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A presentation from Chase de Vere on Tuesday 25 April 2017

Date posted: April 12, 2017

An Invitation to a Presentation from Chase de Vere Independent Financial Advisers and Guest Speaker on

Tuesday 25th April 2017

We would like to invite you to a presentation by Chase de Vere Independent Financial Advisers and their guest speaker Alastair Mundy Investec Asset Management.

Alastair is head of the Value team at Investec Asset Management and manages a number of funds including the Investec Cautious Managed Fund and the Investec UK Special Situations Fund. Alistair has endeared himself to the public and media alike with his no-nonsense views on the complex world of personal finance. Over coffee and pastries Alistair will provide us with his assessments, predictions and witty observations of the markets and provide an economic update.

Garry Ibison and Jan Anderson from Chase de Vere will also give you an update on anything relevant that comes out of the Spring budget and accountants from Riley & Co will be on hand to provide you with tax planning hints and tips.

We would be delighted if you would join us, Chase de Vere and Alastair Mundy at the Shay Stadium, Halifax, HX1 2YT on Tuesday 25th April between 10.30am -12.00noon.  Coffee and Pastries will be served from 10.00am.

To reserve your place (and a place for anyone else you think might benefit from this event) please email jan@rileyandco.co.uk or telephone Reception on 01422 341019.

Payroll Year End and P11D Benefits in Kind

Date posted: April 10, 2017



With spring just around the corner we at Riley & Co are turning our attention to the ‘end of the tax year’ duties.

Two of the most important of these are the payroll year end and the declaration of P11D and P9D forms to declare benefits in kind.

Benefits in Kind – the basics

The important question to ask yourself is “Do we, the employer, pay for anything which the employee enjoys for personal use?”

If the answer is yes then you probably need to complete a benefit in kind declaration and tell HMRC, and your employee, so that any tax and national insurance due can be collected.

The most common benefits in kind include:

  • Company car and/or payment of private fuel costs
  • Private Health Cover
  • Overdrawn Directors Loan account or low interest loans to employees
  • Personal Tax Bill or Accountancy costs paid for on behalf of the employer

This of course is not an exhaustive list. There are far more examples in the HMRC A-Z list of expenses and benefits here; https://www.gov.uk/expenses-and-benefits-a-to-z anything which is already dealt with through a payroll scheme like a bonus, is not relevant for this exercise.

Benefits in Kind – further considerations

Have you made a declaration with your payroll year end?

It used to be the case that when you did your payroll year end you could make a declaration regarding benefits in kind to say ‘Are not due’ or ‘Will be sent later’. With the introduction of RTI (Real Time Information), these are no longer legally required but most software providers have chosen to keep them anyway.

Therefore, if you have declared that they ‘Will be sent later’ as part of the year end submission you MUST do a P11D declaration even if it is nil. If you do not send one at all there will likely be a financial penalty levied which will increase until one is submitted.

Equally, if HMRC send you a P11D notification to complete you must do so unless you are able to declare ‘Are not due’ with your final payroll submission.

We, at Riley & Co are contacting our clients in the next few weeks to discuss these matters. We provide this as a service to all clients affected. If you feel like we can help you and your company please call us on 01422 341019 or email us at info@rileyandco.co.uk

Am I buying a car or a van for my business? Well Sir it’s actually a car-derived combi van

Date posted: April 4, 2017

VAT

A business can recover its input VAT on a van but not on a car. Car lease VAT cost is also restricted. In addition, there are different rules for VAT on private fuel use and vehicle resale.

Tax

The benefit in kind tax charge on a van is still determined on a flat rate whereas a car is based on a combination of the list price when new and the cars Co2 output. The benefit for private fuel funded by the company is also much more favourable for van drivers as well as there being lots of other preferential benefits such as relaxed rules on whether the van is a benefit at all.

So getting the definition of the vehicle right is crucial and you should be certain before you purchase what category it falls into.

Definition

For VAT registered businesses the link below provides HMRC’s list so you can determine if VAT can be claimed.

But what if yours is not on the list? (See link below)

If you are comparing a Ford Transit to a Jaguar X type, this is quite an easy answer but there are many vehicles where the distinction is not clear.

HMRC have a very rigid definition for both cars and vans which mainly focus on the intention of the design rather than its actual use. Questions that need to be asked; does it have a barrier between the front seats and the space in the back? Can it carry a payload of more than 1 tonne? If yes then it is likely to be a van. However, if there are windows in the rear or sides and/or passenger seats behind the driver, then it is likely you are purchasing a vehicle for Tax purposes.

Of course these are just guidelines and if the answer is not obvious and you need some specific advice on the vehicle you plan to buy, please contact us on info@rileyandco.co.uk or 01422 341019.

HMRC List – https://www.gov.uk/government/publications/hm-revenue-and-customs-car-derived-vans-and-combi-vans