blog

Pension Flexible drawdown

Posted on 09/03/2017 at 10:43

Clients are reminded that pension investors aged 55 (57 from 2028) are able to withdraw their pension as a lump sum. However, clients should be aware that only the first 25% will be available to them tax free and the rest will be treated as taxable income, taxed at their marginal rate of tax. So if you are a basic rate tax payer, then please remember the drawdown will be added to your income and hence that may push you to a higher rate tax payer, taxable at 40% or 45%. Please note that this 2... read more

Annual Tax on Enveloped Dwellings (ATED) – April 2017 new valuations

Posted on 09/03/2017 at 10:42

Some of our company clients with properties in the UK are required to submit ATED returns by 30 April to cover a tax year. For example, for 2017/18, the return will be due by 30 April 2017.

The ATED was introduced in April 2012 and valuations were done then on properties held on that date to ensure that a) ATED did apply because the properties were valued above the prescribed threshold and b) the correct tax charge was applied and paid.

The valuations of these properties w... read more

Non-UK Resident Capital Gains Tax

Posted on 09/03/2017 at 10:41

Non-UK resident clients who own a property or properties in the UK are reminded to notify us as soon as they dispose of their UK property or properties. This is because a return will need to be prepared and submitted within 30 days of conveyancing. Penalties for failure to submit a return can go up to £1,600.

Any capital gains tax to pay will need to be paid after the return is submitted or if the client has a tax reference number and regularly submits tax returns, then this c... read more

Making tax Digital

Posted on 01/09/2016 at 10:18

The Government intends to force all businesses, both large and small, to keep records electronically and make quarterly Returns.

This will affect unincorporated business with income of £10,000 per year or more. Those which currently do not use software to keep financial records will be required to do so. However, it seems Limited Companies will have to use digital record keeping, no matter what the level of income.

This new regime will also includ... read more

Stamp Duty Land Tax (SDLT) 3% Surcharge

Posted on 01/09/2016 at 09:59

Clients will be aware that, with effect from 6th April 2016, a 3% SDLT surcharge will apply on purchases of “second homes and/or buy to let properties”.

However, the detailed rules are complex and contain a number of pitfalls including the following:

  1. If a new family home is purchased but the former main residence is retained, then the SDLT 3% surcharge will apply to the purchase of the new main residence. The SDLT surcharge can be reclaimed if the ... read more

National Living Wage

Posted on 04/03/2016 at 17:11

The National Living Wage

A compulsory National Living Wage is due to be introduced on 1st April 2016 for all working people aged 25 and over, and will be set at £7.20 per hour. The current National Minimum Wage for those under the age of 25 will continue to apply.

 

Who will be entitled to the National Living Wage?

Generally all those who are covered by the National Minimum Wage, and are 25 years old and over... read more

Pension Auto-Enrolment

Posted on 04/03/2016 at 17:09

Our employer clients may be aware of their obligations under auto-enrolment which requires them to set up an appropriate pension scheme for all eligible employees.

 

Each employer has been given a staging date by which they must have complied with these obligations.

 

We are currently in the process of writing to clients to advise them of these obligations and assist when requested.

 

This is being done on a rolling ba... read more

Scottish taxpayers

Posted on 04/03/2016 at 17:07

For those of our clients with Scottish roots, you may be interested to know who will be regarded as a Scottish taxpayer when the Scottish rate of income tax comes into force on 6th April 2016.

 

To be a Scottish taxpayer, it is first necessary to be a UK resident for tax purposes.  The definition of a Scottish taxpayer will then generally focus on the question of whether an individual has a “close connection” with Scotland or elsewhere in the UK.

... read more

Tax rebate

Posted on 04/03/2016 at 17:06

The Revenue did suffer a recent setback as regards a late Return submitted by a Taxpayer which produced a repayment of tax.  It was generally their approach that a Return submitted more than 4 years after the tax year to which it related would not be accepted.  In a recent tax case Higgs v HMRC, the Upper Tribunal held that a self-assessment tax Return submitted more than 4 years late should be accepted by the Revenue.  The taxpayer got his money.

As a result of their... read more

HMRC Digital Tax Platform

Posted on 28/09/2015 at 10:17

HMRC have really entered the Digital Age.  Although not formally announced at the time, three new features of their digital tax platform went live at the end of March.  These are as follows:

1.         Your Tax Account

This is a home page summarising everything in one place.

2.         Digital Self-Assessment

The taxpayer provides HMRC with his e-mail address and, ... read more

Budget updates

Posted on 21/09/2015 at 11:20

The recent Budget in July announced some tax changes that will have a major impact on quite a number of our clients.  Although much of the press surrounding the Budget concentrated on the cuts in Welfare spending, there were a number of proposed tax changes of great importance.

Full details of these are not available at the date of writing this Newsletter; however we will be monitoring these changes closely.  Where we believe any clients will be directly affected, we will ... read more

Dividends

Posted on 18/09/2015 at 00:00

Many of our company clients will be aware of the standard practice of paying dividends up to the basic rate each year.  Currently, so long as the gross dividend does not exceed the basic rate band, no higher rate is due from the Director/shareholder.  However, from April 2016, the current dividend tax credit system is to be replaced with a new dividend tax allowance of £5,000 a year.

Dividends above the limit will be subject to tax as follows:

Basic rate ta... read more