Income Tax

Income Tax

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.

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.

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.

Salary sacrifice under the microscope

December 9th 2016

Salary sacrifice is a term applied to benefits taken in place of salary. In many respects these benefits provide employees with higher “take home” value than if the benefits were treated the same as cash income. Mr Hammond is mindful to curb this practice as it is intended that the change will add £1bn a year to tax revenues by 2020.