New Government Childcare Schemes

Working parents can start applying for two new Government childcare schemes launching this year – Tax-Free Childcare which begins immediately and 30 hours free childcare which starts in September. This means that working parents of children, aged under 4 on 31 August 2017, can now apply through the new digital childcare service for Tax-Free Childcare...

2016 Saw a Record £5bn Paid in Inheritance Tax: by NWFS

British families paid a record £5bn in inheritance tax last year Inheritance tax paid by British families topped £5bn for the first time in history, in the year to April 2017 new data reveals. A record number of middle-class families are finding themselves caught up in the world of Inheritance Tax (IHT) because of rising property....

Advisory Fuel Rate for Company Cars

These are the suggested reimbursement rates for employees’ business mileage using their company car from 1 June 2017.     Where there has been a change the previous rate is shown in brackets.   You can continue to use the previous rates for up to 1 month from the date the new rates apply.  ...

What is this ” Dementia Tax ” ?

The Conservative Party Manifesto announcement and subsequent U-Turn on the requirement to pay for social care may have caused many voters to switch their allegiance in the June Election. Although this so-called “Dementia tax” is not strictly a tax, paying for social care has become more important than Inheritance Tax for many families. If a...

Implications of a Hung Parliament

The result of the General Election has left Theresa May and the Conservative Party clinging on to power with support from the Democratic Unionist Party (DUP) in Northern Ireland. This leads to a period of significant uncertainty for the country as the BREXIT negotiations are just about to start.   Following the General Election there...

STAMP DUTY ON SECOND HOMES

Since 1 April 2016 there has been a 3% supplementary Stamp Duty Land Tax (SDLT) charge payable on the purchase of second and subsequent residential properties costing more than £40,000. This was clearly aimed at buy-to-let investors as well as those buying second homes. Note that this additional 3% charge does not apply where the...

HMRC COMPUTER ISN’T ALWAYS CORRECT

HM Revenue and Customs have acknowledged that their software and some commercial software used by accountants doesn’t always come up with the right amount of tax payable! You may have seen this reported in some newspapers such as the Daily Telegraph. This arises because the tax system of different income tax personal allowances, dividend allowances,...

SNAP ELECTION MEANS SHORTER FINANCE ACT PASSED

The original Finance Bill published after the Spring Budget ran to nearly 700 pages. As a result of the announcement of the General Election on 8th June a significantly shorter Finance Bill was passed with many of the more detailed and more controversial measures being deferred to a later Bill. Whether those measures will reappear...

Better to Pay Interest on Your Loan Account Than Dividends if Higher Rate Tax Payer

Ever since the introduction of the 7.5% increase in the rate of tax on dividends in April 2016, it has been more tax efficient for owner managed business shareholders to pay interest on their loans to the company rather than pay themselves dividends. The interest would be deductible against the company’s profits saving corporation tax...

Additional IHT Relief 2017

For deaths on or after 6 April 2017 there is now an additional £100,000 inheritance tax (IHT) allowance where the family home is passed on to direct descendants. This was originally announced on 8 July 2015 and that date is relevant where the deceased has downsized to a lower value property.   This additional relief...