General considerations:You will normally be paying tax at the 40% income tax rate if your income less tax allowances exceeds £35,000 and at the additional rate, 50%, on any of your taxable income that exceeds £150,000. There are special tax rates that apply to company dividend income. Additionally, your Personal Allowance reduces when your income […]
HMRC to cap certain tax reliefs
In an attempt to ensure that higher rate tax payers make a reasonable contribution to UK tax revenues new legislation is to be introduced from 6 April 2013 that limits access to certain, tax reliefs. Taxpayers will be denied relief(s) if the claim exceeds 25% of their income or £50,000, whichever is the greater. This […]
Budget Update – 21st March 2012
Personal Tax Allowances The income tax allowances and rates for 2012-13 have already been announced. They are: Personal Allowance – £8,105.Age Related Allowance for persons aged 65-74 – £10,500.Age Related Allowance for persons aged 75 and over – £10,660.Married Couples Allowance for those born before 6 April 1935 – £7,705.Blind person’s allowance – £2,100.Age related […]
Motor expenses and VAT
Most VAT registered traders will be aware that you cannot reclaim the VAT when you buy a car. The only exceptions are businesses that use cars directly to generate income: for example a taxi firm. The VAT position of motor expenses for cars owned by the business is slightly more complex. FuelAs most business cars […]
Ideas for reducing your taxable income 2011-12
Before we describe a few basic ideas for reducing your taxable income this year it is worth pointing out that you only have until 5 April 2012 to take action… Deferring incomeIf you receive bonuses this month or a dividend from your company you should estimate your earnings for the next tax year, 2012-13, and […]