As we approach the new tax year the majority of tax changes impacting on 2016/17 had already been announced in the 2015 Budget or Autumn Statement. Below is a summary of some of those announcements.
The Government has made a commitment to increase the personal allowance to £12,500 by the end of the current parliament and, in keeping with this, has increased this to £11,000 for 2016/17 and to £11,500 for 2017/18.
That was the continual refrain yesterday. But isn’t the elephant in the room the Tory leadership race and effectively who will be the next Prime Minister?
We’re accountants, and we’re only ever going to run a Budget do once a year. Mr Osborne on the other hand had a budget last March, then a post-election budget in July (full of confidence and bravura, reeling from the thought that his economic performance had been vindicated at the ballot box).
There is one topic that should be at the top of every COFA’s worry list – fraud.
When I see a national bank running peak time advertisements on fraud and listen to the stories which seem to cross my desk in a too-regular fashion, I realise the time to be complacent has gone and this is a very real problem.
The headline from the recent Law Society LMS Financial Benchmarking Survey is that a growing number of partners are taking drawings in excess of profits, which could jeopardise their firm’s financial stability.
Many law firms across England and Wales enjoy ever-increasing profits, evidenced by a reported 5% increase in fee income per equity partner (ranging between £620,000 and £1,000,000 per partner), and a 3% increase in net profits, which together result in a median share of £143,000 per equity partner.
The January deadline for submission of your self-assessment tax returns has passed without incident, hopefully, and we now look forward to the Chancellor’s Budget on 16 March. I am sure that you did not submit your tax return late, but as I have said previously, HMRC are willing to listen to reasonable excuses for late submission to mitigate the £100 late filing penalty.
The past year has seen a number of announcements changing the way in which landlords are taxed on their property income. In particular, the letting of residential property will be adversely affected and George Osborne’s announcements are making him look like “the big bad wolf”.
Restriction on mortgage interest from April 2017
Perhaps the biggest change is to the way landlords claim tax relief on mortgage interest.