April Tax Tips from Clarke Nicklin

As the new financial year begins, Clarke Nicklin have issued their latest top tax and hints to help businesses plan ahead.

OTS recommends simplifications for small companies:
The Office of Tax Simplification (OTS) has unveiled a package of recommendations aimed at making the tax system simpler and easier to use for small companies. The report, entitled Small company taxation review contains a mix of long range structural change ideas and simpler short term administrative improvements. Read More

Closer alignment of income tax and NIC’s:
The Office of Tax Simplification (OTS) has published its recommendations on closer alignment of income tax and national insurance contributions. The report contains some bold recommendations for what would be a major reform of the UK’s tax rules. Read More

National minimum wage increases announced:
Following recommendations made by the Low Pay commission, the government has announced increases in the national minimum wage (NMW), which will take effect from October 2016.
The new rates will be as follows: Read More

Guidance on SDLT Budget reforms: Following announcements made in the 2016 Budget on 16 March, HMRC have published further guidance on the changes that are being made to stamp duty land tax (SDLT), and how they affect non-residential property transactions from 17 March 2016.

The changes mean that: – on or after 17 March 2016, the SDLT rate for non-residential freehold and leasehold transactions will only be payable on the portion of the consideration which falls within each band (rather than tax being due at one rate on the entire value);
– SDLT on the rental element of non-residential leasehold transactions is already taxable on the portion of the consideration that falls within each band. From 17 March 2016 a new 2% rate applies for transactions with a net present value (NPV) above £5 million;
– from 17 March 2016, the ‘£1,000 rule’ no longer applies.
In addition, HMRC have also published further guidance on the changes that are being made to stamp duty land tax (SDLT), announced in Autumn Statement on 25 November 2015, which apply from 1 April 2016 to purchases of additional residential properties, such as second homes and buy-to-let properties.
Read More

April Key Tax Dates:
5 – End of 2015/16 tax year.
Last day to use up your annual exemptions for capital gains tax, inheritance tax and ISA’s 
14 – Return and payment of CT61 tax due for quarter to 31 March 2016 
19 – Deadline for final EPS submission of the year – 19th April. Penalties for late submission.
19 – PAYE/NIC, student loan and CIS deductions due for month to 5/4/2016 or quarter 4 of 2015/16 for small
employers. Interest will run on any unpaid PAYE/NIC for the tax year 2015/16
30 – Additional daily penalties of £10 per day up to a maximum of £900 for failing to file self-assessment
tax return due on 31 January 2016