The Training Continues

With just under 3 weeks until the 40 mile walk around Rutland, I completed my first practice walk. The walk will take place on the 27th of October and should take around 16 hours to complete. The team will be completing the walk for the chosen charity Coping with cancer. For previous updates read the blogs before.

We started just after 9am starting at Bradgate and finished at around 4:30 which calculates to 7 and a half hours including a pub stop. We visited the three peaks, the first being Bradgate park then Beacon Hill and Bardon Hill. The views from the three peaks made the walk worth it. All together I think we walked just under 18 miles. I’m sure the challenge leader took us the wrong way so I think we walked a bit further than planned.

The weather was perfect for the practice walk and thankfully it didn’t rain. I’m not too sure how difficult the 40 mile walk will be because it’s through the night and in the dark. The worst part was the hills which seemed like they didn’t end but hopefully there won’t be any in Rutland were the 40 Mile walk will take place.

I personally found the 18 mile walk possible but I’m not too sure I could do double the amount. Even though I’m going to give it a go and hopefully complete it all. It’s easier to walk when listening to someone tell stories and time does fly and you don’t realise how far you have actually walked.

The team will have to prepare for the walk over night with head torches and plenty of food. At least the walk will be a challenge and I’m looking forward to see how many people take part.

If you would like to show support and sponsor us no matter how small or large you can do so by donating on our Total giving page here. 

Sage Wilkins, Bookkeeper 

Self-employed Class 2 National Insurance will not be scrapped

The government has decided not to proceed with plans to abolish Class 2 National Insurance Contributions (NICs) from April 2019.

Class 2 NICs are currently paid at a rate of £2.95 per week by self-employed individuals with profits of £6,205 or more per year. The government had planned to scrap the Class 2 contribution and had been investigating ways in which self-employed individuals with low profits, could maintain their State Pension entitlement if this inexpensive contribution had been abolished.

In a written statement to MPs, Robert Jenrick, Exchequer Secretary to the Treasury, stated that:

‘This change was originally intended to simplify the tax system for the self-employed. We delayed the implementation of this policy in November to consider concerns relating to the impact on self-employed individuals with low profits. We have since engaged with interested parties to explore the issue and further options for addressing any unintended consequences.’

‘A significant number of self-employed individuals on the lowest profits would have seen the voluntary payment they make to maintain access to the State Pension rise substantially. Having listened to those likely to be affected by this change we have concluded that it would not be right to proceed during this parliament, given the negative impacts it could have on some of the lowest earning in our society.’

If you want to discuss any of this further please get on touch, 0116 2423400 or info@torrwaterfield.co.uk 

Training has now started for the Rutland Plod

As you may well know we are planning to walk 40 miles around Rutland water and surrounding villages, starting at 10pm on Saturday 27th October and finishing hopefully at 3pm Sunday afternoon. Please read our previous blog for more info here. 

Last weekend I plotted a 15 mile practice walk around Charnwood ,including Bradgate Park, Beacon Hill and Bardon Hill.  According to Heather’s app, the actual distance was 17 and a quarter miles.

It was a lovely sunny day for walking, so of course we stopped half way in a beer garden to refuel.

The 17 (and a quarter) miles took 7 hours (including the pub stop).  So by my calculations, the 40 mile challenge will take about 16 hours… great!

I have to say, when we got back to the Bradgate Park carpark, the thought of going round again (and a bit further) sounded like a stupid idea.

But hopefully with a bit more training over the next 3 weeks, we will all get round and raise lots of money for Coping with Cancer, our charity of the year.

Please help us reach our target and sponsor us. No matter how small or large you can do so by donating on our total giving page https://www.totalgiving.co.uk/mypage/torrwaterrutland18

Stuart Caney, Challenge Leader

The Rutland Plod – TW Challenge 2018

Last year the team, friends and family took part in a 2 day challenge, walking 23 miles per day along The Llyn Peninsula. This year we are challenging ourselves even further by trekking 40 miles around Rutland overnight. This means no time to rest as the team begins the challenge at 10pm on Saturday 27 October and will continue non-stop (except for a few pub breaks!) through into the late afternoon of Sunday 28 October, taking a total of 16 to 18 hours to complete.

After parking our cars Mike Waterfield and Stu Caney will lead the team along the south end of Rutland Water before walking up the west side. This will be a good starting point as it will prevent the group from getting lost in the dark as Rutland Water will be on our right hand side for a couple of hours (around 6 miles).

Shortly after midnight and a short break to recharge, we will cross over the River Gwash, pass through Braunston in Rutland and then make our way south whilst the sun rises. The clocks will have gone back by this point which means we have an early finish! Matt Smith and other members of Torr Waterfield will be meeting us once we reach Morcott at around 9am, when we will then follow the River Welland from Barrowden after breakfast for 6 miles. This will lead us to the built up village of Ketton where we can stop for a bite to eat at around 1pm before eventually getting back to the starting point for 3pm.

We will also be meeting a few others in Ketton who were not able to join us for the whole 40 miles. They will be walking the last 5 miles with us and celebrating the success of completing the challenge!

