Our Tax Experts in your Pocket…

Checking how much tax you may be liable for could make all the difference to crucial decisions.

Davis Grant App on your tablet or mobile

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With quick and easy to use tax calculators in your pocket, it’s like having our team of experts with you! Checking how much tax you may be liable for could make all the difference to crucial decisions. Whether it be Income Tax, Stamp Duty, Company Car allowances, Inheritance Tax or More – get our free app now.


REMINDER National Minimum Wage Increase

New minimum wage rates came into effect on 1st October 2016.

payrollLast month we wrote about the new hourly national minimum wages rates that came into effect on 1st October 2016. National Minimum Wage rates change every October however, National Living Wage rates (for those aged 25 and over) change every April.

If we process your payroll for you, rest assured that we will review and implement the revised rates so you can get on with business!

National Wage Rates from 1st October 2016

  • Aged 25 and over – £7.20 (unchanged)
  • 21 to 24 – £6.95 (previously £6.70)
  • 18 to 20 – £5.55 (previously £5.30)
  • Under 18 – £4.00 (previously £3.87)
  • Apprentice* – £3.40 (previously £3.30)

* Apprentice rates can only be applied if the employee is aged under 19 or in the first year of their apprenticeship.

Get in Touch

If you require more information or have concerns about how these changes may affect you – please just give us a call.


Davis Grant is here for you if an Audit is required…

Did you know there are good reasons for having an audit even if you are not required by law to have one?

Will Your Require an Audit?

Registered Auditors supervised and approved by regulatory bodies…

We are experienced with audits in a wide range of industries including being designated to audit travel agents. Did you know there are good reasons for having an audit even if you are not required by law to have one?


Your October Tax News and Tips

Welcome to our monthly blog designed to bring you tax tips and news to keep you one step ahead of the taxman.


If you need further assistance just let us know or you can send us a question for our Question and Answer Section.

We are committed to ensuring none of our clients pays a penny more in tax than is necessary and they receive useful tax and business advice and support throughout the year.

Please contact us for advice on your own specific circumstances. We’re here to help!

This month…

  • Finance Bill 2016 receives Royal Assent
  • Termination payments consultation
  • HMRC launches online disclosure service for agents
  • Lifetime ISA guidance updated
  • October Question and Answer
  • October Key Tax Dates

Finance Bill 2016 receives Royal Assent

The Finance Bill 2016 finally received Royal Assent on 15 September, enacting proposals announced in the 2016 Budget, Autumn Statement 2015 and Summer Budget 2015. Amongst other things, Finance Act 2016 includes provisions relating to income tax rates and allowances; restrictions on tax reliefs for expenses (in effect since April 2016), the reduction of the lifetime allowance on pension contributions from £1.25m to £1m (again, effective from 6 April 2016); and the reduction in the main rate of corporation tax to 17% for financial year 2020.


Termination payments consultation

Following a recent consultation, the Office for Tax Simplification (OTS) is currently consulting on proposed changes to the tax and National Insurance Contributions (NICs) treatment of termination payments.

The current rules governing termination payments are complex and are sometimes open to manipulation by employers to take advantage of the employer NIC exemption in particular. Employers sometimes attempt to change the nature of payments so that they effectively become exempt termination payments, where strictly, they should be charged to tax and NICs.


HMRC launch online disclosure service for agents

Where a client has failed to report all their income and gains, tax advisers and agents are now able to make a disclosure to HMRC using a new online service.


Lifetime ISA guidance updated

HM Treasury has updated its factsheet on the new Lifetime Individual Savings Account (ISA), which are expected to launch in April 2017. Key features of the new ISA include:

  • Accounts may be opened by investors aged between 18 and 40.
  • Savings invested in the account before age 50 will attract a government bonus of 25%.
  • A maximum of £4,000 may be saved each year on which the 25% bonus will be paid. This equates to a maximum bonus of £1,000 a year.
  • Some or all of the money can be used to buy a first home, or it can be saved until the investor is 60.


