News

Children have become less taxing!

June 10, 2024

From 6 April 2024, there have been major changes to the High-Income Child Benefit Charge (HICBC), which (as discussed in the Spring Newsletter) effectively claws back Child Benefit via a tax charge when income of the higher earner in the household exceeds a particular threshold. The key changes are: ● The income threshold before a

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No trading means no BADR

June 10, 2024

Business asset disposal relief (BADR) replaced Entrepreneurs’ relief (ER) in 2020. It operates in essentially the same way, but with a greatly reduced lifetime limit of gains eligible for the relief. The current limit allows £1m of gains to be taxed at 10% rather than the normal 20%, so potentially saves £100,000 of CGT. Among

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Goodbye to furnished holiday lets

June 10, 2024

Since first being introduced forty years ago, furnished holiday letting (FHL) tax breaks have been very beneficial to those owning qualifying properties. With the spread of Airbnb and years of low interest rates. Iwt seems that more and more people have been buying properties to let short-term to holiday makers. This has distorted the normal

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Major changes coming for non-doms

June 10, 2024

Domicile status is a difficult legal issue that is very important for tax. Very broadly, it is one’s country of natural or permanent home, which of course may be different to where someone is resident at any given time. To establish domicile status, the courts will look at where a taxpayer’s parents (and sometimes grandparents)

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Self-employed training costs

June 10, 2024

HMRC have revised their guidance on tax relief for a business owner’s training courses. They now say that learning a new skill in a new area will be tax-deductible against profits, if ‘wholly and exclusively’ incurred for any ‘ancillary purposes’ of the trade or business. Their previous approach was to block tax  relief for expenditure

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Changes to CIS compliance checks

June 10, 2024

Under the Construction Industry Scheme (CIS), contractors must withhold deductions from payments made to subcontractors who do not hold gross payment status (GPS) at either: ● 20% (the standard rate); or ● 30% (if the recipient is not registered for CIS or cannot be verified). To obtain GPS and therefore receive payments without any deductions,

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Recent and upcoming tax changes

June 10, 2024

We now know that the General Election will be held on 4 July. In the Spring Newsletter, we speculated on some of the tax reform that the next government might introduce and, so far, the campaigns have not shed any further light on this. Whoever wins power will probably have a fiscal statement of some

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The Summer Newsletter is here!

June 10, 2024

https://merrantiaccounting.com/goodbye-to-furnished-holiday-lets/The Summer Newsletter is here! Our latest spring newsletter can be found below for all the latest in tax news. What to expect: Recent and upcoming tax changes Changes to CIS compliance checks Self-employed training costs Major changes coming for non-doms Goodbye to furnished holiday lets

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Other measures

March 8, 2024

Filing requirement For 2023/24, taxpayers with incomes over £150,000 are automatically required to file a self-assessment tax return. The 2023 Autumn Statement included an announcement that those whose tax is all paid under PAYE will be removed from this requirement from 2024/25. However, as mentioned above, increases in interest rates on savings and reductions in

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VAT on land

Value Added Tax

March 8, 2024

Registration threshold The VAT registration and deregistration thresholds were previously intended to remain frozen at their present levels of £85,000 and £83,000 until 31 March 2026. In the first increase in the thresholds since April 2017, the thresholds have been increased to £90,000 and £88,000 with effect from 1 April 2024. The Budget announcement says

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