Landlords Kept up to Date in the Wake of the Budget

Gwent Landlord Forum

The South Wales Argus covers the upcoming Gwent Landlord Forum.

Landlords from across Gwent and South East Wales will be updated at the next Gwent Landlord Forum on recent changes to the upcoming budget from the Chancellor of the Exchequer as well as the legislation on the private rented sector.

The next forum will take place on Tuesday 28th November at the Parkway Hotel in Llantarnam, Cwmbran from 6-8pm.

The free event, sponsored by Cwmbran-based Rubin Lewis O’Brien and Green & Co Accountants and Tax Advisors, will see two guest speakers updating local landlords on issues concerning legislation that covers the rights of both tenants and those with properties in the buy-to-let market.

The first speaker will be Douglas Haig, Chairman for Wales and Vice-Chairman for the Residential Landlord Association (RLA). Mr Haig will be covering the ever-evolving regulations and law that govern landlords and their responsibilities, the rights of tenants, and the role local authorities can play in the process.

The second talk will be delivered by Tax Senior at Green & Co, Leanne Flanagan. With Philip Hammond’s budget announcement coming on Wednesday, there should be plenty to discuss when it comes to landlords, the buy-to-let market and the tax efficient structures available to those with a property portfolio.

Ed Gooderham, Director of Green & Co Accountants and Tax Advisors said:

“We would like to welcome all landlords to our last forum of 2017. The series of events have always proved popular, especially when covering topical events such as the next. The budget is sure to be full of interesting information.”

Managing Partner at Rubin Lewis O’Brien, Sam George, said:

“Douglas Haig spoke at our very first event back in 2014, and Leanne has spoken previously on changes in the way the industry is governed from a taxation perspective. We welcome all landlords, as well as those interested in residential property, to visit us on the 28th November.”

The next Gwent Landlord Forum will take place at the Parkway Hotel in Cwmbran on Tuesday 28th November from 6-8pm.

For more information, please contact Green & Co Accountants and Tax Advisors. Alternatively, landlords and those with an interest in the buy-to-let market, can follow @GwentLandlord on Twitter.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Autumn Budget 2017: What you need to know

Autumn Budget Summary - Green & Co

Yesterday, the Chancellor announced his second Budget of 2017. Among the key changes to note for this year are:

  • The personal allowance will rise to £11,850 and the higher rate tax threshold for the UK will rise to £46,350 for 2018/19.
  • Automatic enrolment pension minimum contributions increase significantly from 6 April 2018. Employer’s minimum contribution will increase from 1% to 2% with the total minimum contribution increasing to 5% (including 3% staff contribution).
  • The inheritance tax residence nil rate band rises to £125,000 from 6 April 2018.
  • Half of any interest tax relief for personal buy-to-let borrowing will be limited to a 20% tax credit from 2018/19.
  • The VAT threshold will be frozen at £85,000 until March 2020.
  • The diesel supplement for company cars will be increased from 3% to 4% from April 2018.
  • The First time buyers of residential property outside Scotland will pay no stamp duty land tax on the first £300,000 of the purchase price for a home, provided its value does not exceed £500,000.

Download our budget summary to see the rest of the changes announced by Mr Hammond.

If you have any questions about the summary’s contents or how any aspects of your tax and financial planning may be affected by the Budget, please contact us to discuss them.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Insight into Foresight

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Budgeting is an essential tool used to monitor a business. It allows business owners to monitor what the business is actually doing, compared to what it wants to do. This seems a rather straight forward concept to understand, but it can often be met with scepticism when it comes to setting a budget. The “trying to predict the future” concept is inevitably an impossible task and is probably why most business owners feel it is a wasted exercise. This is a common misconception, as budgets need not be exact, but merely indicative.

The idea behind setting budgets is to help carve out a path to follow in the coming year. It allows you to think about where you want to take the business and how you are going to achieve it. Once these questions are answered, the budget simply shows you what the expected financial results would look like. Over the year, you can identify whether the business is following that predetermined path you carved out, or whether it is straying off and needing to be reined in.

Thinking about your business in this way is immensely productive. It will often identify opportunities and threats currently present and force you to think proactively to try and capitalise on the opportunities and manage the dangers.

In today’s economic climate, uncertainty is increasing, which makes the budgeting process more complex. However, here at Green & Co we pride ourselves in helping clients achieve their goals. With our insight into budgeting techniques, we can help you carve out that path for your business.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Proposed NIC rise has been dropped!

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As mentioned in the recent Budget, the Chancellor had intended to increase the Class 4 National Insurance Contributions (NIC). The NI rate for the self-employed (Class 4) was meant to increase from 9% to 10% in April 2018, followed by another rise to 11% in April 2019. This would have brought NIC for the self-employed more in line with the employment rate, which is currently 12%.

Today, however, the Chancellor Philip Hammond has made a complete u-turn, announcing that the government will scrap the increase. This action has been taken because many feel the change would break the manifesto promise not to increase National Insurance, Income Tax or VAT.

Chancellor Hammond has explained that “it is very important both to me and to the Prime Minister that we are compliant not just with the letter, but also the spirit of the commitments that were made. In the light of what has emerged as a clear view among colleagues and a significant section of the public, I have decided not to proceed with the Class 4 NIC measure set out in the Budget.”

