An outline of the Finance Bill 2021 has been published and provides the legal framework for changes announced in the recent Budget. We have reproduced below the published text. This is subject to scrutiny by parliament and may change before the Bill receives Royal Assent. The Bill will ensure a number of tax changes set out by the Chancellor at last...
HMRC clarifies furlough queries
HMRC has recently clarified the action you need to take if you have claimed too little or too much under the furlough scheme (Coronavirus Job Retention Scheme). They are published in a FAQ format. Here’s what they say: What if I’ve claimed too much in error? If you have claimed too much CJRS grant and have not already repaid it, you can...
Muras Matters: Tax on Residential Property Owned by a Company
This Bulletin is aimed at limited companies who own, develop or let residential property Annual Tax on Enveloped Dwellings (ATED) The ATED charge is a tax on residential property which is owned through a corporate vehicle. It was introduced in 2013 primarily to prevent non-resident investors from avoiding Stamp Duty by owning their UK residence through a company. The legislation is drafted...
What are Super-Deductions?
Most company business owners understand that if you incur a cost that is wholly and exclusively for the purpose of your trade, then it can be deducted from your taxable profits or added to tax losses. Likewise, if companies invest in plant or other equipment that qualifies for tax relief, even though the expenditure is the acquisition of an asset –...
Pension pot top-ups before 6 April 2021
The 2020/21 tax year comes to an end on 5 April 2021. As this date approaches, it is prudent to review your pension contributions and consider whether it would be beneficial to top up your pension before the end of the tax year. Is there a limit on tax-relieved contributions? Yes -- tax relief is only available on contributions to registered pension...
Muras Matters: Year End Tax Tips
With the end of the tax year fast approaching most pre year-end tax planning will have been completed or should be well under way. Of course there are still some measures which can be undertaken to improve your tax position particularly in view of the recent Budget announcement that many allowances are to be frozen for the next few years. Here...
SEISS – the net widens
One aspect of the recent budget will please self-employed business owners that have previously been unable to claim under the Self-Employed Income Support Scheme (SEISS) as they commenced trading after 5 April 2019. As long as you submitted your self-assessment tax return for 2019-20 before midnight 2 March 2021, and you meet the other qualifying criteria – basically that you have...
Stealth Tax
You may have noticed that a certain phrase came up more than once in the Chancellor’s Budget speech last week. The phrase went something like this: Allowances/rates will be frozen at this level until April 2026. That’s four years of flat-lining rates and allowances and it applies to income tax, capital gains tax, inheritance tax and pension tax relief. At first glance this may...
Tax breaks working from home
Employed persons If your employer requires that you work from home, this will apply to many employees during the various COVID lock-down periods, HMRC will allow you to claim for any extra costs associated with working from home. To save you calculating what these extra costs might be, HMRC has agreed a claim based on their estimate of the average extra costs...
Marriage Allowance claim
HMRC published the following press release on Valentine’s Day 2021. HMRC is encouraging married couples and people in civil partnerships to sign up for a tax break this year. Marriage Allowance offers individuals the chance to transfer part of their Personal Allowance to their husband, wife or civil partner, which could reduce their tax by up to £250 a year. For some...