Tax Tips and News for July

Welcome…

Speaking to many of you this week the result of the referendum has been a hot topic!

Whilst the details or potential impact of Brexit are still unclear and any impact will be a minimum of two years away, you can rest assured our expert team is poised to make sure you make the best of any future changes. In the meantime here’s our tax tips and news for this month.

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

Please contact us for advice on your own specific circumstances.

We’re here to help!

Trivial benefits

Employers will be aware that various changes have been made to the reporting requirements for employee benefits and expenses from April 2016, which mean that some employers will no longer have to complete annual return forms P11D. The three main changes are:

  • The dispensations regime has been replaced with an expenses exemption – broadly, where an employee would have been entitled to tax relief in full for a benefit or expense, the employer does not need to deduct tax or NICs, and they do not need to report it to HMRC

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HMRC guidance on senior accounting officers

HMRC have published Brief 12(2016), which contains information on changes to their senior accounting officer guidance (SAOG). The Brief aims to clarify HMRC practice and reflects administrative changes to their operational procedures. These include:

  • A change of practice allowing submission of certificates by electronic means in addition to the currently accepted methods;
  • Extensive updates to reflect organisational change within HMRC and the role of Wealthy and Mid-Size Business Compliance (WMBC);

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Help-to-save consultation launched

HMRC have launched a consultation on the government’s proposed ‘Help-to-Save’ scheme, which is designed to encourage people on low incomes to build up their savings.

Broadly, the scheme will be open to some 3.5 million adults in receipt of universal credit with minimum weekly household earnings equivalent to 16 hours at the National Living Wage, or those in receipt of working tax credit. It will work by providing a 50% government bonus on up to £50 of monthly savings into a Help-to-Save account. The bonus will be paid after two years with an option to save for a further two years, meaning that people can save up to £2,400 and benefit from government bonuses worth up to £1,200. Savers will be able to use the funds in any way they wish. HMRC say that Help-to-Save accounts will be available ‘no later than April 2018’.

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FRS 102 guidance on directors’ loans revised

HMRC have recently updated their online toolkit on directors’ loan accounts to help tax advisers and agents preparing 2015/16 company tax returns. The update reflects the changes to reporting requirements under UK GAAP, as taxing debt will now be largely driven by FRS 102 requirements for financial instruments.

If an entity makes loans to/from directors/employees where there is no explicit interest rate or the interest rate charged is not at a market rate, then the prescribed accounting treatment will depend on which accounting framework the entity has adopted.

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July 2016 Questions and Answers

Q1. My mother died last year and left my brother and me a commercial business unit. Probate is nearly complete now. If we sell the property in the future, what are the capital gains tax implications on the sale?
Answer

Q2. I have recently registered for VAT. I am not very good when it comes to administration and I have heard that the flat rate scheme might help me. How does the scheme work? Answer

Q3. I have a part time job and I earn about £8,000 a year. As my earnings are less than the tax-free personal allowance, can I transfer the unused amount to my husband?
Answer

July 2016 Key Tax Dates

5 – Deadline for PAYE settlement agreement for 2015/16

6 – Deadline for 2015/16 forms P11Db, P11D and P9D to be submitted and copies of P11D and P9D to be issued to relevant employees

Deadline for employers to report share incentives for 2015/16 – form 42

14 – Return and Payment of CT61 tax due for quarter to 30 June 2016

19/22 – PAYE/NIC, student loan and CIS deductions due for month to 5/7/2016 or quarter 1 of 2016/17 for small employers

Class 1A NIC due in respect of the tax year 2015/16

31 – Second self assessment payment on account due for 2015/16

Second 5% penalty surcharge on any 2014/15 outstanding tax due on 31 January 2016 still unpaid

Deadline for Tax Credits to finalise claims for 2015/16 and renew claims for 2016/17

Half yearly Class 2 NIC payment due

Penalty of 5% of tax due or £300, whichever is greater for 2014/15 personal tax returns still not filed.

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.

 

Top Tech Entrepreneurs Share Their Secrets

Last night we presented another of our events for TechHub and this was the best yet! Over 100 eager tech entrepreneurs came together at Campus London with the promise of learning how to lead their startup to success by learning about critical tax incentives and financial insights.

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By the time the event officially got underway it was standing room only and so Neil Driver (Davis Grant) didn’t waste any time introducing the expert speakers!

Steven Sandford (Davis Grant) shared some key insights regarding futureproofing your business including potential VAT complications. The message that stood out to us was to have knowledgable and trusted support services and keep them in the loop ahead of your business decisions.

Mutaz Qubbaj (Squirrel) took to the stage next to talk through experience of raising funding for his amazing product. Perhaps the most crucial lesson from Mutaz was to raise investment, not when you most need it, but when you least need it.

