Weekly tax brief 9 May 2017

In this edition of RSM’s weekly round-up of the most important tax news, we cover the latest developments.

RSM's tax tips for understanding party election manifestos

09 May 2017

Most of the party manifestos are expected to be published next week. If recent general elections are anything to go by, what's written between the lines will be as important as the carefully chosen words in the manifestos. Here’s our handy guide on points to watch out for.

Why does tax on reward current accounts have to be so taxing?

09 May 2017

Those with a reward current account will probably have received a tax deduction certificate showing that the reward payment has had basic rate tax deducted at source. Such payments are not considered as interest and therefore do not benefit from the Personal Savings Allowance (PSA). If you are a non-taxpayer, you can recover the basic rate tax deducted but for those within the higher and additional rate bands, the reward payment and the tax paid should be included on your tax return. Does the UK tax system really need to be this complicated?

Landlords: beware when incorporation sounds too good to be true

09 May 2017

The internet is awash with information for landlords on the benefits of incorporation, but the promised tax reliefs will not be available to all. Landlords are therefore advised to seek advice relating to their own specific circumstances before rushing to incorporate. Unfortunately in tax if something sounds too good to be true, it usually is.

Making sure employees are paying the right amount of tax

09 May 2017

HMRC has recently published a newsletter to employers which outlines the common areas for which business expense claims can be made by employees where the employer’s expense policy does not cater for reimbursing the cost. Many employees are often unaware that they could make a claim for certain expenses and it looks like HMRC are using employers to spread the word.

There’s no such thing as a VAT-free lunch, or is there…?

09 May 2017

Many UK schools and colleges could benefit from a VAT windfall of tens of millions of pounds, plus interest, thanks to a ruling from the European Court. Under EU VAT law the provision of education by eligible bodies – including universities, colleges and independent schools – is exempt from VAT. In a landmark decision, the CJEU has confirmed that sales to the public such as catering sales in training restaurants and admission charges to theatrical performances by students, are services closely related to the provision of education, and also exempt from VAT.