News and Views

In order to qualify for a full year’s Tax Credit claim for 2012-13 your application needs to be made before 6 May 2012. This is because HMRC will not back date an application for more than one month. Prior to 6 April 2012 it was possible to backdate applications and notification of changes for three […]

How much Stamp Duty Land Tax will you pay when you buy residential property in the UK following the Budget? Firstly the extension of the nil rate band to £250,000 for first time buyers ceased 24 March 2012. The current Stamp Duty Land Tax (SDLT) rates are: Residential property purchased outside disadvantaged areas Zero charge […]

If the answer is yes you will not qualify for the higher value personal allowances presently available to the over 65s and over 75s. From 6 April 2013 Age Related Personal Allowances are being phased out. Here’s how the changes will work in practice: 1. If your birthday is after 5 April 1948 you will not […]

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 […]

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 […]

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 […]

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 […]

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 […]