Acca Finance Act 2019 Technical Article

CLASS 1 and Class 1A CNIC For the 2019-2020 tax year, the Nic rates for Employee Class 1 remain unchanged at 12% and 2%. The 12% rate is paid on income between £8,632 per year and £50,000 per year, and the 2% rate is paid on all incomes over £50,000 per year. Taxable profits, part 2 Relevant for those who sit on TX-UK in June, September or December 2021 or March 2022 The second part of a two-part article focuses on shares, reliefs and how the profits of limited liability companies are taxed. Employment assistance The annual employment allowance for the 2019/20 tax year remains unchanged at £3,000. This can be used by companies to reduce the amount of the employer`s Class 1 network card paid to HM Revenue and Customs (HMRC). For example, if a company`s Class 1 network card total for the 2019-2020 tax year is £4,600, only £1,600 (£4,600 to 3,000) will be paid to HMRC. If the employer`s Class 1 network interface card total is £3,000 or less, liability is zero. Employment assistance is not available for companies in which an executive is the only employee. VAT, Part 1 Relevant for those who sit TX-UK in June, September or December 2021 or March 2022 TX-UK always contains at least 10 marks subject to VAT (VAT). The areas covered in the article include vat registration and cancellation, as well as exit tax and input tax. This article discusses the changes made by the Finance Act 2019 (the legislation relating to the 2019-2020 tax year) and should be read by those of you who have reviewed TX-UK as part of an audit during the period from 1 June 2020 to 31 June 2020.

March 2021. EXAMPLE 24 For the 2019-2020 tax year, Frank has a business profit of £97,000 and paid gross personal pension contributions of £45,000. It has no unused annual allocations at an anticipated stage. Frank`s income tax reads as follows: The first £2,000 of dividend income for the 2019-2020 tax year will benefit from a rate of 0%. This £2,000 zero rate range is available to all taxpayers, whether they pay taxes at the base rate, the higher rate or the additional rate. However, the zero interest range of the dividend counts for the base interest rate and higher interest thresholds. EXAMPLE 14 During the 2019/20 tax year, Fashionable plc provided company cars to the following employees: The income tax rates for the 2019/20 tax year are as follows: Diana received fuel for private use between 6 April 2019 and 5 April 2020. It paid £600 to Fashionable plc in the 2019-2020 tax year for the cost of private fuel, although the actual cost of this fuel is £1,000. Corporate Income Tax (IRS) – Cost Containment for Financing and Related Party Services, Separation of Revenue Sources and New Transfer Pricing Reporting (TP) Rules Relevant to TX-POL This article is relevant for candidates taking the “Taxes – Poland” (TX-POL) exam at the December 2020 meeting. It is based on the applicable tax legislation for the 2019 and 2020 tax years. No questions are asked about the limits of the zero residence rate range in effect prior to the 2019-2020 tax year.

Fang partially financed the purchase of the property with a repayment mortgage and paid £4,000 in mortgage interest in the 2019-2020 tax year. The exam is a three-hour, 15-minute exam. Tax rates, allowances and information on certain reliefs are provided as part of the audit. For the avoidance of doubt, the June 2021 and December 2021 audits are based on the 2019 Finance Act. EXAMPLE 11 Nigel and Nook are a married couple. For the 2019-2020 tax year, Nigel will have a salary of £160,000 and a savings income of £400. Nook will have a salary of £60,000 and a dividend income of £3,800. EXAMPLE 25 For the 2019/20 tax year, Adam has a salary of £44,000. During the year, he made net personal pension contributions of £4,400.

On 15 June 2019, Adam sold an antique table, which resulted in a taxable profit of £21,000. Inheritance tax, part 1 Relevant for those who sit on TX-UK in June, September or December 2021 or March 2022 Value transfers, tax rates and exemptions. For period 1 exams. From June 2020 to March 31, 2021, the real official interest rate of 2.5% will be used for the 2019-2020 tax year. Company car advantage For the 2019/20 tax year, the CO2 emissions base used to calculate the benefits of the company car remains unchanged at 95 grams per kilometre. However, the base percentage has increased from 20% to 23%. For company cars with low CO2 emissions, there are lower rates: for the 2019/20 tax year, Bee has a business profit of £60,000. On 20 August 2019, she sold an antique vase, which resulted in a taxable profit of £19,800. Charles` CO2 emissions are above the base value of 95 grams per kilometre. The relevant percentage is 30% (23% + 3% ((110 – 95)/5) + 4% (fee for a diesel vehicle that does not meet the RDE2 standard)). The car was only available for eight months from 2019-2020, so the benefit is £2,700 (13,500 x 30% x 8/12). Benefits relevant to those who sit on TX-UK in June, September or December 2021 or March 2022 Benefits appear regularly in the audit, and this article mainly covers aspects of benefits that have been discussed in previous sessions.

Monica Monica has unused stipends of £8,000 (£40,000 to 32,000) from 2017 to 2018 and £12,000 (£40,000 to 28,000) from 2018 to 2019, leaving a total of £60,000 (£40,000 + 8,000 + 12,000) available for 2019-2020 with the annual stipend of £40,000 + £12,000 for 2019-2020. She was not enrolled in a pension plan in 2016-2017, so the annual allowance for that year will be forfeited. Inheritance tax, part 2 Relevant for those who sit TX-UK in June, September or December 2021 or March 2022 The second part of a two-part article deals with the most difficult aspects of lifetime transfers, calculating the value of a person`s estate and paying inheritance tax. It also includes an example of a standard exam question as well as a test of your comprehension. Tax Implications of Motor Vehicle Financial Regulation relevant to TX-MYS A look at company vehicles and explains how they are used – rather than their model – distinguishes them as commercial or non-commercial vehicles. This article discusses the tax implications of this principle using a case study scenario. He has a taxable income of £8,000 for the 2019-2020 tax year. Nook has made full use of its £2,000 dividend zero rate range, but Nigel`s zero rate range is untapped.

Transferring enough investment to Nigel to receive £1,800 of the dividend income will therefore save an income tax of £585 (£1,800 to 32.5%) for 2019-2020. . . . .

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