Filed under: 50% tax rate
Now as the tax year draws to a close, it is a good time to ensure that you have considered all the options when it comes to reducing your tax bill with tax planning. In this article we look at what you could be thinking about now to legitimately reduce your liabilities. (more…)
February 26, 2013
Now that the top income tax rate is definitely being cut to 45% and we know this will take effect on 6 April 2013, clients may be wondering if they can avoid paying the 50% rate altogether. For some taxpayers, the 50% tax rate coupled with the withdrawal of the personal allowance for higher earners has meant they have been taxed at an effective rate of 62%. This happens where total income falls into the £101,000 to £113,000 band where the erosion of the personal allowance has the biggest impact. (more…)
April 30, 2012
Yesterday George Osborne proved that Budgets aren’t always borning and predictable. His proposed shake up and simplification of the tax system in Briatin is wide reaching and will offer many pros (and cons) to business owners looking to cut their tax bills.
Lesley Stalker gave her views on the matter to Businesszone’s editor Dan Martin. You can read the full article here.
March 22, 2012
George Osborne has pretty much confirmed that the 50% tax rate will be here for the foreseeable future. With the deadline for self-assessment tax payments looming, now is the time most additional rate tax payers will feel the pain and start to wonder whether they might have been able to reduce their tax burden with some careful tax planning. Hindsight is a truly wonderful thing, but straight after the January 31st filing deadline is one of the best times to formally review your personal and business tax affairs. Virtually all of the changes for the 2012-2013 financial year have now been confirmed and the sooner you put measures in place to limit your tax liability, the better. (more…)
January 29, 2012
There are just 7 days to go before the 31st January self-assessment tax returns deadline and Taxtalk’s Paul Webb outlines some very useful advice for those still needing to get organised. With trading conditions so tough at the moment for many small business owners, many people have had no option but to leave their Self-Assessment tax returns to the last minute and need to complete them in a rush.
Personal tax returns might be something of an administrative burden, but with HMRC out in force to collect as much revenue as possible, it is important to make sure yours is accurate and filed on time. Apart from resulting in an immediate £100 penalty (which will apply even if no tax is payable) and possible daily penalties of £10 per day, it’s never a good idea to fall under the tax officer’s spotlight. It could result in being targeted for an enquiry should HMRC’s officers start to wonder whether your business record keeping is being maintained diligently and whether there might be a tax shortfall to detect.
Taxtalk’s top tips for completing Self-Assessment tax returns (more…)
January 23, 2012
It’s almost Christmas and the end of another busy year. It’s one many of us will be glad has passed, with business conditions continuing to be difficult due to a lack of available finance and uncertainty over the Euro and Europe affecting demand.
So what have we got to look forward to in 2012 by way of tax breaks and opportunities. Here are our picks of what was announced in the November Autumn Statement. As is becoming customary with this government, the draft legislation has already been issued, which means the changes will go ahead as suggested. (more…)
December 15, 2011
With tax return season looming, there have been some important changes to the penalty system created in the Finance Act 2009 which have just come into force and which those keen to minimise tax with tax planning should take note of.
November 27, 2011
Now it has been confirmed the 50% tax rate will be lifted in the not too distant future, how might it be possible to avoid paying it al together? Taxtalk explores some relevant tax planning opportunities.
Continue April 10, 2011