Insights

Effects of the US presidential election

August 28th, 2024

The American presidential election may have significant effects on the United Kingdom, impacting various aspects of the relationship between the two countries. Here are some key areas where the UK might feel the influence:   1. Trade Relations Post-Brexit Trade Deals: The UK's ability to negotiate a favourable trade deal with the US is closely […]

Further drop in interest rates

August 27th, 2024

Interest rates are a powerful lever in our economy. Increase rates and economic activity tends to slow down, and vice versa if interest rates fall. The recent hikes in rates, to control inflation, were reversed recently when the Bank of England (BoE) reduced rates to 5% (from 5.25%). The following notes are a summary of […]

Rachel Reeves announcements since the election

August 22nd, 2024

Since Rachel Reeves was appointed Chancellor of the Exchequer in May 2024, she has made several significant announcements aimed at addressing the UK's economic challenges as well as the much publicised tax changes already described in previous posts on our blog.   Her primary focus has been on fiscal responsibility, economic stability, and reforming key […]

Private pension contributions

August 20th, 2024

Tax relief on private pension scheme contributions is a significant incentive in the UK, encouraging individuals to save for retirement. Here’s how it works according to GOV.UK: Basic Rate Tax Relief (20%): If you are a basic rate taxpayer, your pension contributions receive tax relief at 20%. For example, if you contribute £80 into your […]

DWP reforms

August 15th, 2024

Liz Kendall recently set out how Britain’s system of employment support must be fundamentally reformed to tackle the “most urgent challenge” of spiralling economic inactivity. In a Department for Work & Pensions press release issued 23 July 2024 it was announced: Work and Pensions Secretary Liz Kendall will use landmark first speech to set out […]

Opportunity knocks for holiday lets owners

August 14th, 2024

From April 2025, the present tax breaks enjoyed by owners of Furnished Holiday Lets (FHLs) will cease and FHL income and gains will be taxed in the same way as other property businesses. Currently, FHL owners benefit from tax advantages, as compared to non FHL owners, in four key areas: exemption from finance cost restriction […]

What is the position now re private school fees

August 8th, 2024

The following notes are copied from draft legislation published by HMRC, to be included in the Finance Bill 2024-25. As of 1 January 2025, all education services and vocational training supplied by a private school, or a “connected person”, for a charge will be subject to VAT at the standard rate of 20%. Boarding services […]

Taxing Times

August 6th, 2024

In a recent announcement to parliament, the Chancellor confirmed the current year deficit in the government finances of £22bn. She set out some of the reductions in public expenditure to close the deficit but hinted that there may be tax increases required to balance the books. Specific measures announced Aside from requesting budget savings from […]

Tax Diary August/September 2024

August 5th, 2024

1 August 2024 – Due date for corporation tax due for the year ended 31 October 2023. 19 August 2024 – PAYE and NIC deductions due for month ended 5 August 2024. (If you pay your tax electronically the due date is 22 August 2024) 19 August 2024 – Filing deadline for the CIS300 monthly […]

CGT Incorporation Relief

August 5th, 2024

Where a taxpayer owns a business as a sole trader or in partnership, a capital gain will be deemed to arise if the business is converted into a company by reference to the market value of the business assets including goodwill. This could give rise to a chargeable gain based on the difference between the […]

Company filing obligations

August 5th, 2024

It is important that anyone responsible for the accounts and tax filing regime for private limited companies is aware of their obligations. After the end of its financial year, a private limited company must prepare full annual accounts and a company tax return. The deadline for filing the first set of accounts with Companies House […]

Child benefit for 16 to 19 year olds

August 5th, 2024

The weekly child benefit rates for the only or eldest child in a family is currently £25.60 and the rate for all other children is £16.95. Taxpayers entitled to child benefit should be aware that HMRC usually stops paying child benefit on 31 August following a child’s 16th Birthday. Under qualifying circumstances, the child benefit […]