Income Tax

Income Tax

What happens if you cant pay your tax on time

May 23rd 2017

If you are facing cash-flow issues, and cannot see how you can afford to settle part, or all of your tax payment due 31 July 2017, what is the best strategy to avoid confrontation with HMRC and minimise any penalties and interest charges?

When does a hobby become a trade

May 23rd 2017

When does a hobby become a trade?

Personal allowance for 2017/18

May 19th 2017

The 2017/18 tax year started on 6 April 2017. For 2017/18, the personal allowance is increased to £11,500. As in previous years, the allowance is reduced by £1 for every £2 by which income exceeds £100,000. This means that those with income of £123,000 or more will not receive a personal allowance for 2017/18.

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.