Stuart G. Nicholls

1 month ago | mdpi.com | Stuart G. Nicholls |Gary Davis |Erika Camilleri |Taryn Chesser

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Jul 23, 2024 | cliveowen.com | Stuart G. Nicholls

HMRC form CT61 is a form required to be completed by a company if the company pays interest, royalties and other similar payments to an individual. Unlike banks and building societies that can pay interest, without the deduction of tax, companies are, in certain circumstances, required to withhold 20% tax from any interest payments due to individuals and pay this 20% over to HMRC.

Jul 23, 2024 | cliveowen.com | Stuart G. Nicholls

Recent media coverage has suggested that around 500,000 individuals are caught in the 60% tax trap. Essentially, this means that an individual is paying 60% tax on every £1 earned. That is before national insurance and student loan repayments are considered. Such a situation arises when the individual earns between £100,000 and £125,000.

Jul 23, 2024 | cliveowen.com | Stuart G. Nicholls

We are aware that HMRC is sending more letters to taxpayers to “nudge” them to check their tax returns are in order and to encourage the taxpayer to ensure that they are being compliant with their tax affairs. The letters can cover a wide range of topics from rental income, bank interest and capital gains to dividend income from their own company. You should remember that a nudge letter is not an allegation that something is wrong.

Jul 23, 2024 | cliveowen.com | Stuart G. Nicholls

Since April 2016, there has been an exemption to cover tax becoming due on trivial benefits. This was intended to avoid tax becoming due on ad-hoc gifts such as a Christmas present or flowers. In simple terms, a trivial benefit is classified as:One that does not exceed £50 (including VAT),One that is not in the form of cash or a cash voucher,One that is not a contractual entitlement, andOne that is not provided in recognition of services performed by the employee as part of their duties.