Since 6 April 2016, majority of individuals who have savings, no longer pay tax on any interest they earn. This is due to the introduction of Personal Savings Allowance. This means that directors, employees and self-employed can earn up tp £6,000 worth of interest from savings tax free. Personal Savings Allowance Basic Rate Taxpayers… Read more »
Posts By: ilyas Patel
Tax Free £50 Benefits
We have found a fantastic way to motivate your employees ! Fortunately, there are some great rules introduced by Finance Bill 2016 which indicates that NO TAX is payable on trivial benefits. Here’s the criteria that need to be satisfied for a trivial benefit: Up to £50 per benefit. If the benefit is provided… Read more »
Taxpayers Human Rights Act
HMRC has issued factsheet on the individual rights of taxpayers who are facing penalties for non-compliance with tax rules. The factsheet sets out the individual’s rights when HMRC asks for information regarding potential tax evasion and the extent of HMRC’s power to excise penalties. TAXPAYER RIGHTS You have the right under Article 6… Read more »
Tax Efficient Tips For 2018/19
The dividend allowance has been reduced to £2,000 from 6 April 2018, coinciding with the annual shifts in personal allowance and basic rate band. All these changes will have an effect on owner-manager individuals. PERSONAL ALLOWANCE The personal allowance for 2018/19 is £11,850 and the basic rate band is £34,500. This means that… Read more »
Tax-Free Company Vehicle
Company cars are becoming increasingly expensive from a tax and National Insurance point of view, especially if private fuel is provided. Moreover, the salary sacrifice scheme for taxable benefits for cars ceased in 2017. In order to save tax, you should consider purchasing a company van instead. CAR or VAN Generally, a vehicle is considered a… Read more »
Entertaining Claims
Employers who cover the costs of their employees providing entertainment for clients have certain tax, National Insurance and reporting obligations. Here are some of the things you need to know: Tax Deduction in Business Accounts Entertaining expenditure is disallowed as a deduction for tax purposes. However, staff entertaining which is not treated as ‘entertaining’ for tax… Read more »
Tax Relief Restrictions and Incorporation for Landlords
From 6 April 2017, landlords are no longer be able to deduct all of their finance costs from their property income. As an alternative, they will receive a basic rate reduction from their income tax liability for their finance costs. Finance costs include: Interest and other finance costs on loans taken for a property… Read more »
Invest In Kids To Save Inheritance Tax
Investment in shares in an unquoted trading company including AIM shares are exempt from Inheritance Tax, after a two year holding period. This is attractive but taxpayers should also be looking at other investments closer to home that can save them substantial Inheritance Tax. There are Inheritance Tax planning opportunities associated with investing in one… Read more »
3 Ways To Reduce Stamp Duty Land Tax
There are several ways to reduce Stamp Duty. Here are some of the examples: 1. Commercial Property Purchase of commercial property results in lower Stamp Duty compared to residential properties of the same value. 2. Mixed-use Property A mixed-use property, wherein it has both residential and commercial aspects, attracts lower rates of Stamp Duty. The 3%… Read more »
Avoid The Additional 3% SDLT On Property Purchase
The additional 3% Stamp Duty Land Tax surcharge has been implemented since 1 April 2016. Therefore, if you own more than one residential property then you have to pay 3% more stamp duty than would be applicable based on normal rates. There are various scenarios that require careful planning to avoid paying the additional 3%… Read more »
