With property prices expected to fall during 2023, parents may be thinking about getting their children onto the property ladder. However, although help with a deposit does not raise that many tax issues, joint ownership can have expensive tax consequences. Nearly half of first-time property buyers aged under 35 have received help from the bank … More Tax implications for the bank of mum and dad
With the self-employed and landlords facing a challenging economic environment, the government has again delayed the introduction of the Making Tax Digital (MTD) scheme for income tax self-assessment (ITSA) – this time by two years until April 2026. Although the introduction of MTD ITSA prompted the basis period reform, no corresponding postponement for this has … More Making Tax Digital delayed once more
Small company owners should by now be aware of the corporation tax changes taking effect from 1 April 2023, but with the associated company rules being introduced at the same time, don’t be caught off guard … More Associated company rules changing 1 April
Annual CPI inflation hit 10.1% in September, but that does not mean every price is showing a double-digit increase. Source: ONS The September Consumer Prices Index (CPI) inflation reading is probably the most important inflation metric in a given year. Traditionally, this number is the one used by the Government as the basis for increasing … More Dissecting inflation: what a difference a year makes
The increased stamp duty relief for first time buyers has not been reversed by the new Chancellor, but it may not survive beyond the tax year. One of the few tax cuts to survive from Chancellor Kwarteng’s September’s Growth Plan is the uplift to stamp duty land tax (SDLT) relief for first time buyers. This … More First time buyers: time to act?
The biggest marshmallows are in fact VAT free. Theintricacies of VAT continue to delight or inflame, with marshmallows the latest food product to come under the spotlight. The outcome of a recent First-Tier Tribunal case means that VAT classification can now differ between miniature, regular and mega-sized marshmallows, highlighting again the importance of accurate understanding … More The marshmallow paradox – VAT or no VAT?
For owner-managed companies, bonuses, dividends and remuneration will become yet more complex in the new tax year. With the corporation tax increase and dividend rates now confirmed by the Government, the dividend vs remuneration decision for owner-managed companies is likely to become more complicated in 2023/24, particularly when it comes to bonuses. Historically, it was … More Dividends vs remuneration: the corporation tax quandary
From 1 November 2022, VAT-registered businesses that do not yet comply with the Making Tax Digital (MTD) requirements will face penalties. Businesses should also be aware of the new VAT penalty regime being introduced from 1 January 2023. Although VAT-registered business should already be submitting their VAT returns using MTD compatible software, they have until … More Making Tax Digital: avoiding VAT penalties
There is no certainty of all the measures surviving, but September’s Growth Plan was good news as far as tax is concerned for owner-managers, with the rates of corporation tax, national insurance contributions (NICs) and dividend tax all cut. The cuts Directors will also benefit from the proposed 1% cut to the basic rate of … More Tax relief for owner-managers
Working through inheritance tax (IHT) requirements come at a difficult time. The provisions of the residence nil rate band (RNRB), which can be passed on between deceased spouses and civil partners, has caused some confusion. Any unused RNRB from the first death of a spouse or partner can be relieved on the death of the … More Confused on claiming residence band relief?