On 6th March 2024 the UK Chancellor announced the Spring Budget for the UK. There were quite a few positive changes and the main points to help plan ahead are below:
Child Benefit Changes Starting April 2024, parents will receive Child Benefit as follows: £25.60 per week (£1,331 annually) for the eldest child and £16.95 per week (£881 annually) for additional children. Presently, if either parent's income exceeds £50,000, the High Income Child Benefit Charge (HICBC) takes effect, requiring repayment of Child Benefit once income surpasses £60,000. This necessitates completing a self-assessment tax return. As of April 6, 2024, the threshold rises to £60,000 with a gradual taper, fully recouping Child Benefit when income exceeds £80,000. By April 2026, the clawback assessment will shift to a "household income" basis, pending HMRC adjustments. The 2024 threshold increase will lower the combined tax rate (HICBC, income tax, and NIC) on incomes above £60,000, encouraging parents to earn more. Eventually, transitioning to a "household income" basis should create fairer outcomes for families, albeit HMRC implementation challenges may arise. Changing the Non-Domiciled (non-dom) status and tax treatment The government plans to end the current tax treatment for UK resident non-domiciled individuals (non-doms) starting April 6, 2025. This regime, in place for over 200 years, allowed UK residents with permanent homes abroad to avoid UK tax on foreign income and gains (FIG) unless brought into the UK. It also shielded non-UK assets from Inheritance Tax. As of April 6, 2025, the current remittance basis will be replaced by a new residence-based test lasting four years for those who have been non-UK residents for at least the prior ten tax years. During this period, newcomers won't pay tax on foreign income or trust distributions brought into the UK. However, they'll lose personal allowances and CGT exemptions. After four years, individuals will be taxed like other UK residents on worldwide income and gains. Transitional rules apply: non-doms moving from remittance to arising basis in 2025/26 will be taxed on 50% of foreign income; reduced rates for pre-6 April 2025 FIG remittances till 2027; and Capital Gains Tax rebasing for non-UK assets. Business Investment Relief continues. From April 6, 2025, settlor-interested trusts lose tax protection unless they qualify for the four-year FIG regime. Overseas workday relief remains for the first three years, depending on opting into the new regime. Inheritance Tax shifts from domicile to residence-based from April 6, 2025, with assets within ten years of UK residency potentially liable. UK sited assets remain subject to IHT. These changes simplify the non-dom tax system, but complexities persist. Transitional provisions offer time for adjustment. Current non-doms should consult their Tax Affinity adviser promptly as these are significant changes. National Insurance Class 1 Changes (Employed) Starting from an annual income of £12,570 up to £50,270, employees pay Class 1 National Insurance Contributions (NICs). The rate is currently 10% (down from 12% since January 6 this year). Above £50,270, the rate remains 2% for additional earnings. From April 6, 2024, the main rate will decrease by another 2% to 8%, potentially saving employees up to £63 monthly (£754 yearly). Employers' NICs, at 13.8% over the lower threshold, remain unchanged. This reduction benefits employees and may ease pressure on employers regarding wage hikes. Self-Employment Changes Self-employed individuals pay Class 4 NICs from £12,570 to £50,270 at 9% (dropping to 8% from April 6, 2024). Above this threshold, the rate stays at 2%. Starting April 6, 2024, the rate decreases by another 2% to 6%. This saves £30 for every £1,000 of profit, up to £1,131 annually for those paying at the main Class 4 NIC rate. Class 2 NICs were abolished from April 6, 2024, offering a positive financial change for the new tax year. Capital Gains Tax When you sell residential property and make a profit, you might owe Capital Gains Tax (CGT), except when it's your main home, which is CGT exempt. If the property wasn't always your main home, only part of the gain is taxable. Currently, residential property gains are taxed at 18% for basic rate band profits and 28% thereafter. Starting April 6, 2024, the higher rate reduces to 24% for property sales. Reporting the sale within 60 days from completion is crucial. Sales exchanged before April 6, 2024, may still be taxed at 28%. Landlords affected by the abolishment of Furnished Holiday Lets tax benefits from April 2025 will see changes. From April 6, 2025, furnished holiday lettings will be treated as property investment businesses, losing several tax benefits:
Investments The Budget introduced measures to encourage individual investing and foster a stronger savings culture. Here are the key points:
VAT threshold increased The government is raising the VAT registration threshold from £85,000 to £90,000 and the deregistration threshold from £83,000 to £88,000. These changes start on April 1, 2024. Over 28,000 businesses are expected to benefit by no longer needing to register for VAT in 2024-25. Conclusion Overall this is a much better budget than the previous autumn one presented in 2023. VAT announcement is decades overdue and the drop in NI thresholds don't make that much of a real world difference when price rise percentage is way higher then the percentage drop. And again the goverment did not address any of the large multinationals raking huge profits while small businesses and the public suffer. The sale of Natwest shares in a recession (that the government used tax payers money to bail out the bank recently) needs to be critically analysed more closely as to the effective timing of the sale and real time benefit for tax payers who directly paid for this out of their pockets. At times like these its even more important to have an experience and knowledgable tax accountant in your corner. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends.
