Independent think tank the Resolution Foundation has suggested that inheritance tax (IHT) should be scrapped and replaced with a tax on those receiving the money. Continue reading Calls to scrap inheritance tax
Mark Hildred, Managing Partner
A recent study has found that the UK has retained its place in the top three of the world’s most competitive tax regimes despite uncertainties around Brexit. Continue reading UK business tax regime still attractive to foreign business
Tax bodies such as the Association of Taxation Technicians (ATT) suggest that taxpayers could lose their personal allowance or end up paying tax twice because of early cracks in digital tax systems. <1--more-->
HM Revenue & Customs (HMRC) introduced ‘dynamic coding’ in 2017, which means that tax codes are updated throughout the year, rather than at year end, in a bid to address any under or overpayments.
This was meant to be an advantage for taxpayers, as the system should have reduced instances of overpayment as it allows for any adjustments to be made immediately.
However, if someone receives a large bonus early in the year, the system uses that as an average for the year and massively overestimates the person’s annual income. If that figure is more than £100,000, then their tax-free allowance would be reduced or eliminated entirely.
While there has always been a potential problem with paying income tax, using dynamic coding means that the problem arises instantly rather than at the end of the year. If a taxpayer is affected at any point in the year, they need to log on to their online personal tax account and suggest a change to their estimated income.
Meanwhile, another potential problem for taxpayers is they could be at risk of being billed twice. For example, someone who underpaid tax in 2017-18 because they changed jobs will have already repaid the tax.
However, if that person then needs to declare additional income, their tax-return could be pre-populated by HMRC and include the underpayment. If the taxpayer does not correct this, they could end up paying twice.
A recent study has found that UK businesses are continuing to contribute significantly towards Government revenues, with £186 billion in business taxes being paid in 2017/18, accounting for 27 per cent of the total tax take. Continue reading The business tax contribution
HM Revenue & Customs (HMRC) has confirmed that several of its major programmes could be delayed so that it can prioritise the development of new customs IT systems. Continue reading Potential delay for MTD
With the new tax year comes the distribution of tax codes and many people, with one job or pension, will have recently been given the tax code 1185L for the 2018/19 tax year. Continue reading New year and tax code
The Institute of Chartered Accountants in England and Wales (ICAEW) has recently compiled a list of ‘top tips’ for small businesses that find themselves under investigation by HM Revenue & Customs (HMRC). Continue reading Help for businesses under investigation by HMRC
The recent warmer weather and the opportunity to get out and do more makes a lot of people in later life think about retiring, but before they do, they should think about getting their financial affairs in order to minimise falling foul of ‘tax traps’. Continue reading Retirement tax traps
The Office of Tax Simplification (OTS) has published a paper that recommends urgent work to simplify the business tax system in the UK in a bid to encourage growth. Continue reading OTS urges urgent review of business taxes
As of the start of this tax year, there have been a number of changes to the personal tax regime, including a rise in the personal allowance and the amount an individual can earn before they pay tax on renting out a room. Continue reading Personal tax changes