Last month, the HMRC published guidance on the new tax rules for individuals who are non-UK domiciled and offshore trusts, which take effect from 6th April 2017. Non-UK domiciled individuals should be aware of these changes, and ensure they are in like with the new regulations in order to avoid penalties.
Within the HMRC publications there are a number of changes, which include:
Cleansing of mixed funds
The summary lists rules that will allow a window up until the 5th April 2019 to enable division of income, capital gains and clean capital elements of existing non-UK bank accounts into separate accounts. If managed correctly, this would enable any non-dom who has previously been taxed on the remittance basis prior to 2017/18, to remit to the UK without a tax charge ‘clean’ capital from overseas which was previously trapped within a mixed fund.
Remittance Basic Changes
A new short high level summary explaining that individuals who become deemed domiciled will no longer be able to use the remittance basis and will be taxed on worldwide income and gains.
Trust protections and capital gains changes
This new guidance primarily covers the new rules for offshore trusts. This includes income tax and capital gains tax ‘protections’ for offshore trusts and how trust protections can be lost through tainting and the valuation of benefits received from offshore trusts.
Over 50,000 contract workers have been subjected to backdated tax demands of hundreds of thousands pounds. This is after a pursuit put in place by a controversial loan charge aimed to claim back-unpaid taxes from as far back as 1999.
The IR35 is a combined of legislation that is designed to asses whether a contractor is a genuine contractor or an employee for tax purposes. Contractors that work through their limited company enjoy many tax perks, such as claiming expenses against tax, which cannot be enjoyed as an exclusive employee to a company. Contractors also do not have access to many of the perks of employment, such as holiday and sick pay.
The HS2 project is one of the most demanding and exciting transport currently active in Europe. The project has set out to build a railway that will form the new backbone of Britain’s transport network.
The HMRC has continued its crackdown on tax avoidance this tax year, with a record amount of investigations into British taxpayers offshore assets and income; which have been followed by the HMRC’s record net income of £560million.
With the rise of the IoT, AI, AR, Fintech and much more, comes the rise of software engineers. A software engineer is an individual who develops various applications that enable users to accomplish tasks. Like all professions, software engineers come in the form of either employed or self-employed.
Software engineer’s salary bracket is regarded as one of the highest in the UK ranging from around £30,000 to £300,000, depending on seniority and ability. This means that many fall into the tax filing bracket whether they are self-employed or not.
Over the past 5 years the general UK population’s rise in concern and consciousness for the environment is undeniable. From youth climate change protests to the suggested conversion to veganism to help the environment; climate change activism can be seen in all walks of life in the UK.
This article will focus on how UK taxes are joining in on the effort to help the environment.
With 51% of businesses expressing desires to expand over the next year, UK unemployment levels have fallen to its lowest point since 1974. Below are some of the fastest growing sectors for employment.
This article if focused on explaining pay for UK employees and the process of reading pay slips.
As an employee you should be told by your employer how much you will be paid, the date of your payment and the medium of payment i.e. by cheque or bank transfer.
As an employee, unlike contractors or freelancers, you have the right to receiving a payslip. This can come in a paper or online form.
With the ongoing US tax crackdown on US expats, comes the demand to file FBARS. An FBAR or FinCen is used to report foreign bank and financial accounts. Within the FBAR you must report all foreign bank, securities and financial instruments.
The 2018-19 tax season is in full-swing and tax payers can now file there returns ahead of the 31st January 2020 deadline. It is advised by the HMRC to get tax returns filed as early as possible, to ensure that the deadline is met. As an added incentive to taxpayers, we, at Bambridge Accountants, offer a discount to those who file between April and August 2019.