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Income Tax

Disguised Remuneration Loan Charge Starts April 2019

This new charge will apply to certain loans to directors and employees that are still outstanding at 5 April 2019 and new arrangements put in place after that date. The charge will affect arrangements involving loans made via Employee Benefit Trusts (EBTs) and similar disguised remuneration schemes adjudged by HMRC and the courts to be […]

Read more April 9th, 2019

Scottish Income Tax Rates For 2019/20

The Scottish Parliament has the power to set income tax rates on non-savings and non-dividend income for Scottish taxpayers. It has been confirmed that the 5 band structure and tax rates (19%, 20%, 21%, 41% and 46%) will remain the same for 2019/20. The thresholds for lower tax rates will rise in line with inflation […]

Read more April 8th, 2019

No Tax Changes Announced in Spring Statement

Despite the continuing uncertainty surrounding Brexit the Chancellor delivered his Spring Statement on 13 March. The purpose of this statement is to update the House of Commons and the country on the state of the economy; it is not intended to include any major tax announcements, and none were made by the Chancellor. As already […]

Read more April 8th, 2019

Interest Rate Relief Restriction or S24

At Shapcotts, we are starting to hear stories of these changes now starting to impact landlords, especially with larger portfolios. Therefore let us show you a couple of examples so it is clear how this may affect you if you have property income that you are receiving in your own name. The example below shows […]

Read more April 3rd, 2019

Student Loan Payments From Property Income

Now that you have rental income you will have an increased income. This is great news for you as it will improve your personal wealth and finances. However, what happens if you have a student loan? When you complete a tax return you also calculate each year any student loan repayments that may be due. […]

Read more April 2nd, 2019

Why Do I Have A Tax Bill In July?

Is your tax bill over £1,000? Typically you only have to pay your income tax bill in January each year. However, when your income tax bill is over £1,000 the tax authorities want you to pay payments on account for the next year. In the year of transition, this becomes quite expensive. The reason being […]

Read more April 1st, 2019

Consider Other Tax Efficient Investments

If you are looking for investment opportunities, have you considered the Enterprise Investment Scheme (EIS)? These investments in certain qualifying companies allow you to set off of 30% of the amount invested against your income tax bill as well as the ability to defer Capital Gains Tax (CGT) until the shares are sold. An even […]

Read more March 12th, 2019

Year End Pension Planning

For most taxpayers the maximum pension contribution is £40,000 each tax year, although this depends on their earnings. This limit covers both contributions by the individual and their employer. Note that the unused allowance for a particular tax year may be carried forward for three years and can be added to the relief for the […]

Read more March 12th, 2019

Don’t Lose your Personal Allowance!

For every £2 that your adjusted net income exceeds £100,000, the £11,850 personal allowance is reduced by £1. Pension contributions and Gift Aid can help to reduce adjusted net income and save tax at an effective rate of 60%. The restriction applies between £100,000 and £123,700 adjusted net income. Another way that you could avoid […]

Read more March 12th, 2019

Collecting Unpaid Tax For 2017/18 Through Your PAYE Coding

Under certain circumstances, it is possible to arrange the collection of unpaid tax through your PAYE coding rather than making a balancing payment on 31 January. This will depend upon the amount outstanding and the amount of income taxable under PAYE. There is a further condition that the return is submitted to HMRC online before […]

Read more December 7th, 2018