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The Smart Move: Why You Should Use a Tax Accountant for Your Self-Assessment
In the world of personal finance, few things are as certain as taxes. Each year, individuals across the globe prepare to navigate the labyrinth of tax regulations, deductions, and forms required for their self-assessment. While some opt for the DIY approach, a growing number are discovering the numerous benefits of enlisting the expertise of a tax accountant. In this blog post, we'll explore why using a tax accountant for your self-assessment is not just a smart choice but often a financially savvy one. 1. Expertise and Knowledge: Tax accountants are professionals who specialize in tax laws and regulations. They stay up-to-date with the latest changes in tax codes and have the experience to navigate complex financial situations. This expertise can help you minimize your tax liability legally. 2. Maximize Deductions and Credits: Tax accountants have a keen eye for identifying deductions and credits that you might overlook. Their attention to detail can result in significant savings, ensuring you're not paying more taxes than necessary. 3. Reduce Stress and Save Time: Preparing your own taxes can be time-consuming and stressful. It often involves sifting through a mountain of paperwork and deciphering intricate tax jargon. Hiring a tax accountant frees up your time and reduces the stress associated with tax season. 4. Avoid Costly Mistakes: Filing taxes incorrectly can lead to penalties and audits. Tax accountants are trained to minimize errors and ensure that your return is accurate, reducing the risk of costly mistakes that can haunt you later. 5. Year-Round Assistance: A tax accountant's support isn't limited to just tax season. They can offer financial advice throughout the year, helping you make informed decisions to optimize your tax situation and financial health. 6. Audit Protection: If you're audited by tax authorities, having a tax accountant on your side can be invaluable. They can guide you through the audit process and ensure that your rights are protected. 7. Customized Strategies: Tax accountants can create personalized tax strategies that align with your financial goals. They consider your unique circumstances to help you make the most of available tax benefits. 8. Peace of Mind: Perhaps one of the most valuable aspects of hiring a tax accountant is the peace of mind it brings. Knowing that a professional is handling your taxes can alleviate anxiety and allow you to focus on other aspects of your life. 9. Cost Savings: Contrary to common belief, hiring a tax accountant can often result in cost savings. The deductions and credits they can uncover, combined with the reduction in errors, can more than offset their fees. 10. Legal and Ethical Compliance: Tax accountants operate within the bounds of the law and adhere to ethical standards. This ensures that your taxes are filed ethically and legally, eliminating any worries about potential legal repercussions. In conclusion, the decision to use a tax accountant like Tax Affinity for your self-assessment is an investment in your financial well-being. Their expertise, ability to maximize savings, and dedication to compliance can make the process smoother, more accurate, and less stressful. Ultimately, it's a smart move that can pay dividends in terms of both financial savings and peace of mind. So, this tax season, consider enlisting the help of a tax accountant like Tax Affinity and reap the rewards of a stress-free and financially optimized experience. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are the number rated and recommended Tax Accountants in London. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. a Tax Accountants Experience and expertise is highly valued in tax planning and hmrc investigations5/22/2023
Tax Affinity Accountants are rated as experts in Tax and Accounting Industry and because of our experience and expertise with Tax we can help clients to both legally minimise their tax and make the best plans for the future. We never recommend breaking any rules but instead using our expertise know that there is more than enough scope with the framework to legally reduce taxes and still have the peace of mind. And because we stay abreast with the latest changes and developments we are are always at the forefront of advising clients when things change. And you know your in safe hand because Tax Affinity are experts in tax law with a good working relationship with HMRC. There to there to help and support clients if they are involved in a HMRC tax or VAT investigation or have a Worldwide Disclosure / Let Property Campaign letter etc to respond to. We are always able to successfully support and guide clients to the best possible outcome. Just ask one of our many happy clients who sing our praises. Below is a list of just some of the things we can help with. If what your looking for is not listed we most likely are still able to do it but just didnt want to make the list too long. Give us a call and have a chat with one of our tax experts or come into one of our high street branches - we will be happy to help. - Inheritance tax planning for landlords with estates between £1million - £250million - Capital gains tax planning - Transferring properties into a limited company - Incorporation - Offshore tax planning - HMRC Tax and VAT Investigations - Code of Practice 8 and 9 investigations - Alternate Dispute Resolution - Tax Tribunals - Forensic Accounting - Worldwide Disclosure Facility - Let Property Campaign - HMRC Check of Self Assessment / Tax - Contractual Disclosure Facility (CDF) - Code of Practice 8 / 9 / 11 / 14 - Section 144 Enquiry - Section 12A TMA 1970 Notice Investigations - Code of Practice 11 (Local Compliance Offices) - Code of Practice 14 Investigation (Company Tax Return Investigations) By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. With only a few working days left. This is an important reminder that if you have not already had your 2021-22 personal tax return done. All 21/22 tax returns (self assessments) need to be calculated & submitted to HMRC before the 31st January 2023 and any tax payable for the year to be paid by that date also. And we recommend this is urgently done and you contact us today. If you had it done or do not need it then ignore this reminder.
