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Overpaid Tax? How To Claim It Back

There are various reasons why you may have paid more tax than you needed to for a tax year. For example, if you only worked at the start of the year, you may not have received all of your personal allowance. Alternatively, if your tax code was incorrect, maybe reflecting historic rather than current benefits[…] Read more »

High Income Child Benefit Charge

The High Income Child Benefit Charge is effectively a clawback of child benefit paid to ‘high income’ individuals and couples. The charge does not only apply to the recipient of child benefit or the parents of the child in respect of whom child benefit is paid – it can also affect the partner of someone[…] Read more »

Dividend Income – How Is It Taxed In 2018/19?

The taxation of dividend income was reformed from 6 April 2016. Since that date, dividends are paid gross – there is no longer any associated tax credit – and all taxpayers receive a dividend allowance. Dividends not sheltered by the dividend allowance, or any available personal allowance, are taxed at the appropriate dividend rate of[…] Read more »

Private Lettings Relief

Lettings relief potentially shelters some of the gain from capital gains tax on the disposal of a property which has been an only or main residence at some point during the period of ownership and which has also been let out. Where a residence has been occupied as an only or main home, private residence[…] Read more »

VAT Capital Goods Scheme

The VAT capital goods scheme affects input tax recovery in relation to high value capital assets by partially exempt traders and businesses where assets are used for both business and non-business purposes. The scheme aims to correct the amount of VAT recovered when the use of the asset in later years varies from that in[…] Read more »

Claim A Deduction For Work Clothing

Many employees are required to wear a uniform for work. Even where there is no set uniform as such, many employees have clothes that they wear only to work and regard as ‘work clothes’. So, to what extent, if any, are employees able to claim a deduction for work clothes? And, on the other side[…] Read more »

Beware Tax Scams

HMRC regularly warn taxpayers to be alert to fraudsters purporting to be from HMRC. Recently, they announced that in the last year they deactivated more than 20,000 fake HMRC websites, an increase of 29% on the previous year. HMRC have also called on people to stay vigilant to avoid falling for tax refund scams. The[…] Read more »

Is The VAT Flat Rate Scheme For Me?

The VAT flat rate scheme (FRS) is a simplified VAT scheme that enables VAT registered business to work out how much VAT they need to pay over to HMRC by applying a flat-rate percentage to their VAT-inclusive turnover. However, VAT cannot be reclaimed on purchases (with an exception for certain capital assets over £2,000). The[…] Read more »

Paying Family Members

Many small businesses, whether incorporated or not, pay family members for working for the business. However, as a recent case shows, it is easy to make mistakes which can prove costly. The case in question, Nicholson v HMRC (TC06293), concerned the payment of wages by a sole trader to his son while at university. Mr[…] Read more »

Making Tax Digital For VAT – What Records Must Be Kept Digitally

Making Tax Digital (MTD) for VAT starts from 1 April 2019. VAT-registered businesses whose turnover is above the VAT registration threshold of £85,000 will be required to comply with MTD for VAT from the start of their first VAT accounting period to begin on or after 1 April 2019. If the business is VAT-registered but[…] Read more »