October Question and Answers

Q:I have recently started a new job and, for the first time in my career, I have been provided with a company car. I have to pay for fuel for private use but my employer says I can claim mileage for business journeys. Will I have to pay tax on fuel payments?

Q: I am a director of a limited company, which is registered for VAT. I have recently formed a limited partnership, with my limited company being the only general partner and another business being a limited partner. HMRC have written to me advising that I am unable to register the limited partnership for VAT as my limited company is already VAT-registered. Is this correct?

Q: Having been an employee of a company for many years, I was appointed to the board of directors from 1 March 2016. I understand that Class 1 National Insurance Contributions (NICs) are calculated differently for directors. Can you please explain how it works and let me know what will happen for the rest of the current tax year?

October Key Tax Dates

1 – Due date for payment of Corporation Tax for the year ended 31 December 2015
5 – If a Tax Return has not been received, individuals and trustees must notify HMRC of new sources of income and charge ability in 2015/16
14 – Return and payment of CT61 tax due for quarter to 30 September 2016
19 – Tax and Class 1B national insurance due on PAYE settlements for 2015/16
19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/10/2016 or quarter 2 of 2016/17 for small employers
31 – Deadline for 2015/16 self-assessment paper returns to be filed for HMRC to do the tax calculation. If a paper return is being filed also the deadline for tax underpaid to be collected by adjustment to your 2017/18 PAYE code (for underpayments of up to £3000 only)

Need Help?

Please contact us if we can help you with these or any other tax or accounts matters.

In addition, if there’s anyone else who you think would benefit from the newsletter, please forward the email to them or ask them to contact us to be added to the newsletter list.

New Clients Welcome

If you are not already a client and are interested in becoming one, we would love to come to meet with you to discuss how we can help and provide you with a competitive quote for our services.

All new client consultations are provided free of charge and without obligation.


Beware of fake messages from HMRC

HMRC phishing emails, texts and tax scams

Davis Grant are constantly working to protect you and deal with the government on your behalf. This week our team have reported a rise in fake texts and emails claiming to be from HMRC regarding tax refunds.

HM Revenue and Customs (HMRC) will never use text or email to:

  • tell you about a tax rebate or penalty
  • ask for personal or payment information.

Never give out private information (such as bank details or passwords), reply to text messages, download attachments or click on any links in emails if you’re not sure they’re genuine.

 What to do if you are suspicious…

If you are not sure, there is official guidance available. If you have definitely received a suspicious message you can forward it to HMRC and automatically report it.

We recommend that you contact HMRC if you think that you’ve already have given any personal information in reply to a suspicious email or text. If you have any further concerns please contact us to discuss them.



Are your business rates set to increase?

Review your revaluation details or you may find yourself paying an incorrect amount in business rates…

For the first time since 2010 the Valuation Office Agency has been instructed by the government to revalue all non-domestic properties in the UK. This potentially means an increase in your business rates based on the new valuations.

  • New values will be published Friday (30th September 2016)
  • Come into effect for business rates from 1st April 2017.
  • You must register to discover the new valuations.
  • A new appeals process will be implemented.


Register Now with the VOA

To try to limit the amount of appeals the Government has placed responsibility for verifying the new assessment is correct on ratepayers and their representatives. If you don’t review your details you may find yourself paying an incorrect amount in business rates!


For more information read this PDF factsheet from our friends at Strettons and get in touch if you have any concerns about this or other matter related to Property

National Insurance Planning – an essential guide

An overview of the types of national insurance and advice on how to make sure you don’t pay too much.

coverGet all the detail on the national insurance for:

  • Employees
  • Self-employed
  • Employers
  • Working overseas

Plus tips for reducing national insurance!


Want to know whether it is worthwhile making voluntary contributions or if you are you could be reducing the amount you pay? Get in touch with your questions!