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Taxation & Payroll

Major changes to the taxation of buying property in Scotland

Increasing numbers of North East businesses are acquiring property in Scotland as part of their expansion into areas such as Aberdeen, Edinburgh and Glasgow. However, recent announced changes will impact upon property acquisitions completed after 1 … [Read More...]

Charities Beware of Over Egging the Pudding

The Serpentine Trust is a registered charity that ran an art gallery and operated schemes whereby the supporters could make annual payments to assist them. To make the opportunity more appealing, the contributors received various benefits such as invitations to events, priority booking for events and complimentary exhibition catalogues. HMRC considered that the sums paid by the supporters were consideration for the standard-rated supply of the benefits. The Serpentine Trust appealed, contending that the gifts were de minimis, meaning that they were not provided ‘for’ the payments; they should be apportioned between the part that was attributable to the benefits (the consideration) and the part that was in excess (a donation). The tribunal found that the benefits had real value, which was likely to exceed the cost of providing them. There was a single supply to the supporter to partake in exclusive events and receive offers from the Serpentine Trust. That supply was entirely … [Read More...]

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The National Minimum Wage increases on Wednesday 1st October

From 1 October 2014, the rate of National Minimum Wage (NMW) for employees will rise as follows: Aged 21 and over – from £6.31 to £6.50 per hour Apprentices under 19 and those aged 19+ in the first year of their apprenticeship – from £2.68 to £2.73 per hour Aged 18 to 20 – from £5.03 to £5.13 per hour Aged 16 and 17 – from £3.72 to £3.79 per hour Employers who fail to pay the NMW could face a fine of £200 for each underpaid employee. The Department of Trade and Industry also states that employers who continue to ignore their responsibility to pay NMW within seven days of an enforcement notice could also face prosecution. This could result in a criminal record and a £5,000 fine – however the maximum penalty can be up to £20,000 per worker. Dismissing a worker due to their eligibility for the NMW will count as unfair dismissal. Workers do not have to serve any qualifying period in order to gain protection against this form of unfair dismissal. Additionally, the … [Read More...]

Taxation & Payroll

Major changes to the taxation of buying property in Scotland

Increasing numbers of North East businesses are acquiring property in Scotland as part of their expansion into areas such as Aberdeen, Edinburgh and Glasgow. However, recent announced changes will impact upon property acquisitions completed after 1 April 2015. For some, the new Land and Buildings Transaction Tax may increase the tax payable on acquisition and for others the new regime may reduce taxes. North East based purchasers of property in Scotland should consider whether they will be affected and may wish to seek to accelerate or delay purchases accordingly. Angel Haig of our MHA affiliate firm Henderson Loggie has summarised below the major changes. The first of the devolved taxes, land and buildings transaction tax (LBTT) comes into force on April 1 2015, replacing stamp duty land tax (SDLT) in relation to transactions involving land in Scotland. LBTT is similar to SDLT in many ways, however, where SDLT is a slab tax (i.e. the whole price is taxed at a fixed rate) LBTT … [Read More...]

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