Newsletter - Spring 2015

Resources
CK Newsletter
2015
Spring

This year's nominated charity is Compton Hospice in Wolverhampton. Our Christmas fundraising culminated in a sponsored Festive Jumper day at the office. You can make your own decision whether this was a good idea - see photo!

Spring

A fine performance by CK Systems

CK systems are pleased to have signed up The prestigious Grand Theatre in Wolverhampton as a new customer. CK Systems will provide support for the theatre's Pegasus Opera business software. Wolverhampton Grand is a long established theatre in the heart of the Midlands; admired by performers and audiences alike for its intimate three-tiered Victorian auditorium. This year the theatre welcomes high profile productions including The Bodyguard Shrek The Musical and Peter Pan.

Capital or Revenue expenditure? That is the question…

Should a client face an enquiry from HMRC into their tax return and accounts, a common area that is reviewed is any deduction that may have been claimed in the accounts for repairs and renewals. This arises because whilst a repair to an asset is an allowable item of expenditure for tax purposes, if the asset is altered, improved or replaced the expenditure is capital expenditure and is not allowable. Capital allowances may or may not be allowable on this capital expenditure.

Disclaimer

This publication is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.

Improving the Construction Industry Scheme (CIS)

In Budget 2014 the Government announced that it would consult on options to improve the operation of the CIS and on the introduction of mandatory online CIS filing for contractors. The consultation has now taken place and the legislative process will commence in April 2015.

Marriage and promotions!

Nicholas Wright has been promoted to a role in our private client department where, following his qualification last year as a Chartered Accountant, he has commenced working towards his Chartered Institute of Tax exams.

More NIC savings ahead

2014/15 introduced the Employer Allowance, an up to £2,000 saving on Employer Class 1 National Insurance contributions (ERNIC) for many businesses and for charities. As the tax year draws to a close it is worth checking whether your business was entitled to claim and ensuring the claim has been made.

Christmas Charity

This year's nominated charity is Compton Hospice in Wolverhampton

No relief for incorporations

Owner managers have increasingly chosen to operate their businesses through the company medium in recent years as some regulation has reduced for the smaller company and because it is more conducive to minimising personal tax and National Insurance liabilities. Various reliefs exist for those who start as an unincorporated business who wish to transfer into a company arrangement so that tax costs can be minimised. However, it is considered that some of these reliefs are too generous with some obtaining a potentially unfair tax advantage so two key changes took place with effect from 3 December 2014.

Residential reductions

One of the welcome announcements in the Autumn Statement included the immediate reform of Stamp Duty Land Tax (SDLT) on the purchase of residential property.

Restricting relief on residential lettings

Capital allowances are generally not available for common items of plant and equipment such as white goods used in a residential lettings business.

State Pension top up - is it for me?

Pensioners will, from later this year, be able to purchase up to a maximum of £25 per week extra State Pension. This has been introduced by the Government so that those pensioners who have done less favourably under the existing State Pension rules get an opportunity to top up their State Pension, before the new flat rate State Pension system is introduced.