Income Tax

Income Tax

Income tax rates and bands

May 19th 2017

For 2017/18 the basic rate of income tax remains at 20%, the higher rate at 40% and the additional rate at 45%.

Tax due next month

May 19th 2017

Are you self-employed? If you are, you may need to make your second payment on account for 2016-17, due date for payment is 31 July 2017.

Dividend tax set-back

April 7th 2017

At present, shareholders with dividend income below £5,000 will pay no Income Tax on their dividend income. From April 2018, Mr Hammond looks set to reduce this to £2,000.

Personal tax and National Insurance changes for 2017-18

March 7th 2017

Personal tax and National Insurance changes for 2017-18. In no particular order changes already announced include:

Buy to let property owners - time to start planning for tax changes

March 7th 2017

Property business owners, particularly buy-to-let landlords, have been hit with a number of quite dramatic changes in their tax status. One of the most draconian is the gradual disallowance of tax relief for finance payments that starts April 2017.

Making Tax Digital - a reminder

March 3rd 2017

We have now seen the response of HMRC to representations made by accountants and other interested parties to their Making Tax Digital (MTD) agenda. For those of you who did not attend our recent seminars on MTD, this is a reminder that MTD will result in the gradual digitisation of small businesses (including landlords) reporting to HMRC. The present proposals will oblige smaller businesses to upload quarterly data to HMRC from April 2018.

Rates and allowances update

February 1st 2017

The personal allowance increases to £11,500 for the 2017/18 tax year. As for 2016/17 the allowance will be reduced by £1 for every £2 by which adjusted net income exceeds £100,000. This means that anyone with income in excess of £123,000 for 2017/18 will not receive the personal allowance.

Time running out for Business Premises Renovation Allowance (BPRA)

February 1st 2017

The window of opportunity to take advantage of Business Premises Renovation Allowance (BPRA) is drawing to a close - to benefit from the relief, expenditure must be incurred on or before 31 March 2017 for corporation tax purposes and on or before 5 April 2017 for income tax purposes.

Deemed Domicile

February 1st 2017

From 6 April 2017 anyone who has been a resident in the UK for 15 of the previous 20 tax years will be deemed to have a UK domicile where they do not already have one. This will apply for all tax purposes and will replace the current deemed domicile rule for inheritance tax purposes whereby an individual is deemed to be domiciled in the UK where he or she has been UK-resident for 17 of the previous 20 tax years.

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.