News

IR35 in the Public Sector UPDATE
24/02/2017 - More...
We are pleased to confirm that 1st Option has been invited to join the private beta testing of the HMRC Tool. So far we have run around 25 tests, typifying our normal interim or high-end contractor clients, and the results have been extremely positive. The Tool, which should be used by public sector bodies to assess the IR35 status of an

Scott Says - IR35 in the Public Sector - We need your feedback
29/07/2016 - More...
A Consultation on IR35 in the Public Sector is now underway. The proposals suggest that a hirer, or an agency acting on the hirer’s behalf, will complete a ‘test’ for those working in the public sector. If the test is passed gross payments will be paid to your limited company. However, if the assignment fails (the test) Tax and NIC will

A new partnership with UK's most innovative CRM company
01/07/2016 - More...
1st Option is delighted to announce it has added a CRM solution to its portfolio of products and services. The cloud-based small business CRM solution from UK based Monii, is a winner when it comes to productivity gains, which means more billable hours for you. Monii is your secret weapon to track tasks, contacts, and notes. One of the

Scott Says - How to reduce your Corporation Tax
01/07/2016 - More...
Everyone loves paying taxes right? Well if you don’t, this article provides a few basics every business owner should know to ensure they are not paying too much! Jim Callaghan, the Chancellor of the Exchequer introduced Corporation Tax in 1965. Since 1965 the Corporation Tax rates have ranged from 42% in the seventies to 19% in the

Professional bodies approved for tax relief
27/05/2016 - More...
Many professionals such as accountants, lawyers and health professionals are required to make a subscription to a professional body or learned society. HMRC has recently published an updated list of the organisations that they will accept as valid professional bodies. This list is updated from time to time and a recent update lists all

Healthcare when away from home
27/05/2016 - More...
· Do you work away from home? · Are you often too busy to visit your local GP? We are delighted to introduce i-GP. Designed and run by UK trained family doctors with over 30 years of NHS experience between them, they provide free online assessments for over 20 minor illnesses. They offer instant access to the

Tax Diary March/April 2017
23/02/2017 - More...
1 March 2017 - Due date for Corporation Tax due for the year ended 31 May 2016. 2 March 2017 – Self Assessment tax for 2015/16 paid after this date will incur a 5% surcharge. 19 March 2017 - PAYE and NIC deductions due for month ended 5 March 2017. (If you pay your tax electronically the due date is 22 March 2017.) 19 March 2017 -

Minimum wage increases
22/02/2017 - More...
The new National Minimum Wage (NMW) and National Living Wage (NLW) rates are due to come into effect on 1 April 2017. This is the first time that the NMW and NLW rates will be uprated in parallel. Historically, the NMW increased annually in October and explains the smaller than usual increase in the NMW as the last increases were only

Using the Lifetime ISA
22/02/2017 - More...
The new Lifetime ISA will be available from April 2017. The Lifetime ISA is designed to help those aged between 18 and 40 to save for a new home or for their retirement. The new scheme will see the government provide a bonus of 25% on yearly savings of up to £4,000 and these benefits continue until the saver's 50th birthday. This could

HMRC announces new support for mid-sized businesses
22/02/2017 - More...
HMRC has used the publication of a new corporate report to announce new support services to the 170,000 mid-sized businesses operating in the UK. These businesses play an important role in developing entrepreneurship and creating new jobs. Mid-sized businesses are defined as those that have a turnover of more than £10 million and/or more

Genuine HMRC email alert
22/02/2017 - More...
HMRC has issued an advisory note to let employers know that it is in the process of emailing an employer alert. These emails are headed Important information for employers and refer to Employer Bulletin 64. These emails are genuine and include valid links to pages on the GOV.UK website. Taxpayers still need to be mindful of the many

Let property campaign
22/02/2017 - More...
HMRC’s Let Property Campaign provides landlords who have undeclared income from residential property lettings in the UK or abroad with an opportunity to regularise their affairs by disclosing any outstanding liabilities, whether due to misunderstanding the tax rules or because of deliberate tax evasion. There are three main stages to