As per last year HMRC is saving money & will not send postal reminders. They now choose instead to collect money through letters of fines for missed deadlines saying 'all tax payers should be aware of the self assessment deadline, and not expect HMRC to remind them'. With fines starting at £100 rising to £1300 plus interest for late filing and payment even if you had no tax to pay, there really is no excuse to not have it done as soon as possible so get in touch today and ensure its calculated and declared by professional tax accountant, someone who will make sure to look after your best financial interests while freeing you up to concentrate on the things your love. To complete the 2021/2022 self assessment you will need the following information:
Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. On 17/11/2022 Jeremy Hunt the Chancellor for the UK Governments expressed their plans for the coming year and the contents of his autumn budget. As before we have read thorugh the detailed report and listed the main bullet points for small business and the self employed.
Personal Income Tax There are no changes to the personal tax thresholds. And they will remain at the current level until April 2028. This also includes the National Insurance Contribution threshold for PAYE and self employed. Minimum wage for people aged over 23 to increase from £9.50 to £10.42 an hour from April 2023 Company Dividend Tax-Free Allowance (DIV) The dividend tax free allowance threshold will be reduced from £2,000 to £1,000 from April 2023. And this will be reduced even more in 2024-25 to £500. Additional Rate of Income Tax (Higher Tax band) From April 2023, the higher rate band will be reduced from £150,000 to £125,140. Which means anyone earning above £125,140 will now be taxed at the 45%. Apart for Scotland. Annual Investment Allowance (AIA) The Annual Investment Allowance will be permanently set at £1 million to help promote growth in the economy. Corporation Tax (CT600) From April 2023, the Corporation Tax is due to increase to 25% if a company’s profits exceed £250,000. Companies whose profits are between £50,001 to £250,000 will be subject to a tapered relief. Companies whose profits fall below £50,000 will remain at the current level of 19%. Capital Gains Tax-Free Allowance (CGT) Also rumoured before the budget, the threshold for Capital Gains Tax will be reduced from £12,300 to £6,000 from April 2023. Similarly to the dividend allowance, a further reduction will be seen in 2024-25 to £3,000. Employment Allowance (Employer NIC) The Employment NIC Allowance will stay at £5,000 meaning that eligible employers. Road Tax Electric cars, vans and motorcycles will start to pay road tax from April 2025. Energy The household energy price cap has been extended for one year beyond April 2023 but has been made less, with typical bills capped at £3,000 instead of £2,500 a year. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. HMRC relishes the idea that tax payers will make errors in their tax returns and then they will pay higher taxes or be fines for making errors. The number of errors by members of the public doing their own self assessments has been rising steeply in the last few years and HMRC has been raking in fines for errors. So its very important to try to ensure you make none.
Why? - Well simply mistakes on your tax returns could cost you a lot of hard earned money. Solution? - Avoid HMRC penalties and charges by making sure you don’t commit these mistakes during tax return time by getting an expert like Tax Affinity Accountants (one the most highly recommended accountants in the UK) to do calculate and submit the return for you and sleep easy at night knowing you paid the least tax and everything was correct according to HMRC rules. Key things to keep in double check:
A good tax accountant should save you much more in tax than what he/she charges. And having a Tax Affinity accountant calculate your personal and business tax situation will lead to zero mistakes on your return and a lower tax bill first time every time. Fill out our contact us page to find an office near you and we will be happy to help you sleep easier at night. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. There are only a few working days are left until (UK) HMRC's self assessment (tax return) deadline. And with many people receiving furlough, SEISS type covid grants and Covid Support from Local Council's which all need to be declared it only add to the complication.
