Self Assessment tax return deadline for your 2016 personal tax return is fast approaching at the 31st January 2017. Please ensure that PMC have received all your relevant information and filed your tax return prior to this deadline or you will receive a £100 penalty, rising to a possible £1200 penalty. Please also ensure payment is made on time or you will receive a 5% penalty based on tax due.
Marriage Tax Allowance Please remember about this forgotten tax break available. If your income was below £10,600 for the tax year 2015/16 and your spouse earnt below £42,386 then you can transfer £1060 of your personal allowance to them saving them £212. If this applies to you, tell your Accountant to adjust your tax return or apply to HMRC yourself at www.gov.uk/apply-marriage-allowance
Autumn statement The Autumn statement yesterday was pretty uneventful, confirming lower UK growth due to Brexit. The main points were the following : The personal tax allowance will rise to £12,500 and the upper rate tax threshold to £50,000 by the end of the current parliament The National Living Wage will rise from £7.20 to £7.50 from April 2017 Insurance premium tax will rise from 10% to 12% in June 2017 Employee and Employer NI will be equalised to a £157 per week threshold from [...]
Buy to Let tax changes The Government is hammering the landlord with the latest planned tax changes to the Buy To Let residential market. From April 2016 the flat 10% wear & tear allowance is being replaced by just being able to claim for replacement of actual capital items. More importantly from April 2017 the way that mortgage interest is treated is changing. Instead of claiming the entire amount against your income, now the rental income will simply be added to the rest [...]
PMC Partnership are now proud to introduce a special, all inclusive low fee for our retired clients. This total £150 will give you total peace of mind and ensure your tax return is accurately and punctually filed with HMRC. You will be allocated a specific trained member of PMC staff to personally deal with you and all advice is free. All your information can be securely sent to PMC and using our freephone help line will help you enjoy total [...]
From April 2017 the way higher rate tax payers are taxed on their rental properties will change. Instead of receiving tax relief on your mortgage interest at your prevailing tax rate you will now receive a flat 20% credit against your profit. This will lead to an increase in tax for all higher rate BTL owners. It must be noted that Limited Companies owning the BTL properties are not affected, so all new properties should be considered to be [...]
From April 2016 HMRC are trying to close the loophole where people pay themselves dividends to try and save on PAYE and National Insurance. Now everyone has a £5,000 tax free dividend and then you are taxed an additional 7.5% thereafter up until the upper rate of tax, where you are taxed at 32.5%. This change will no doubt mean more of you pay more tax, however, it is still more tax efficient to be Limited rather than a [...]