A recent press release by HMRC revealed some of the oddest excuses for submitting a late tax return. The excuses ranged from the sublime to the ridiculous and included:
I couldn’t file my return on time as my wife has been seeing aliens and won’t let me enter the house.
I’ve been far too busy touring the country with my one-man play.
My ex-wife left my tax return upstairs, but I suffer from vertigo and can’t go upstairs to retrieve it.
My business doesn’t really do anything.
Last week we confirmed that as from 13 January 2018, HMRC will not accept personal credit cards for payment of tax or penalties. We have listed below the payment options you still have available to you:
Electronic payment. HMRC’s preferred method of payment is by electronic bank transfer using Faster Payments, CHAPS or BACS. In order to make a payment electronically you will need your 11-character payment reference when you pay. This reference is made up of your 10-digit Unique Taxpayer
The removal of the 10% wear and tear allowance that allowed landlords to reduce the tax they paid on furnished property lets (after the end of the 2015-16 tax year) was a significant loss for many landlords. The 10% deduction was available to landlords regardless of whether furnishings in their property were replaced or not.
The wear and tear allowance was replaced by the replacement of domestic Item relief. The relief only allows landlords the ability to claim tax relief when they actually
The furnished holiday let (FHL) rules allow holiday lettings of properties that meet certain conditions to be treated as a trade and therefore qualify for additional tax benefits.
In order to qualify as a FHL, the following criteria need to be met:
The property must be let on a commercial basis with a view to the realisation of profits. Second homes or properties that are only let occasionally or to family and friends do not qualify.
The property must be located in the UK, or in a country
For high earning taxpayers, their Income Tax personal allowance is gradually reduced by £1 for every £2 of adjusted net income over £100,000 irrespective of age. This creates an effective marginal rate of tax of around 60% for tax payers as the £11,500 tax-free personal allowance is gradually withdrawn.
Taxpayers whose income sits within this band should consider what planning opportunities are available to them in order to avoid this personal allowance tax ‘trap’. This can include giving gifts