Non-UK resident property owner?

The new non-UK resident tax on the sale of UK properties came into force on 6 April.  The tax is only to be applied to the growth in value of a UK property from 6 April 2015 to the date of the sale of that property but we are recommending that non-resident, UK property owners obtain valuations of their UK properties now, whilst it is current.

 

A current valuation would mean that if you were to consider selling any of your property, we will be able to help you by giving you an indication of the tax that would be payable, based on the valuation as at 6 April 2015, and carry out some pre-sale tax planning, where possible.

 

Also, since HMRC will be checking the April 2015 valuation retrospectively, largely by using a computer average for the area rather than with sight of the property, and with no account therefore being taken of the fact that the properties could be in an immaculate condition, we could find ourselves in a situation where HMRC is contending a higher gain, based on a lower property valuation as at 6 April 2015.

 

If you have recently refurbished your property and believe it to be in an immaculate condition, a professional valuation carried out now would, I believe, reflect the immaculate condition of the property(/properties) and provide us with the substantive evidence to support a  reduced capital gains tax computation.  We will only have 30 days from the date of the conveyance to report the capital gain and so again, having a readily available April 2015 valuation would be useful.

 

UK CGT will now be payable on the disposal of the properties by non-UK resident, based on the growth in value from 6 April 2015 to the date of the sale.

 

The net gains, after exemptions and reliefs, will normally be liable to tax at the rate of between 18% and 28%.

 

If this is something we could help you with then please do get in touch. I can be contacted on karenb@clayshawthomas.com or on 01656 867167.

 

 

 

Our client Espack Eurlogistica celebrates 10 years!

We were invited to our client, Espack Eurologistica’s 10 year anniversary event on Friday at the Maldron Hotel in Cardiff.

The evening was fun, with witty speeches from various members of staff, there were magicians and the food was good!!

We wish Jorge and his team the very best of luck for the future and continued success.

 

About Espack Eurologistica

Jorge Escalada, Director, is the grandson of the founder of the company (who is now 93 years old) and has been there right from the beginning. Its Bridgend branch, employing 40 people,  is part of a large Spanish company which employs 400 people worldwide.

They provide logistical support to the automotive industry including Ford, Visteon, TVS and TRW amongst many others.

http://www.grupointerpack.com/en/

http://www1.bridgend.gov.uk/media-centre/2013/14-10-2013-success-story-for-former-remploy-workers-in-bridgend.aspx

 

What we do for them

We provide an accounts, tax advice and  general business consultancy to the company.

If you would like to talk to me about the possibility of us doing work for you then please get in touch via email jamesb@clayshawthomas.com or 01656 867167.

http://www.clayshawthomas.com/about-us/meet-the-team/

 

 

Online accounting with Xero

We can offer you an online accounting system called Xero, designed for small businesses, that allows you to update your accounts anywhere, anytime, helping you take control of your finances.

I went to the latest Xero roadshow last week in Bristol to find out for myself what changes they are making to the system.

I found it really useful. What I love is the fact that they are continually developing their product with genuine time-saving updates for accountants and end-users.

Their latest updates include the new payroll icon and additional use of the inventory module.

Both are a great additional to the system and provide such great vale for small businesses on the go!!

I’ll keep you updated on further news as I get it. If you’re interested in having a demonstration on how it can work then please contact me to arrange a suitable date and time on lauras@clayshawthomas.com 0r 01656 867167.

Work based pensions: automatic enrolment

 

Work based pensions’ law has changed and all employers are legally required to automatically enrol certain staff into a pension scheme and make contributions. Employers are also obliged to tell staff about the scheme you put them in and allow other staff to join if they request to do so.

If you haven’t received a letter from The Pensions Regulator you soon will. It will include information reminding you of your Auto Enrolment obligations which need to be completed by your business’s ‘staging date’ i.e. the date you need to ensure your business is ready to roll out auto enrolment.

 

It can be a complicated and confusing process.

 

We are able to assist you with the complete process, helping to ensure that you comply with the statutory obligations and that they are done within the specified deadline that The Pensions Regulator will state.

 

Get in touch with us today!

01656 867187 or info@cstwealth.co.uk

 

This article is for information only and does not constitute financial advice. Please contact your usual adviser at CST Wealth Management Ltd if you have any questions relating to your own personal circumstances or if you would like to make an appointment to discuss your financial plan. Contact details can be found on our Meet the Team page or by contacting us via  info@cstwealth.co.uk or 01656 867167.

The Financial Conduct Authority does not regulate tax advice.

CST Wealth is the trading name of CST Wealth Management Ltd which is authorised and regulated by the Financial Conduct Authority.

 

 

Changes to Advisory Fuel Rates (AFRs)

It is important to note that the AFR rates reduced from 1 March 2015 and must be applied in businesses by 1 April 2015.

