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Do you pay tax on assets or cash you inherit?

11/10/2017 – As a general rule, inheritance tax (IHT) is collected from a person’s estate when they die and can also be payable during a person’s lifetime on certain trusts and gifts. There is normally no tax to be paid if the value of the estate is below the IHT nil rate threshold of £325,000. There is also a new IHT main residence nil-rate band … More...

Tax implications on divorce or separation

11/10/2017 – When a couple is separating or divorced it is unlikely that they are thinking about the tax implications. However, as the dust begins to settle it is important that the tax consequences of the break-up are given proper consideration. Whilst income tax does not automatically cause an issue for separating couples, as it is an individually … More...

Land Registry property alert service

11/10/2017 – HM Land Registry's property alert service is a free (for up to 10 registered properties) service to help protect property from fraud. The counter-fraud security measure was introduced by the Land Registry to monitor registered properties, where there is a concern that it might be subject to a fraudulent sale or mortgage. The property … More...

Check your National Insurance record online

11/10/2017 – HMRC offers an online service to check your National Insurance record online. In order to use the service, you will need to have a Government Gateway account. If you don’t have an account, you can apply to set one up online. By signing in to the 'Check your National Insurance record' service you will also activate your personal tax … More...

Employing someone to work in your home

11/10/2017 – When you employ someone to work in your home, it is your responsibility to meet their employee's rights and deduct the correct amount of tax from their salary. This can include domestic staff such as a nanny, housekeeper, gardener or carer. The rules are different if the person is self-employed or paid through an agency. If you employ … More...

Capital allowances when you sell an asset

11/10/2017 – Capital allowances is the term used to describe the tax relief businesses can claim on certain capital expenditure and thereby reduce the amount of their taxable profits. Most ‘capital’ items, such as equipment, vehicles, machinery etc, last for a reasonably long time and the tax rules do not allow you to automatically deduct the full … More...

Christmas party and other social events

04/10/2017 – In a recent newsletter we looked at the tax implications of giving Christmas gifts to your staff and the complications that can arise. In this newsletter, we will take a look at the tax breaks available for staff Christmas party or similar annual events. In general, the cost of a staff party or other annual entertainment is allowed as a … More...

Landlords’ finance charges restrictions

04/10/2017 – The government’s move to restrict the tax relief landlords receive on finance charges started to take effect from April this year. This is the first year that finance charges are being restricted. The tax relief on mortgage costs used to buy investment properties is gradually being restricted to the basic rate of tax. Landlords of … More...

Self-Assessment e-filing deadline

04/10/2017 – As existing Self-Assessment tax filers will be aware, the deadline for online submission of your 2016-17 Self-Assessment tax return is 31 January 2018. This is also the date that the payment is due for the balance of any Self-Assessment liability for 2016-17, and the due date for any payment on account due for the current 2017-18 tax … More...

Benefits and limitations of the VAT Flat Rate Scheme

04/10/2017 – The VAT Flat Rate scheme (FRS) has been designed to simplify the way a business accounts for VAT, and in so doing, reduces the administration costs of complying with the VAT legislation. Using the FRS, you simply pay VAT as a fixed percentage of your VAT inclusive turnover. The actual percentage you use depends on your type of business. … More...

Self-employed - claim rate per mile for use of car

04/10/2017 – There are simplified arrangements in place for the self-employed (and some partnerships) to claim a fixed rate deduction for certain expenses where there is a mix of business and private use. The simplified expenses regime is not available to limited companies or business partnerships involving a limited company. The simplified expenses … More...

Tax on foreign income

04/10/2017 – Income Tax is generally payable on taxable income received by individuals in the UK, including earnings from employment, earnings from self-employment, pensions income, interest on most savings, dividend income, rental income and trust income. However, if you are resident in the UK you will also need to pay UK Income Tax on your foreign … More...

How to make the most of tax losses

28/09/2017 – There are a number of tax reliefs available for self-employed taxpayers that make a loss carrying on their trade, profession or vocation (collectively referred to as a ‘trade’) and for their share of partnership losses. For the 2016-17 tax year, trade losses can be relieved in a number of ways. These include: By using the loss to … More...

How to pay self-assessment tax by adjusting your tax code

28/09/2017 – One of the less well-known ways of paying your self-assessment tax bill is to do so through your tax code. This can only be done where all the following apply: you owe a self-assessment balancing payment of less than £3,000; you are an employee or receive a company pension; you have for the 2016-17 tax year submitted a paper tax … More...

Expenses and benefits: Christmas gifts

28/09/2017 – It is established practice that Christmas presents paid in cash to employees are almost invariably taxable as earnings. This view has been upheld by the courts on many occasions and can mean that a gift from a well-intentioned employer is worth less than the giver or the recipient expected. An alternative to a cash gift may be to give … More...

VAT returns – correcting mistakes

28/09/2017 – There are special rules for correcting errors on VAT returns. The relevant rules depend on whether you need to: Amend your VAT records if you discover they contain errors; Correct errors on VAT returns you’ve already sent to HMRC; Claim a refund if you’ve overpaid VAT, or not claimed enough credit on a return. When you find you have … More...

CGT annual tax-free allowances

28/09/2017 – There is an annual Capital Gains Tax (CGT) exemption for individuals (who live in the UK) as well as executors or personal representatives of a deceased person’s estate. The exemption is £11,300 for the 2017-18 tax year. A husband and wife each have a separate exemption. Most trusts have an annual exemption of £5,650. However, where the … More...

What’s included in the charge to Stamp Duty Land Tax?

28/09/2017 – There have been many changes to the way stamp duty land tax (SDLT) and equivalent regional taxes are charged in recent years. This has included changes to the way in which SDLT is calculated for residential property purchases from 4 December 2014. They include a move away from SDLT being charged on a slab basis - where a single rate … More...

Tax Diary October/November 2017

25/09/2017 – 1 October 2017 - Due date for Corporation Tax due for the year ended 31 December 2016. 19 October 2017 - PAYE and NIC deductions due for month ended 5 October 2017. (If you pay your tax electronically the due date is 22 October 2017.) 19 October 2017 - Filing deadline for the CIS300 monthly return for the month ended 5 October 2017. … More...

Pension money purchase allowance reduction 2017-18

21/09/2017 – One of the measures announced in the March 2017 Budget was the reduction in the annual Money Purchase Allowance (MPAA) from £10,000 to £4,000. This measure was subsequently dropped from the pre-election Finance Bill, but as expected, has now been included in the second Finance Bill of 2017 published earlier this month. Once the second … More...

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