Tax Tips

Transferable tax allowance for married couples and civil partners – From 2015-16 tax year, a spouse or civil partner can apply to transfer £1,050 of their personal allowance to their spouse or civil partner. The spouse or civil partner will receive the transferable allowance as a reduction to their income tax liability at the basic […]

Social investment tax relief – HMRC have stated: “As announced at Budget 2013, legislation will be introduced in Finance Bill 2014 to provide a range of income and capital gains tax reliefs, to provide incentives for investment by individuals in qualifying social enterprises. Income tax relief will be available at 30 per cent of the […]

Remember to make full use of your annual inheritance Tax exemptions. The general annual exemption is £3,000 per donor (plus last year’s £3,000 exemption if you did not use it). Also consider making regular gifts out of your income to minimise the growth of your estate that will be liable to IHT.

Those running a business should take advantage of the temporary increase in the Annual Investment Allowance (AIA) to £250,000.  The limit for this tax break continues until 31 December 2014, although there are complex transitional rules. Annual Investment Allowance provides a 100% tax write off for plant and equipment used in your business, and extends […]

Higher rate taxpayers should make any charitable payments under Gift Aid so that you obtain additional tax relief. The charity will also be able to reclaim the basic rate tax from HMRC. Note also that Gift Aid can be carried back for relief in the previous tax year.

1 April – Corporation tax for year to 30 June 2013. 5 April – End of 2013/14 tax year. 19 April – PAYE & NIC deductions, and CIS. 19 April – Final RTI FPS due by this date. Indicate that this is Final Submission for the Tax Year and answer Annual Declaration questions – note […]

The new £2,000 “employment allowance” that provides relief from paying employers NIC on the first £2,000 of contributions starts on 6 April 2014. For many employers, the benefit of the £2,000 relief will be obtained in the first month by reducing employers NIC payable. For others, it could take several months before credit for the […]

Keep in mind that for every £2 that your adjusted net income exceeds £100,000 the £9,440 personal allowance is reduced by £1. Pension contributions and Gift Aid are an effective way to help reduce adjusted net income and save tax at an effective rate of 60%.

HMRC plans to implement two new services granting greater control to directors and employees over their tax codes. 1)      Directors and employees are now able to notify HMRC if they think their tax code is incorrect. A simple online form will now allow users to contact HMRC directly. You need to follow this link to […]

HMRC have announced that the penalties for late RTI returns will now come into force from October 2014 instead of April 2014. However, interest will still run on late PAYE and NIC payments from April 2014.