When can you use the AFRs?

The rates apply when you either:

• Reimburse employees for business travel in their company cars; or

• Require employees to repay the cost of fuel for private use.

If used correctly, you do not need to include the payments on the end of year forms P11d, nor do you need to apply to HM Revenue & Customs (HMRC) for a dispensation to cover the payments made.

If you pay a rate per mile which is no higher than the AFR then HMRC accepts that there is no taxable profit and no national insurance to pay. If you choose to pay a lower rate, perhaps because you are funding particularly fuel efficient cars, then there is no issue with this.

If you choose to pay at rates which exceed the AFRs, and you cannot prove that the fuel cost per mile is higher than the stated AFR, there will be no fuel benefit charge if the mileage payments are solely for business travel but the excess of the payments over the AFR will be treated as taxable profit and earnings for Class 1 national insurance purposes.

If your employees properly record all private mileage and they pay to you an amount which is at least equal to the cost of the private fuel calculated using the AFRs then there will be no fuel benefit charge. It is important that every mile of private fuel is reimbursed by the employee because even if just £1 of private fuel is paid for by the business, the full fuel benefit charge will be applied. Of course, accurate records of private travel must therefore be maintained for presentation to HMRC on request, in order to avoid the fuel benefit charge provisions.

The rates now applying are as follows:

Engine size Petrol – amount per mile LPG – amount per mile:

1400cc or less 11p 8p

1401cc to 2000cc 13p 10p

Over 2000cc 20p 14p

Engine size Diesel – amount per mile:

1600cc or less 9p

1601cc to 2000cc 11p

Over 2000cc 14p

Going the extra mile to help you

Whether it’s tax planning, corporate finance, auditing or payroll, we offer a service that provides compliance, financial tactics and solutions, adding value to your business to maximise growth that will benefit your business in the future.

We will always strive to be going the extra mile to help you, over and above what we would normally do for you, such as letting you know of grants and other business support that we think could help you in your business.  One such example is a grant which is available via the Tourism Investment Support Scheme that you may want to consider if you’re in tourism? Here are some details about it:

  • The grant provides support of between £5,000 and £500,000 per project.
  • Up to 25% of eligible capital costs or between £5,000 to £10,000 per each full time equivalent job created/safeguarded.
  • Purpose of any project must be to grow tourism economy in Wales and provide quality facilities.
  • The scheme encourages energy efficiency and environmental improvements (eligible energy efficiency related costs must be less than 50% of total project costs).
  • Applicants must take part in Visit Wales Occupancy Service.
  • Applicants must achieve and maintain the relevant Visit Wales’ quality grading or accreditation.
  • For support of more than £25,000 a business and marketing plan is also required.

 

Ways we can help you:

  • We have a dedicated Corporate Finance team able to deliver the project to the specified timescales.
  • We have qualified staff with access to specialist software to produce financial projections including cashflow, profit & loss and balance sheet forecasts with sensitivity analysis.
  • Business planning to ensure you meet the qualifying criteria to maximise your award.
  • We can manage the complete application process for you.
  • We have excellent relationships with Welsh Government key case officers.
  • We have an excellent track record as well as a competitive fee structure.

 

Further information about the grant can be found on this website:

http://gov.wales/topics/tourism/tourism-investment-support-scheme/?lang=en

 

If you’d like to talk to me about the possibility of your business applying then please get in touch on 01656 867167 or by emailing me on gemmaj@clayshawthomas.com and I’ll be more than happy to help.

Farmer’s Averaging Relief

The extension of farmer’s averaging relief, whereby farmers can average their profits for  two consecutive  tax  years, thereby reducing the effect of, for example, a poor harvest due to bad weather, is to be extended to cover  five years, with effect from April 2016.

This will give farmers greater flexibility during periods of fluctuating profits and will help reduce excessive  tax bills in the case of a ‘bumper  harvest’ followed by  years of poor harvests .

Further details to be announced by the Government. We will keep you informed in further blogs as and when we receive information. Should you have any queries in the meantime please get in touch on tellmemore@clayshawthomas.com or by ringing us on 01656 867167.

New NI rules for employees under 21

The government is proposing that from April 2015, no employer’s National Insurance will be due on wages paid to employees under the age of 21 who are first employed by the employer after April 2015, as long as the employee is earning less than the National Insurance upper earnings limit.

This limit currently stands at £42,385 per year.

This initiative can be seen as a positive opportunity to help support younger employees as well as assisting employers with financial support to help them employ younger people.

We recommend that you check you have the correct date of birth for all your employees in your payroll software to ensure the correct NI rates are used from April 2015.

Please get in touch if you would to discuss further with us on tellmemore@clayshawthomas.com or 01656 867167.