HMRC has urged 700,000 couples to claim the Marriage Allowance in order to save tax. Introduced in April 2015, the Marriage Allowance enables spouses to transfer a fixed amount of their personal allowance (PA) to their partner. The option is available to couples where neither pays tax at the higher or additional rate. If eligible, … Continue reading HMRC Urges Couples to Claim Marriage Allowance
Entrepreneurs’ Relief (ER) is a valuable tax relief for individuals seeking to dispose of their business. It can give access to a 10% rate of capital gains tax (CGT), subject to a £10 million lifetime limit. ER is potentially available to company shareholders, trustees, and owners of, or partners in, unincorporated businesses. However, important new … Continue reading Disposing of a Business? Make Sure to Claim Reliefs
According to data published by the government, its Tax-Free Childcare (TFC) scheme 'has not had the uptake expected', with only 22% of eligible families making use of it. Official figures have suggested that the government had planned and budgeted for 415,000 families to be using the TFC scheme by October 2017. However, the data has … Continue reading Data Reveals Parents ‘Failing to Make Use of Tax-Free Childcare’
The government has launched a consultation, outlining its proposal to introduce a tax on plastic packaging with less than 30% recycled content. The 'plastic packaging tax' was announced in the 2018 Autumn Budget and is set to be introduced in 2022. The tax will be UK-wide, and the government has stated that it is 'committed … Continue reading Government Launches Consultation on ‘Plastic Packaging Tax’
The start of the new tax year brought significant changes to legislation. It is also P11D season: these need to be completed soon. Increasing minimum wage From April 2019, the National Minimum Wage (NMW) and the National Living Wage (NLW) rates increased. From 1 April 2019, the hourly rates of pay are as follows: Age … Continue reading New Tax Year, New Tax Rules: Are You Up-To-Date?
The 2018 Autumn Budget announced changes to the ‘off-payroll’ working (or ‘IR35’) rules, which are set to apply from April 2020. This may affect you if you work on a contract through a personal service company (PSC) in the private sector, or hire or place such workers. Similar rules already apply in the public sector. … Continue reading New Rules for Personal Service Companies
Landlords have been subject to a number of significant tax changes in recent times, including restrictions in the allowability of finance costs for tax purposes, which are being phased in between 2017/18 and 2020/21. With this in mind, many are contemplating the potential advantages of furnished holiday lettings (FHLs). Here we outline some key areas … Continue reading Furnished Holiday Lettings – a Tax-Free Alternative?
In the 2018 Autumn Budget, Chancellor Philip Hammond announced a new capital allowance, the Structures and Buildings Allowance (SBA). The new SBA gives relief for expenditure on certain structures and buildings. Since the abolition of the Industrial and Agricultural Buildings Allowances, no relief has been available for most structures and buildings. The SBA addresses the … Continue reading The New Structures and Buildings Allowance
Entrepreneurs’ Relief (ER) is available to taxpayers on the disposal of the whole or part of their business. ER means that you pay capital gains tax (CGT) at a rate of 10% rather than 20%, subject to a lifetime limit of £10 million. Following the 2018 Autumn Budget, new conditions have been introduced to ensure … Continue reading Entrepreneurs’ Relief: An Update
With the end of the 2018/19 tax year fast approaching, now is a good time to review your finances to ensure you are making full use of the available allowances and minimising your tax liability. Personal planning Maximising the personal allowance The basic income tax personal allowance (PA) for an individual is set at £11,850 … Continue reading Top Tax Planning Tips for the Year End