Alan Sugar under fire following claims to be UK non-resident

Sir Alan Sugar, entrepreneur and the star of The Apprentice, has found himself under media scrutiny over his tax affairs after apparently attempting to declare himself a UK non-resident for tax reasons.

The Sunday Times (10 September) carried a report on Sir Alan’s tax affairs following a dividend award of £390 million, one of the largest in UK corporate history, in the 2021-22 tax year. The report suggests he attempted to declare himself a UK-non-resident to allegedly avoid a hefty tax bill.

But what does it mean to be UK non-resident, and how does residency differ from domicile? Can being UK non-resident really limit the amount of tax an individual pays?

The future of Employee Ownership Trusts?

In July, the Government launched a consultation on the structure and taxation of Employee Ownership Trusts (EOTs). It will close on 25 September. But what is the Government proposing and what might it mean for the future of EOTs?

EOTs were first introduced in 2014 designed to promote employee ownership of a business. Business owners can, with attractive tax advantages, sell their business or shares in the business to a trust owned by its employees.

Companies are required to send a return of their share or share scheme activity (involving employees or directors) to HMRC for each tax year, the deadline being 6 July. Penalties (initially at £100 per return) are charged where returns are submitted later than this. This year, HMRC have incorrectly issued penalties to some companies, even where they were submitted well before the deadline.

Payroll frequency – your options and how to change

In this article our HR and payroll teams look at the frequency of payroll – is it best run weekly, 4 weekly, or monthly, and what do most employers do, and is it difficult to change an established pay frequency e.g. moving from weekly to monthly pay?

First JCHR’s payroll chief Nick Butler, looks at the options, and HR’s Bill Larke will pick up on how to change from weekly to monthly pay.

JCHR’s payroll team look after 800 payrolls, amounting to over £2billon in pay every year, and mostly we’re asked to provide weekly or monthly pay, with monthly being the most common. We also get the occasional request to process a 4-weekly (lunar) payroll.

Contact Us

James Cowper Kreston is a leading firm of accountants and business advisers, with offices across the South of England. We deliver focused, innovative advice to a diverse range of businesses and individuals helping our clients to maximise their potential.

If you would like to discuss any of the topics raised within this newsletter please email us on info@jamescowperkreston.co.uk or call us on 01635 35255.

James Cowper Kreston

The information in this newsletter must not be relied on as giving sufficient advice in any specific case.

The future of Employee Ownership Trusts?

HMRC issues penalties for share scheme returns in error