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Case study: Common mistakes that landlords make

2019-08-23T16:22:28+01:00August 11th, 2019|Categories: Articles & Guides, Blog|Tags: , |

The following case study explores some mistakes that landlords may make when working out their tax liability. Harry and Sally are married. They live in a Devon village. For many years, Harry worked in Cardiff during the week, travelling home at weekends. The couple owned a flat in Cardiff which Harry lived in during the week. In early 2017, Harry took redundancy and set up a consultancy business working from home. The Cardiff flat was let out from 1 May 2017. The property is jointly owned. Sally is a freelance hairdresser earning around £15,000 a year. Harry’s consultancy business [...]

June 2019 questions and answers

2019-09-02T11:27:58+01:00June 24th, 2019|Categories: Questions & Answers|Tags: , , , , |

Q. If I take my staff away overnight for an off-site daytime business meeting and evening social function, will the costs be tax deductible for corporation tax purposes? A. The costs will be allowable for the company, but a benefit-in-kind will arise on the social aspect of the trip. It may be possible to obtain HMRC approval that the benefit falls within the exemption for annual parties and similar functions costing no more than £150 per attendee (if the £150 is exceeded, the whole amount is taxable as a benefit). You may wish to consider structuring the event to take [...]

Rent-a-room tax break remains

2019-09-02T11:22:33+01:00May 16th, 2019|Categories: Blog, Personal Finance, Taxation|Tags: , , |

HMRC's rent-a-room scheme currently allows individuals to receive up to £7,500 of gross income from renting out spare rooms in their only or main home without a liability to tax arising. Broadly, as long as income is below the annual threshold, it does not need to be reported to HMRC. However, the emergence and growth of peer-to-peer online marketplaces and digital platforms (for example Airbnb) has made it significantly easier to advertise rooms and put those with spare accommodation in touch with a national and global network of potential occupants. HMRC are of the opinion that this type of income [...]

Self-assessment and disclosure

2019-09-01T11:51:52+01:00November 14th, 2016|Categories: Taxation|Tags: , |

Finance Act 2016, which became law on 15 September 2016, contains provisions designed to help clarify the time allowed for making a self-assessment. The time limit is four years from the end of the tax year to which the self-assessment relates. This is the same time limit as for assessments by HMRC. The provisions will have effect on and after 5 April 2017, although there are transitional arrangements for years previous to this, as follows: for tax years prior to 2012/13, taxpayers have until 5 April 2017 to submit a self- assessment; for 2013/14, the deadline is 5 April [...]