For any long distance walking challenge there is only one form of training that will ensure you perform well – walking! So in the lead up to the challenge we will be doing a number of training walks to ensure we can endure the whole 40 miles! Our first training walk was last Saturday starting from Bradgate Park and walking 15 miles which took around 6 hours.

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Over the coming weeks we will be posting other blogs to keep you updated on how our training is going and once we complete the challenge we will let you know how tough it was and how much money we raised in total.

The money we raise will be donated to our charity of the year, Coping with Cancer. To find out more about them you can look at our previous blog https://torrwaterfield.wordpress.com/2018/02/28/our-charity-of-the-year-coping-with-cancer/ or visit their website https://www.c-w-c.org.uk/ 

If you would like to show support and sponsor us no matter how small or large you can do so by donating on our just giving page www.totalgiving.co.uk/mypage/torrwaterrutland18    

Amy Fisher, Fundraising Lead – 0116 2423400

Have you taken advantage of the Marriage Allowance?

A married couple or civil partnership can apply to transfer 10% of the income tax personal allowance from one to the other. Although called the marriage ‘allowance’, it is a transfer rather than an additional allowance.

To qualify for the allowance, neither of the partners can be higher rate taxpayers and cannot be claiming the married couple’s allowance. To benefit as a couple, one person should be earning below the personal allowance (£11,850 for 2018/19).

The maximum tax saving in 2018/19 is £237.00 (10% of the £11,850 personal allowance at 20%).

 

How to apply

 The application for the transfer is made by the person who wants to transfer part of their allowance to their partner. It is absolutely fundamental that the recipient of the allowance does not make the claim.

If your income is predictable, you can apply during the tax year here. If you apply during the tax year, the claim is in place until withdrawn or through either death or divorce.

If your income is unpredictable, because you are self-employed for example, you can make an application after the tax year on your Self-Assessment Tax Return. This claim must be done each year – it does not remain in place for future years.

 

Backdated claims

 Currently, you can backdate marriage allowance claims to include any tax year since 5 April 2015 if you were eligible. This means you could claim back as much as £662 if you can claim for 15/16, 16/17 and the 17/18 tax year.

 The Married couple’s allowance

 If either you or your partner were born before 6 April 1935 you may benefit more from the Married Couple’s Allowance instead, which you can read more about here.

For further information or help on the above, please call the office on 0116 242 3400 or email us at info@torrwaterfield.co.uk

Aiden Hyett, Accounts & Tax 

VAT on building a new home

If you’re building a new home, you may be able to reclaim the VAT back on the materials used, potentially making a lot of difference to the final costs.

You can apply for a VAT refund on building materials and services if you’re:

  • building a new home
  • converting a property into a home
  • building a non-profit communal residence – e.g. a hospice
  • building a property for a charity

The building work and materials have to qualify and you must apply to HM Revenue and Customs (HMRC) within 3 months of completing the work.

To qualify for the reclaim of VAT, you must meet the following conditions:

  • You may claim a VAT refund for building materials that are incorporated into the building and can’t be removed without tools or damaging the building.
  • The building must be for one of the following purposes:
  • Non-business – you can’t charge a fee for the use of the building
  • Charitable, for example a hospice
  • Residential, for example a children’s home

What doesn’t qualify?

  • building projects in the Channel Islands
  • materials or services that don’t have any VAT – for example, they were zero-rated or exempt
  • professional or supervisory fees – for example, architects or surveyors
  • hiring machinery or equipment
  • buildings for business purposes
  • buildings that can’t be sold or used separately from another property because of a planning permission condition
  • building materials that aren’t permanently attached to or part of the building itself
  • fitted furniture, some electrical and gas appliances, carpets or garden ornaments

How to claim

Fill in form 431NB to claim a VAT refund on a new build, or 431C to claim for a conversion.

There are lots of useful guidance notes included with these forms.

For further information or help on the above, please call the office on 0116 242 3400 or emails on info@torrwaterfield.co.uk 

James Yarnall, Accounts 

How do you complete a Monthly CIS Return?

What is CIS?

The Construction Industry Scheme is a method of deducting tax from subcontractors in the building sector. Contractors deduct a percentage of the money owed on their payments to subcontractors and pass it over directly to HMRC. The amounts are effectively taxed at source as the sub-contractor does not get the money.  The deducted CIS tax counts as advance payments towards the tax and National Insurance contributions that will be calculated upon completion of the subcontractor’s self-assessment tax return.

What do I need to complete a return?

Monthly CIS returns need to be submitted by the contractor to HMRC to disclose the amount of CIS which has been deducted and is therefore due to be paid over to HMRC.

The contractor needs from the subcontractor an invoice which states the money they are owed.

The invoice should split out the materials and labour with CIS only being deductible on the labour element of the invoice. CIS is deducted at 20% providing the subcontractor has a UTR (unique tax reference) number which should be displayed on the invoice. If there is no UTR number then CIS will be deducted at 30%.

How do I do it?

