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Income Tax

Making Tax Digital For Income Tax Update

Updates are continuing to come through on HMRC’s ‘Making Tax Digital for Income Tax’ (‘MTD for IT’) initiative. It will initially apply from 6 April 2026 for sole traders and property landlords who generated gross trade and rental income (‘qualifying income’) of more than £50,000 in the 2024/25 tax year. The MTD for IT rules […]

Read more December 12th, 2025

Tax On Income Update 2025

Your tax-free personal allowance will remain at £12,570 in 2026/27. The personal allowance is partially withdrawn if your income is over £100,000 and then fully withdrawn if your income is over £125,140. Income tax rates and allowances For 2026/27, the income tax thresholds are unchanged from 2025/26 and are set to remain static until 2030/31. […]

Read more December 8th, 2025

Making Tax Digital For Income Tax Regime Extended To Smaller Businesses And Landlords

The Spring Statement announced that the Making Tax Digital for Income Tax (MTD for IT) regime will be further extended to smaller businesses. Read on to see how and when your business might be affected. What is MTD for IT? Making Tax Digital for Income Tax (MTD for IT) is a government initiative that requires […]

Read more April 7th, 2025

Get Ready For Making Tax Digital For Income Tax

Before the Autumn Budget, there was hope that the new Labour Government might further delay the introduction of Making Tax Digital for Income Tax (MTD for IT). However, such hopes were dashed on Budget day, with confirmation of the previously-announced timescales and an additional announcement that individuals with income from trading or property of over […]

Read more February 12th, 2025

Scottish And Welsh Budgets

Scotland The key tax takeaways from the Scottish Budget, held on 4th December, concerned the Scottish Rate of Income Tax (SRIT) and Land & Buildings Transaction Tax (LBTT). Scottish Rate of Income Tax If a taxpayer’s main residence is in Scotland or they are otherwise classed as a ‘Scottish taxpayer’, their non-savings/non-dividend income is subject […]

Read more February 10th, 2025

Beware The 60% Income Tax Trap

It has recently been reported over half a million taxpayers paid a marginal income tax rate of 60% in 2022/23, up by 23% from the number in 2021/22. This marginal rate applies where an individual’s adjusted net income falls between £100,000 and £125,140, where every £2 income over £100,000 reduces the £12,570 personal allowance by […]

Read more August 15th, 2024

HMRC Publish More Details Of MTD For Income Tax Reports

Making Tax Digital (MTD) for income tax self-assessment is scheduled to commence in 2026/27 for sole traders and property landlords with a gross income of £50,000 or more, and the threshold then reduces to £30,000 from 2027/28. The government have now confirmed that the four quarterly returns that will need to be submitted will report […]

Read more April 11th, 2024

Paying Tax On Cryptoassets

HMRC recently launched a new campaign targeted at crypto investors as part of a crackdown on tax evasion. They have introduced a new disclosure and payment service for taxpayers to voluntarily disclose and pay any unpaid taxes associated with cryptoassets. Cryptoassets (also known as tokens or cryptocurrencies) include exchange tokens (for example, bitcoin), non-fungible tokens […]

Read more January 8th, 2024

Festive Tax Return Filers

HMRC announced that 4,757 taxpayers filed their Self Assessment tax return on Christmas Day. This added to 8,876 being filed on Christmas Eve and a further 12,136 being filed on Boxing Day. Apparently, the peak time was between 12 and 1 pm on Boxing Day when HMRC received 1,121 returns. Myrtle Lloyd, HMRC’s Director General […]

Read more January 3rd, 2024

Child Benefit May Create A Tax Charge For Those With High Income

Parents and carers need to be aware that if either of the couple have ‘adjusted net income’ in excess of £50,000 then the one with the higher income will potentially be charged tax on some or all of the child benefit and will need to request a self-assessment tax return to report the amount of […]

Read more September 4th, 2023

MTD For Income Tax Delayed, But New Basis Goes Ahead

Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) was originally scheduled to start in 2018 and was then put back to 2023 and then 2024. It was announced just before Christmas that the new system of submitting digital information quarterly to HMRC has been delayed yet again! The start date will now depend upon […]

Read more February 3rd, 2023

Scottish Income Tax Rates 2023/24

The Scottish Parliament has the power to set income tax rates on non-savings and non-dividend income for Scottish taxpayers. In the Scottish Budget of 15 December 2022, it has been confirmed that the 5-band structure will remain for 2023/24 and most of the thresholds are unchanged. Like the rest of the UK the top rate […]

Read more February 2nd, 2023

Income Tax Rates Stand Still

Undoing all measures announced since 23 September 2022, the rates of income tax applicable to non-dividend income remain as they are now; namely a 20% basic rate, a 40% higher rate and a 45% additional rate (for those with income over £150,000). For dividends, although the associated 1.25 percentage point supplement on NICs is being […]

Read more November 7th, 2022

Major Budget U-Turns

Over the last few days, we have seen a gradual dismantling of the mini-budget of Friday 23 September 2022, along with the economic policies that Prime Minister Liz Truss based her leadership campaign on. On Friday 14th October, Ms Truss announced a change of Chancellor, from Kwasi Kwarteng to Jeremy Hunt. This was swiftly followed […]

Read more October 18th, 2022

Dividend Rates Reduced From 2023/24

Many directors/shareholders of family companies pay themselves a small salary and take the rest of their “pay” in dividends. With dividends being free of NIC, this would have allowed them to avoid the extra 1.25% NIC charge when it was originally introduced. Consequently, the Government added 1.25% to the dividend income tax rates for 2022/23. […]

Read more October 5th, 2022