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April Newsletter and Budget Update

One of the main themes of the Chancellor's March 2016 Budget was to ensure that the next generation inherits a strong economy, is better educated, and grow up fit and healthy. His proposed "sugar tax" on the soft drinks industry will be used to fund longer school days for those that want to offer their pupils a wider range of activities, including extra sport.He again stressed his prudence in concentrating on debt repayment and the importance of "mending the roof while the sun shines", althoug...

Changes to taxation of residential property tax

Individuals that own and let property are facing a number of changes to the way in which their rental income, and more importantly, the deductions they can make from their rents for income tax purposes, are changing. They include: An increase in the rent-a-room allowance. The abolition of the wear and tear allowance if you let furnished residential property that is not part of a holiday lets business; and the introduction of a new replacement furniture relief. The gradual restriction of ...

Dividend income subject to tax increases from 6 April 2016

It was bound to happen some time... At present there are considerable savings in National Insurance contributions to be made if a minimal amount is paid as salary and any balance of a remuneration package is paid as dividends (particularly for shareholder directors of private limited companies). From April 2016, the NIC status of dividends is not changing and therefore this strategy is still valid. Unfortunately, the income tax position of dividend income is chang...