CIS periods run from the 6th of the month to the 5th of the month following – for example, 6th March – 5th April. The CIS return then needs to be submitted and the liability paid over within two weeks of the period end – 19th April for example in order to avoid facing late filing charges. The return can be manually entered under the contractor’s logon on the HMRC website or it can be submitted via numerous accounting software programmes. The CIS is payable to HMRC upon payment of the invoice and not the date the invoice is issued, so it should only be included on the CIS return at this point. Once the return has been submitted to HMRC, statements should be sent out to all subcontractors for their own records.

If you wish to discuss any of this further then please get in touch 0116 2423400 or info@torrwaterfield.co.uk

Brook Lucas, Accounts & Tax 

With effect from 6 April 2018, all PILONs will be chargeable to Income Tax and Class 1 National Insurance Contributions (NICs)

With effect from 6 April 2018, all PILONs will be chargeable to Income Tax and Class 1 National Insurance Contributions (NICs), whether or not they are contractual payments. Payments or benefits paid in connection with the termination of a person’s employment will be split into two elements. The first element, post-employment notice pay (PENP) received is taxable as general earnings and will be subject to Class 1 NICs from 6 April 2018. The PENP represents the earnings that the employee would have received had they been given and worked their full and proper notice and on which they would ordinarily have paid tax and Class 1 NICs.

PENP is calculated by applying a formula to the total amount of the payment or benefits paid in connection with the termination of an employment. The second element is the remaining balance of the termination payment, or benefit, is not a PENP. This is taxable as specific employment income to the extent that it exceeds £30,000 and is treated in the same way as other payments and benefits taxable under section 403 Income Tax (Earnings and Pensions) Act 2003.

PENP calculations should not be applied to statutory and non-statutory redundancy payments. These payments are always taxable as specific employment income and subject to the £30,000 exemption where appropriate. As an employer, you will be required to apply the PENP formula to the total amount of relevant termination payments, or benefits. You should operate PAYE to deduct income tax and Class 1 NICs from the amount of PENP from 6 April 2018. You should then apply the £30,000 exemption, where applicable, to the second element of the relevant termination payment and deduct income tax (but not NICs) accordingly. Detailed guidance on how and to what payments you should apply the PENP formula to will be published in the Employment Income Manual in due course

Foreign Service relief

Foreign Service relief on termination payments is being removed for UK residents. Employees whose employment is terminated on, or after, 6 April 2018 and who receive a payment or benefit in connection with that termination will not be eligible for tax relief in respect of any period of foreign service undertaken as part of their office or employment if they are UK resident for the tax year in which their employment is terminated. This change is subject to parliamentary approval. Foreign Service relief will be retained for seafarers.

If you would like to discuss any of this further please get in touch 0116 2423400 or info@torrwaterfield.co.uk

From 1 April 2018, the Fulfilment House Due Diligence Scheme is open for online applications.

Businesses in the United Kingdom (UK) that store any goods imported from outside the European Union (EU) that are owned by, or on behalf of, someone established outside the EU, will need to apply for approval by HMRC if those goods are offered for sale in the UK.

The deadline for applications from existing fulfilment businesses falling within the scope of the scheme is 30 June 2018. Businesses that start trading on or after 1 April 2018 need to apply on or before 30 September 2018. There are penalties for late applications.

Businesses that only store or fulfil goods that they own, or only store or fulfil goods that are not imported from outside the EU, are not required to register.

Registered businesses must carry out certain checks and keep records from 1 April 2019. Businesses who meet the criteria of this scheme will not be allowed to trade as a fulfilment business from 1 April 2019 if they do not have approval from HMRC.

Those that do, risk a £10,000 penalty and a criminal conviction. To find out if you need to be registered please see the GOV.UK webpage, Fulfilment House Due Diligence Scheme.  

If you wish to discuss any of this further then please get in touch 0116 2423400 or info@torrwaterfield.co.uk  

 

Spring Statement 2018

The Chancellor Philip Hammond presented his Spring Statement on Tuesday 13 March 2018.

In his speech he provided an update on the economy and responded to the Office for Budget Responsibility forecasts. In addition he launched consultations on various aspects of the tax system.

Changes to the timing of tax legislation

Chancellor Philip Hammond has implemented some fundamental changes to the UK fiscal timetable.

In the 2016 Autumn Statement, the Chancellor announced that he would be introducing a new Budget timetable, which would see the main annual Budget moving from its traditional spring setting to the autumn and the Autumn Statement being replaced by a Spring Statement. The first Autumn Budget was presented in November 2017.

The new process

While the general process of developing tax policy will remain the same, the timescales for policy making and consultation have changed significantly. The government hopes that the new system will allow more time to scrutinise and consult on draft tax legislation before it is introduced.

The new timing of the Autumn Budget will allow the announcement of most new measures well in advance of the tax year in which they are due to take effect. The Spring Statement also offers the opportunity for the government to consult during the early stages of policy making, and publish calls for evidence on long-term tax policy issues.

Under the new system, measures announced in the Autumn Budget will generally be consulted on during the winter and spring, with draft legislation being published in the summer, ahead of the introduction of the Finance Bill in the winter. This will then receive Royal Assent the following spring.

Click here to read our summary of the Spring Statement 2018

If you would like to discuss any of this further then please get in touch 0116 2423400