Lexefiscal

Lexefiscal LEXeFISCAL, based in Mayfair, London, is a tax law firm providing legal and fiscal advice to individ

LEXeFISCAL is a firm of International, Domestic Tax and Legal Attorneys. LEXeFISCAL has experience of businesses with a strong focus on tax minimisation, Corporate Law and extensive experience at setting strategies for businesses that have potential to achieve their goals. Having a win-win philosophy we work side by side with our client to ensure the results we set together. We listen to you and a

lways have in focus what you want to achieve. LEXeFISCAL specifically provides: Private and Corporate Taxation Consultancy ◦ Arbitration ◦ Trust, Wills and Estate planning ◦ Mergers and acquisitions ◦ Full accountancy services. At LEXeFISCAL you can benefit from: 75 years combined experience ◦ International Networking ◦ Taxation Expertise ◦ Corporate Legal Support ◦ Domestic and international partners ◦Thinking “outside the Box”. If you would like to find out more please visit www.lexefiscal.com

R&D claims submitted on or after 1 August 2023, will require further details about the projects to be submitted using an...
11/05/2023

R&D claims submitted on or after 1 August 2023, will require further details about the projects to be submitted using an online additional information form.

HMRC has released details about the additional information form, which must be used for claims submitted on or after 1 August 2023. It is also possible to submit the form before 1 August 2023.

The form must be submitted before submitting the company tax return, otherwise the R&D claim will be removed from the CT return.

The form can be submitted by an agent or a representative of the company. However, it must provide details of the main senior internal R&D contact in the company who is responsible for the claim, as well as any agent involved in making the R&D claim.

Companies need to ensure that all necessary information is being captured. Relevant internal systems may need amending to identify the information in a timely fashion.

The form also requires details of qualifying expenditure (including qualifying indirect activities and information about the R&D projects undertaken). Companies with a larger number of projects can provide details about a sample of the projects. This must cover a minimum of 3 projects accounting for at least 50% of the qualifying R&D expenditure.

The guidance also sets out what should be included in the project details section. This includes matters such as the advancement in technology, the baseline in technology, the technological uncertainties and how they were overcome.

Please be aware that current reports may not contain as large a sample of R&D projects as HMRC requires, especially if the projects undertaken are of a similar nature and in relation to the same technological uncertainties. Similarly, there are likely to be challenges in allocating costs between projects. The AI form might therefore result in increased administrative costs for compliant businesses.

From 1 April 2023, expanded reporting requirements are in effect for the Trust Registration Service (TRS). HMRC has upda...
25/04/2023

From 1 April 2023, expanded reporting requirements are in effect for the Trust Registration Service (TRS). HMRC has updated its guidance on reporting a trust discrepancy to reflect money laundering regulations SI 2022/860, which came into force on 1 April 2023.

A relevant person must now ask for a trust’s proof of registration when either:
• a trustee or agent of the trust approaches them to set up a new business relationship, or;
• as part of ongoing monitoring, they are required to check the details of trusts with which they have an existing business relationship.
Only material discrepancies need to be reported; this does not include small spelling errors or slight differences in the trust name provided that the trust is identifiable from the trust name on the TRS.

If you have any questions regarding the changes to reporting requirements for Trust Registration Services or how it may affect your existing Trusts, please do not hesitate to get in touch with us at LEXeFISCAL.

A number of changes are coming to income tax in April 2023 that will affect taxpayers across the UK. One of the biggest ...
06/04/2023

A number of changes are coming to income tax in April 2023 that will affect taxpayers across the UK.

One of the biggest announcements made in the Autumn Statement was the lowering of the additional-rate threshold for income tax from £150,000 to £125,140.

The basic rate of income tax in England, Wales and Northern Ireland will remain unchanged at 20% in April 2023, despite previous plans to lower it to 19%.

In addition, the Chancellor announced several threshold freezes that will affect taxpayers in England, Wales and Northern Ireland over the coming years:

the personal allowance threshold at £12,570

the higher-rate threshold at £50,270.

We recommend you to carefully review your income streams and, if possible, consider options for their restructuring. If you have any enquiries or struggle with any issues, do not hesitate to contact us

HMRC has issued new guidance on the Economic Crime Levy (ECL), an annual charge on entities who are supervised under the...
16/03/2023

HMRC has issued new guidance on the Economic Crime Levy (ECL), an annual charge on entities who are supervised under the Money Laundering Regulations and whose UK revenue exceeds £10.2 million per year.

Businesses supervised for anti-money laundering purposes by HMRC or the CIOT/ATT will be required to register online with HMRC, and submit returns and pay any levy due by 30 September following the end of the financial year. The first payments will be due by 30 September 2023 (for the financial year 1 April 2022 to 31 March 2023).

We recommend you to carefully review your records to prepare the reports. If you have any enquiries or struggle with any issues, do not hesitate to contact us

The first late-payment penalty for income tax due by the 31 January 2023 self-assessment deadline will be levied on amou...
02/03/2023

The first late-payment penalty for income tax due by the 31 January 2023 self-assessment deadline will be levied on amounts of tax still outstanding on 3 March.
For example, an individual files their return online by 31 January and pays £9,000 of the £10,000 they owe in tax, leaving £1,000 unpaid. If the £1,000 is still outstanding on 3 March, they will be liable to a penalty of £50 (5% of £1,000). Further 5% penalties apply based on tax outstanding after six and 12 months.
Daily interest on late-paid tax runs from the due date until the date on which payment is made – currently at HMRC’s 6.5% late-paid interest rate – meaning that interest will apply even if the outstanding tax is paid before the 3 March penalty date.

