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Howlader & Co Blog

Non- Residential Capital Gains Tax (NR CGT) charges

27th May 2015

April 2015 saw the introduction of capital gains tax charges for non-residents disposing of UK property. Gains are calculated based on the period from 6 April 2015 to the date of disposal. The new rules introduce further complication and administrative headaches for practitioners. The regime requires a NR CGT return to be submitted to HMRC within 30 days of the conveyance ...read more

Middle class parents resorting to childcare ‘black market’

20th May 2015

The impact of auto-enrolment – the mandatory workplace pensions being phased in by the government over the next few years – will stretch to parents hiring a nanny. Many fear that the additional costs, estimated to be £350 per year on the average London nanny salary of £40,000, will tempt parents to fly under the radar - opting to pay ...read more

HMRC Penalties ‘nothing short of oppressive’

15th May 2015

HMRC have been attacked for their self-assessment penalty regime, with the Low Incomes Tax Reform Group (LITRG) claiming that it is ‘nothing short of oppressive’. Despite the increased advertising and awareness strategies put in place by HMRC, for the year ending 5 April 2014 over 890,000 taxpayers failed to submit their returns on time (between 6 April 2014 and 31 January ...read more

Non-Domicile Regime to be scrapped under Miliband

8th April 2015

As the election campaign heats up, Ed Miliband has announced that if he is elected to Number 10, the current non-domicile rules, which allow some UK residents to limit their tax liability, would be abolished. Normally, UK residents pay UK tax on all their earnings, regardless of where they originated from. The current rules for ‘non-domiciled’ UK residents allow them ...read more

Disbursements – Buying goods on behalf of your clients

26th March 2015

If you are spending money on behalf of your clients- be aware. Disbursements are not included in the VAT turnover calculation, so you must ensure they meet the conditions. To be more specific, let’s look at the case of Mr Bilsby. He was a heating engineer and plumber and he was very careful in calculating his turnover in order to not exceed the VAT ...read more

HMRC making examples of tax dodgers

12th March 2015

A 56 year old woman who lied to HMRC to avoid paying £500,000 in inheritance tax has been found guilty of tax evasion and sentenced to 2 years in jail. Theresa Bunn claimed to have only inherited £285,000 whereas the sum was in fact £1.5m. She failed to disclose “substantial cash gifts from her aunt while she was alive”. If ...read more

Registering an organisation as a Company Limited by Guarantee

10th March 2015

Before registering an organisation as a Company Limited by Guarantee it's important to understand its main advantages. According to s.5 Companies Act 2006 a Company Limited by Guarantee cannot be formed with share capital. Current rules state that all companies that retain the profit or use it for some special purposes rather than distribute it to the members of the company are ...read more

Ed Miliband and the semantics of tax language

24th February 2015

Accusations that Ed Miliband has ‘avoided tax’ have been bandied around after the Daily Mail released details that the Miliband family had used a deed of variation to alter the terms of his late father’s will with the intention of reducing the inheritance tax payable. In our opinion, this is a routine method of tax planning, using the rules as ...read more