Your Number One Trusted Business Adviser

Telephone: 01305 760600

Email: info@advocouk.com

Feb 22

What can you give away before the end of the tax year?

You can give away £3,000 worth of gifts each tax year (6 April to 5 April) without them being added to the value of your estate. This is known as your ‘annual exemption’.

You can carry any unused annual exemption forward to the next year - but only for one year.

Each tax year, you can also give away:

  • wedding or civil ceremony gifts of up to £1,000 per person (£2,500 for a grandchild or great-grandchild, £5,000 for a child),
  • normal gifts out of your income, for example Christmas or birthday presents - you must be able to maintain your standard of living after making the gift,
  • payments to help with another person’s living costs, such as an elderly relative or a child under 18,
  • gifts to charities and political parties.

You can use more than one of these exemptions on the same person - for example, you could give your grandchild gifts for her birthday and wedding in the same tax year.

Small gifts up to £250

You can give as many gifts of up to £250 per person as you want during the tax year as long as you have not used another exemption on the same person.

Feb 22

What are your tax planning options for 2018-19?

Options for adopting 99% of tax planning opportunities for 2018-19 ends on 5 April 2019, just a couple of months away.

This applies equally to individuals and all businesses with an accounting year end close to, but prior to 5 April 2019.

More importantly, this planning option applies to all taxes: Income Tax, Capital Gains Tax and Corporation Tax; and in some cases, to National Insurance and VAT.

Organise a tax planning review now.

If your personal or business tax affairs are complex, make sure you avail yourself of this moment of reflection before 5 April 2019. Once the date is passed, there is no chance the clock can be turned back.

2019 will likely be marked out as the year when our present relationship with the rest of Europe changes, once again adding to the usual pressures faced by UK businesses. There has never been a more opportune moment to take time out from running your business to consider your planning options for the current tax year.

As time is limited please call now to discuss your options.

Jan 24

Newsletter · Thursday, 10 January 2019

 Happy New Year… our newsletter this month includes: a reminder that self-assessment tax liabilities are due for payment 31 January 2019; is the top rate of Income Tax 45% and a CGT planning idea for married couples.

Our next newsletter will be published on Thursday, 7 February 2019.

 

Jan 24

Tax Diary January/February 2019

1 January 2019 - Due date for Corporation Tax due for the year ended 31 March 2018.

19 January 2019 - PAYE and NIC deductions due for month ended 5 January 2019. (If you pay your tax electronically the due date is 22 January 2019)

19 January 2019 - Filing deadline for the CIS300 monthly return for the month ended 5 January 2019.

19 January 2019 - CIS tax deducted for the month ended 5 January 2019 is payable by today.

31 January 2019 – Last day to file 2017-18 self-assessment tax returns online.

31 January 2019 – Balance of self-assessment tax owing for 2017-18 due to be settled on or before today. Also due is any first payment on account for 2018-19.

1 February 2019 - Due date for Corporation Tax payable for the year ended 30 April 2018.

19 February 2019 - PAYE and NIC deductions due for month ended 5 February 2019. (If you pay your tax electronically the due date is 22 February 2019)

19 February 2019 - Filing deadline for the CIS300 monthly return for the month ended 5 February 2019.

19 February 2019 - CIS tax deducted for the month ended 5 February 2019 is payable by today.

Jan 24

Tax payment time again

As all our self-assessment readers will be aware, 31 January is the date by which any arrears of tax for 2017-18 need to be settled, together with a payment on account for 2018-19, if one is due.

Those who have completed their tax returns for 2017-18 should be aware what these liabilities amount to and any clients reading this article who are unsure what they should be paying, please call so that we can advise you.

If you have cash problems and are unable to clear tax due on the 31 January, you can approach HMRC for extended terms. Call:

Business Payment Support Service – 0300 200 3835, or
Self Assessment Payment Helpline – 0300 200 3822

If you miss the payment deadline and receive a letter or bill threatening legal action, call the HMRC office that sent you the letter.

Before you call be sure to estimate how much you can pay on account and you will normally need to clear any balance before any future payments on account become due (ordinarily this would be before 31 July 2019 when the second payment on account for 2018-19 falls due).

And don’t forget, HMRC will charge interest on tax paid late and penalties so make you call before the 31st January 2019 to minimise these costs

Jan 24

The top rate of Income Tax is 45%?

Named the additional rate, the highest rate of Income Tax is 45%, and some might say 45% is high enough.

However, if the rate of tax is measured as the relationship between income and tax plus tax related penalties paid, there are times when this 45% can rise, to as much as 90%.

For example, if HMRC discovers that a taxpayer has been negligent in declaring all their income for tax purposes, they can charge a penalty. This can be as much as 100% of the tax due – effectively this doubles the rate of tax charged. And so, if you are paying tax on under-declared income at 45%, and if a 100% penalty is levied, the effective rate of tax charged is 90% of the income declared.

Whilst this may be an extreme example, consider taxpayers whose income exceeds £100,000. For the tax year 2018-19, for every £2 your income exceeds £100,000 you lose £1 of your tax personal allowance. This means that taxable income between £100,000 and £123,700 is taxed at an effective rate of 60%.

All is not what it seems.

Quick contact form.

Cookies make it easier for us to provide you with our services. With the usage of our services you permit us to use cookies.