Main Residence IHT Relief Coming into effect on 6 April 2017 is a new Inheritance Tax (“IHT”) Nil Rate Band for main residences. Ultimately this allowance could save a couple up to £140,000 of tax, up to £80,000 of which arises ‘overnight’ on the day it is introduced. Currently, the Nil Rate Band for an individual is £325,000 although any unused amount...
Affected by severe weather or flooding
It is unfortunate that HMRC have designated the 31 January as the filing deadline for self-assessment purposes as we are more likely to be adversely affected by extreme weather events at this time of the year. There are not many businesses that can continue to trade if their premises, equipment or stock have been affected by severe weather, particularly flooding. How do...
When do you need to register for self-assessment
We are fast approaching the end of the 2015-16 tax return filing period – returns for this year should be filed electronically by 31 January 2017. If you are not registered for self-assessment you may be wondering if you should consider registering for 2016-17. We have listed below HMRC’s list of who should be submitting a tax return: you were self-employed -...
More funding available to rural businesses
£120 million of funding is to be made available to support farmers, grow businesses, and generate thousands of jobs in rural communities. This announcement was made by the Environment Secretary, Andrea Leadsom, earlier this month at the Oxford Farming Conference. Funding to be released will include further support for the following types of project: Rural and farm businesses will soon be...
Muras Matters: ‘Top 10 Worst Excuses’
‘Top 10 Worst Excuses’ Most readers will know that the deadline for filing a self assessment return for the year ended 5 April 2016 is Tuesday, 31 January 2017. Failure to meet this deadline will lead to an automatic penalty of £100 unless, in very exceptional circumstances, the tax payer can demonstrate a ‘reasonable excuse’. Three weeks ago HM Revenue and Customs...
Tax return deadline at the end of this month
If you are required to file a tax return for 2015-16, and have not yet done so, you have until 31 January 2017 to complete the online filing process before automatic fines and possible penalties will be applied. Readers may be amused by the following excuses made by tax payers who have previously filed late returns. These included: “My tax return was on...
Two items on our watch list for 2017
Whilst it is never easy to double guess future changes in our tax system there are already changes afoot, some included in past legislation, and some promised by prior announcement. Two items are worthy of a new year’s underline. Firstly, buy to let landlords that have borrowed heavily to build their rental property portfolio should consider the effects of the gradual reduction...
Three months to go
All UK taxpayers may benefit from pausing, taking a deep breath, and considering their planning options as we approach the run-up to yet another tax year end. Individuals The prime areas for consideration are where income levels are threatening to break through into the higher rates of income tax. For 2016-17, these are: If your taxable income exceeds £32,000 (after deducting your £11,000...
Is your employer still paying for your private fuel
It is worth repeating an article we first published March 2016 that highlighted the cash benefit to company car drivers and their employers, of reimbursing the cost of fuel provided for private motoring. The rates have been updated for 2016-17. Since the tax on private fuel provided with company cars is so high, many employers now have an arrangement whereby they...
Car fuel advisory rates from 1 December 2016
From 1 December 2016, the advisory fuel rates have changed to: 1400cc or less: petrol 11p per mile, LPG 7p per mile 1401-2000cc: petrol 14p per mile, LPG 9p per mile Over 2000cc: petrol 21p per mile, LPG 13p per mile Diesel rates: 1600cc or less: 9p per mile 1601-2000cc: 11p per mile Over 2000cc: 13p per mile These rates can be used from 1 December 2016 to...