All news by: Angela Evans

HMRC to review 2016/17 tax returns

HMRC are planning on reviewing up to 30,000 self-assessment returns from 2016/2017, after concerns that their tax calculator computed individual’s tax liabilities incorrectly.

The 2016/17 self-assessment period was a difficult time for agents, including us. This was due to an increasing number of returns subject to exclusions.
 

What is a reasonable excuse?

HMRC is still required to obtain certain returns from you even if there is no income or tax to declare. Failure to submit will likely trigger late filing penalties and unfortunately, pleading ignorance of your obligations to file “nil” returns is not a reasonable excuse.

It's all in the clouds

For those of you that have already considered the assets you hold and what should happen to them in the event of your death (or losing mental capacity), the obvious ones such as property, physical assets (cars etc.), personal items are easy.

 

Making tax digital

The current tax year, 2017-18, is the last year we have to prepare for the advent of the new reporting system, Making Tax Digital for Business (MTDfB). Following the recent budget, it is now clear which businesses are going to be affected and when. Dates for implementation will be:

Making tax digital to be delayed?

  The Treasury Select Committee has reviewed the proposals for the introduction of “Making tax digital” (MTD) and have agreed with the various professional bodies that if the new systems are introduced too quickly there could be a disaster.

Proposed changes to UK domicile rules

Where an individual is resident but not domiciled in the UK there are special rules that apply to that person's overseas income and capital gains.  Plus only their UK assets are charged to inheritance tax. The government has been consulting this summer on possible changes to the rules from 6 April 2017.

Spending the kids inheritance......

When considering any type of tax planning and in particular Inheritance planning it is important to ensure that you do not give too much away too quickly. You have worked hard to accumulate your savings and assets. When looking at gifts, ensuring that you have enough funds to maintain your lifestyle is the number one priority.

Where there's a will there's a way.....

If you have not made a will your estate may not go to the beneficiaries that you intend it to.

In October 2014 the Intestacy laws changed, reformed to suit the Modern Family. The changes improve the position for surviving spouses but may lead to more claims by Adult children under the Inheritance (Provision for Family and Dependants) Act 1975.