This means that the 4.8 million Britons who are currently self-employed  can rest assured that, for now, the Class 4 NIC rate will stay at 9%.

If you have any questions regarding this change, or any of the other changes announced in the Spring Budget, please don’t hesitate to contact us.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

 

Business groups set out Spring Budget priorities

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Business groups have outlined their priorities for businesses and the economy ahead of the 2017 Spring Budget. 

In a letter to Chancellor Philip Hammond, the Confederation of British Industry (CBI) called on the government to ‘back business’s growth ambitions’ to help build prosperity across the UK, and to work alongside firms to ‘prioritise stability’ during periods of economic uncertainty.

The CBI also urged the government to tackle the UK’s ‘outdated’ business rates regime and limit its ‘growing burden’ on businesses.

Echoing the call of the CBI, the British Chambers of Commerce (BCC) also recommended that the government take action on ‘delivering real reform’ to the business rates system. It called for HMRC to abandon the ‘fiscal neutrality principle’ in business rates reform, suggesting that this acts as an ‘unacceptable barrier’ to the revision of the system.

In its submission, the BCC outlined its desire for the government to bring forward the switch from the Retail Price Index (RPI) to the Consumer Prices Index (CPI) to April 2017, instead of during 2020, as is currently planned.

Meanwhile, the Federation of Small Businesses (FSB) has advocated for a ‘pro-business’ Budget that supports self-employed individuals, urging the government to help more people start up in business. It also called for the government to ‘improve job creation and drive productivity across the nations and regions of the UK’.

In a radical move, the Institute of Directors (IoD) has claimed that the UK tax system is ‘not keeping up with the growth of self-employment and the digital economy’, and has called for the Chancellor to create a new Tax Commission when he presents his Budget. The IoD argues that the new Commission should investigate how tax applied to the self-employed could be brought into line with employees, and how online stores could be taxed fairly in relation to high street shops.

The Institute has also called for an increase in the Annual Investment Allowance (AIA) cap from £200,000 to £1 million and a consultation on ‘liberalising’ investment schemes for business start-ups.

The Chancellor will present the 2017 Spring Budget on Wednesday 8 March. Full coverage of the key announcements will be available on our website, so please visit regularly. 

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Gwent Landlord Forum – 29 March 2017

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After our first very successful event of the year held in January, we are now well into 2017 and preparing to welcome our Landlords to our next FREE forum on Wednesday 29th March between 6pm and 8pm at The Parkway Hotel and Spa.

We are continuing to provide a broad range of speakers who can shed a light on important matters which might help you make up your minds as to your future as a property investor. As always, our invitation goes out to all who may be interested so if you know someone who is a landlord or thinking about becoming a landlord, please do pass this invitation on to them – we are always happy to welcome new guests.

Speakers:

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Leanne Flanagan, Tax Senior with Green & Co Accountants will be talking about:

  • The final March Budget taking place on 8 March and how the changes announced will affect you as landlords.

Damian Lines, Head of Wills, Trusts and Probate with Rubin Lewis O’Brien Solicitors will be speaking about:

  • All aspects of Estate Planning as part of the important area of Preparing for the Future.

Stephanie Taylor of HMO Heaven will be covering:

  • Her insider secrets on HMOs. Is now the right time to invest?
  • The 5 easy steps to massively increase the rental income on your buy-to-let properties.
  • Real life case studies demonstrating how you can double your rental income.
  • How to enjoy fantastic property cashflow in Newport without any hassle.

Eventbrite - Gwent Landlord Forum

For any enquiries about this event, please contact Katie Williams at Green & Co on 01633 871122, Email: katie@greenandco.com.

HMRC clamping down on offshore tax evaders

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On 5th September, HMRC opened its Worldwide Disclosure Facility (WDF). The WDF was initially announced in the Budget 2015, and allows those with outstanding tax to pay to put their affairs in order and will offer no special terms.

HMRC has been clear that that not paying tax by failing to disclose your offshore income and investments is illegal. In 2014-15 HMRC brought in over £26 billion from tackling tax evasion and avoidance, and has raised more than £2.5 billion from offshore evasion initiatives since 2010.

Those who chose to ignore the new disclosure facility and who do not come forward and pay the outstanding taxes from offshore investments and accounts, could face penalties of up to twice the tax they try to evade, and increase the risk of potential criminal charges.

HMRC will be even better able to target evaders from October 2016, when it starts to receive an unprecedented amount of data on those with offshore accounts in the Crown Dependencies and Overseas Territories – one year ahead of even more data coming in from across the globe, when the Common Reporting Standard comes into force.

If this affects you, or to find out more, visit HMRC.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Newsletter Summer 2016

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With Summer fast approaching, its time for our Summer 2016 edition of the newsletter, this time featuring:

  • Highlights from the 2016 Budget
  • All change for ISAs – new tax-free ways to save
  • The rules governing holiday and pay
  • Business Round-Up
  • Web Watch
  • Reminders for your Summer Diary
  • And much more

Click here to read the full newsletter.

Ed Gooderham’s thoughts on the Budget

Ed Gooderham, partner at Green & Co, tweeted along live with George Osborne’s Budget announcements. Catch up with his thoughts here…

If you have any questions on any of the above or about the Budget in general, please don’t hesitate to contact us on 01633 871122