Merranti Accounting Blog
Reducing CGT bills
February 5, 2023Everyone has a CGT annual exemption of £12,300 for 2022/23. This is wasted if you don’t make capital gains in the tax year, as it can’t be carried forward. In 2023/24 the annual exemption will be £6,000 and in 2024/25 it will be cut to £3,000. If you are planning to dispose of assets that will create
Read More
Don’t miss tax deadlines
February 5, 2023If you miss the deadline for filing your self-assessment tax return (31 January for online filing) you will be charged a £100 penalty. If the return is filed more than three months late, an additional £10 per day is charged and, after six months, another penalty is incurred (the higher of £300 or 5% of the
Read More
Risk with tax breaks as a reward
February 5, 2023The Government wants to encourage individuals to make high-risk investments in small trading companies by providing income tax relief for investors. In 2022/23 the main schemes available are: Enterprise Investment Scheme (EIS): 30% relief on up to £2 million Seed Enterprise Investment Scheme (SEIS): 50% relief on up to £100,000 Venture Capital Trust (VCT): 30%
Read More
A family view
February 5, 2023In the UK, everyone is taxed as an individual, but social security benefits, including tax credits and Universal Credit, are awarded on the basis of the family’s total income. Child Benefit is clawed back based on the income of the higher earner in a couple, irrespective of who receives it. Families with an unequal distribution
Read More Crossing the threshold
February 5, 2023When your total income reaches certain levels, it tips any extra income into a higher tax band. This can also mean you lose part or all of your personal savings allowance (PSA), personal allowance (PA) or pensions annual allowance. Taxpayers who live in Scotland have slightly different tax thresholds but the principle is the same.
Read More
Where there’s a Will…
February 5, 2023When you die, your executors or relatives need to sort out your affairs. This stressful task can be made easier if you leave a clear and up-to-date Will that has been drafted with tax in mind. Your executors may need to pay inheritance tax (IHT) if the net value of your assets, including your home
Read More
Tax breaks on savings
February 5, 2023You can save for retirement in a number of ways. The traditional route is via a pension scheme, but you could also use an ISA. Savers aged under 40 can open a Lifetime ISA (LISA) and contribute up to £4,000 per year, which attracts a 25% bonus from the Government. This bonus is withdrawn if
Read More
Elect in good time
February 5, 2023Events don’t always turn out as expected. For example, you may need to wait for a later profit or loss to arise before you can judge whether it’s right to elect to use losses in an earlier year. This is why the law allows you extra time, after you have submitted your tax return, to
Read More
Selling your business
February 5, 2023If you are wondering whether, or when, you should dispose of your business, a sensible first step is to form an outline plan. The sale of a successful trading company will generate a capital gain. This would normally be taxed at 20% after deduction of your annual exemption, which is £12,300 for 2022/23, but only £6,000
Read More
R&D tax breaks
February 5, 2023Companies that invent new production methods or products can claim enhanced tax relief for the Research and Development (R&D) costs. The enhanced expenditure scheme for small and medium-sized enterprises (SMEs) increases qualifying expenditure by 130%, so that for every £100 spent, the company enjoys a deduction of £230 from taxable profits. This may create or
Read More