Category Archives: Personal tax

The Chancellor’s Autumn Statement 2013

We’ve all had a few days to digest the contents of George Osborne’s Autumn Statement speech.  With new measures including a package to help all businesses in England with the cost of business rates, an additional 50,000 start-up loans for entrepreneurs, an extension to the new Enterprise Allowance, the scrapping of employers NIC for the under 21’s and the scrapping of next year’s planned rise in fuel duty, was it good news for SME’s?

Our summary, plus a reminder of other key changes which are to take place from April 2014, is available here.  If you would like advice on any of the topics raised, please do get in touch.

 

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HMRC targets health professionals

Physiotherapists, osteopaths, chiropractors, chiropodists, podiatrists, homeopaths and psychologists are among the health professionals being targeted in HMRC’s Health and Well Being Tax Plan campaign, launched on the 7 October. 

Under the campaign health professionals with undeclared taxable income are being offered a time-limited disclosure opportunity to bring their tax affairs up to date ‘on the best terms available’. The opportunity to voluntarily join the scheme will run until 31 December, with a deadline of 6 April 2014 for the disclosure and settlement of unpaid tax.

Marian Wilson, Head of HMRC Campaigns, said:

“I urge health and wellbeing professionals to take advantage of our quick and straightforward way of bringing their tax affairs up to date. Help, advice and support is available.

“After the opportunity closes on 6 April, HMRC will use information it holds from third parties and regulatory bodies to identify people who have not paid what they owe. Penalties – or even criminal prosecution – could follow.”

If you would like further advice or assistance in relation to this campaign, we can help.

HMRC targets residential property landlords

HMRC’s newly announced Let Property Campaign is designed to encourage residential property landlords to come forward and voluntarily disclose any undeclared rental income to HM Revenue & Customs (HMRC).
Although the campaign will be directed at all residential landlords, HMRC is particularly focusing on:
• Landlords who let to students/groups of workers.
• Landlords who let out holiday accommodation.
• Landlords who let out properties for multiple occupancy.
HMRC estimates that up to 1.5 million landlords may be underpaying £500 million in tax every year. In a departure from previous campaigns and in recognition of the sheer scale of the potential numbers involved, HMRC intends to run the campaign for at least 18 months.
Help is available for landlords by calling HMRC’s Let Property Campaign Hotline on 03000 514 479 between 9am and 5pm, Monday to Friday. HMRC also intends to work with a variety of bodies over the next few months to develop tools and guidance, to enable landlords to bring their tax affairs up to date and then remain compliant.
The Let Property Campaign follows hard on the heels of the Property Sales Campaign, which is directed at people who may have sold residential property, in the UK or abroad, that was not their main home. Such property disposals are potentially liable to Capital Gains Tax. The opportunity to voluntarily disclose any undeclared property disposal proceeds closed on 6 September 2013 for the Property Sales Campaign.
If you would like further advice or assistance in relation to this campaign, please do get in touch. Telephone: 01242 223160, email admin@grantandco.co.uk.
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Tax Planning pre April 2013

Following the Chancellor’s Autumn Statement some careful tax planning may be useful to help you optimise your tax position.

Personal Tax

Personal Allowance

For those aged under 65 the personal allowance will be  increased from £8,105 to £9,440 from April 2013. This increase in the personal allowance is  greater than expected and is part of the plan of the  Coalition Government to ultimately raise the allowance to £10,000.

The reduction in the personal allowance for those with  ‘adjusted net income’ over £100,000 will continue. The reduction is £1 for  every £2 of income above £100,000.  So, for next tax year the allowance will cease when  net adjusted income exceeds £118,880.

Talk to us about:   Planning before 6 April 2013 where  adjusted net income is expected to exceed £100,000. Broadly speaking, adjusted net  income is taxable income from all sources reduced by specific reliefs such as gift  aid donations and pension contributions. We can advise whether these adjustments could be made to protect some or all of your personal allowance.  Alternatively, if you have your own company, we can help you consider the timing of dividend receipts from the company.

Tax band and rates 2013/14

The basic rate of tax is currently 20%. The band of income  taxable at this rate is being reduced from £34,370 to £32,010 from 6 april 2013 so that the  threshold at which the 40% band applies will fall from £42,475 to £41,450.

The 50% band currently applies where taxable income exceeds  £150,000 but the rate will fall to 45% next tax year.

Dividend income is taxed at 10% where it falls within the  basic rate band and 32.5% where liable at the higher rate of tax. Where income  exceeds £150,000, dividends are taxed at 42.5% this year and 37.5% from next year.

Talk to us about:   Planning before 6 April 2013 where income is expected to exceed £150,000. We can help with decisions such as deferring income until next tax year or considering the use of specific reliefs such as gift aid donations and pension contributions.

A full summary of the Chancellor’s Autumn Statement is available by following this link.

It has been announced that the date of the next Budget will be Wednesday 20th March 2013.