Taking your profits as dividends.

dividend tax 2023/2024

Taking your profits as dividends.

March 15, 2023

If you are a company owner, you will be used to taking funds you need from your company in the form of a small salary. With anything extra paid as dividends, or perhaps as rent or interest. For some years the first £2,000 of dividends received by each taxpayer has been tax-free. However, that is

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PAYE K code

Dealing with PAYE K codes

March 15, 2023

A PAYE K code reduces your personal allowance to zero and adds a notional amount of income on to your salary to be taxed. The imposition of a K code will result in a significant amount of tax being deducted from your earnings. HMRC will impose a K code to collect existing tax debts, tax

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tax deadline

HMRC chases gig economy workers

March 15, 2023

HMRC is writing to online sellers, gig economy workers and influencers, asking for tax to be paid up for earlier years. People who make money from the online content they create may not realise that they need to declare that income for tax purposes. Where it exceeds £1,000 per year. This rule applies even if

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VAT penalties

New VAT late payment penalties

March 15, 2023

The old system of VAT default surcharges could be quite harsh, as a penalty of up to 15% of the late paid VAT could be levied for paying just one day late. The new system, that applies for VAT periods beginning on or after 1 January 2023, is fairer to those who miss the VAT

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Addressing overdue tax bills – payment plans

March 10, 2023

Many people are struggling to pay their bills right now, as tax is pushed down the list behind heating and food. If you still have tax outstanding for 2021/22, there are some things you can do. Firstly, review your payments on account for 2022/23, which are scheduled to be paid in two equal amounts on

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mortgage interest

Relief for excess mortgage interest

March 10, 2023

Since 2020/21, the deduction of mortgage interest and other finance costs (e.g. arrangement fees) from residential rents is completely blocked for tax purposes for individual landlords (not companies). Instead, the landlord receives tax relief at the basic rate (20%) as a tax credit against the tax due on the property income. With interest rates rising,

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MTD for income tax is delayed again

March 10, 2023

Sole traders and individual landlords have an additional two years to prepare for the new reporting requirements under Making Tax Digital for Income Tax Self-Assessment (MTD ITSA), which is now due to come into effect from 6 April 2026. Those with small levels of sales have even longer to prepare, as the turnover threshold for

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Tax changes ahead

March 10, 2023

The new tax year starting in April will see personal allowances frozen, as well as cuts to tax exemptions that could increase your tax bills. Your tax-free personal allowance will be frozen for the third year running at £12,570 and the basic rate band also held at £37,700. This means you will pay tax at

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Will you get a full state pension?

February 5, 2023

If you are looking forward to retirement, it’s a good idea to check out how much state pension you will get. You can do this by logging on to your personal tax account on gov.uk, which contains lots of useful information about how much tax you owe and about your National Insurance Contributions (NICs) record,

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family finances

Tight CGT reporting deadline for residences

February 5, 2023

Contrary to popular belief, the profit you make when you sell your home, or a former home, is not automatically exempt from CGT. This tax exemption applies to gains that relate to periods in which you lived in the property as your main home. However, it can be extended to certain periods when you were

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