This new scheme will be rolled out to parents next year. The scheme will be made available gradually to families, with parents of the youngest children able to apply first. You’ll be able to apply for all your children at the same time, when your youngest child becomes eligible. All eligible parents will be able to join the scheme by...
A new broom
Philip Hammond has been appointed Chancellor of the Exchequer as George Osborne returns to the backbenches. Mr Hammond has already confirmed that there will be no emergency budget, and he will be presenting the usual Autumn Statement later in the year and a new Finance Bill March 2017. The immediate impact for UK tax payers is therefore business as usual. The Finance...
Buy-to-let landlords action required
Buy-to-let landlords need to start considering their options, in particular, those who have borrowed heavily in order to build their property portfolio. As we have mentioned previously in this newsletter, from April 2017 deductions for finance charges will be progressively reduced and replaced by a 20% tax credit. This will promote a number of landlords into the higher rates of Income...
Where there is a Will
If you leave your entire estate to charities, will you be turning in your grave if disinherited relatives mount a challenge to break your last will and testament, and succeed? In a 2015 case heard by the Court of Appeal, a disinherited daughter challenged her deceased mother’s Will. The background to the case is illuminating. The daughter had not been in touch...
Tax Diary August/September 2016
1 August 2016 - Due date for Corporation Tax due for the year ended 31 October 2015. 19 August 2016 - PAYE and NIC deductions due for month ended 5 August 2016. (If you pay your tax electronically the due date is 22 August 2016.) 19 August 2016 - Filing deadline for the CIS300 monthly return for the month ended 5 August...
Buy-to-let landlords expenses
When you work out your taxable rental profit you can deduct allowable expenses from your rental income. The expenses must be wholly and exclusively for the purposes of renting out the property. This means that if an expense wasn’t incurred for the purpose of your property rental you can’t offset the cost against the rental income. The expenses must also...
Do not forget to pay your tax
The 31st July is rapidly approaching. If you are registered for self-assessment, make sure you pay the second instalment for 2015-16, that falls due on this date, unless no payment is due. If you are self-employed, and if you are confident that your profits have fallen in the accounts year to 31 March 2016, compared to 2014-15, then you may be...
Why record business mileage
If you are self-employed, either as a sole trader or in partnership, and you use a business vehicle for private purposes, HMRC will seek to disallow any motoring costs, petrol etc., and capital allowances based on the purchase cost of the vehicle, to cover the private use proportion. The only practical way that you can do this is to record your...
Muras Matters: Stamping on Residential Property
Stamping on Residential Property The 2016 Finance Bill contains significant changes to Stamp Duty Land Tax (“SDLT”) on ‘second homes’ which apply from1 April 2016. Broadly speaking, anyone purchasing a second (or subsequent) residential property from 1 April will pay an additional 3% SDLT over and above the normal rates unless they are replacing their main home. The changes will affect limited...
Muras Matters: Furnished Holiday Lets
Furnished Holiday Lets As the sun has finally arrived, it’s a good time to consider Furnished Holiday Lets (“FHL’s”). Broadly, an FHL is a commercial letting of a residential property which meets certain criteria to qualify for special tax reliefs. The qualifying criteria became much stricter from 6 April 2012 and the benefits of FHL’s were restricted. However, there are still generous...