The High Income Child Benefit Charge (HICBC) is a tax charge which claws back up to 100% of any child benefit received by a higher earner or their partner. Even though the charge is not assessed as income, it is reportable and collected under Self Assessment (SA). Taxpayers who must declare the HICBC are required […]
The cost of business travel is an allowable expense for tax. Home to work travel may qualify as a business journey (and so the cost will qualify for tax relief) where: Home is the main or only workplace or the operating base of the business. The trade or profession is a travelling occupation, or the […]
If you are self-employed and work from home you can claim: All the costs that are incurred for business purposes. A proportion of all the other costs of running your home, such as light and heat, insurance, council tax, repairs, cleaning and mortgage interest. When you are claiming expenses then ensure that you pay them (e.g. they are not […]
In order to maximise entitlement to full State Benefits, a full contribution record Is required. It is possible to check your National Insurance record online to see: what you’ve paid, up to the start of the current tax year (6 April 2018) any National Insurance credits you’ve received if gaps in contributions or credits mean […]
In 2016 the government consulted on a proposed abolition of Class 2 National Insurance contributions (NICs) for the self-employed. This flat rate contribution, currently £2.95 a week is payable by the self-employed in addition to Class 4 contributions based on the level of profits. The flat rate contributions were due to cease on 5 April […]
The rules for taxing dividends changed radically from 6 April 2016 with the removal of the 10% notional tax credit and the introduction of new rates of tax on dividends. For many taxpayers that meant more tax to pay on those dividends on 31 January 2018. The same will also apply on 31 January 2019. […]
ISAs The 2018/19 overall limit for ISAs is £20,000. This can be invested in cash or stocks and shares. Any income or gains arising on the investments will be tax free. As with all of our tax tips and web pages this information is necessarily summarised and of a general nature. If you would like […]
Personal allowance This is the amount of income you can receive that you don’t have to pay tax on. In 2017/18 this is £11,500. The allowance is lost at a rate of £1 for every £2 of income where your adjusted net income is over £100,000, until the allowance is totally extinguished. This creates an […]
Charitable donations Gift aid donations to charity also give tax relief at your highest marginal tax rate. Any donations made before 31 January of the following tax year, or the date of the submission of your tax return if earlier, can be carried back to the previous tax year. Cash donations made before both 31 […]
Transfer income-producing assets to your spouse or civil partner Transferring assets such as property or quoted investments to a spouse or civil partner is accepted by HMRC provided there is an outright gift with no conditions attached to it. Save income tax on share dividends: Following the change in how dividends are taxed, it can […]