Category: Tax

The government announced in the Summer Budget that from April 2016, the current 10% Wear and Tear Allowance for furnished lettings will be replaced with a relief that enables all landlords of residential dwelling houses to deduct the costs they actually incur on replacing furnishings in the property. This will give relief for capital expenditure … Continued

HMRC has revealed how it plans to introduce digital tax accounts over the course of the 2015/16 tax year. First announced in Budget 2015, news that HMRC wants digital accounts to replace traditional annual tax accounts created much debate. Now, further details of what this transitional process will look have been provided by HMRC: July … Continued

Family businesses are being unfairly penalised by changes to entrepreneurs’ relief (ER), according to the Institute of Chartered Accountants in England and Wales (ICAEW) Tax Faculty. The amendments, passed into law through the 2015 Finance Act, prevent retiring partners from claiming ER if they are associated with people in the purchasing business. Likewise sole traders … Continued

No one quite knew what to expect in the first budget by a majority Conservative government for almost 20 years. In his seventh Budget Statement as chancellor, George Osborne promised a ‘big budget for a country with big ambitions’. As predicted there were details on how the government will fulfil its pre-election goals of reducing … Continued

A quarter of businesses with intellectual property have had their patent violated over the past 5 years, according to research by the Federation of Small Businesses (FSB). The survey found that almost 1 in 3 businesses with intellectual property rely on it to generate between 75% and 100% of their revenue. Despite this, less than … Continued

As mentioned in the tax diary, the deadline for filing the 2014/15 returns of benefits and expenses paid to employees is 6 July 2015. Note that there can be significant penalties for incorrect returns so they need to be completed with great care. Remember that unless the employer holds a dispensation from HMRC, employees’ and … Continued

HMRC are seeking the power to recover unpaid tax over £1,000 from taxpayers’ private bank accounts and legislation was originally going to be included in the 2015 Finance Act. However the new measures were not included in the first Finance Act but may be included in the next one! This new power will only be … Continued

Following the Election result on 8 May, the Chancellor has announced that there will be a second Budget. We expect this to include a number of Conservative manifesto tax pledges and we will be updating clients with the relevant details in due course.  

The new flexible pension rules came into force from 6 April 2015 for those aged 55 or over with money purchase pension schemes. As announced by the Chancellor in last year’s Budget, these individuals will be able to withdraw as much as they wish from their pension fund but will be taxed on the amount … Continued

HM Revenue & Customs (HMRC) is to waive £100 fines for up to 890,000 people who failed to file their tax returns on time, according to reports. The deadline for self-assessment tax returns was midnight on 31 January and those who fail to meet this have traditionally been threatened with a £100 fine. However, HMRC … Continued