Next up was Dr Sarah Malter (Grant Central/Harvey) who spoke about unlocking funds through grants and R+D tax credits. She spoke about the need for good preparation by StartUps. Having a clear idea of the end product, projected cash flow and understanding your technology readiness level (TRL)  gives you the ability to assess the options open to you.

Sarah also spoke about R+D Tax Credits open to Limited Companies and the importance of talking to your accountants to prepare eligible costs and to receive cash. This is something we know well at Davis Grant – we helped our clients receive over £600,000 last year and we’re already on track to beat this in 2016.

Last to the stage was the highly anticipated Frank Meehan (SmartUp). Speaking from long experience he spoke about the importance of finding the right co-founders from your business. It’s crucial to understand that investors make decisions based on the people not the product. If you are on your own, Frank’s golden rule means that you aren’t going to get investment.

The event was rounded out with a very productive Q+A session and then some really engaging networking with everyone keen to get more information from our experts and share their thoughts.

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Davis Grant would like to thank everyone for making the evening such a success. Particular thanks to our amazing speakers and our friends at TechHub!

Resource Links
R&D Tax Credits Factsheet (Davis Grant)
Futureproofing Your StartUp (Steven’s Deck)
Funding made simple  (Sarah’s Deck)

Free Consultations This Week – Tech Sector

Anyone can request a free initial consultation with us to discuss how we may be able to help with accountancy or business support.

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We particularly love working with Tech Startups and host a bi-monthly clinic at TechHub. Anticipating a lot of interest after our event on Tuesday we have added some more slots just around the corner at Chartered Accountants Hall in Moorgate.

Thursday 30th June 2016

TechHub @ Campus London
4-5 Bonhill Street London EC2A 4B

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Wednesday 6th July 2016

Chartered Accountants Hall,
One Moorgate Place, ECR2 6EA

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There are a limited amounts of 30 minute slots available and they are first come first served.

If you would us to get in touch or make an appointment outside these session please just visit our website www.davisgrant.co.uk

Speakers for Tech Startup Event Announced

Register Now for our TechHub live event on the evening of Tuesday 28th June.

Davis Grant is proud to partner with TechHub to provide support to technology startups based at Campus London. Our next live event is on the evening of Tuesday 28th June. Register now to attend – the event is open to the public and is designed to advise Tech Startups of opportunities in funding, specifically using Research and Development Tax Credits.

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Speakers include financial and accounting experts alongside Davis Grant clients from the sector who are prepared to share their experiences and provide guidance to new entrepreneurs.

“Lead your Start-up to Success:
Critical tax incentives and financial insights”

Confirmed Speakers…

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Steven Sandford – Director, Davis Grant
Mutaz Qubbaj – CEO and Founder, Squirrel
Dr Sarah Malter – Director and Founder, Grant Central & Harvey
Frank Meehan – CEO and Founder, SmartUp.io

For more information on the event including the key topics that will be covered, speaker profiles and venue details please click through to the TechHub event page…

Register Free ->

In 2015 Davis Grant helped clients receive over £600,000 in cash in R+D Tax Credits.
Get in contact to see if you are missing out on a share of the £1.5 billion the government sets aside every year…

www.davisgrant.co.uk

Go-Karting Accountant Grand Prix

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Assembled Accredited Competitors

Members of the Davis Grant team were proud to compete in an accountancy inter firm competition on Thursday 12th May.

The whole team had lots of fun and came away with no serious injuries beyond a little bruising!

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Team Davis Grant

If you are interested in learning more about the team at Davis Grant or joining and furthering your career in Accounting visit www.davisgrant.co.uk

Wanstead Networking Success

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Earlier this week the Wanstead Business Network hosted a networking evening at the George Pub. Local business professionals got together on Wanstead High Street to share a few stories and perhaps make some new contacts.

Photos © Keith Gold Photography, used with permission

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Jay Gandesha, Director Davis Grant (right)

One of Davis Grant’s directors Jay Gandesha is a proud founding member of the group that meets every Thursday morning to provide support, offer friendly advice and raise awareness of the services they provide. Jay said, “I love living in Wanstead and it’s always great to meet other local business owners and learn about the challenges they are facing”.

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Nick Van de Weyer, Davis Grant (left)

There were over 70 registrations for the event and there was a diverse group of professions represented. From landscape gardening, to copywriting and laundry services. To name but a few!

Paul Henry, of Paul Henry Architects, addressed the attendees to thank them for their support and spoke about how the Wanstead Business Network provides a community built on friendly advice and fellow professionals “who you can genuinely trust”.

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Paul Henry and Darrell James speak on behalf of the Wanstead Business Network
www.wansteadbusinessnetwork.co.uk

We look forward to continuing to support local businesses and organisations and hope to see you at a future event!

Do you need advice for your business? Contact Davis Grant today.
Trusted and Established in East London for over 60 years.
www.davisgrant.co.uk