Blog posts tagged in Corporate Tax
Prior to the release of the 2016 Autumn budget let's remind the new Chancellor of the Exchequer, Philip Hammond of what he said as an MP
“A taxpayer is entitled to know with certainty – be it an individual or a multinational corporation – what he may or may not do in planning his tax affairs. He is entitled to expect that his treatment be laid down in statute, not determined by administrative fiat; he is entitled to expect that another taxpayer in similar circumstances will receive treatment similar to his; and he is entitled to be protected from retrospective or retroactive legislation.”
Some of the key changes that will impact small businesses in particular are set out below:
Taxation of dividend income from April 2016. The present 10% dividend tax credit is being abolished from April 2016. In its place an annual dividend tax allowance of £5,000 is being introduced. Dividends received will be free of further charge to Income Tax up to this limit. Above the £5,000 limit dividend income will be taxed as follows:
As announced in the 2013 Autumn Statement, capital gains tax (CGT) is to apply to non-residents disposing of UK residential property, on gains arising on disposals after 5 April 2015.
Before then CGT was not applied to non residents (other than those carrying on a trade in the UK and, since April 2013, on companies subject to the 'annual tax on enveloped dwellings' (ATED)
IAPA Annual International Conference, New York City, 26-29 October. Forces driving change in the Accounting Profession
October 31, 2014
Exceed UK was among the more than 95 accounting firms attending IAPA's International Conference held in New York, 26-29 October. Exceed is a member of IAPA, a top 10 international association of independent accounting and business advisory firms with 210 member firms in 70 locations.
Programme content included an overview of major international forces driving change for the accounting profession for the future, with a keynote presentation by Barry Melancon, AICPA President & CEO. Mr Melancon additionally spoke on key AICPA initiatives focusing on supporting members against a background of change in the business and regulatory environment.
Guest speakers included Mr Fayezul Choudhury, CEO of the International Federation of Accountants, who addressed delegates on the importance of IFAC's work for professional firms and their clients and in particular IFAC's current work in the SME/SMP sectors. Other speakers presented on managing risk in an accounting firm and related cyber / liability issues.
HMRC has issued a final version of their guide for completing a company tax return form (CT600). A company tax return must be submitted using HMRC's company tax return form (CT600) or another approved method. The submission must include the company's Self Assessment return alongside details of any trade and other losses such as capital losses.
Online Corporation Tax filing became compulsory for company tax returns delivered after 31 March 2011 for accounting periods ending after 31 March 2010. The accounts must be submitted using the iXBRL data standard.
Our Fee Protection Insurance provider, Taxwise reported a clear trend in the activity of HMRC, not only over the last few years but also a seasonal trend within each tax year.
The continued increase of activity from HMRC has been unrelenting, one of the key focus points for HMRC has been the SME and the Sole Trader. Many enquiries are relatively brief and produce little return for HMRC however they are clearly continuing to cast their net as widely as possible regardless of the implications on the SME economy which is continually quoted as the back bone of Britain in the economic recovery.
©Taxwise - specialist providers of TAX FEE Protection Insurance
Exceed UK (www.exceeduk.co.uk) and Caban Investments UK (www.caban.co.za) are proud to announce the formation of a new accounting firm, Exceed TBL Accountants Limited, which offers SA companies infrastructural support in selling their products and services in the UK.
Caban will be emulating the SA model in the UK . Exceed TBL Accountants Ltd is equally held by TBL Capital Limited and Exceed (UK) Limited.
HMRC's local compliance teams' investigations of the transfer pricing arrangements of medium-sized firms has, in the last year, brought in a record breaking £235m of extra tax.
This is the first time that HMRC's local compliance teams have taken more tax from transfer pricing investigations than HMRC's Large Business Service, which deals with the UK's 770 largest businesses. This dramatic increase in the tax take from transfer pricing is ten times HMRC's tax take from medium-sized businesses in 2007/08.
If you have an overdrawn loan account with your company, there is a tax charge on the company unless the loan is cleared within 9 months of the end of the period to which accounts are prepared. Nasty anti-avoidance measures have been introduced to stop companies avoiding the tax charge. In particular when the loan is at least £15,000 and is repaid just before the 9 month deadline but with the intention of re-borrowing from the company, and that intention is carried out, the amount repaid is ignored. That results in a tax charge arising as if the loan had not been repaid in time.
This is likely to catch common arrangements where all withdrawals from the company are treated as debits to the director’s loan account and are then cleared before the 9 month limit by way of voting a dividend or salary.
Following the recent June 2013 G8 meeting, it would appear, Governments are aiming, to improve tax transparency and to bring the international tax system into the modern age.
Private enterprise drives growth, reduces poverty, and creates jobs and prosperity for people around the globe. Governments have a responsibility to make proper rules and promote good governance not individuals. Fair taxes, increased transparency and open trade they believe are drivers and ultimately will make a difference by doing the following:
1. Tax authorities across the world should automatically share information to fight tax evasion.
2. Countries should change rules that let companies shift their profits across borders to avoid taxes, and multinationals should report to tax authorities what tax they pay where.
3. Companies should know who really owns them and the government tax collectors and law enforcers should be able to obtain this information easily.
4. Developing countries should have the information and capacity to collect the taxes owed them – other countries have a duty to assist them.
5. Extractive companies should report payments to all governments - and governments should publish income from such companies.
6. Minerals should be sourced legitimately.
7. Land transactions should be transparent, respecting the property rights of local communities.
8. Governments should roll back protectionism and agree new trade deals to increase jobs and growth worldwide.
9. Governments should cut wasteful bureaucracy at borders and make it easier and quicker to move goods between developing countries.
10. Governments should publish information on laws, budgets, spending, national statistics, elections and government contracts in a way that is easy to read and re-use, so that citizens can hold them to account.
They do not mention that governments themselves should review their own spending down to a level at least equal to what they receive from the communities they serve. In business this is called breakeven. The deflection from their inadequacies where they can’t manage the countries affairs to the private enterprise does show lack of leadership to the community and possibly double standards.
No doubt those interested and campaigning to have all UK trading businesses, taxed on profits made in the UK, will watch progress on the implementation of these lofty proposals with interest as most transfer pricing arrangements may have already been agreed by the respective government.