Merranti Accounting Blog
HMRC chases gig economy workers
March 15, 2023HMRC 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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New VAT late payment penalties
March 15, 2023The 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, 2023Many 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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Relief for excess mortgage interest
March 10, 2023Since 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, 2023Sole 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, 2023The 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, 2023If 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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Tight CGT reporting deadline for residences
February 5, 2023Contrary 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
Read More New VAT penalties
February 5, 2023All VAT-registered businesses must now comply with the MTD for VAT regulations, which means keeping VAT records in a digital format and using MTD-compatible software to submit VAT returns. The previous portal used for submitting VAT returns online closed on 1 November 2022, or shortly afterwards for certain businesses. For VAT periods beginning on and after 1
Read More Squeeze value out of your losses
February 5, 2023If your unincorporated business made a loss during the COVID pandemic in 2020/21 or in 2021/22, you will want to set off those losses against profits and receive a tax refund as soon as possible. Fortunately, the rules for pandemic losses allow you to do this. A trading loss from 2020/21 or 2021/22 can be carried
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