The self-employed tax basis period reform has changed the way trading income is allocated to tax years. Under the reforms, the tax basis period has changed from a ‘current year basis’ to a ‘tax year basis’. This means that all sole trader and partnership businesses must now report their profits on a tax year basis, beginning with the self-assessment return due by 31 January 2025 (covering the tax year 2023-24) and future years. Under the old rules there could be overlapping basis periods, which charged tax on profits twice and generated corresponding ‘overlap relief’ which was usually given on ..read more

There have been a number of significant changes to Companies House fees. These changes took effect on 1 May 2024. The last significant change in fees occurred in April 2016. The new fees have been calculated on a ‘cost recovery’ basis meaning that the fees are calculated based on what it costs to provide the services in question. Companies House state that they do not make a profit on their fees. Companies House guidance entitled Companies House fees has been updated to reflect all the changes. Companies House have said that the new fees will help ensure adequate funding going forwar ..read more

You must register an overseas company with Companies House if they want to set up a place of business in the UK. This would mean that the overseas company has a physical presence in the UK through which it carries on business. If an overseas company does not have a physical presence in the UK, you are not usually required to register it with Companies House. For example, an independent agent who conducts business on behalf of an overseas company is not seen as the overseas company having a physical presence in the UK, neither is an occasional location such as a hotel where a director of an ove ..read more

If you are an employee who is working from home, you may be able to claim home working tax relief for part of your household bills that are related to your work. If your expenses or allowances are not paid by your employer, you can claim tax relief directly from HMRC. You can claim tax relief if you have to work from home, for example because: your job requires you to live far away from your office; and/or your employer does not have an office. Tax relief is not usually available if you choose to work from home. This includes if your employment contract lets you work from home some or all of ..read more

You can usually claim tax relief on pension contributions worth up to 100% of your annual earnings, subject to the overriding limits. Tax relief is paid on pension contributions at your highest rate of income tax. This means that if you are: A basic rate taxpayer, you get 20% pension tax relief. A higher rate taxpayer, you can claim 40% pension tax relief. An additional rate taxpayer, you can claim 45% pension tax relief. However, how you claim that relief will vary according to your personal situation and you need to make sure that you claim all the tax releif to which you are entitled. Mak ..read more

As expected, in the Spring Budget 2024 ,  the Chancellor has found wriggle room in his fiscal rules that have allowed him to please his fellow Conservatives by reducing the impact of taxation. Not an unfamiliar tactic for a government in a general election year. The impact of tax changes announced in the Spring Budget 2024 are summarised below. Impact on personal finances Further fall in employee National Insurance contributions (NIC) As expected, the Chancellor has found headroom in the Spring Budget 2024 to make a further reduction of 2 percentage points, from 10% reduced to 8%, effect ..read more

The furnished holiday let (FHL) rules allow holiday lettings of properties that meet certain conditions to be treated as a trade for tax purposes. In order to qualify as a furnished holiday letting, the following criteria need to be met: The property must be let on a commercial basis with a view to the realisation of profits. Second homes or properties that are only let occasionally or to family and friends do not qualify. The property must be located in the UK, or in a country within the EEA. The property must be furnished. This means that there must be sufficient furniture provided for norm ..read more

One in seven UK adults have never checked their pension; and more than a fifth of pension savers admit they don’t check their pensions annually because they don’t know what they should be doing. While it’s not essential to monitor your pension as frequently as your bank account, it’s advisable to periodically assess how much is in your pot, and what this could mean for your financial future. With the end of the financial year close, now is an excellent time for pension planning. Here, with help from our friends at Harmonic Financial Planning, are ten things to look out for with your pensi ..read more

Summary The Chancellor of the Exchequer, Jeremy Hunt, has delivered his 2023 Autumn Statement to the House of Commons. The government continues to be faced with challenging economic conditions as the cost of living crisis continues to affect many families across the UK. The Chancellor, however, had some good news with inflation falling to 4.6% in October, down from a peak of over 11% last year. This together with the prospect of an upcoming general election suggested that there may have been more giveaways than in a usual Autumn Statement and this seems to have been borne out. The OBR also pro ..read more

The Let Property Campaign provides landlords who have undeclared income from residential property lettings in the UK or abroad with an opportunity to regularise their affairs by disclosing any outstanding liabilities whether due to misunderstanding of the tax rules or due to deliberate tax evasion. Participation in the campaign is open to all residential property landlords with undisclosed taxes. The campaign is not suitable for those letting out non-residential properties. Landlords who do not avail of the opportunity and are targeted by HMRC can face penalties of up to 100% of the tax d ..read more