We are delighted to announce that Karen Richardson our director has been  awarded a highly commended award in the inaugural English Women’s Awards 2018 for Services to Accountancy.

Local businesswoman shortlisted in first of its kind awards

Managing Director of Standish based McGinty Demack, Karen Richardson, was  shortlisted for the inaugural English Women’s Awards 2018 – North.

Shortlisted in the category of Services to Accounting and Finance, Karen was nominated by people from around the North-West based on her forward-thinking approach.

Held on 19 March at the Mercure Manchester Piccadilly Hotel, the English Women’s Awards – North acknowledged and celebrated the achievements of women including female entrepreneurs, civil servants, charity founders amongst other professionals in the North of England, whose hard work, talent and commitment is often under-represented.

The awards also provided an opportunity and platform for women to inspire others, particularly younger women, as each nominee had their own story to tell and advice to give.

Karen said: “I’m delighted to have won a Highly Commended Award for the Services to Accounting and Finance , it means so much that people across the North-West appreciate the work we do at McGinty Demack. I hope the awards inspire women across the country to get involved in business, it’s tough but also tremendously rewarding.”

Chancellor Philip Hammond delivered his Spring Statement on Tuesday 13 March 2018. In his speech, the Chancellor announced consultations would be issued on:

• how to help the UK’s least productive businesses to learn from, and catch-up with, the most productive
• how to eliminate late payments particularly to benefit small business
• whether the use of non-agricultural red diesel tax relief contributes to poor air quality in urban areas
• consultation on reduced Vehicle Excise Duty rates for the cleanest vans.

He also made available further details on some consultations which are considered briefly below:

• Making Tax Digital sanctions for late submission and late payment
  Following significant support on consultation, the government intends to take forward points based late submission penalties. There will be further consultation on the draft legislation to be published in summer 2018.

• Tackling the plastic problem
  The government will call for evidence as to how changes to the tax system could be used to reduce the amount of single-use plastics that are wasted by reducing unnecessary production, increasing re-use and improving recycling. The government would also like to explore how to drive innovation in this area to achieve the same outcomes.

• Cash and digital payments
  The government will consult and seek evidence about how the role of digital payments is to fit into the growing digital economy. This will include identifying what further work can be done to remove barriers to digital payments. At the same time the government acknowledges that cash must remain accessible and secure.

• Online platforms
  The government has launched a call for evidence on the role of online platforms in ensuring tax compliance by their users. The types of online platforms the government is principally interested in are platforms that allow people to earn money from spare resources such as cars and spare rooms, that allow people to use their time to generate extra income and that connect buyers with individuals or businesses offering services or goods for sale. The government wants to ensure that, where people have tax obligations because of these activities, it is easy for them to comply.

• VAT collection split payment
  The government wants to combat online VAT fraud by harnessing new technology and is consulting on VAT split payment. This will utilise payments industry technology to collect VAT on online sales and transfer it directly to HMRC.

• VAT registration threshold call for evidence
  The government considers that the current design of the VAT registration threshold may be dis-incentivising small businesses from growing their business and improving their productivity.

We will update you on the outcome of the consultations.

Internet link: gov.uk Spring Statement 2018

HMRC’s latest Employer Bulletin includes useful updates for employers as we approach the start on the new tax year on 6 April 2018.

The Bulletin includes articles on:

• end of year reporting for payroll and reporting benefits in kind
• P9 Notice of Coding and the system of in year tax code adjustments known as Dynamic Coding
• new rules for termination payments made on, or after, 6 April 2018
• Scottish income tax changes
• a reminder to those paying the Apprenticeship Levy to spend their Levy on Apprenticeship Training
• National Minimum and National Living Wage increases from 1 April 2018.

If you would like help with payroll contact us.

Internet link: Employer Bulletin

The personal allowance for 2018/19 is £11,850. However, some individuals do not benefit from the full personal allowance. There is a reduction in the personal allowance for those with ‘adjusted net income’ over £100,000, which is £1 for every £2 of income above £100,000. So for 2018/19 there is no personal allowance where adjusted net income exceeds £123,700.

The basic rate of tax is currently 20%. From 6 April 2018 the band of income taxable at this rate is £34,500 so that the threshold at which the 40% band applies is £46,350 for those who are entitled to the full personal allowance. Additional rate taxpayers pay tax at 45% on their income in excess of £150,000.

The tax on income (other than savings and dividend income) is different for taxpayers who are resident in Scotland to taxpayers resident elsewhere in the UK. The Scottish income tax rates and bands apply to income such as employment income, self-employed trade profits and property income.

In the 2018/19 Scottish Budget, the Finance and Constitution Secretary for Scotland, Derek Mackay announced significant changes to income tax bands and rates for Scottish resident taxpayers, introducing five possible income tax rates. The income tax rates range between 19% and 46%. Scottish taxpayers are entitled to the same personal allowance as individuals in the rest of the UK.

From April 2019, the National Assembly for Wales has the right to vary the rates of income tax payable by Welsh taxpayers.

Dividend allowance down to £2,000

In 2017/18 the first £5,000 of dividends are chargeable to tax at 0% (the Dividend Allowance). From 6 April 2018 the Dividend Allowance is reduced to £2,000. Dividends received above the allowance are taxed at the following rates:

• 7.5% for basic rate taxpayers
• 32.5% for higher rate taxpayers
• 38.1% for additional rate taxpayers.

Internet links: GOV.UK spring statement 2018 GOV.SCOT Scottish income tax

From 1 April 2018, Land Transaction Tax (LTT) will replace Stamp Duty Land Tax (SDLT). LTT will be collected by the Welsh Revenue Authority (WRA). HMRC has published guidance on the introduction of the new tax and the way in which property transactions straddling 1 April 2018 and cross border transactions will be dealt with.

Property Taxes across the UK

From 22 November 2017, there is an exemption for first-time buyers from SDLT on the first £300,000 when buying a home, where the total price of the property is not more than £500,000. 5% is payable on purchases between £300,000 and £500,000. However, with devolved taxes, buying a property in Scotland and Wales can bring different tax consequences.

In Scotland, Land and Buildings Transaction Tax (LBTT) applies instead of SDLT. Therefore an LBTT relief for first-time buyers of properties up to £175,000 has been proposed in the Scottish Draft Budget 2018/19. This is subject to a government consultation before the relief launches in 2018/19.

Welsh first-time buyers benefit from first-time buyers SDLT relief until 31 March 2018. Land Transaction Tax (LTT) replaces SDLT in Wales from 1 April 2018. The starting rate for LTT will be £180,000, benefiting not just first-time buyers but other home buyers in Wales. A higher rate, of 3% over standard rates for additional residential properties, applies to purchases throughout the UK whether SDLT, LBTT or LTT applies. A new land-transaction-tax-calculator is available.

HMRC has issued guidance on the changes in Wales and the transitional rules for property transactions.

Internet links: GOV.UK news GOV.SCOT LBTT first time buyer relief