If you are self-employed, or registered for self-assessment, we are approaching “that” time of the year: your second instalment on account for 2016-17, is due for payment at the end of the month, 31 July 2017. Any payment due will be based on your self-assessment liability for the previous tax year (2015-16) so it is worth underlining that this is a...
Life in the Cloud
There seems to be a trend supporting the movement of our computer software and data to the “cloud”. Not the fluffy white variety, but servers that are based off-site. Even our tax system is pushing us in that direction. If and when the government’s objective to Make Tax Digital is finally realised, each of us registered to pay tax in the...
What is tax free these days
Surprisingly, there is quite a lot. As long as you are resident in the UK for tax purposes you will probably qualify for the following tax reliefs and allowances for the 2017-18 tax year: The first £11,500 of your personal taxable income is free of income tax, although you will pay 12% NIC on earnings above £8,164 per year. The first £5,000...
Sole trader or limited company
We are often asked to judge whether it’s better for a business to be run as a sole trader, or incorporated as a limited company. The risk argument is fairly straight forward. If your trade or service provided involves risk, and a risk that it is difficult to fully insure, then the limited company is the best route. The only assets...
Making Tax Digital – are we making progress
There is evidence that HMRC’s Making Tax Digital (MTD) implementation team are working with advisors and their clients to beta test the computer systems that will drive the quarterly upload process when it is timed to begin April 2018. For those readers who may have missed our previous updates on this topic, MTD aims to have taxpayers’ income and other relevant...
Self-employed combined liability
Whether you pay Income Tax or National Insurance, the effect on your cash flow is the same. The payments are a necessary part of our obligation to fund the activities of State, but the self-employed are often surprised that their bi-annual tax payments cover Income Tax and National Insurance. The weekly Class 2 contribution is included, presently £2.85 per week, and...
Landlords bear the brunt of recent tax changes
Recent budgets have done little to improve the financial position of landlords. One change stands out above the rest: the loss of higher rate tax relief on finance charges. Many landlords have concentrated on growing their property portfolios in recent years and, taking advantage of the low interest rates, have borrowed heavily to maximise property acquisitions. In accountant speak, they are...
McLaren racing team lose tax appeal
It is a well-established feature of previous judgements that a fine imposed to punish an organisation should not be treated as tax deductible – the tax relief secured would effectively share out the burden of the punishment with the rest of the taxpaying community. Which is why the First Tier Tribunal (FTT) decision, allowing McLaren racing to deduct a £32m fine...
Tax Diary July/August 2017
1 July 2017 - Due date for Corporation Tax due for the year ended 30 September 2016. 6 July 2017 - Complete and submit forms P11D return of benefits and expenses and P11D(b) return of Class 1A NICs. 19 July 2017 - Pay Class 1A NICs (by the 22 July 2017 if paid electronically). 19 July 2017 - PAYE and NIC deductions due...
Muras Matters: Tax Credits Renewal
Tax Credits Renewal Tax credit deadline – a reminder If you are in receipt of tax credits then it is essential that you renew your claim by 31 July 2017 or your payments could stop. All current claimants should have received a renewals pack from the Tax Credit Office (“TCO”) which must be actioned by the end of the month. If the pack...