National insurance contributions (NICs) are typically made by employed and self-employed individuals based on their earn...
22/02/2023

National insurance contributions (NICs) are typically made by employed and self-employed individuals based on their earnings. If individuals have not contributed enough prior to reaching state pension age, they may not be able to claim state pension, or receive the full state pension amount. To protect state pension and other benefits it may be beneficial for people to make voluntary national insurance (NI) contributions to top up their contribution history.
Currently, individuals can fill gaps in their NICs history from 6 April 2006 to the present date by making voluntary contributions.
However, from 6 April 2023, the timeframe for making voluntary contributions will revert to the normal six years. This means that in the 2023/24 tax year, it will be possible to make contributions going back to the 2017/18 tax year only.
Those planning to claim the UK state pension should therefore take the opportunity to check their NI record before 5 April 2023 to identify any shortfalls in their NI history.
If you have any questions regarding your NI record and want to examine how things will change for you, do not hesitate to contact us

Forthcoming Research and Development (R&D) tax relief reforms by the UK government are unlikely to succeed in preventing...
15/02/2023

Forthcoming Research and Development (R&D) tax relief reforms by the UK government are unlikely to succeed in preventing spurious claims, a parliamentary inquiry has found. The last report is critical of fresh compliance changes for R&D tax relief, arguing that they lack focus and would be ineffective “in isolation”.

Based on this report, the following reforms are proposed, which may soon be adopted:
1) Among the reforms are the requirements to provide more detail regarding R&D tax relief claims, name any tax adviser involved, and have the claim endorsed by a senior officer of the company.
2) The way the system works at the moment is HMRC first pays out and then investigates afterwards. This can be changed by paying after review from HMRC.
3) The report is also critical of the government’s proposal to refocus relief activity to expenditure in the UK rather than offshore. Instead, the sub-committee argues for a form of “transitional relief expenditure” for specialised resources not currently available in the UK.

If you use R&D tax relief, we recommend that you carefully review R&D tax incentives and your tax records before the next Financial Bill. If you have any enquiries or struggle with any issues, do not hesitate to contact us

HMRC has published the following new guidance on penalty charge for not registering or maintaining trust details:• When ...
02/02/2023

HMRC has published the following new guidance on penalty charge for not registering or maintaining trust details:

• When HMRC will issue a penalty charge for not registering or maintaining a trust – explains about when and what penalties HMRC may charge if a trustee fails to register or to maintain details of a trust.
• Pay a penalty charge for not registering or maintaining a trust – explains how to pay a penalty charge for failure to register a trust and keep a trust’s details up to date.
• Ask for a review or appeal against a trust penalty charge – explains the process for asking a review of a penalty charge (£5,000) for not registering or maintaining a trust, or appeal against a penalty decision.

HMRC has also updated its guidance on paying taxes, penalties or enquiry settlements to add a link to the payment method for Trust Registration Service penalty charges.

If you struggle with the registration or think that you can be affected by any of the above, do not hesitate to contact us

HMRC has officially announced that Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) has been postponed by ...
19/01/2023

HMRC has officially announced that Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) has been postponed by two years.

The postponement of MTD for ITSA means that the mandatory use of software is being phased in from April 2026, rather than April 2024.

From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be required to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software.

MTD for ITSA will apply to individuals’ annual income of more than £10,000.

Your employee is working abroad? Check applicable PE criteria!Employees’ choice to work in jurisdictions where the busin...
13/01/2023

Your employee is working abroad? Check applicable PE criteria!

Employees’ choice to work in jurisdictions where the business entity does not have a business presence may trigger existence of a permanent establishment (PE) in that country. It means that a business might be liable to tax there.

Businesses should carefully consider different circumstances relating to remote workers and “digital nomads” when assessing the risk of a PE. These circumstances include a duration of stay abroad, an individual choosing to work from a home office abroad, whether temporary accommodation can create a PE, or where several employees choose to work from the same country at the same or different times during a tax year and others.

If you think you can be affected, do not hesitate to contact us. Looking forward to our meeting.

The UAE Cabinet of Ministers issued Decision No. 85 of for 2022 which provides a new domestic definition and criteria fo...
08/12/2022

The UAE Cabinet of Ministers issued Decision No. 85 of for 2022 which provides a new domestic definition and criteria for when an individual or a legal entity are considered a Tax Resident of the UAE. The definition applies for the purposes of any UAE tax law or Double Tax Treaty.

The effective date of the new rules is 1 March 2023.
The domestic Tax Resident definition is aligned to internationally recognised standards and gives additional clarity to individuals and legal entities in respect of their UAE tax residency position.

In response to the EU’s concerns, the Hong Kong government has indicated its commitment to amend its foreign-source inco...
30/11/2022

In response to the EU’s concerns, the Hong Kong government has indicated its commitment to amend its foreign-source income exemption regime. It is planned to bring the changes into effect from 1 January 2023. Thereafter offshore passive income may be taxed in Hong Kong.

The income will be taxed if
• it is received by a constituent entity, and
• such entity fails to meet the economic substance requirements (for non-IP passive income), the nexus approach (for IP income) or the participation exemption (for dividends and equity disposal gains).
If your tax structuring involves Hong Kong entity it is highly recommended to check if there are any options to mitigate tax risks.

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