The UK’s economic picture remains uncertain ahead of the Autumn Budget and with the economy growing at a very slow pace, investors and taxpayers are feeling the pinch with a record number set to face a Dividend Tax bill. Continue reading
Category Archives: Tax
The tax traps of director’s loans – How to avoid unnecessary charges
Director’s loans can be a useful way to access company funds, but if not managed properly, they can lead to unexpected tax liabilities.
Understanding company van expenses for sole traders
If you are a sole trader, you must consider the tax implications of owning a van for business use. For sole traders, a van is often an indispensable tool of the trade.
Potential tax increases and their impact on businesses
In recent reports, former Prime Minister Sir Tony Blair has forecasted potential tax increases that could have an impact on businesses across the UK.
The Tony Blair Institute’s chief economist predicts taxes may need to rise by 1.9 percentage points of GDP by the end of this Parliament to stabilise debt, potentially equating to over £50 billion.
AI in tax investigations – What does it mean for you?
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Artificial intelligence (AI) is undoubtedly a major trend in accountancy and tax, with many firms, business clients and Government agencies recognising its benefits and adopting it.
Are you optimising profit extraction from your business?
If you’re a business owner of a limited company, it’s important that you know how to make the most of your after-tax profit to support your personal financial health – known as profit extraction. Continue reading
Is incorporation still the way to go for solid financial planning?
From a tax planning perspective, incorporation of a business into a limited company has long been considered the gold standard in business development and growth – but is this still the right move?
Earning between £100,000 and £150,000? Your tax return is changing
If you’re a high earner with between £100,000 and £150,000 in net adjusted income, you’ll soon receive a letter from HM Revenue & Customs (HMRC) regarding whether you need to continue submitting a Self-Assessment tax return.
‘Net adjusted income’ is your total taxable income after certain reliefs, such as charitable donations via Gift Aid, but before your Personal Allowance is applied.
Anyone earning between £100,000 and £150,000 annually who does not meet certain criteria will need to submit a Self-Assessment return for the 2023/24 financial year in line with current requirements.
However, those who do meet all these requirements will not automatically need to submit for 2023/24:
- You are taxed through Pay-As-You-Earn (PAYE)
- You’re earning between £100,000 and £150,000 per year in net adjusted income
- You submitted a 2022/23 tax return showing income within the stated band
- You are not a partner in a registered business partnership
- You do not receive any untaxed income over £2,500
- You have no other income
- You do not meet any other criteria for requiring Self-Assessment, such as earning over £1,000 from self-employment
- You do not pay the High Income Child Benefit Charge (HICBC).
If you need to send a return for the 2023/24 financial year, you must register by 5 October 2024 and submit it by 31 January 2025.
Remember that the Personal Allowance decreases by £1 for every £2 that you earn over £100,000 – effectively removing the Personal Allowance for incomes of £125,140 or more.
Do I have to keep submitting a Self-Assessment?
High earners with an income of between £100,000 and £150,000 previously had to submit a Self-Assessment tax return, even if they were taxed by PAYE only.
2023/24 was a transition year towards removing the requirement for those in this group to submit tax information by Self-Assessment – with PAYE-only individuals earning over £150,000 per annum still required to submit a return, even if they meet all other exemption criteria above.
For the 2024/25 financial year onward, Self-Assessment returns for high earners paying tax via PAYE only have been removed as a requirement.
Need help with personal tax planning? Get in touch with us.
Concerned about Capital Gains Tax changes? Here’s what you need to know.
The start of the 2024/25 financial year saw the Capital Gains Tax (CGT) Annual Exempt Amount fall to a historic low of £3,000, down from £6,000 the previous year.
HMRC has clarified tax rules on commuting for hybrid and remote workers
In a recent statement, HM Revenue & Customs (HMRC) has clarified travel from an employee’s home to their base office under a hybrid working arrangement does not qualify for tax relief.