Changes to HMRC rent a room tax relief now cancelled
I reported back in July 2018 that HMRC were planning to change the rent a room relief rules so that it would only apply in cases where the owner occupied the property at the same time. However, it has just been announced in the 2018 October Budget that these planned changes have been cancelled. Rent […]
Main residence tax relief changes from April 2020
There are two allowances that will be changing from April 2020 onwards. These only affect people who have taxable gains on their main residence. 1) Lettings relief – this is an additional relief available (up to a limit of £40,000) to those who have lived in a property as their main residence that is being […]
VAT registration limit remains the same for 2 years from 2020/21
There had been worries that the VAT registration limit (£85,000pa) would be reduced – increasing costs for people not able to reclaim VAT as well as forcing more people into the quarterly tax returns that start next year for those who are VAT registered. While the position will be kept under review, there is now […]
Personal Allowance and basic rate limit from 2019-20
The planned increase to the personal allowance has been brought forward to next year. From 6th April 2019, the personal allowance will be £12,500pa. The basic rate band increase is also brought forward to 2019, to £37,500. This means that the income limit before someone pays the higher rate will be £50,000 from 6th April […]
31st October 2018 Tax Deadline
The first tax return deadline for 2018 returns is approaching… 31st October 2018. Although this deadline is for people submitting a paper tax return, it is a good deadline for everyone to use. HMRC print the statements of account after the end of October, before sending these out in December, so to ensure they are […]
Class 2 National Insurance to remain
At present, there are two different types of National Insurance for the self-employed, Class 2 and Class 4. Class 2 is a fixed weekly amount, whereas Class 4 is charged based on profits. We had been expecting Class 2 National Insurance to be abolished for some time. It was supposed to be replaced by a […]
Deadline to register for a 2018 tax return
If you have income to report to HMRC for the tax year ending 5th April 2018, the deadline to register to complete a 2018 tax return is fast approaching. You must notify HMRC by 5th October 2018 that you will be submitting a 2017/18 tax return. Once registered, you will then have until 31st January […]
Changes to HMRC late tax return penalties
At present, the penalties for a late tax return can amount to £1,600… even if you were initially due a repayment of tax but had not submitted the return on time. However, there are plans to change the current system away from the fixed fines and instead adopt a penalty-point system instead. The new system […]
Changes to HMRC rent a room tax relief
** now CANCELLED in the 2018 October Budget ** There is a very useful tax relief for people who rent out rooms in their own home – the first £7,500 of income is tax-free. However, with the rise of many short-term letting websites HMRC is proposing to change the rules from 6th April 2019 so […]
Changes to Capital Gains Tax on second properties
At present, when you sell a second property you have some time before the capital gains tax(CGT) is payable. For example, selling a property in July 2018 would fall into the 2018/19 tax return – the tax would not be payable until 31st January 2020. However, from April 2020 HMRC is planning to bring in […]
HMRC 31/07/18 Payments on Account
It will shortly be time to make payment of the second HMRC payment on account for 2017/18. There are two payments on account required for 2017/18, the tax year that ended on 5th April 2018. The first was paid by 31st January 2018, and the second is now falling due by 31st July 2018. Payments […]
Incorrect underpayments in tax computations
I have noticed a couple of issues with HMRC 2018 tax computations recently, relating to a figure included for unpaid tax brought forward. In both cases, the clients had an estimated underpayment included in a tax code that changed part way through the 2017/18 year. This figure was one that HMRC had estimated could still […]