Resources

High Income Child Benefit charge

The High Income Child Benefit Charge (HICBC) applies to taxpayers whose income exceeds £50,000 in a tax year and who are in receipt of child benefit. The charge either reduces or removes the financial benefit of receiving child benefit. Where both partners have an income that exceeds £50,000, the charge applies only to the partner with the highest income.

CT600 – 2016 Budget guidance insert

A company tax return must be submitted using HMRC’s company tax return form (CT600) or another approved method. HMRC has added a 2016 CT600 Budget insert following the recent Budget. The insert includes the rates of Corporation Tax applying from 1 April 2015 and 1 April 2016 as well as summaries of some recently announced changes such as the repeal of Business Premises Renovation Allowance, an update on Capital Allowances for business cars, changes to Loans to participators rules and the planned reform of loss relief.

Van benefits for zero emission vans

A van benefit charge applies for zero emission vans. This rate is tapered and will increase each year until the tax year starting 6 April 2022.

The rate for 2015-16 was 20% of the full rate. The rate for 2016-17 and 2017-18 was due to be increased but in the Budget it was announced that the 20% of the van benefit charge would be retained. This defers the planned increase to 40% until 2018-19. These changes will be legislated for in Finance Bill 2016.

SDLT on commercial property

In the Budget, the Chancellor announced a reform to the SDLT rates for commercial property. The new tax regime came into effect on 17 March 2016 and introduced a zero rate band on purchases up to £150,000; a 2% rate on the next £100,000; and a 5% top rate above £250,000. The rates apply to the value of commercial property on a graduated basis in the same way as for residential properties.

Budget 2016 - VAT registration and deregistration thresholds

The taxable turnover threshold, that determines whether businesses should be registered for VAT, will increase from £82,000 to £83,000 from 1 April 2016. The taxable turnover threshold that determines whether businesses can apply for deregistration will be increased from £80,000 to £81,000 on the same date.

Businesses are required to register for VAT if they meet either of the following two conditions:

The National Living Wage

The new National Living Wage was introduced 1 April 2016. From that date the National Living Wage premium will replace the National Minimum Wage (NMW) for those aged 25 or over. The National Living Wage has been set at £7.20 per hour. This represents an increase of 50p over the current NMW rate. The NMW will continue to apply for those aged under 25. The current NMW rates are; apprentices £3.30 per hour, under 18s £3.87 per hour, 18 – 20 £5.30 per hour over 20s £6.70 per hour.

RTI reporting rules

The vast majority of employers are now reporting their PAYE information in real time. In April 2014, a two year temporary reporting relaxation was put in place for micro employees (defined as employers with nine or less employees). The extension allowed then existing micro employers (and, where appropriate, their agents) up to two additional years to adapt their processes to ensure they were ready to report all payments in real time before April 2016.

Extended Sunday trading hours due by the autumn

The government has confirmed that it is going to hand local authorities the power to extend Sunday opening hours and that it hopes to have the relevant legislation in place by the autumn. As the law currently stands in England and Wales, whilst small shops are allowed to open whenever they like on Sundays, larger stores (i.e. those over 280 square metres) are only allowed to open for a maximum of six consecutive hours between 10am and 6pm.

Introduction of the National Living Wage

The new National Living Wage will commence in April 2016. From that date the National Living Wage premium will come into effect on top of the National Minimum Wage (NMW) for the over 25's. The National Living Wage will initially be set at £7.20 per hour. This represents an increase of 50p over the current NMW rate. The NMW will continue to apply for those aged under 25.

Dormant Assets Commission

The government has announced the creation of a new Dormant Assets Commission which will be tasked with unlocking billions of pounds worth of dormant assets, such as stocks and shares that have been untouched for more than 15 years.

Cosmetics fraudster jailed

A Malaysia national who had lived in London has been jailed for 32 months. Chyi Chiann Cheah also known as Susan Chyi was found guilty of VAT fraud following an investigation by HMRC. The woman was involved in the sale of beauty products but used a number of aliases to run cosmetics businesses which were supposedly importing and exporting beauty products to Europe from the Far East via the UK.

Date announced for Budget 2016

Hot on the heels of the Autumn Statement, the Chancellor has announced that the 2016 Budget will be held on Wednesday, 16 March 2016. This will be the Chancellor’s eighth Budget address. Following the Conservative election victory a Summer Budget was held in July 2015.