fpdteam, Author at Bennetts Accountancy

New life sciences growth package announced

15th June 2023 by fpdteam

The Chancellor, Jeremy Hunt, has announced a new £650 million package of measures to help boost UK life sciences.

The new ‘Life Sci for Growth’ package brings together 10 different policies including £121 million to improve commercial clinical trials to bring new medicines to patients faster, up to £48 million of new money for scientific innovation to prepare for any future health emergencies, £154 million to increase the capacity of the UK’s biological data bank – further aiding scientific discoveries that help human health – and up to £250 million to incentivise pension schemes to invest in our most promising science and tech firms.

The package also includes plans to relaunch the Academic Health Science Network as Health Innovation Networks as well as changes to planning rules to free-up lab space and updating a route for East West Rail to improve connections between the UK science powerhouses of Oxford and Cambridge.

Launching the package, the Chancellor said:

‘Our Life Sciences sector employs over 280,000 people, makes £94 billion for the UK each year and produced the world’s first covid vaccine.

These are businesses that are growing our economy while having much wider benefits for our health – and this multi-million pound investment will help them go even further.’

Source:HM Treasury| 11-06-2023

Passport delays and applications

15th June 2023 by fpdteam

A recent investigation by the House of Commons Committee of Public Accounts, in connection with the UK passport office, has found that hundreds of thousands of applicants faced unacceptable delays in receiving their passports.

Following the removal of COVID-19 travel restrictions, His Majesty’s Passport Office (HMPO) received a record number of passport applications. HMPO had anticipated this surge in applications, however, whilst staff processed a record number of applications, many people were let down.

The consequences of these delays included being unable to travel for family emergencies, losing money spent on holidays and having difficulties proving their identities. Another surge in demand is predicted for this year, meaning that now might be a good time to check if your passport needs to be renewed.

It is currently taking up to 10 weeks for passports to be issued. It takes longer for postal applications to be processed than online applications. There are also premium services available at an additional cost.

The current fees for a new passport are as follows:

Type of passport	Apply online	Apply by paper form
Adult (16 and over) standard 34-page	£82.50	£93
Adult (16 and over) 50-page frequent traveller	£93.50	£104
Child (under 16) standard 34-page	£53.50	£64
Child (under 16) 50-page frequent traveller	£64.50	£75
For people born on or before 2 September 1929	Free	Free

Source:Other| 11-06-2023

Check when to expect reply from HMRC

15th June 2023 by fpdteam

HMRC has a useful online tool to help agents and taxpayers know when they can expect to receive a reply from HMRC regarding a query or request that they have made. The online tool is updated weekly.

The online tool has recently been extended to include information about employers’ PAYE and National Insurance.

The full list of taxes the tool can be used for are as follows:

Child Benefit
Corporation Tax
Employers’ PAYE
Income Tax
National Insurance
Self-Assessment
Tax credits
VAT

Agents can also check how long it will take HMRC to:

register you as an agent to use HMRC online services;
process an application for authority to act on behalf of a client; and
amend your agent details.

The online tool can be accessed at the following address, and you do not have to be logged in to receive an answer: https://www.tax.service.gov.uk/guidance/Check-when-you-can-expect-a-reply-from-HMRC/start/are-you-an-agent

Source:HM Revenue & Customs| 11-06-2023

Gift Aid small donations scheme

15th June 2023 by fpdteam

The Gift Aid Small Donations Scheme (GASDS) allows qualifying charities and Community Amateur Sports Clubs (CASCs) to claim a top-up equivalent to Gift Aid on small donations of money made without a Gift Aid declaration. A small donation is defined as a donation of £30 or less made in cash or using contactless technology, such as a contactless credit or debit card. Donations made by other methods of payment such as cheque or bank transfer do not count.

The maximum annual amount of small donations that can be claimed through the GASDS is the lower of £8,000 or 10 times the amount the charity receives in Gift Aid donations – known as the matching rule. The £8,000 limit allows charities and CASCs to claim Gift Aid style top-up payments of up to £2,000 a year.

Usually, to claim gift aid the donor must have paid Income Tax or Capital Gains Tax at least equal to the amount the charity wants to claim and must complete a gift aid declaration. However, under the GASDS charities can claim tax relief on cash donations of £30 or less without a gift aid declaration or even knowing the identity of the donor.

Source:HM Revenue & Customs| 11-06-2023

What you can and cannot patent

12th June 2023 by fpdteam

The GOV.UK website offers the following guidance if you are considering a patent application.

A UK patent may help if you want to take legal action against someone who uses your invention without your permission. For example, if they sell or manufacture your product in the UK.

A patent lasts 5 years. If you want it to stay in force after that, you must renew it every year, up to a maximum of 20 years.

What you can patent

Your invention must be:

new – it must not have been made publicly available anywhere in the world, for example it must not be described in a publication
inventive – for example, it cannot be an obvious change to something that already exists
either something that can be made and used, a technical process, or a method of doing something

What you cannot patent

Things you cannot patent include:

literary, dramatic, musical or artistic works
a way of doing business, playing a game or thinking
a method of medical treatment or diagnosis
a discovery, scientific theory or mathematical method
the way information is presented
‘essentially biological’ processes like cross-breeding animals or varieties of plants
software that has a ‘non-technical’ purpose

Only software with a technical purpose can be granted a patent. For example, software to control a driverless car could have a patent, while a chess playing app could not. If your invention is software, you may need professional advice whether it can be patented (for example, by consulting with a patent attorney).

Source:Other| 11-06-2023

Complexity may be double-edged sword

12th June 2023 by fpdteam

There does seem to be a trend to replace human interactions with automated AI systems. This is especially evident in the management of our tax system.

