The top rate of Income Tax is 45%?

Jan 07, 2019

Named the additional rate, the highest rate of Income Tax is 45%, and some might say 45% is high enough.

However, if the rate of tax is measured as the relationship between income and tax plus tax related penalties paid, there are times when this 45% can rise, to as much as 90%.

For example, if HMRC discovers that a taxpayer has been negligent in declaring all their income for tax…

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CGT planning for married couples

Jan 07, 2019

This article is also relevant to couples who have entered into a civil partnership.

For the tax year 2018-19, taxpayers can make tax-free capital gains of up to £11,700.

This allowance is available on a per person basis and so married couples (and those in a civil partnership) have a combined CGT allowance of £23,400.

Consider married couple John and Joy. Joy wants to dispose…

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Tax Diary January/February 2019

Jan 07, 2019

1 January 2019 - Due date for Corporation Tax due for the year ended 31 March 2018.

19 January 2019 - PAYE and NIC deductions due for month ended 5 January 2019. (If you pay your tax electronically the due date is 22 January 2019)

19 January 2019 - Filing deadline for the CIS300 monthly return for the month ended 5 January 2019.

19 January 2019 - CIS tax deducted for the…

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Turkey dinner and tax returns

Jan 03, 2019

Completing your tax return may not have been top of your priorities on Christmas Day, but that didn’t stop 2,616 taxpayers from filing their Self-Assessment returns on 25 December 2018.

For some taxpayers completing their return on Christmas Day is as traditional as spending time with family and friends or waiting for the Boxing Day sales to start. The peak filing time, according to HMRC,…

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Proposals for consumer protections when companies collapse

Jan 02, 2019

The government is to consider new laws to protect consumers who have prepaid for products when a business becomes insolvent.

• Government to consider new laws to protect consumers who have prepaid for products when a business becomes insolvent

• proposed measures will include guaranteeing consumer schemes like Christmas savings clubs can safeguard customers’ money

• reforms…

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Time for a tax-free seasonal bash?

Dec 20, 2018

Time to let your hair down? Enjoy a festive moment or two with your business colleagues and staff? If you are careful with your budgeting, you can enjoy the event without increasing your tax or National Insurance payments. Here’s what you need to consider:

What's exempt?

You might not have to report anything to HMRC or pay tax and National Insurance. To be exempt,…

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Merry Christmas

Dec 18, 2018

From a business perspective there is not much to be merry about this year especially if you need some clarity regarding our impending exit from the EU.

Never-the-less, business owners would be wise to consider the tax-free gifts that can be made to ease the financial needs for extra funds over the festive season.

In particular, make the most of the trivial benefits allowance. Here’s…

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Brexit may be in limbo, but Making Tax Digital is not

Dec 17, 2018

As we have highlighted in many posts to this blog, from 1 April 2019, ALL VAT registered businesses with turnover above the £85,000 VAT registration threshold will have to submit their VAT returns from within software that can link with HMRC’s networks. In techno- speak, your data will need to be transferred using a designated API (HMRC’s application programming interface).

The fact that…

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A possible, unwelcome increase in service charges

Dec 11, 2018

From 1 November 2018, owners of properties on estates or sites that are obliged to pay service charges to a management company - for example, for the maintenance of common areas, gardens, or the employment of a site warden or caretaker - may be in for an unwelcome surprise.

It would seem that HMRC have applied a concession in the past that allowed the management companies to treat service…

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