Click here for a second opinion

Tax-free Mileage Allowance of 60p

The approved HMRC mileage allowance payment is a maximum of 45p per mile. This means that you can pay your directors and employees the maximum amount for using their own vehicles for business journeys.

You can also pay your employees more than the HMRC’s approved rates of 45p for the first 10,000 miles and 25p per mile thereafter. The excess… Full article

Pay Less Tax On Savings And Investments

6 Things You Need To Know

  1. Transfer Assets – If your wife or husband is paying a lower rate of tax than you do, you can transfer your savings and investments to them in order to pay less income tax.
  2. Dividend Allowance – The first £5,000 you receive in dividends is tax-free. Basic-rate taxpayers will pay 7.5% tax on dividends they receive… Full article

Child Benefit Changes

If you or your partner has an income of more than £50,000 per year, then the partner with a higher income has to pay the High Income Child Benefit Charge that came into effect on 7 January 2013. This means that the partner with a higher income must pay an income tax on some or all of the child benefit… Full article

HMRC Actions on Disguised Remuneration

The result of the Supreme Court’s decision regarding the Rangers football case has provoked HMRC to take more action against a wide range of disguised remuneration tax avoidance schemes. Paragraph 89 of the court decision states that employment income paid from an employer to a third party is still taxable as employment income.

This means that Rangers should have deducted… Full article

Things You Need To Know About Tax Avoidance

Tax avoidance used to be tolerated by the Taxman. This is because the Taxman was more concerned in dealing with those who are guilty of intentionally doing it before. However, HMRC is now after tax dodgers in the likes of politicians, celebrities and even small businesses.

HMRC investigations have resulted in the collection of an additional £3.4bn in VAT underpayment… Full article

Auto-enrolment Duty

The Pensions Regulator’s annual commentary and analysis report states that more than 70% of all new businesses will have staff they need to put into a workplace pension. This statement clearly shows that auto-enrolment has overturned the decline in workplace saving. The number of staff that was saving into a workplace pension has increased to 78% in 2016 from 55%… Full article

Gift Aid Small Donations Scheme Guidance Made Clear By HMRC

Updated guidance has been issued by HMRC regarding the Gift Aid Small Donations Scheme (GASDS). The new guidance enables a charity or Community Amateur Sports Club (CASC) to claim top-up payments on small donations of up to £20. It also includes revisions to the section covering community buildings.

Under the new rules, a charity with two or more community buildings… Full article

Inadequate Retirement Income from Auto-enrolment Pensions

The number of employees signed up to auto-enrolment pensions has reached 7.5m based on the figures from Association of British Insurers. However, the low level of contributions by employees and employers is still too small to provide adequate future pension cover.

The premium income has also increased to £13.4bn in 2016 from £1.3bn in 2015. This has been mainly due… Full article

End of Traditional Tax Return Confirmed By HMRC

The new simple assessment system is designed to end the traditional tax return process. Taxpayers who usually provide information under the self-assessment will no longer need to do so. This is because the returns will now be pre-populated with existing data that HMRC holds.

This option will apply to two groups starting from September 2017:

Tax Free Profits On Property

7 Things You Need To Know


 

  1. Rent-A-Room – Rent-a-Room Relief that lets you receive £7,500 in rent, each year tax-free. It applies if you rent out furnished accommodation in your own home. This includes landlords, bed & breakfasts, and guest houses. The income limit covers everything that you charge your tenants as part of the rental service including cleaning, meals, or laundry.
  2. Landlord’s… Full article