When you reach the State Retirement Age (SRA) you stop paying Class 1 NIC contributions if you are employed, and Class 2 contributions if you are self-employed. You will still have to pay Class 4 NIC, the most significant self-employed NIC charge, for the entire tax year during which you achieve the SRA. The next year you will be exempt. If you...
Lifetime transfers of assets
Married couples and civil partners can gift each other assets and there will be no Inheritance Tax (IHT) charge on the lifetime gift as long as the recipient is domiciled in the UK. However, transfers to others that are not covered by the reliefs listed at the end of this article, are treated as potentially chargeable lifetime gifts or transfers (PETs)....
What was in the Budget
Our government have selected their top-ten tax changes that come into effect from 6 April 2016. Just in case you need a refresher they are: 1.The personal allowance will increase to £11,000 and the higher rate threshold will increase to £43,000. 2.The marriage allowance, the tax free amount which people can transfer to their husband, wife or civil partner will increase to...
Good news for farmers
Under new rules, initially announced in the 2015 Budget, farmers will be able to average their profits for Income Tax purposes from two years to five years. This change will help farmers with fluctuating profits better manage risk and level out the impact of tax on their farming profits. For example, they may avoid paying tax at higher income rates in...
Tax Diary May/June 2016
19 May 2016 - PAYE and NIC deductions due for month ended 5 May 2016. (If you pay your tax electronically the due date is 22 May 2016) 19 May 2016 - Filing deadline for the CIS300 monthly return for the month ended 5 May 2016. 19 May 2016 - CIS tax deducted for the month ended 5 May 2016 is payable...
Companies to be liable for employees who facilitate tax cheating
The UK will bring forward plans to introduce a criminal offence for corporations who fail to stop their staff facilitating tax evasion, the Prime Minister has announced in a statement to the Commons, ahead of next month’s summit to tackle corruption in all its forms. For the first time, companies will be held criminally liable if they fail to stop their...
Business investment and the annual investment allowance
The AIA allows businesses to write off the full cost of qualifying expenditure and in recent years the amount allowed as a deduction for tax purposes has fluctuated wildly. From January 2016, the annual limit for AIA expenditure has been set at a new permanent limit of £200,000. Accordingly, this is the amount that can be claimed for 2016-17. AIA is generally...
Tax credit renewals online
HM Revenue and Customs (HMRC) is urging people to renew their tax credits claim online and early before the 31 July deadline. When claimants renew their claim, they must tell HMRC about any changes to their circumstances that they haven’t already reported, including changes to working hours, childcare costs or income. Once people receive their renewal pack, these changes can be...
Muras Matters: Register of Beneficial Company Ownership
Register of Beneficial Company Ownership Background With effect from 6 April 2016, all companies and Limited Liability Partnerships (“LLPs”) in the UK need to keep a record of their ‘controlling parties’. There are criminal penalties for non-compliance, potentially two years imprisonment and a fine could be applied. Furthermore, from 30 June 2016 Companies House must be informed of who the beneficial owners are...
Tax on savings
From 6 April 2016, if you’re a basic rate taxpayer you’ll be able to earn up to £1,000 in savings income tax-free. Higher rate taxpayers will be able to earn up to £500. This is called the Personal Savings Allowance. Banks and building societies will no longer deduct tax from the interest they pay you. What counts as savings income? Savings income includes...