Increasing house prices raise inheritance tax risk. Soaring house prices coupled with certain thresholds being frozen in the most recent Budget have the potential to drag more estates into the inheritance tax net over the coming years. Back in March 2021, Chancellor Rishi Sunak confirmed the main inheritance tax thresholds will remain frozen at their… Continue reading IHT planning – The basics
Tax Advice
Pensions tax traps catch out thousands more savers
The number of savers who breached the annual allowance and the lifetime allowance increased in 2018/19, according to government statistics. Figures from HMRC show 34,220 people reported saving more in their pension pots than the £40,000 annual allowance in 2018/19, triggering total tax charges worth £817 million. The amount of people who exceeded their annual… Continue reading Pensions tax traps catch out thousands more savers
Lower stamp duty land tax threshold in place until October
The stamp duty land tax-free threshold in England and Northern Ireland reduced last month, as the tax holiday introduced in July 2020 began to be phased out. The first cliff edge for residential property buyers came and went on 30 June 2021, marking the end of a three-month extension announced on 3 March 2021. Buyers… Continue reading Lower stamp duty land tax threshold in place until October
The basics of VAT for UK businesses
VAT is a business tax on the supply of goods and services. It is charged at varying rates depending on what is being supplied, who it is being supplied to and where it is being supplied to. But with Brexit, temporary rate changes due to COVID-19, the rollout of Making Tax Digital for VAT and… Continue reading The basics of VAT for UK businesses
Self-employed, allowable expenses
If you’re self-employed, your business will rack up various running costs throughout 2021/22. Some of those you’re able to deduct as allowable expenses. By deducting these allowable expenses as part of calculating your business’s taxable profits, it’s possible for us to reduce your income tax bill in the process. For example, if your business has… Continue reading Self-employed, allowable expenses
UK corporation tax – the future
What’s ahead for companies, from rate rises to Making Tax Digital. For the past 40 years or so, corporate tax rates have decreased steadily around the world. In 1980, the global average stood at around 40%, but by the end of 2020 it was closer to 24% as various countries aimed to encourage business investment.… Continue reading UK corporation tax – the future
IR35 minefield …….
Exactly a year later than planned, changes to the off-payroll rules – known as IR35 – will take effect in the private sector next month. The emergence of COVID-19 put paid to the changes affecting large and medium-sized private-sector organisations this time last year, but now it’s for real. They were originally introduced back in… Continue reading IR35 minefield …….
Company car tax
Does it pay off to provide zero-emission cars? Offering a company car as a benefit can be a valuable and attractive perk to any valued employee. Unfortunately, it is not necessarily a tax-free perk and it may be liable for PAYE because HMRC considers the private use of a company car to be a benefit-in-kind.… Continue reading Company car tax
Year end tax guide 2019/20
Year-End Tax Guide 2019/20 The last few months of the tax year are the ideal time to pause and reflect, and to make sure you’ve organised your finances as efficiently as possible before the new tax year begins on 6 April 2020. It’s important to consider this from every angle: have you maximised all of… Continue reading Year end tax guide 2019/20
New tax rates for 2020/21
The new government intends to announce the 2020/21 tax rates, bands and allowances in a full Budget next month. Prime Minister Boris Johnson secured a handsome majority on 12 December 2019, and swiftly returned Sajid Javid to the position of Chancellor. Javid was poised to deliver his first Budget speech in November 2019, only for… Continue reading New tax rates for 2020/21
