Recent reports in the national media have suggested that HMRC has sought to restrict Gift Aid on donations which are accompanied by a message of support from a donor’s family. According to a recent announcement by HMRC this is absolutely not the case. HMRC’s position as set out in their recent website posting is reproduced below: “HMRC’s position has always been...
Tax free childcare update
HMRC have updated their online “top ten things you should know about the new tax-free childcare scheme”. The notes are reproduced below and they provide parents with and easy read overview of the changes that will start early 2017: 1. You’ll be able to open an online account You’ll be able to open an online account, which you can pay into to...
Buy-to let sector suffers another blow in the March budget
The Treasury seems to be committed to wringing the last available drop of tax revenue from the buy-to-let sector. In the Budget last week the rate of capital gains tax (CGT) was reduced from 6 April 2016. From 28% to 20% if the gains fell to be taxed as part of the higher rate tax band, and From 18% to 10% if the...
Muras Matters: Pension Contribution Limits
Pension Contribution Limits Background The limit on pension contributions for tax relief purposes has changed frequently and there are a number of different limits which can apply. Today we are summarising the rules, with emphasis on traps for higher earners. Generally speaking, payments to defined contribution pension schemes made by individuals are made net of tax. This means that for a cash payment...
Budget for business
Just in case you were wondering what was in the Budget last week for small businesses, we have reproduced below the comments made by George Osborne and posted to the GOV.UK website: Backing business and creating opportunity This Budget backs business and enterprise to drive up productivity growth and create job opportunities. This Budget continues to lower taxes, with new support for...
Budget Statement 16 March 2016
Personal Tax and miscellaneous matters Personal Tax allowance From 2016-17, there will be one Income Tax personal allowance regardless of an individual’s date of birth. For 2016-17 the allowance is set at £11,000, and For 2017-18 at £11,500 Income Tax rate bands The Chancellor confirmed his intention to remove taxpayers from the higher rate of income tax by increasing the levels at which taxpayers start to...
Muras Matters: A Budget for the Next Generation
A Budget For the Next Generation The Chancellor has just sat down from delivering the 2016 Budget speech. We will provide more details on the changes announced as they emerge however the main tax and savings matters referred to in the speech were as follows: Capital Gains Tax • The top rate of CGT will fall from 28% to 20% on gains accruing...
Dividend tax increase from 6 April 2016
One issue that the director shareholders of small companies will need to get to grips with from April 2016 is the radical change to the taxation of dividends. Up to 5 April 2016, dividends are paid after the deduction of a deemed income tax credit of 10%. So, as long as your dividends are taxed as part of your basic rate...
Aligning national insurance and income tax
The Office of Tax Simplification (OTS) has published the findings of a detailed review into bringing the two payroll taxes closer together. Here’s what they have to say: “Bringing National Insurance Contributions (NICs) and income tax closer together would create a simpler and fairer system for businesses and taxpayers, the Office of Tax Simplification announced Monday 7 March. The Office of Tax...
Muras Matters: Buy to Let Property Expenses
Buy to Let Property Expenses Background There are a number of forthcoming changes to the taxation of buy to let residential property, particularly where they are owned by individuals, partnerships or trusts. Today, we will cover three particular aspects – wear and tear expenses on the property, loan interest and Stamp Duty Land Tax. Wear and Tear Allowance Up to 5 April 2016, where the...