Blick Rothenberg

Blick Rothenberg in the Press

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  • I want to borrow some money against my home but I'm past the state retirement age - can I still get a mortgage?


    20.05.16

    Commenting on a case study, Nimesh Shah, a partner at Blick Rothenberg LLP, said: 'In July 2013, new legislation was introduced by the Government in relation to the deductibility of debts when valuing a person’s estate for inheritance tax purposes. 

    One of the new provisions was that in order for a liability to be deductible, it had to be paid out of the estate after death, unless there is a genuine commercial reason for not doing so. HMRC generally accepts a conventional mortgage on the home would fall into the category of a genuine commercial reason and so the debt should be deductible as normal.
     
    The debt outstanding on the person’s death should be available to reduce the value of the estate which is chargeable to IHT. Therefore, taking debt, in the right circumstances, can be a useful way of reducing the person’s exposure to IHT.'

    Source: This is Money
  • Unexpected and unintended victims of increase in Stamp Duty?


    19.05.16

    A new stamp duty surcharge introduced earlier this month has affected a range of people from “accidental landlords” to parents helping their children buy a home. Following a Telegraph Money investigation earlier this month, the Government dropped a stamp duty surcharge on granny annexes. But the law is still affecting people in unexpected ways – and prevailing confusion surrounding who is and isn’t affected means they may not know about loopholes that could save them thousands of pounds.

    Commenting on a case study about families who live in employer-provided accomodation, Nimesh Shah, a partner at accountancy firm Blick Rothenberg, said: “There is an ability for you to replace your main residence and you are not affected by the 3pc charge. However, in this situation they can’t take advantage of this.  There was a very short period of consultation before it actually took effect and unfortunately it is having a series of unintended consequences.  I think we’ll see more of these types of scenarios where people are innocently caught by this additional charge.”

    Source: Central Housing Group
  • Crowdfunding entrepreneurs urged to be wary of tax implications


    19.05.16

    People using crowdfunding to invest in property should be wary of the tax consequences of raising money through this increasingly popular platform, according to London chartered accountants Blick Rothenberg LLP. With credit an increasingly scarce and expensive commodity, a growing number of individuals seeking investment funding have opted to turn to the public, in the form of crowdfunding, with a view to investing in property, among other ventures. But as a relatively new phenomenon, the UK tax legislation has not yet caught up with crowdfunding as a concept and the process involved can have "surprising outcomes", warns Robert Pullen, personal tax manager at Blick Rothenberg.

    He commented: "An individual who receives
    funding through crowdfunding platforms would be forgiven for thinking that the funding is tax-free – after all, there is no guarantee of a return for those who are pledging their money and they are not taking a stake in the project." However, where the project is a business proposal, for example, in order to manufacture phone cases the receipt of pledge money is treated for UK tax purposes as income, taxable on the project creator after deducting allowable business expenses including the platform's cut, at up to 47% for an individual or 20% for a company. As the pledge money is only released if the set funding target is met, the tax point is the receipt of the funds.

     

    Source: Property Investor Today
  • Mind the tax


    18.05.16

    It may be important for entrepreneurs to understand tax on crowdfunding. According to a recent press release from Blick Rothenberg, entrepreneurs seeking to fund their business through crowdfunding may need to be knowledgeable on tax arrangements if they are successful in their pitches. The London based chartered accounting company recommends new start-ups should seek to gain an understanding of how tax may be deducted from their crowdfunded total should they receive the funding they need.

    Source: The Positive
  • Tax pitfalls for crowdfunding participants, experts warn


    12.05.16

    Robert Pullen, personal tax manager at Blick Rothenberg, says that people who raise funding this way often think the funding is tax-free, as there is no guarantee of a return for those who are pledging their money and they are not taking a stake in the project. ‘However, where the project is a business proposal, the receipt of pledge money is treated for UK tax purposes as income, taxable on the project creator after deducting allowable business expenses including the platform's cut, at up to 47% for an individual or 20% for a company. As the pledge money is only released if the set funding target is met, the tax point is the receipt of the funds,' Pullen said. In addition, Pullen warns that because pledge money is treated as turnover, VAT may be payable on the amount received, if the project creator is a business and the turnover exceeds the VAT registration limit. Pullen said: ‘The consideration for VAT purposes is not as simple as taking the total pledge money, especially if the rewards being offered are of a token value only. If the rewards are specified and can be valued then it might be possible to ensure that VAT was only payable on their value with the balance treated as outside the scope funding. ‘However, if you only qualify for a particular reward if you pledged a certain amount then VAT could be due on the full amount even if the reward is of a much lower value than the money pledged.' A further issue is that projects launched on crowdfunding platforms typically have a set funding target but no upper maximum. In cases where a particular project gains a lot of publicity, its can see funding flow in, exceeding the original target and also the VAT limit,and increasing the potential tax consequences.

