Personal tax – April 2024
Personal tax – April 2024 A number of changes have come into place from April 2024 that could affect your personal tax – an outline of the key changes are below. The dividend allowance will be cut to £500 on 6 April 2024 from the current allowance of £1,000. This will hit owner managed businesses…
Read MoreScottish taxpayers need to check they have an ‘S’ code
Scottish taxpayers need to check they have an ‘S’ code Anyone living in Scotland needs to make sure they are on an ‘S’ tax code to ensure they are paying the correct tax. Scottish rates are significantly higher for anyone earning over £43,663 with a 42% higher rate of tax, while those with incomes which…
Read MoreHMRC freezes director’s loan interest at 2.25%!
HMRC freezes director’s loan interest at 2.25%! Surprisingly, the official rate of interest (ORI) for beneficial loan arrangements like director’s loans will be frozen at 2.25% for the second year running. HMRC has confirmed that the official rate will not be increased for director’s loans outstanding throughout the tax year 2024/25 using the normal averaging…
Read MoreEssential tax rates and thresholds for 2024/2025
Essential tax rates and thresholds for 2024/2025 Please find below a guide to the main tax rates and allowances updated in the Spring Budget, showing the main changes that will come in from 6 April 2024. Tax rates for dividend income Dividends within 2024/25 2023/24 Basic rate band 8.75% 8.75% Dividend allowance £500 £1,000 Higher rate…
Read MoreChanges to tax benefits for furnished holiday lettings
Changes to tax benefits for furnished holiday lettings The 2024 budget included the announcement of tax benefit changes for those with furnished holiday lettings (FHL) which will mean that individuals operating FHL businesses will lose a number of tax benefits. Currently, interest incurred on loans for the purpose of a furnished holiday letting business are…
Read MoreGovernment AI tool is focused on dormant companies
Government AI tool is focused on dormant companies The government’s artificial intelligence (AI) fraud detection tool has been upgraded to include new data on thousands of dormant companies. In a new bid to clamp down on fraud, the government also plans to use AI to identify entities registering and bankrupting successive companies to avoid paying…
Read MoreDirector’s salary and dividends for 2024/25
Director’s salary and dividends for 2024/25 As business owners of a limited company, typically, the best way to pay yourself via your limited company is to take a low director’s salary and then top up your earnings with regular dividend payments. As tax thresholds and allowances often change at the start of a new tax…
Read MoreCrypto Investors – tax crackdown announced in 2024 Spring budget
Crypto Investors – tax crackdown announced in 2024 Spring budget HMRC has announced it is consulting on the implementation of ‘global transparency rules’ which will mean crypto platforms will have to share client data with HMRC. The new rules are designed to ensure that in future, crypto investors will find it much harder to avoid…
Read MoreHMRC unveils plans to replace Government Gateway accounts with One Login
HMRC unveils plans to replace Government Gateway accounts with One Login The government has announced that it is investing in a single login system for taxpayers and agents using online services such as HMRC with the launch of GOV.UK One Login. This new login service will have two factor authentication to prevent fraud and will…
Read MoreR&D Tax relief changes in April 2024
R&D Tax relief changes in April 2024 Research and development (R&D) tax relief has proven to be a powerful catalyst for encouraging investment in innovation for businesses across the UK, with recent figures available via HMRC revealing that the UK claimed over £7.6bn in total relief for the 2021-2022 tax year – which is a…
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