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 Read more…

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 Read more…

The Panama Papers

HMRC has responded to the significant leak of information on the activities of individuals and companies that have availed themselves of the offshore advantages of using Panama as a tax haven.  We have reproduced below part of their response: Jennie Granger, Director General of Enforcement and Compliance, HM Revenue and Read more…

Farmers new tax break

From 6 April 2016, farmers trading as sole traders or in partnership will be able to claim for an extended form of the popular “averaging” provisions. Under the new rules, initially announced in the 2015 Budget, farmers will be able to average their profits for Income Tax purposes from the Read more…

Tax Diary April/May 2016

1 April 2016 – Due date for Corporation Tax due for the year ended 30 June 2015.  19 April 2016 – PAYE and NIC deductions due for month ended 5 April 2016. (If you pay your tax electronically the due date is 22 April 2016.)  19 April 2016 – Filing Read more…

Overdrawn loan accounts

Up to 5 April 2016, directors who overdrew their loan accounts in a company ran the risk of an additional 25% Corporation Tax charge if the debt remained outstanding nine months after their company’s trading period end. The tax can be claimed back, but not until there is a repayment Read more…

Capital Gains Tax changes

CGT rates have been significantly reduced from April 2016. The rates at which capital gains are taxed depend on where they would fall to be taxed for Income Tax purposes if they were added to income. This would determine whether the gains would fall to be taxed at basic or Read more…

Stamp Duty increases buy-to-let

From 1 April 2016, individuals who purchase additional residential properties, second homes or buy-to-let properties will pay an additional 3 percentage points above the existing SDLT rates. The higher rates are: £0 – £125k: 3% £125k – £250K: 5% £250k – £925k: 8% £925k – £1.5m: 13% Over £1.5m: 15% Read more…

Capital gains tax changes April 2016

 One of the surprising announcements in the recent budget was the easing of capital gains tax (CGT) rates.  From April 2016, the new rates published by HMRC are:  Changes to rates.  Legislation will be introduced in Finance Bill 2016 to reduce the rate of CGT charged on most gains accruing Read more…

Business tax breaks from April 2016

 The government have published a list of changes in the impact of taxation, rates and NIC that will apply from April 2016. The list is reproduced below: Businesses will benefit from: lower business rates bills as the doubled Small Business Relief Scheme is extended for another year. This £730 million Read more…