DID YOU GET A BIG TAX BILL AND NOW WANT SOME BACK?

Many of you will have just paid your 2016/17 tax bill before the 31 January 2018 deadline, and some of you will also have paid 50% of next year’s tax on account. Here are a couple of tax planning ideas that can help you obtain a tax refund. Invest in EIS or Seed EIS qualifying...

EXCEEDING THE ANNUAL PENSION ALLOWANCE

If your pension savings exceed the annual pension input limit (generally £40,000) then there is an annual allowance charge. The effect of the annual allowance charge is to reduce tax relief on any pension saving over the annual allowance. The annual allowance charge is not at a fixed rate but will depend on how much...

DOES YOUR ACCOUNTS SYSTEM COMPLY WITH MTD FOR VAT?

Making Tax Digital (MTD) for VAT is scheduled to start in April 2019 which means that your VAT information needs to be submitted to HMRC digitally. On 18 December 2017, HMRC published draft legislation together with examples of how the business account records might link with the HMRC computer in order to comply with MTD...

ADVISORY FUEL RATES FOR COMPANY CARS

These are the suggested reimbursement rates for employees’ private mileage using their company car from 1 December 2017. Where there has been a change the previous rate is shown in brackets. Note that for hybrid cars you must use the petrol or diesel rate. You can continue to use the previous rates for up to...

INHERITANCE TAX: PASSING ON THE FAMILY HOME

New inheritance tax rules for passing on the family home started on 6 April 2017. This new relief should be taken into consideration when drafting your Will and we can work with your solicitor to make sure your Will is tax efficient. From 6 April 2017 an additional nil rate band of £100,000 is now...

CHANGES TO DIESEL COMPANY CARS

Company car benefits are based on CO2 emissions data which has encouraged employees to choose diesel cars due to lower CO2 emissions. The government is trying to reduce the number of diesel cars and will increase the current 3% diesel supplement to 4% from 6 April 2018. As previously announced radical changes to the company...

PERSONAL ALLOWANCE AND HIGHER RATE LIMIT INCREASED

In the 2017 Autumn Budget Chancellor reminded us that the government are committed to increasing the personal allowance to £12,500 in 2020 and the higher rate tax threshold to £50,000. However, the personal allowance for 2018/19 was only increased in line with inflation to £11,850 and the higher rate threshold to £46,350.  Note that up to...

VAT REGISTRATION LIMIT FROZEN

The VAT registration limit normally increases in line with inflation each year, however the limit has been frozen at £85,000 until 1 April 2020. At the same time the deregistration limit remains at £83,000.  There had been rumours that the VAT threshold would be reduced so that more businesses would be required to charge VAT...

MILEAGE ALLOWANCE FOR BUY TO LET LANDLORDS

Another measure hidden away in the Chancellor’s Autumn Budget 2017 was the proposal that buy-to-let landlords will be able to claim 45p a mile for necessary visits to their rental properties. This will be as an alternative to claims for capital allowances and deductions for actual expenses incurred, such as fuel.  

EIS TAX RELIEF INCREASED FOR INVESTMENT IN TECH BUSINESSES

The Government will double the amount that an individual may invest under the EIS in a tax year to £2 million from the current limit of £1 million, provided any amount over £1 million is invested in one or more knowledge-intensive companies. The annual investment limit for knowledge-intensive companies receiving investments under the EIS and...