    Source: Accountancy Live (Web)
  • Successful crowdfunding entrepreneurs should be wary of tax implications, says Blick Rothenberg


    12.05.16

    Individuals seeking funding through crowdfunding platforms should be wary of the tax consequences of a successful pitch, say London Chartered Accountants Blick Rothenberg LLP. Robert Pullen, Personal Tax manager at Blick Rothenberg, says: "Credit has become an increasingly scarce and expensive commodity during and following the financial crash. Individuals looking for investment funding have therefore turned to the public, in the form of crowdfunding."As crowdfunding is a relatively new phenomenon, the UK tax legislation has not yet caught up and the process involved can have surprising outcomes." An individual who receives funding through crowdfunding platforms would be forgiven for thinking that the funding is tax-free – after all, there is no guarantee of a return for those who are pledging their money and they are not taking a stake in the project."However, where the project is a business proposal, for example, in order to manufacture phone cases (to take an example of a project that is currently available to pledge money to) the receipt of pledge money is treated for UK tax purposes as income, taxable on the project creator after reducting allowable business expenses including the platform's cut, at up to 47 per cent for an individual or 20 per cent for a company. As the pledge money is only released if the set funding target is met, the tax point is the receipt of the funds. "Not only that, but because pledge money is treated as income (or more specifically, turnover), VAT may be payable on the amount received, if the project creator is a business and the turnover exceeds the VAT registration limit, currently GBP83,000. Pullen says: "The consideration for VAT purposes is not as simple as taking the total pledge money, especially if the rewards being offered are of a token value only. If the rewards are specified (for example, a free phone case) and can be valued then it might be possible to ensure that VAT was only payable on their value with the balance treated as outside the scope funding. "However, if you only qualify for a particular reward if you pledged a certain amount then VAT could be due on the full amount even if the reward is of a much lower value than the money pledged.  "Projects launched on crowdfunding platforms typically have a set funding target but no upper maximum, and a modest target of say GBP6,000 can quickly generate upwards of GBP100,000 if it is popular. Individuals seeking funding through crowdfunding platforms must therefore be careful and keep in mind the tax consequences of a successful pitch."

     

    Source: Wealth Adviser (Web)
  • Rush to beat the additional SDLT rate


    11.05.16

    More homes changed hands in March 2016 than in any month since August 2007.  According to statistics published by HMRC there were nearly 162,000 residential property transactions in March. Paul Haywood-Schiefer, assistant tax manager at Blick Rothenberg, said the increase was the result of second-home owners and buy-to-let landlords rushing to beat the new additional 3% stamp duty land tax (SDLT) that came into force on 1 April 2016. He added: ‘The government expected the introduction of the additional rate would result in higher SDLT receipts of £30m as investors looked to beat the 1 April 2016 deadline. However, when comparing the four months to March 2016 with the same period in the previous year, receipts were £482m higher.’


    However, he expected a ‘cooling-off period in the next few months’.

    Source: Taxation
  • EU's MOSS changes could see UK companies charging French VAT


    27.04.16

    EU VAT reforms could see the UK businesses charging VAT in the country where their customers are located.

    The European Commission aims to extend the Mini One-Stop-Shop (MOSS) scheme, currently applicable to business to consumer sales of digital services only. Alan Pearce, VAT partner at Blick Rothenberg said the proposed change will be "by far the most significant change to the VAT system for UK businesses since the introduction of the tax in 1973".

    The EC also looks to extend the MOSS scheme to cover business to business sales of goods and services.  Changes such as these would according to Pearce ‘widen the scope’ to cover almost all EU consumer goods and services, meaning that suppliers will charge VAT at the rate applicable in the customer’s country, but will account for it to the tax authority in the country where the supplier is established. Pearce cites the example of a UK registered company selling to private consumers in France. Under the proposed EC changes, they will be responsible for charging French VAT but would still remit this to HMRC. "These changes are in effect the transition to a definitive system where the principles adopted under the MOSS scheme are applied to all goods and services whether supplied B2C or B2B," continued Pearce, who added that the measure will require all 28 EU tax authorities to run a ‘more expansive clearing system’ where VAT revenues charged in one EU Member State are passed from the supplier’s country to the customer’s country.

    Source: Accountancy Age (Web)
  • The new savings tax allowances could leave you out of pocket


    23.04.16

    Changes that were intended to simplify the taxation of savings interest have been branded a fiasco by Accountants. Some savers will pay hundreds of pounds in tax that they do not owe this year while millions may miss out on the best savings rates because they are unaware of a new allowance.

    The number of people affected, however, will be small. Assuming an interest rate of 1.5 per cent for easy access accounts, it is only those savers who pay tax through PAYE and who had £65,000 or more in taxable savings last year (£33,000 for higher rate taxpayers), but who now have savings below the threshold, who will be unfairly penalised.

    However, Nimesh Shah, of Blick Rothenberg, the accountant, says that the system change has not been well-organised. “The fact that banks and building societies no longer deduct basic rate tax from interest is a major change and it’s a fiasco that the public have not been better informed by the government, HMRC and even their banks, given the implications for people’s finances...”

    Source: The Times
  • UK and Europe’s plan to `hammer blow’ to tax evasion is a step in the right direction


    20.04.16

    Registries of beneficial ownership and exchange of data between EU tax authorities is a step in the right direction, but much will have to be done to ensure it has a real lasting impact, said London Chartered Accountants Blick Rothenberg LLP.

    Gary Gardner, partner and tax dispute specialist at Blick Rothenberg, said: "The UK’s new register of beneficial ownership and that of its European counterparts will require companies to disclose details such as the names of ultimate beneficiaries of corporate structures and is welcome. “But the real problem arises in checking the accuracy of disclosures and this is more of a problem for Companies House than for HMRC. As yet there have been no announcements as to whether extra resources will be provided to Companies House, or HMRC, to check disclosures and enforce compliance..."

    Source: Business Money
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