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Monthly Archives: November 2016

Tax changes announced last week

Last week, Philip Hammond presented his first Autumn Statement to parliament. In some respects, it was a bit of a damp squid as there were no stand-out revelations. However, there were a few tax changes that are worthy of note: Pension pot reinvestment The over 55s have been making good use of George Osborne’s facility…
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Autumn Statement wish lists

Organisations across the UK have been publicising their wish lists for Philip Hammond’s first autumn statement later this week. Amongst tax practitioners there seems to be a preference for increases in the Inheritance Tax threshold and the merger of income tax and National Insurance. Northern business leaders are keen to see investment in roads and…
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Buy to let lenders subject to new regulation

Just when it looked as if things couldn’t get any worse for prospective buy-to-let investors – in particular the gradual withdrawal of higher rate tax relief for finance charges – the Bank of England’s Financial Policy Committee (FPC) will be granted new powers by the government to help it protect the financial system from future…
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The season to be merry

If you are involved in planning the staff Christmas party for your firm don’t forget to consider the income tax consequences. Here’s a short reminder of the points you should add to your check list. The cost of an annual staff party or similar function is allowed as a deduction for tax purposes. However, the…
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Making tax digital – nothing to worry about

Readers will be relieved to note that their professional advisors and other interested organisations, have recently lobbied HMRC to temper their agenda for making tax digital (MTD). In case you have not heard of MTD, HMRC intend to require businesses with income over a de minimis limit (presently set at £10,000), to upload summary accounting…
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Annual Investment Allowance (AIA)

From 1 January 2016, the AIA was increased to an annual limit of £200,000. Unlike previous changes, this is a permanent increase. The AIA allows businesses to write off 100% of expenditure in qualifying assets and equipment, up to the appropriate limit, against their tax liabilities. In effect, qualifying expenditure is treated as any other…
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Tax Diary November/December 2016

1 November 2016 - Due date for Corporation Tax due for the year ended 31 January 2016.   19 November 2016 - PAYE and NIC deductions due for month ended 5 November 2016. (If you pay your tax electronically the due date is 22 November 2016.)   19 November 2016 - Filing deadline for the…
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Limits on certain claims for tax relief

From 6 April 2013, the total amount of certain Income Tax reliefs that can be used to reduce your total taxable income is limited to £50,000, or 25% of your adjusted total income, if higher. The main reliefs subject to this limit are: trade loss relief against general income and early trade losses relief -…
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How long do you need to keep tax records

The length of time you need to keep tax records depends on the types of income you earn and the types of tax you are paying. A list of time limits is set out below: Income Tax and Capital Gains Tax 1.    If you are not in business One year from the 31 January following…
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Deferring taxable gains until future sales

It may be possible to delay paying Capital Gains Tax (CGT) if you sell a business asset that is subject to a charge to CGT, but you use all or part of the proceeds to buy new business assets. The relief you can claim is called Rollover Relief. This relief means you won’t usually pay…
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