Tax Tips and News
Relief for mortgage interest on let properties
Newsletter issue – March 2023 As an individual landlord you can‘t deduct finance costs, including interest, from your residential property rents for tax purposes. Instead, you get tax relief for those costs as a basic rate tax credit calculated as 20% of the lower of: finance costs for the year plus any unused finance charges…Read More
HMRC homes in on Airbnb landlords
Newsletter issue – March 2023 Online platforms such as Airbnb are now obliged to provide HMRC with data about the payments it makes to individuals who let rooms on a short-term basis. HMRC is matching that data to tax returns and writing to taxpayers who have apparently not declared their rental income correctly. If you…Read More
Planning your profit extraction
Newsletter issue – March 2023 In his Autumn statement in November 2022 Chancellor Hunt announced cuts to the dividend allowance and the additional tax rate threshold, where individuals start to pay tax at 45%. You need to take these changes into account when planning how and when to extract profits from your company. Many family…Read More
Plugging NIC gaps
Newsletter issue – March 2023 Many people don‘t realise that they have significant gaps in their National Insurance Contribution (NIC) record, and as a result they won‘t be entitled to the full state retirement pension. This can come as a shock when you start to receive your state pension, but by that time it may…Read More
March Questions and Answers
Newsletter issue – March 2023 Q. My company is buying an electric car for me to use for business and private journeys. In truth there will be very few business journeys. Can the company still claim the 100% first year allowance, although the business use will be small? A. Your company can claim the 100%…Read More
March Key tax dates
Newsletter issue – March 2023 2 - Where income tax, CGT, class 2 NIC or class 4 NIC remains unpaid for 2021/22 a 5% penalty is imposed. This penalty can be avoided if a time to pay arrangement is agreed in advance with HMRC. 10 - Last day to set up a variable direct debit…Read More
Spring Budget - 2023
Chancellor Hunt billed his Budget as a Budget for growth with emphasis on fixing problems in the labour market alongside improving business investment and innovation. For the former he has addressed barriers to staying in work experienced by high earners with large pension pots, and provided some help to parents who are looking for affordable…Read More