Archives for October 2019

1 October 2019 – Due date for Corporation Tax due for the year ended 31 December 2018.
19 October 2019 – PAYE and NIC deductions due for month ended 5 October 2019. (If you pay your tax electronically the due date is 22 October 2019.)
19 October 2019 – Filing deadline for the CIS300 monthly return for the month ended 5 October 2019.
19 October 2019 – CIS tax deducted for the month ended 5 October 2019 is payable by today.
31 October 2019 – Latest date you can file a paper version of your 2018-19 self-assessment tax return.
1 November 2019 – Due date for Corporation Tax due for the year ended 31 January 2019.
19 November 2019 – PAYE and NIC deductions due for month ended 5 November 2019. (If you pay your tax electronically the due date is 22 November 2019.)
19 November 2019 – Filing deadline for the CIS300 monthly return for the month ended 5 November 2019.
19 November 2019 – CIS tax deducted for the month ended 5 November 2019 is payable by today.

Follow the outline below to ensure that the cost of your annual staff party will not create tax issues for you or your staff.
1. The event must be open to all employees at a specific location.
2. An annual Christmas party, or other annual event offered to staff, generally is not taxable on those attending, provided that the average cost per head of the functions does not exceed £150 p.a. (including VAT). The guests of staff attending are included in the head count when computing the cost per head attending.
3. All costs must be considered, including the costs of transport to and from the event, accommodation provided, and VAT. The total cost of the event is divided by the number attending to find the average cost. If the limit is exceeded then individual members of staff will be taxable on their average cost, plus the cost for any guests they were permitted to bring.
4. VAT input tax can be recovered on staff entertaining expenditure. If the guests of staff are also invited to the event, the input tax should be apportioned, as the VAT applicable to non-staff is not recoverable. However, if non-staff attendees pay a reasonable contribution to the event, all the VAT can be reclaimed and of course output tax should be accounted for on the amount of the contribution.

Although the Brexit process continues to throw a spanner into the normal workings of government, there are a few certainties from a tax point of view that will be effective from April 2020. A few property related changes are noted in this article:
• Presently, the last 18 months of ownership of a residential property are ignored if a home has been let at any time. From April 2020, this will be reduced to 9 months.
• If your home has been let at any time, or is let when you sell it, there is a letting relief you can claim that can make a significant impact on any Capital Gains Tax payable. From April 2020, you can only take advantage of this lettings relief if you are in shared occupancy with your tenant.
• From April 2020, all finance costs, incurred by UK residents that let residential property, will be disallowed as an expense of their property business. Instead, tax relief on the disallowed finance charges will be restricted to a basic rate (20%) tax credit. This process started on a phased basis on 6 April 2017 and will complete on 5 April 2020.
• UK residents that sell land or property in the UK, after 5 April 2020, will need to prepare a formal CGT computation and return this to HMRC within 30 days of the relevant sale. They will also need to pay any tax due in the same period.