There are proposed changes to the national insurance system which will impact on a number of people, and in particular those who have left the UK to work overseas.
The proposal is that Class 2 national insurance contributions (NIC) will be abolished. Class 2 is £2.85 per week from 5 April 2017 and for UK residents it is normally paid by self-employed people, together with Class 4 NIC, which is charged as a percentage of profits made.
HM Revenue & Customs have finally released more details on their plans to ‘Make Tax Digital’ in the form of six consultations that were published a few weeks ago.
The consultations come to nearly 300 pages of new information covering a wide range of proposals to move tax into the digital age.
It is safe to say that HM Revenue & Customs’ (HMRC) plan to ‘make tax digital’ is still in its very early days. We have been eagerly awaiting more information from HMRC but this has been delayed by the EU referendum, a change in Prime Minister and now the Summer Recess – what kind of excuses are they!?
As a result, we are not likely to hear any new information about the plans until mid-September; but that hasn’t stopped HMRC from updating their software.
You may or may not have heard about HM Revenue & Customs’ (HMRC) plans to digitise the tax system. Known as ‘Making Tax Digital’, this is set to be one of the biggest transformations of UK tax in a very long time, changing the way all of us interact with HMRC.
To help our clients we have produced a guidance note along with some frequently asked questions FAQs setting out all of the key things we know about this initiative.
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.
From April 2015, a significant change was introduced to the capital gains tax system, targeting non-UK residents who sell UK residential property. This is something property lawyers need to be aware of as the reporting requirements involve a very short deadline!
First things first – what has changed?
From 6 April 2015, non-residents have to pay tax when they sell UK residential property.
Pensions have proved to be a growing source of complexity, and an area increasingly difficult for people to understand. This year has been no exception with some significant changes being made. This blog focusses on the restriction of the annual allowance from April 2016, and the opportunity it presents for some to double-up their tax relief in the current tax year.
There are always winners and losers from every Budget, and in my opinion landlords definitely fall into the latter category with the recent Summer Budget.
There were three announcements which all landlords should be aware of, two of which could be seen as positive, and one which could be a real hammer blow.
We are just about getting our breath back after taking in the vast tax changes announced in the Summer Budget on 8 July 2015.
This was the first unhindered Conservative-only Budget in nearly two decades and George Osborne certainly did not hold back in implementing his party tax policies.
We will be blogging on some of the changes in more detail in the near future but for now, here is a summary of what we think are the key tax changes you need to know about:
- The personal allowance will increase to £11,000, and the higher-rate tax threshold to £43,000 in April 2016.
Back in March we heard the first Budget speech of the year, and with the General Election looming, I was pretty confident it would not be the only Budget of 2015. As predicted, a second Budget will be heard on 8 July!
So what can we expect in terms of tax changes? If the pre-election pledges are anything to go by then we could see:
Increases to the personal allowance and higher-rate income tax threshold – although I would imagine these will be gradual, spread over several tax years.