Magee Gammon Partnership LLP (M112)_BM SUMMER17 #

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This newsletter is for guidance only, and professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the
distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.
Business Round-up
Web Watch
Essential sites for business owners.
Provides information on how to
safeguard your business against
cyber-attacks and breaches.
Insightful blog pieces on issues
affecting small businesses in the UK.
New government site dedicated to
providing information on all the latest
Brexit announcements.
Allows users to make informed
decisions regarding childcare schemes
and costs.
Bank cheques ‘to clear in a day’
New technology set to be introduced later this year will allow
cheques paid into bank accounts to be cleared within one working
day. The Cheque and Credit Clearing Company – the organisation
that manages the cheque-clearing system – has suggested that
a new image clearing system will ‘revolutionise how cheques are
cleared in the UK’.
Instead of the current paper-based system, a digital image of the
cheque will be used instead. This should significantly speed up the
process. The changes will be phased in from October 2017, with all
UK banks and building societies able to offer the new service by the
second half of 2018.
Salary sacrifice scheme advantages removed
Effective from April, the tax and employer national insurance
advantages of many salary sacrifice schemes have been removed.
Employees swapping salary for benefits are now required to pay the
same tax as individuals who buy them out of their post-tax income.
Certain benefits are, however, exempt from the changes. These
include: pension contributions and arrangements (including
pensions advice); childcare vouchers; workplace nurseries; Cycle to
Work schemes; and ultra-low emission cars with CO2 emissions of
up to 75 g/km.
Arrangements made before April 2017 will be protected until April
2018. Arrangements put in place for cars, educational fees and
accommodation will be protected until April 2021.
New rules on inheritance tax take effect
From 6 April 2017, a new Residence Nil-Rate Band (RNRB) for
inheritance tax (IHT) has been introduced. The band enables a
‘family home’ to be passed wholly or partially tax-free on death to
direct descendants, such as children or grandchildren.
The RNRB is in addition to an individual’s own nil-rate band, and
is initially set at £100,000 in 2017/18, before rising in a series of
stages to reach £175,000 in 2020/21. Up to £1 million of a married
couple’s estate could eventually be taken outside of the scope of
IHT, providing the full nil-rate bands are available to each spouse.
The band can only be used in respect of one residential property.
This must have been a residence of the deceased at some point.
Buy-to-lets will not, therefore, be eligible for the relief. There is a
tapered withdrawal of the RNRB for estates with a net value (after
deducting any liabilities but before reliefs and exemptions) of more
than £2 million. This will be at a withdrawal rate of £1 for every £2
over this threshold.
For more information on the new RNRB, please contact us.
We would be happy to assist you.
Reminders for your
Summer diary
June 2017
1 New Advisory Fuel Rates
(AFR) for company car
users apply from today.
19 PAYE, Student loan
and CIS deductions are
due for the month to
5 June 2017.
30 End of CT61
quarterly period.
July 2017
5 Deadline for reaching
a PAYE Settlement
Agreement for 2016/17.
6 Deadline for forms
P11D and P11D(b)
for 2016/17 to be
submitted to HMRC and
copies to be issued to
employees concerned.
Deadline for employment
related securities returns
for 2016/17.
14 Due date for income tax
for the CT61 period to
30 June 2017.
19 Class 1A NICs due for
2016/17.
PAYE, Student loan
and CIS deductions
due for the month to
5 July 2017.
PAYE quarterly
payments are due for
small employers for the
pay periods 6 April 2017
to 5 July 2017.
31 Second payment on
account 2016/17 due.
August 2017
2 Deadline for submitting
P46 (car) for employees
whose car/fuel benefits
changed during the
quarter to 5 July 2017.
19 PAYE, Student loan
and CIS deductions are
due for the month to
5 August 2017.