Making Tax Digital update

Over the summer HMRC published six consultation documents on Making Tax Digital. The six consultations set out detailed plans on how HMRC propose to fundamentally change the method by which taxpayers, particularly the self-employed and landlords, send... Read Full Article...

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Tax Free Childcare

HMRC have announced further details of the new Tax Free childcare scheme which is to be introduced in 2017. To be eligible, families will have to have all parents in work and each expecting to earn at... Read Full Article...

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Farmers’ averaging

Changes have been made to the rules which allow farmers to average their profits for tax purposes. Under the new rules unincorporated farmers will be able to average their profits for income tax purposes over five years... Read Full Article...

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Dividend Allowance and rates of tax

Further details have been provided of the new rates of income tax on dividends and the new Dividend Allowance which will apply to dividends received on or after 6 April 2016. The rates of income tax on... Read Full Article...

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Farmers Averaging of Profits

It was announced in the March 2015 Budget that the government plans to extend the period over which self-employed farmers can average their profits for income tax purposes from two years to five years. The government has... Read Full Article...

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Changes for ‘Buy to Let’ Landlords

It was announced in the Budget that the government will restrict the amount of income tax relief landlords can claim on residential property mortgage interest costs to the basic rate of income tax. This means that landlords... Read Full Article...

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HMRC checking employees have paid the correct amount of tax on their pay

HMRC have started to check that people have paid the right amount of tax in 2014/15, a process they refer to as the annual End of Year Reconciliation process. They will be sending out forms P800 first... Read Full Article...

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2012/13 tax gap

HMRC have announced the latest tax gap figures. The tax gap, which is the difference between the amount of tax due and the amount collected, was 6.8% of tax liabilities, or £34 billion, in 2012 to 2013.... Read Full Article...

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IR35 Business Entity Tests

The ‘IR35’ rules are designed to prevent the avoidance of tax and national insurance contributions through the use of personal service companies and partnerships. The rules do not stop individuals selling their services through either their own... Read Full Article...

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HMRC writes to taxpayers about effective tax rates

HMRC is writing to certain taxpayers to tell them their effective rate of tax is lower than average and to ask them to check if it’s right. The letter states: ‘A person’s effective rate of tax is... Read Full Article...

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