Pension automatic enrolment
22/02/2017 - More...
Automatic enrolment for workplace pensions is intended to encourage employees to start making provision for their retirement with employers, with government contributing to make a larger pension pot. The timetable for employers to begin enrolling their staff started with the UK’s largest businesses in 2012, followed by medium, and then

Late filing of Self Assessment tax returns
15/02/2017 - More...
Taxpayers that have not yet filed their 2015-16 Self Assessment returns will have been charged an automatic £100 penalty for late submission. The penalty applied from 1 February 2017 even if no tax was due or the tax due was paid on time. However, taxpayers who were meant to file online by 31 January 2017, and have still not filed their

The new £1 coin is coming
15/02/2017 - More...
The new £1 coin enters circulation on 28 March 2017. The new £1 coin will be 12-sided and will replace the round shaped £1 coin that has been in use for 30 years. The new coin is being introduced to help combat the problem of counterfeit coins and will according to the Royal Mint be the most secure coin in the world. It has been

The Apprenticeship Levy
15/02/2017 - More...
The new Apprenticeship Levy comes into effect from April this year at a rate of 0.5% of the employer's 'pay bill'. To exclude smaller employers a £15,000 annual allowance can be claimed. The effect of this limit means that only employers with a pay bill in excess of £3 million will be required to contribute to the levy. The £3 million

Pension auto-enrolment penalties
15/02/2017 - More...
Automatic enrolment into workplace pensions has been rolling out across the UK since 2012 beginning with the largest employers in the country. The first batch of small and micro employers started to enrol in the scheme in mid-2015. There are estimated to be 1.8 million small and micro employers in the UK. It is expected that all

Credit Card Sales Campaign
15/02/2017 - More...
HMRC’s Credit Card Sales campaign targets individuals and businesses that accept credit and debit card payments and have not paid the right amount of tax due. The campaign offers the opportunity for anyone affected to bring their affairs up to date and in doing so take advantage of the best possible terms. Any individual or company that

Tax avoidance – Spotlights
15/02/2017 - More...
HMRC Spotlights identify specific tax avoidance schemes that HMRC have become aware and which they consider are not likely to have the legal effect desired by those thinking of using them. According to HMRC, the Spotlights series is designed to help taxpayers avoid unwittingly entering into arrangements that HMRC are likely to see as tax

Housebuilder loses tribunal case
07/02/2017 - More...
A recent tribunal case examined a VAT refund claim in respect of the VAT DIY Builders scheme. The scheme is a set of special VAT rules which allow the qualifying construction costs of new homes and certain conversion works to be zero-rated. In this case, the homebuilders (Mr and Mrs Campbell) built a new home in 2012 on land adjacent to

Making Tax Digital
07/02/2017 - More...
Making Tax Digital (MTD) is likely to be the most wide ranging change to the UK tax system since the introduction of Self Assessment many years ago and will fundamentally change the way businesses, the self-employed and landlords interact with HMRC. The introduction of MTD over the coming years will see HMRC move towards a fully digital

Pensions Advice Allowance
07/02/2017 - More...
A new Pensions Advice Allowance will come into force from April 2017. The allowance will allow those nearing retirement to take up to £1,500 out of their pension pots tax-free to put towards the cost of financial advice. The advice provided can relate directly to the pension as well as to other financial products that help build

Tax codes to use from 6 April 2017
07/02/2017 - More...
The P9X form is used to notify employers of what tax codes to use for employers. The form has been updated with tax codes to use from 6 April 2017. The basic personal allowance for the tax year starting 6 April 2017 is £11,500 and the tax code for emergency use is 1150L. As a result of the increase in the basic personal allowance, there

Furnished holiday lettings
07/02/2017 - More...
The furnished holiday let (FHL) rules allow holiday lettings of properties that meet certain conditions to be treated as a trade for tax purposes. Individuals, partnerships, trustees and companies who let furnished holiday accommodation situated within the UK or elsewhere in the EEA can benefit from having a FHL. The furnished holiday