The tax system still categorises the public into single people living alone and married people living together. Yet, despite the growth of cohabiting couples most of which are pensioners, most of the tax benefit rules still do not recognise cohabitation. Tax Benefits that don’t apply to cohabiting couples: Inheritance Tax (IHT) When married couples pass… Read more »
Posts Categorized: Blog
Single Property Landlords Hit By Buy-To-Let Changes
62% of the UK’s landlord population are single property landlords which is around 1.5 million of the estimated 2.3 million landlords. However, due to the introduction of new tax rules for buy-to-let landlords, they will be pushed into the higher income tax bracket according to the National Landlords Association (NLA). Currently, the average annual mortgage… Read more »
Why You Need To Hire An Accountant Â
One of the constant dilemmas of sole traders and small business is deciding whether to do the accounting work yourselves or to bring in an expert into the business. Employing any professional service including an accountant can be expensive. However, accountants can sure eliminate your workload and therefore, give you more time to concentrate… Read more »
New Tax-free Childcare Scheme
Application for the new tax-free childcare scheme is now open for working parents. Another childcare scheme will also be opening in September. The two new schemes are intended to cut childcare costs by up to £2,000 per year for each child under 12 years old. This is £4,000 per year for disabled children under 17… Read more »
Pensioners Are Advised To Delay Their Tax Return Submission
HMRC used to collect tax due on state pensioners which exceeded the personal allowance through self-assessment tax return. This is due to Department of Work and Pensions (DWP) not deducting tax under PAYE. In order to be more efficient, HMRC is now introducing a new system this month intended to eradicate the completion of tax… Read more »
HMRC Targets Online Retailers
According to research, HMRC is imposing harsh penalties on online retailers also known as ‘deliberate defaulters’ who underpay their tax. On average, these small scale online retailers face penalties of 59% of the tax owed which is payable on top of the underpaid tax. This is in comparison to the normal penalty of 35%-50% of… Read more »
Higher Road Tax Rates for £40,000+ Cars
From April 2017, purchasers of new cars that are worth £40,000 and more will have to pay a five-year charge and an annual road tax rate. Cars registered before 1 April 2017 will not be affected and will remain in the current Vehicle Excise Duty (VED) system. The measure was first introduced in… Read more »
Should Properties Be Held Personally Or Via A Company?
Emma, a sole beneficiary of her late mother’s estate worth £2 million after accounting for Inheritance Tax, is planning to build up a mortgage-free rental property portfolio worth £1.5 million. Currently, she has a relatively good job at the age of 56, earning £48,000 per annum. Assuming Emma will pursue her plans, here’s… Read more »
Accountants Ranked #4 as Most Desirable People to Date
A recent poll of 3,500 people by Xero revealed that accountants are one of the most desirable people to date. The vast majority of the people who have been surveyed viewed accountants as analytical, intelligent, and with good business skills which is in contrast to people who stereotype accountants as ‘nerds’ and ‘introverts’. … Read more »
HMRC List Of Eccentric Failed Expenses And Claims
HMRC released a list of the most outlandish expense-claims to make sure other taxpayers do not make similar claims to those rejected on 2014-2015 self-assessment returns. Here’s the list! Holiday flights to the Caribbean Luxury watches as Christmas gifts for staff – even though it had no employees Regular Friday night ‘bonding sessions’ worth thousands… Read more »