Class 2 NIC for the tax year 2014/15 is charged at the rate of £2.75 per week. It is possible for those with earnings below the small earnings limit of £5,885 (for 2014/15), to apply for the small earnings exception using form CF10.

Some taxpayers are both employed and also self-employed and so will have a PAYE code. From April 2014, HMRC can collect outstanding Class 2 NIC by adjusting the PAYE tax code.  If a Class 2 National Insurance contributions debt is being collected through a tax code, HMRC will have written to the taxpayer earlier in the year requesting payment. If you do not want your Class 2 National Insurance contributions debt to be included in your tax code, then you will need to pay the amount due in full.

Many traders offer a discount for prompt payment. Under current UK VAT rules, output tax is accounted for on the discounted price, whether or not the customer takes advantage of the discount.
Legislation in Finance Bill 2014 proposes to amend the UK VAT legislation on prompt payment discounts so that it is aligned with EU legislation, taking effect from 1 April 2015. The amendment will ensure VAT is accounted for on the full consideration paid for goods and services where prompt payment discounts are offered, irrespective of whether or not the discount is taken up.  This change will have a significant impact on invoicing, and credit notes may have to be issued to customers taking up the discount.

Although the start date is planned for 1 April 2015, HMRC have the power to bring the change in before that date for such supplies as may be specified.

As previously announced, it has been proposed that from 6 April 2015 CGT will be charged on non-residents who make disposals of UK residential properties. HMRC have issued a consultation document to consider how the charge can be implemented and the tax collected.
Part of the proposal may also affect UK residents who own more than one residential property. Currently, where a taxpayer has more than one residence, it is possible to elect which of those properties is to be treated as their principal residence so that private residence relief (PRR) will apply to the gain on the elected property.

To prevent non-UK residents from electing their UK residence as their PRR, it is proposed that the current election system is removed and replaced with the requirement that the taxpayer demonstrates the main residence they have occupied during the year.  If implemented, this proposal could have a serious impact on a number of individuals, such as MPs and others who keep a flat in London which is occupied during the working week and another residence in the country for the weekend and where the rest of the family live during  the week.

Many mortgage lenders are now requesting a copy of the official HMRC tax calculation (SA302) as confirmation of income for mortgage applicants; Previously, they would have accepted income confirmation by the borrower’s accountant.

There is thus a conflict between planning to minimise income for tax purposes and declaring a higher level of income to support a mortgage application.
A further problem is that the SA302 HMRC calculation cannot be downloaded from the HMRC website when third party software has been used to submit tax returns, and copies are not routinely sent out by HMRC. To obtain a SA302 calculation you are required to phone HMRC and ask for the form  to be sent out by post.  This usually takes about 14 days.

The accountancy bodies are calling for  HMRC to allow accountants to download and print off the SA302 for their clients to support their mortgage applications.

In the first week of April 2014 HMRC issued guidance on its latest tax gathering campaign. The target group this time is UK taxpayers who have second incomes and are not presently declaring these income streams on their tax return.

The information published by HMRC about the scope of the campaign is reproduced below:

About the Second Incomes Campaign

Introduction

The Second Incomes Campaign is an opportunity for individuals to bring their tax affairs up to date if they have additional income that is not taxed through their main job or another Pay As You Earn (PAYE) scheme. People with undeclared income can get up to date with their tax affairs in a simple, straightforward way and take advantage of the best possible terms. If you owe tax on your income you must tell HMRC about any unpaid tax now. You will then have 4 months to calculate and pay what you owe.

The scope of the Second Incomes Campaign

The Second Incomes Campaign is an opportunity open to individuals in employment who have an additional untaxed source of income.

Examples could include:

• fees from consultancy or other services such as public speaking or providing training
• payment for organising parties and events or providing entertainment
• income from activities such as taxi driving, hairdressing, providing fitness training or landscape gardening
• profits from spare time activities such as making and selling craft items
• profits from buying and selling goods, for example regular market stalls, boot sales etc

Taxpayers who take advantage of this scheme should benefit from lower penalty charges in order to bring their tax affairs up-to-date.