Monthly Archives: April 2016

Tax credit renewals online

 HM Revenue and Customs (HMRC) is urging people to renew their tax credits claim online and early before the 31 July deadline.

When claimants renew their claim, they must tell HMRC about any changes to their circumstances that they haven’t already reported, including changes to working hours, childcare costs or income. Once people receive their renewal...

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Business investment and the annual investment allowance

The AIA allows businesses to write off the full cost of qualifying expenditure and in recent years the amount allowed as a deduction for tax purposes has fluctuated wildly.

From January 2016, the annual limit for AIA expenditure has been set at a new permanent limit of £200,000. Accordingly, this is the amount that can be...

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Tax on savings

From 6 April 2016, if you’re a basic rate taxpayer you’ll be able to earn up to £1,000 in savings income tax-free. Higher rate taxpayers will be able to earn up to £500. This is called the Personal Savings Allowance.

Banks and building societies will no longer deduct tax from the interest they pay you.

What counts...

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The Panama Papers

HMRC has responded to the significant leak of information on the activities of individuals and companies that have availed themselves of the offshore advantages of using Panama as a tax haven.

 We have reproduced below part of their response:

Jennie Granger, Director General of Enforcement and Compliance, HM Revenue and Customs, said:

“HMRC is committed to exposing and...

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Farmers new tax break

From 6 April 2016, farmers trading as sole traders or in partnership will be able to claim for an extended form of the popular “averaging” provisions.

Under the new rules, initially announced in the 2015 Budget, farmers will be able to average their profits for Income Tax purposes from the present two years to an additional...

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Tax Diary April/May 2016

1 April 2016 - Due date for Corporation Tax due for the year ended 30 June 2015.

 19 April 2016 - PAYE and NIC deductions due for month ended 5 April 2016. (If you pay your tax electronically the due date is 22 April 2016.)

 19 April 2016 - Filing deadline for the CIS300 monthly return for...

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Lifetime Individual Savings Account

In a further bid to encourage savings for a first property purchase, or retirement, a new ISA is being launched from April 2017 – the Lifetime ISA.

It will be available from April 2017 for adults under the age of 40. They will be able to contribute up to £4,000 per year, and receive a 25%...

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Overdrawn loan accounts

Up to 5 April 2016, directors who overdrew their loan accounts in a company ran the risk of an additional 25% Corporation Tax charge if the debt remained outstanding nine months after their company’s trading period end.

The tax can be claimed back, but not until there is a repayment of the debt. From a cash...

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Capital Gains Tax changes

CGT rates have been significantly reduced from April 2016.

The rates at which capital gains are taxed depend on where they would fall to be taxed for Income Tax purposes if they were added to income. This would determine whether the gains would fall to be taxed at basic or higher rates, or part and part.

  • If...
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