News from your Accountants in Harrogate & Leeds

Keep yourself up-to-date on the latest accountancy news and information with our useful articles.

Making Tax Digital

January 18th 2017

Under the Government’s Making Tax Digital strategy, most businesses will be required to keep track of their tax affairs digitally and to update HMRC at least quarterly. To comply with your requirements in the new digital age, you will need to keep digital tax records and record and categorise your receipts and expenses.

Averaging rules for farmers

January 18th 2017

A quick reminder about averaging rules for farmers.

Averaging allows farmers to smooth out fluctuations in their profits (and consequently in their tax bills). New rules introduced from 6 April 2016 mean that for 2016/17 and subsequent tax years, farmers will be able to choose to average profits over two years or five years. Previously, it was only possible to average profits over two years.

Tax relief for Landlords

January 18th 2017

New rules start to take effect from 6 April 2017 which restrict the amount of tax relief that landlords can claim in respect of interest and other finance costs. For 2016/17 and earlier tax years the rules are simple - you just deduct any mortgage interest and any finance costs from your rental income when working out your taxable profit.

Employees - same rules for all

January 18th 2017

The same rules now apply to tax expenses and benefits regardless of how much the employee earns and whether he or she is a director. The old £8,500 threshold was abolished from 6 April 2016. Since that date, employees who were previously P9D employees are taxed on any benefits in kind they receive in the same way as for P11D employees. This means that benefits such as company cars and private medical insurance are now taxable if the employee earns less than £8,500.

Get your affairs in order

January 18th 2017

HMRC are currently running a number of campaigns to encourage taxpayers who have undeclared income to come forward and bring their tax affairs up to date in return for lower penalties. In particular, campaigns are available in respect of let property, second incomes and credit card sales. If you have income from any of these sources which you need to tell HMRC about, please talk to your adviser as to how you can get the best possible deal under the available campaigns.

Car fuel advisory rates from 1 December 2016

January 13th 2017

From 1 December 2016, the advisory fuel rates have changed to:

Three months to go

January 13th 2017

All UK taxpayers may benefit from pausing, taking a deep breath, and considering their planning options as we approach the run-up to yet another tax year end.

Is your employer still paying for your private fuel?

January 10th 2017

It is worth repeating an article we first published March 2016 that highlighted the cash benefit to company car drivers and their employers, of reimbursing the cost of fuel provided for private motoring. The rates have been updated for 2016-17.