Tag: Tax Returns

Capital Allowances – write off small pools

The legislation allows the whole balance of the main pool to be written off in a single year when the value of the pool is less than £1,000. This is known as the small pools allowance. The allowance, equal to the tax written down value of the pool, is claimed instead of the writing down allowance.

HMRC

Reducing Your Payments on Account

If you know that your tax liability for the current year is going to be less than the previous year, you can apply to reduce your payments on account. This may be the case if you have suffered a downturn in trade or lost a major customer.

Tax-Free Taxi
HMRC

Tax-Free Taxi

Depending on the circumstances, it may be possible to provide a tax home tax-free by taking advantage of the trivial benefits exemption where the exemption for late night taxis or failed car sharing arrangements is not available.

Tax-free Savings Income
HMRC

Tax-free Savings Income of £18,500

The personal savings allowance is available to basic rate and higher rate taxpayers only – additional rate taxpayers do not benefit from a personal savings allowance.

Cash Basis for Self Employed
HMRC

Cash Basis for Self Employed

The main advantage of the cash basis is its simplicity – there are no complicated accounting concepts to get to grips with. Because income is not recognised until it is received, it means that tax is not payable for a period on money that was not actually received in that period.

Benefit of High-Income Child Benefit Charge
HMRC

Benefit of High-Income Child Benefit Charge

Where the High Income Child Benefit Charge applies in full, the recipient can opt not to receive the child benefit rather than receive it and pay it back. This can be done online or by contacting the Child Benefit Office.

Amending Self Assessment Tax Return
HMRC

Amending Self Assessment Tax Return

Amending your tax return will also change the amount of tax you owe. If it is more, you will need to pay this, plus interest (which runs from the due date of 31 January after the end of the tax year). If your tax bill goes down as a result of the amendment, you can claim a refund

Tax Deduction of Expenses in Employment
HMRC

Tax Deduction of Expenses in Employment

Employment expenses are deductible only if they are incurred ‘wholly, exclusively and necessarily in the performance of the duties of the employment’. The test is a harsh test to meet; the ‘necessary’ condition means that ‘each and every’ jobholder would be required to incur the expense.

Capital Gains Tax Returns
HMRC

Guide to Capital Gains Tax Returns

You’re not required to pay Capital Gains Tax on certain assets including ISAs or PEPs, UK government gilts and Premium Bonds and betting lottery or pool winnings.