You are probably wondering why in August we have chosen to write about Self-Assessment, when the deadline for filing manual tax returns is 31st October 2018 and the deadline for on-line submissions is 31st January 2019. HM Revenue and Customs (HMRC) notifies individuals who must file a Self-Assessment Tax Return after the end of the tax year. The tax year runs …
PAYE Coding Notice and Tax Refunds
Reviewing your PAYE coding notice is vitally important to make sure you’re being taxed correctly; if not you may be due a tax refund. PAYE stands for Pay As You Earn. This is the standard method for deducting Income Tax & National Insurance from your wage/salary or pension before you receive it. It was introduced in 1944. What is a PAYE …
Trading and Property Allowances
Trading and Property Allowances From the 2017/18 tax year onward, HMRC have introduced a trading allowance and a property allowance of £1,000 each. These allowances work in a similar way to rent-a-room relief, meaning that the taxpayer has the choice to deduct either the relevant expenses from gross receipts, or the £1,000 allowance, not both. The allowances are going to …
Making Tax Digital
Making Tax Digital (MTD) is being implemented by HM Revenue & Customs from 1st April 2019. However, for many businesses the real switch over date is much sooner. This brief article explains why you should be thinking about MTD now and how Rawlinson Pryde & Partners can assist you. Who has to comply with Making Tax Digital? Any VAT registered business …
When to contact an Accountant?
The timing of when to contact an Accountant or Tax Adviser is often overlooked. However, it can be a vitally important issue in order to keep as many tax savings options available as possible. When should you contact an Accountant? For an Accountant or Tax Adviser to best advise you, you should always contact them prior to making a decision …
2018/19 Tax Efficient Profit Extraction for Owner Managed Companies
The new tax year means it is time for owner managed companies to consider tax efficient profit extraction. For many years accountants and tax advisors have suggested that director/shareholders should extract profit by paying themselves a low salary with the remainder of their income being extracted in the form of dividends. Dividends are not deductible in arriving at the company’s …
Tax Saving ideas by 5th April 2018
There are several tax saving steps, to help mitigate your tax liabilities for the tax year 5th April 2018. However, you should act now before the end of the tax year for many of the suggestions below. Individuals – Income Tax Bring forward income to use up your Personal Allowance £11,500 (17/18). Investing into a pension scheme. Paying £80 into …
What are Trivial Benefits?
Employees and Office holders can be provided with trivial benefits. These are not subject to Income Tax or National Insurance on the employee, whilst the employer can also obtain tax relief and reclaim (if registered) any VAT on the items purchased. In order for an expense to be able to be classed as a trivial benefit it must meet the …
Private pension tax relief
There was much speculation prior to the budget last month, that the tax relief for higher rate tax payers was going to be scrapped, or reduced. Many pundits were expecting a flat-rate tax deduction of 33% rather than tax relief for higher rate taxpayers of 40%. Fortunately, for those who may have been affected by a reduction, this change was …
Company capital gains relief is frozen
Before the Autumn Budget, the capital gains tax (CGT) calculations of companies included a relief called the indexation allowance. Basically, this allowed a company to increase the acquisition cost of an asset by the annual rate of inflation. Without this relief, any CGT payable on the sale of the asset would increase. Instead of deducting the cost plus the inflation …