Guide To Tax Changes Impacting Landlords Pt.2.

One in 10 people now own a second house. Yet, despite it being a fruitful investment, tax legislation surrounding landlords remains largely unclear. Taxes associated with buy-to-let property are collectively known as ‘landlord tax’. To make matters more complicated, such legislation is varied and complete, comprehensive advice is scarce.With that being the case, we thought it would be useful to breakdown the two most discussed components of landlord tax and detail exactly what you need to know. The Burden of Stamp Duty .Stamp Duty Land Tax also needs to be on your radar as a landlord. A tax paid when buying a property in England and Wales, it’s been widely criticised (by both landlords and regular homeowners) as being unnecessary at an already expensive time.There have also been instances of buyers overpaying. In the 2018-19 tax year alone, nearly £400m was returned to those who had paid too much. Regardless,…

Continue Reading

As A Freelancer, Do I Need To Make A Second Payment On Account? Pt.2.

For the uninitiated, you may be wondering what a ‘second payment on account’ is. If you’re a freelancer,  sole trader or have any earnings outside of PAYE, you may need to make two advance payments on account towards your current year’s tax bill. Mike Parkes from GoSimpleTax has provided an overview on your responsibilities. How Is The Second Payment On Account Calculated? It’s important to remember that payments on account are based on your earnings from the previous year. This means that, should your income dramatically fall, your payments on account may be reduced to reflect a lower income. You can therefore make a claim to reduce your payments on account. Be careful though: reduce them too much and you can incur an interest charge on any tax shortfall. The opposite applies if your income increases (as this will result in a ‘balancing payment’ on 31 st January of any shortfall from your two payments…

Continue Reading

How To Make The 2019/20 Tax Year The Time Of Tax Savings As A Sole Trader Pt.2.

A new tax year is officially underway. With it comes the opportunity for you to ensure that the next 12 months are your most tax-efficient yet. With a number of ways you can reduce your tax bill throughout the year, GoSimpleTax’s Technical Director Mike Parkes details the most effective tips to maximise your tax savings. Claim all allowable expenses and capital allowances Another way you can reduce your annual tax bill is through claiming back expenses. There are a variety of different types, including costs for travelling and business premises. If the latter is your home, then you can claim on those parts of your property which are used for work. You should note that, with all expenses, the amount offset must be solely for business purposes. For example, you won’t be able to claim your entire heating bill as home working. On top of expenses, you can also deduct capital allowances…

Continue Reading

How To Make The 2019/20 Tax Year The Time Of Tax Savings As A Sole Trader Pt.1.

A new tax year is officially underway. With it comes the opportunity for you to ensure that the next 12 months are your most tax-efficient yet. With a number of ways you can reduce your tax bill throughout the year, GoSimpleTax’s Technical Director Mike Parkes details the most effective tips to maximise your tax savings. Understand what the tax changes mean for you Each fresh tax year brings changes to how the tax system will work. But, depending on your individual circumstances, not all of these will affect you. For example, if you’re a limited company director, then it’s worth being aware that dividend tax rates remain the same so you won’t be able to further boost your tax efficiency in this way. Or, if you’re now required to submit VAT digitally under MTD for VAT, then you’ll need to ensure you comply with HMRC’s digital path. There are changes…

Continue Reading
Close Menu