Streets Chartered Accountants has released its latest news update, sharing expert insight.
Tax-free allowance on trading and property income
A reminder that there are two separate annual £1,000 tax allowances for property and trading income. If you have both types of income highlighted below, then you can claim a £1,000 allowance for each. Read more.
Losing your personal income tax allowance
If you earn over £100,000 in any tax year your personal allowance is gradually reduced by £1 for every £2 of adjusted net income over £100,000 irrespective of age. This means that any taxable receipt that boosts your income over £100,000 will result in a reduction in personal tax allowances. Accordingly, your personal Income Tax allowance would be reduced to zero if your adjusted net income is £125,140 or above. Read more.
Rent-a-room relief
The rent-a-room scheme is a set of special rules designed to help homeowners who rent-a-room in their home. If you are using this scheme, you should ensure that rents received from lodgers during the current tax year do no exceed £7,500. The tax exemption is automatic if you earn less than £7,500 and there are no specific tax reporting requirements. If required, homeowners can opt out of the scheme and record property income and expenses as usual. Read more.
Full expensing started 1 April 2023
The new 100% first-year capital allowance for qualifying plant and machinery assets known as full expensing came into effect on 1 April 2023. This measure is expected to help boost business investment and growth. Read more.
Tax when you sell property
The annual exempt amount applicable to Capital Gains Tax (CGT) has been reduced to £6,000 (from £12,300) for the new 2023-24 tax year. Read more.
Letting relief
In general, there is no Capital Gains Tax (CGT) due on the disposal of a property which has been used as the main family residence. This relief from CGT is commonly known as ‘private residence relief’. However, where all or part of the home has been rented out the entitlement to relief may be affected. Homeowners that let all or part of their house may not benefit from the full private residence relief, but may benefit from letting relief. Read more.
Stamp Duty on shared ownership property
Stamp Duty Land Tax (SDLT) is payable whether you buy a freehold property, a new or existing leasehold property or a shared ownership property. Read more.
VAT guidance for overseas sellers
New simplified VAT guidance for overseas sellers has been published by HMRC. Read more.
Take advantage of new pension tax reforms
The new pension tax reforms that were announced in the recent Spring Budget took effect from 6 April 2023. Read more.
Mobile phones and tax
When an employer incurs costs for the provision of mobile phones to employees it is important to understand the correct tax treatment of these expenses. Read more.
Paying tax by credit or debit card
HMRC has not accepted personal credit card payments since January 2018 when credit card surcharges on personal credit cards were banned. However, HMRC continues to accept payments by corporate credit card or corporate debit cards. The use of these cards is subject to a fee. Payment by personal debit cards is currently fee-free. There is also no charge for payment by Direct Debit, bank transfer or cheque. Read more.
Tax Diary May/June 2023
1 May 2023 – Due date for corporation tax due for the year ended 30 July 2022.
19 May 2023 – PAYE and NIC deductions due for month ended 5 May 2023 (if you pay your tax electronically the due date is 22 May 2023).
19 May 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 May 2023.
19 May 2023 – CIS tax deducted for the month ended 5 May 2023 is payable by today.
31 May 2023 – Ensure all employees have been given their P60s for the 2022/23 tax year.
1 June 2023 – Due date for corporation tax due for the year ended 31 August 2022.
19 June 2023 – PAYE and NIC deductions due for month ended 5 June 2023 (if you pay your tax electronically the due date is 22 June 2023).
19 June 2023 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2023.
19 June 2023 – CIS tax deducted for the month ended 5 June 2023 is payable by today.
