January 2018 and taxes to pay

November 16th, 2017

January is the month when individuals and businesses are required to pay tax. If your business is a limited company, and your tax year ends 31 March 2017, any corporation tax due for that year is payable 1 January 2018. Unlike your self-employed counterparts – see below – no payments on account are required for […]

Child benefit tax trap

November 14th, 2017

A family claiming the weekly Child Benefit (currently, £20.70 a week for eldest or only child and £13.70 a week for additional children) may get an unwelcome tax bill if either parents’ income exceeds £50,000 during a tax year. A tax charge was introduced a number of years ago, known as the ‘High Income Child […]

Abolition of self-employed NIC to be deferred

November 10th, 2017

The Low Incomes Tax Reform Group (LITRG) has welcomed a recent announcement by the Government that there will be a one-year delay before the removal of Class 2 National Insurance contributions (NICs) to enable consultation on the impact of its abolition on the self-employed with low incomes. If Class 2 NICs were abolished, those with […]

Smaller businesses to be drawn into the VAT net

November 9th, 2017

The Office of Tax Simplification (OTS) published a report setting out a range of proposals for simplifying VAT. According to the OTS the tax is showing its age. What was meant to be a simple tax has become highly complex and it has not kept pace with changes in society. The most significant issue identified […]

Clampdown on child maintenance cheats

November 6th, 2017

If a parent owes child maintenance, deductions to recover that debt can currently only be made from a bank or building society account held solely by them. Unfortunately, a small minority of parents are cheating their way out of supporting their children by putting their money into a joint account with a partner. New laws […]

Tax Diary November/December 2017

November 1st, 2017

1 November 2017 – Due date for corporation tax due for the year ended 31 January 2017. 19 November 2017 – PAYE and NIC deductions due for month ended 5 November 2017. (If you pay your tax electronically the due date is 22 November 2017.) 19 November 2017 – Filing deadline for the CIS300 monthly […]

Corporation tax payment deadline for March year end companies

November 1st, 2017

Many companies have adopted the end of March each year as their accounting year end date. Corporation tax is payable by most smaller companies nine months and one day after the end of their accounts year end. Accordingly, companies that have adopted a 31 March date will need to pay any corporation tax liability for […]

Paying self-assessment tax by instalments

November 1st, 2017

If you file your 2016-17 self-assessment tax return on or before 30 December 2017, you can elect to spread the repayment of any underpayment of tax for 2016-17 to the tax year 2018-19. This is done by amending your tax code for 2018-19 such that any arrears are repaid by increasing your tax payments each […]

Carry back charitable donations

November 1st, 2017

One of the few remaining options to carry back tax allowable payments to a previous tax year is the facility to set off certain charitable donations made after 5 April 2017, to the tax year 2016-17. Allowable donations have the effect of extending the amount of income you can earn at the basic rate of […]

Room to breathe

October 31st, 2017

The government are considering plans to offer people with serious debt issues time to consider their options. They are seeking views to develop a way to provide individuals in debt with up to six weeks free from further interest, charges and enforcement action. This period would give those affected time to act by seeking financial […]

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