to the pitchside in just 45 minutes.

Slightly breathlessly, Nick commented; “It was a very cold start but once Francis and I got into our stride it turned into a fine morning run along the Thames Tow Path."

When asked about his son’s victory, Nick’s response was; “I’m definitely getting too old for all this stuff!”

(pictured above, l-r: Nick Morgan, Rick Morgan, James Roach & Francis Kershaw)

On the run - Fulham based accountants Warrener Stewart are ready set go for the Fulham 10K

28 January 2015 •

Proving that he is ‘ready to run’ just as much as the new recruits who've recently joined Warrener Stewart, director Nick Morgan puts on his running shoes for the Fulham 10K run. 

Despite the fact the Fulham based Chartered Accountants, Warrener Stewart has seen their busiest January completing tax returns in advance of the deadline on January 31, Nick has found time to lead the training for the next charity run. He is being joined by two of the newest recruits to Warrener Stewart, tax specialist Francis Kershaw and trainee tax technician, Ryan O’Connor.

“Fitting in training around work has been hard,” admitted Nick, “at times it’s been more of a brisk walk in between client meetings, which is about as fast as I run these days anyhow! I've every confidence we’ll be ready for the race on which is on Sunday 8 February.”

The run is the Craven Cottage 10k “Winter Warmer” in aid of Prostate Cancer, organised by the Fulham Football Club Foundation. It starts at Craven Cottage and follows the Thames tow path inland, then over Hammersmith Bridge, down to Putney Bridge and back to Fulham FC. Nick adds, “The course never rises much above sea level, which suits us very nicely!”

Displaying results 49-54 (of 97)
 |<  <  5 - 6 - 7 - 8 - 9 - 10 - 11 - 12 - 13 - 14  >  >| 

“Attention to detail, breathtaking practicality, demonstrable value and practical implementation has been a Warrener Stewart USP that we've enjoyed and now couldn't live without.”
James Beagrie - Meon Valley Travel Group