In addition to the current £5,000 tax free dividend allowance and the personal savings allowance of up to £1,000 there will be two further tax free allowances starting from 6 April 2017. These will be: A £1,000 Tax Free Allowance for Self-Employed income A £1,000 Rental Income Allowance These new allowances mean that individuals doing a […]
CIS Gross Payment Rules relaxed
In April 2016 HMRC introduced significant changes to the Construction Industry Scheme (CIS). What do your clients need to know? Reason for change – In 2014 HMRC announced changes to the CIS with the aim of making its processes simpler. In particular, it’s hoped that the new legislation will enable more businesses to achieve gross payment […]
Clarification finally issued on new dividend tax!
Following the announcement in the Summer Budget of a major change to the taxation of dividends, HMRC has now published a factsheet which clarifies the rules. How will they work? Changes to taxation of dividends In the Summer Budget the Chancellor dropped a bombshell for owner managers of smaller companies by stating that, from April […]
The dog ate my tax return…
… is not a reasonable excuse! However, it has been announced that HMRC will not contest appeals against the £100 late filing penalty in respect of 2013/14 tax returns where the taxpayer provided a reasonable excuse for not filing on time. In the past, HMRC has looked in detail to judge if each excuse is […]
The Summer Budget – Director shareholders hit hard!
DIVIDEND TAX For many years dividends have come with a 10% tax credit which means that there’s no additional personal tax to pay on dividends received by basic rate taxpayers – the basic rate of tax on dividends is currently 10%. However, the Summer Budget has announced that, from 6 April 2016, this tax credit […]
Protect Your Pension from 55% Tax Charges
HMRC has just issued a reminder that the deadline to protect large pension funds from the decrease in the lifetime allowance is fast approaching. Lifetime allowance. There is a limit to the size of a pension pot that qualifies for tax breaks. If your pension fund exceeds this limit, the lifetime allowance, then there will be […]
Transferable Tax Allowance for Married Couples
From 2015/16, married couples and civil partners can transfer up to £1,000 of their personal allowance to their partner, but only if neither individual pays tax at the 40% rate. It is therefore a modest tax break, worth a maximum of £200 each tax year, but every little helps (as we are often reminded)! The […]
Tax issues for UK Vodafone shareholders
Following the announced sale by Vodafone of its stake in a US mobile phone network, Verizon Wireless, what are the UK tax implications for owners of Vodafone shares? The deal. It’s anticipated that Vodafone shareholders will receive shares in Verizon Communications, Verizon Wireless’s parent (with the base cost for capital gains tax purposes split between […]
High Income Child Benefit Charge (HICBC)
The HICBC was introduced on 7 January 2013 and applies to couples where: One partner has received Child Benefit payments after 7 January 2013, and Either partner has income in excess of £50,000 a year. The person with the highest income, if both are over £50,000, will be liable to pay the charge. It will […]