There was a time, many years ago, when each taxpayer’s tax affairs would be managed by a local tax inspector and all records were kept in paper format in a physically located paper-based filing system.

Now, all tax records are kept electronically. Unless your affairs are being formally investigated by HMRC – in which case a tax person may be making decisions – the only human interaction will be with a call centre operative, and it is unlikely that they will ever have seen your data prior to your call.

It is a small step from a call with a human being, to a desktop exchange with an AI system.

HMRC staff will consist of specialists who pursue tax avoiders, but even they will be prepped by AI data.

Automation is an efficient way to process huge volumes of data in double quick time. And the days of human involvement in that process are probably numbered.

Younger generations who are stepping into the world of work would be wise to consider how AI is likely to impact their chosen occupation. In the future, complexity may be the realm that quantum computers monopolise. Their inventors may need to sit back and witness the effects of their self-learning progenitors, and perhaps with some trepidation.

Source:Other| 11-06-2023

Tax Diary July/August 2023

8th June 2023 by fpdteam

1 July 2023 – Due date for corporation tax due for the year ended 30 September 2022.

6 July 2023 – Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs.

19 July 2023 – Pay Class 1A NICs (by the 22 July 2023 if paid electronically).

19 July 2023 – PAYE and NIC deductions due for month ended 5 July 2023. (If you pay your tax electronically the due date is 22 July 2023).

19 July 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 July 2023.

19 July 2023 – CIS tax deducted for the month ended 5 July 2023 is payable by today.

1 August 2023 – Due date for corporation tax due for the year ended 31 October 2022.

19 August 2023 – PAYE and NIC deductions due for month ended 5 August 2023. (If you pay your tax electronically the due date is 22 August 2023)

19 August 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 August 2023.

19 August 2023 – CIS tax deducted for the month ended 5 August 2023 is payable by today.

Source:HM Revenue & Customs| 04-06-2023

What you must tell HMRC

8th June 2023 by fpdteam

If your personal details change you may be required to notify HMRC as this can affect your entitlement to certain tax breaks and or benefits.

For example, you need to tell HMRC if:

you get married or form a civil partnership; or
you divorce, separate or stop living with your husband, wife or partner.

The sooner you advise HMRC the better as the change could result in you paying too much tax or paying too little and owing HMRC more money.

If you receive tax credits or Child Benefit you also need to tell HMRC separately about changes to your relationship or family.

In the sad event that your spouse or civil partner dies, it is also a requirement to report the death to HMRC as well as notifying of changes to your income. For example, the death of a spouse would mean that the surviving spouse was no longer entitled to claim the Married Couple's Allowance.

If you move home, it is advisable to let HMRC know as soon as possible so they can update your contact details. HMRC should also be informed if you change gender although the process is usually automatic when you change gender legally by applying for a Gender Recognition Certificate.

You must also notify HMRC about certain changes to your income such as when you start or stop receiving:

income from a new source, such as money from self-employment or rent from property;
taxable benefits, such as State Pension, Jobseeker’s Allowance and Carer’s Allowance;
benefits from your job, such as a company car;
income above your Personal Allowance;
money over £85,000 from self-employment (you must register for VAT over this amount);
lump sums from selling things you pay Capital Gains Tax on, such as shares or property that’s not your main home; and
income from property, money or shares you inherit, such as dividends from shares or rent from property.

Source:HM Revenue & Customs| 04-06-2023

Using Capital Gains Tax losses

8th June 2023 by fpdteam

If you sell an asset for less than you paid for it, you would make a capital loss. As a general rule if the asset would have been liable to CGT had a gain taken place, then the loss should be an allowable deduction.

These allowable losses are deducted automatically from gains in the same tax year. It is not necessary to make a claim for set-off of losses. However, it is possible to claim that losses are allowable, and preference be given to such losses.

If a taxpayer’s total taxable gain is still above the tax-free allowance, they can deduct unused losses from previous tax years. When unused losses remain and that cannot be set against gains of the same year, then these losses are carried forward to be set against future gains. It is only possible to use losses brought forward if net gains exceed the annual CGT exempt amount for the year.

In most circumstances, allowable losses and the annual exempt amount can be deducted in the way that is most beneficial to the individual. This will usually be against gains that are charged at the highest rate. A claim for losses does not have to be made straight away and can be made up to 4 years after the end of the tax year that the relevant asset was disposed.

Source:HM Government| 04-06-2023

Overview of IHT agricultural relief

8th June 2023 by fpdteam

There are a number of reliefs available that can reduce liability to IHT. Of most interest to farmers is the Agricultural Property Relief (APR). Relief is available at a rate of 100% or 50% depending on who farms the land and how long the land has been owned.

The APR can be claimed on assets including farming land or pasture that is used to grow crops or to rear animals intensively, working farmhouses, farm workers’ cottages, barns and stud farms. There is no agricultural relief for farm equipment but the equipment itself may qualify for another relief known as business relief.

The APR is available for working farms in the UK, Channel Islands, the Isle of Man or the European Economic area. It is important to note that the relief is based on the agricultural value if the land. For example, a farmhouse is valued as if it could only be used for agricultural purposes rather than open market value. The valuations of farmhouses in particular is often the subject of debate.

It is important to ensure that any claim for APR is realistic as HMRC’s refusal to accept an APR claim could result in a significant amount of IHT being due together with the possibility of penalties being levied. There can also be issues where the faming business has diversified into non-farming activities such as wind farms, holiday lettings and farm shops.

There are special conditions to prevent exploitation of the relief by a person switching their assets into agricultural property shortly before death or making a transfer.

Source:HM Revenue & Customs| 04-06-2023