A recent case before the tax tribunal saw the liability for a late VAT registration penalty being passed on to a manager of the company. HMRC have the power to impose such a penalty on an individual where (1) there is a penalty payable by the company for a deliberate failure (2) the individual on whom HMRC seek to impose liability is an “officer” of the company; and (3) the

There is currently a very generous 100% relief from inheritance tax for passing on businesses and farm land during lifetime and on death. The rationale for Business Property Relief (BPR) and Agricultural Property Relief (APR) is to enable businesses to be passed on without the need to sell off assets to pay the IHT due on the transfer. Currently if a business is wholly or mainly for the purpose of

Although the OTS were tasked with simplifying inheritance tax, they also considered the interaction with CGT as many asset transfers potentially have both CGT and IHT implications. Currently there is no CGT on assets transferred on death and the recipient inherits the asset at its market value. It has been suggested that the capital gains tax uplift on death distorts decision making relating to assets that benefit from an exemption

The Office of Tax Simplification (OTS) have undertaken a detailed review of Inheritance Tax (IHT), which is perceived by many as a complicated tax. The government normally takes account of OTS recommendations and their report is likely to lead to future changes to the rules. We will keep you posted as the changes may necessitate amending your will or further planning to pass on your wealth. There are also numerous

Currently letting relief provides up to a £40,000 deduction in computing the capital gain on the disposal of a property that was at some time the taxpayer’s main residence. The relief is the lessor of £40,000, the gain attributable to the let period, and the amount of private residence relief. For a couple this could potentially exempt up to £80,000 of the gain from CGT. The draft legislation will limit

Draft legislation to be included in the next Finance Bill will make important changes to the calculation of CGT private residence relief. As announced in the Autumn 2018 Budget, there will be a reduction in the final period exemption to just 9 months and stricter conditions for letting relief to apply. Currently where a property has been the taxpayer’s main residence, the last 18 months of ownership counts as a

The draft Finance Bill clauses issued for consultation on 11 July include legislation to extend the “off-payroll” working rules to the private sector from 6 April 2020. These changes will have significant implications for workers providing their services through personal service companies and also the end user organisations that engage such workers. End users will be required to determine whether the worker would have been an employee if directly engaged

In order to manage an effective team of people you need to win their trust. If employees don’t have trust in their company and their managers, they can become disengaged. This can lead to high rates of staff turnover and those who stay are likely to be de-motivated.   Transparency Honesty is the best policy. Communicate with your team, ensure that they are kept in the loop regarding the firm’s

As a leader in your firm, you are focused on developing the people around you. But who is responsible for your own development?  If you want to help your employees to grow and develop, you need to invest time in developing yourself, as a leader. In order to focus on your own personal development, you need to schedule time to do so. If you don’t, your team and your business

People move jobs more frequently these days. Here’s what to do when a key team member decides to move on. As talented employees grow and develop in their careers, it is inevitable that some will decide to branch out and move to another firm.   Be supportive Congratulate them on their new opportunity. Thank them for their contribution to the firm and mention some of the highlights of their time