Financial Advice
TAX & ACCOUNTANCY TIPS Since the last report, the weather certainly seems to have a cooled and as I write, we are awaiting news of proposed tax changes in the November Budget but in the meantime here’s some tips and advice that will keep you informed:
Dean Flood www.rowlandhall.co.uk
The Tax Gap The tax gap is the amount of tax that the government does not receive, compared to that which it would expect to recover. HMR&C have indicated that the Tax Gap for 16/17 (latest figures available) has fallen to its lowest level in 5 years, at 5.7%. The reasons suggested are due to HMR&C’s work to help taxpayers get things right from the start, and the department’s sustained efforts to tackle evasion and avoidance. Whatever the reasons, 5.7% does not seem a great loss but in actual monetary terms this equated to tens of billions of pounds including: •small businesses made up the largest proportion of unpaid tax by taxpayer group at £13.7 billion •taxpayer errors and failure to take reasonable care made up £9.2 billion of unpaid taxes by behaviour, while criminal attacks made up £5.4 billion •income tax, national insurance contributions and capital gains tax made up the largest proportion of the tax gap by tax type at £7.9 billion for 2016/17; equivalent to 16.4% of selfassessment liabilities.
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Married Couples Marriage Allowance HMRC has highlighted that three million UK couples have already taken advantage of Marriage Allowance but a million more are still eligible for the tax break. The Marriage Allowance allows certain couples, where neither pay tax at more than the basic rate, to transfer 10% of their unused personal allowance to their spouse or civil partner, reducing their tax bill by up to £238 a year in 2018/19. The allowance was introduced in 2015 and it is possible to backdate the claim to earlier tax years. Please contact your tax advisor if you consider that you may qualify but have not applied.
Stamp Duty Cut According to the latest statistics 121,500 firsttime buyers have saved a total of £284m following the introduction of a relief for first-time buyers under the Stamp Duty Land Tax rules which apply in England and Northern Ireland. Over the next five years, it is estimated that this relief, part of the UK government's housing policy will help over 1 million people getting onto the housing ladder. First-time buyers purchasing homes of £300,000 and under pay no stamp duty at all, and those who bought properties of up to £500,000 will also have benefitted from a stamp duty cut.
