HMRC to cap certain tax reliefs

In an attempt to ensure that higher rate tax payers make a reasonable contribution to UK tax revenues, new legislation is to be introduced from 6 April 2013 that limits access to certain tax reliefs. Taxpayers will be denied relief(s) if the claim exceeds 25% of their...

Salary v Dividends in 2012/13

It is common for owner managers to take income from their own company through a mixture of salary and dividends. For 2012/13 the maximum salary at which no tax or NI is payable is £7,485. Although no employee’s or employer’s NI is due on this level of...

Taxation of jointly owned property

Where property is owned jointly it is possible to divert income from a high rate taxpayer to a low rate taxpayer without necessarily giving up the beneficial interest in the underlying property. Between husband and wife and civil partners a simple transfer of legal...

What is the highest rate of tax in 2011-12?

General considerations: You will be paying tax at the 40% income tax rate if your income less tax allowances exceeds £35,000 and at the additional rate, 50%, if your taxable income exceeds £150,000.   Additionally, your Personal Allowance reduces when your income is...

Self Assessment penalties

In the past as long as you paid your tax liabilities on time and cleared any self-assessment tax due by 31 January, no late filing penalties were due. Even if you failed to pay your tax on time, late filing penalties were capped at £100 or nil if you were due a tax...