Tax

No Penalty
No late filing penalty to be imposed on self-assessment customers who file online by 28 February!

Acknowledging the exceptional circumstances created by the pandemic, HMRC Chief Executive Jim Harra has announced that no late penalties will be imposed on self-assessment customers who file late online tax return provided they file by 28th February 2021. However, HMRC is encouraging anyone who has not yet filed their tax return to do so by 31st January. And till date, more than 8.9 million…

What are the different types of statutory residence tests?

The Statutory Residence Test determines your residency status for tax purposes. It looks at days spent in the UK, work dynamics along with UK ties. However, please note that if you are a non-resident this year, it does not mean that you will be a non-resident in the next year too and this status can change. How are Leavers and Arrivers defined? UK resident…

What is a Corporate Tax Residency and What Information Do Entitities Need to Provide?

What is the concept of a corporate tax residency? Corporate tax residency is a concept used by the UK government to determine whether to treat businesses operating in the UK as residents on non-residents. Which companies are treated as UK residents? Generally, UK incorporated companies are treated as UK residents. Additionally, companies incorporated overseas are also treated as UK resident provided their central management…

How to Apply for a Certificate of Residence?

A certificate of residence (CoR) is used to help individuals and organizations obtain tax relief on foreign income where they are classified as UK residents and there is a Double Taxation Agreement (DTA) in force with the country concerned. You can claim tax relief in another country if you have a CoR and pay tax on your foreign income in the UK. We discuss…

What is the Concept of Tax Residency and Foreign Income?

What is a foreign income? Foreign income is anything from outside England, Wales, Scotland, and Northern Ireland. The Channel Islands and the Isle of Man are classified as foreign. You may need to pay UK Income Tax on your foreign income, such as: Wages if you work abroad Rental income on overseas property Income from pensions held overseas Foreign investment income (dividends and savings…

VAT changes for a period of six months set to benefit Hospitality, Hotel and Accommodation and other Attractions!

The government has announced certain changes to VAT for a period of six months that will take effect from 15th July 2020 onwards. Which industries will benefit from these changes? The following industries will benefit from these changes: Hospitality Hotel and Holiday Accommodation Admissions to certain Attractions What dates does the temporary reduced rate apply to? The temporary reduced rate applies to supplies that…

P11D Tax Form
What is the significance of a P11D form?

What is a P11D form? A P11D form copy is issued by UK employers to employees mentioning any ‘benefits in kind’ they receive and is sent to the HMRC for compliance purposes. These benefits in kind are services or items that are not included in salaries or wages and may include benefits like company cars, interest-free loans, or discounts on company products and other…

Pensions
Pensions – an Overview
When planning your retirement there are three main types of pension you need to consider. These are State Pensions, personal pensions and company pensions. Find out about these different types of pensions and how they affect you.