Many tax payers are finding their tax bills are higher this year than last year and are turning to expert tax accountants at Tax Affinity to help them. Doing it yourself or with someone with a basic knowledge of the ever changing tax rules is likely to end up costing you much more than the fees an expert tax accountant would ever cost. It just makes economic sense. So if you have not had your 2020/21 (6.4.20 to 5.4.21) tax return completed then you urgently get in touch today as the number of working days are fast decreasing and before you know it the time will be gone and you may end up facing a fine by HMRC for missing the deadline. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. Last year over 30,000 people filed their tax returns between christmas eve and boxing day12/19/2021 Did you know last year more than 30,000 people in the UK did their tax return between Christmas Eve and Boxing Day?
As of writing this, there are only 20 working days left until HMRC's self assessment deadline of 31st Jan 2022. Each year millions of people leave their tax return (self assessment) to the last minute and then stress out if they declared the info correctly and if the tax due is correct. Statistically the number one worry tends to be if their submission may trigger an HMRC investigation into their tax affairs... death and taxes being the fear we suppose. Plus in the last tax year due to Covid 19 and lockdown's there were many other sources of income e.g. council support grants, SEISS (self employed grants), furlough, bounce back loans, universal credit, tax credits etc. Making tax returns more complicated and resulting with higher taxes due for most tax payers. If your worried we recommend you get in touch with one of our tax experts. Because we have seen a lot more investigations this year than previous years as HMRC starts it claw back to try to shore up the UK government income and focuses even more on tax avoidance and incorrect information. So if you have not had your 2020/21 (6.4.20 to 5.4.21) tax return (self assessment) completed then you urgently need to get in touch today as the number of working days are fast decreasing and before you know it the time will be gone and you may end up facing badly caclulated tax return paying more tax than you need to or worse a fine by HMRC for missing the deadline. Contact us today by clicking this link or calling us on the number above. And share this page with your friends and family. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. The 5th SEISS grant
As the UK returns to normal after the Covid 19 pandemic, all government support for sole traders, self employed and small and medium sized business is winding down. Meanwhile HMRC is increasing efforts to maximise tax revenues. In some cases going back several years to find any unpaid taxes and add on interest and fines to the amounts. It use to be the anything under £50 HMRC wouldnt bother to chase but now every pound matters. The deadline for the 5th SEISS (self employed / self assessment) grant is 30th Sept 2021 only a few days away. The 5th SEISS grant is different from the previous ones as there are two levels available and the claimant needs to declare how trade as been negatively effected (reduced activity / capacity / demand) between 1st May 2021 to 30th Sept 2021. And requires that the 19/20 and 20/21 self assessments (personal tax returns) be completed. There is also a relevant basis period applicable and a financial impact declaration (FID). This has caused a lot of members of the public confusion and worry on how to claim for this correctly and not make an incorrect that can be picked up by HMRC and asked to be paid back. So we at Tax Affinity Accountants are here to help and support everyone who needs help with this regard. We can help complete the paperwork and documentation required to claim the 5th grant without the hassle and time spent trying to work out and worrying if you have declared everything correctly. Contact us via our online form here. Bounce Back Loans We have also noticed that a lot of banks are not telling customers clearly about their options (ensured by the goverment) when it comes time to start making repayments for the bounce back loan. In short you have 3 options before having to make repayments in full when your business and you may not be able to afford to.
So be careful to ensure you and your business can afford to pay the BBL back before paying back your bank. And if you plan wisely and your bank allows you could use all of the options in turn. Our company vision is to improve the financial life of every person in the world we are here to help anyone who needs help in these or any other matters. Feel free to Contact Us via our online form. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts Business, Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for both individuals and small & medium sized businesses (SME's). Helping and supporting both individuals and limited company owners / self employed people throughout the UK and the world, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. HMRC has extended the self assessment deadline to 28th Feb 2021 due to Covid 19. Allowing tax payers another month to ensure they have their persoanl tax return submitted and tax paid by then.
Normally each the deadline each year is the 31st Jan. But this year as a last minute policy announced a few days before the deadline HMRC extended it saying they will not charge the late filing penalty until after the 28th Feb. And if tax was due the interest for late payment will not be applied until after 28th Feb also. However a close estimate of the tax payable should be paid by the 31st Jan to avoid interest. If readers have not had their 2019/20 self assessment / personal tax return done. Then they should urgently contact us today to ensure it can be done by the 28th Feb 2021 deadline. By Anni Khan at Tax Affinity Accountants Tax Affinity Accountants are experts in Tax and Accountancy. With branches in Worcester Park and Kingston upon Thames and Epsom and Ewell they are considered in the Industry to be expert business accountants and tax advisors for small and medium sized businesses (SME's). Helping and supporting limited company owners and self employed people throughout the UK, they regularly help clients grow their business providing tailored advice and support. Their support has been considered invaluable by many clients and key to their success. For more information visit www.taxaffinity.com. To read more interesting articles like this visit www.taxaffinity.com/blog. Please feel free to comment and share this with your friends. |
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