Tax allowance Archives | Taxfile

Making the Most of your Tax Allowances for Small Trading?

Mark — Fri, 08 Jun 2018 14:57:45 +0000

Are you making the most of your tax allowances for small trading? If you have small earnings from self employment, then it may be advantageous to make a claim for Trading Income Allowance i.e. to claim a flat rate deduction of £1,000 for expenses instead of claiming the actual expenses incurred.

Example:

Christina has income of £2,360 and expenses for web hosting of £204, software of £103 and publishing costs of £430
(total expenses £737).

As her expenses are less than £1,000 she can claim £1,000 Trading Income Allowance in preference to claiming the actual expenses.

Her taxable profit therefore becomes £1,360 instead of £1,623. So, she pays less tax!

This is just one simple way in which Taxfile's knowledge of the tax system can help its customers pay less tax in a totally acceptable way from HMRC's perspective.

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Highlights from the Chancellor’s Budget, 18 March 2015

Mark — Thu, 19 Mar 2015 15:51:20 +0000

Along with some encouraging news about the UK economy, some interesting new measures were announced in the Chancellor’s Budget yesterday and below we highlight those which we feel will directly impact the majority of UK taxpayers: As widely forecast, the tax-free allowance will increase. The amount people can earn before paying tax will rise to […]

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The Chancellor’s Budget, March 2014

Mark — Thu, 20 Mar 2014 15:04:45 +0000

The Chancellor, George Osborne, has now presented his March 2014 Budget to Parliament. There was lots of talk about the economy, growth forecasts, supporting UK businesses and employment – as well as some obvious political spin bearing in mind the European and General Elections are just around the corner – however we thought we’d concentrate […]

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(Time Sensitive): Tax Year End Changes for Pension Allowances

Mark — Wed, 19 Feb 2014 14:30:58 +0000

The start of the new Tax Year on 6 April 2014 – just 6½ weeks away at time of writing – will see two very important changes in relation to pensions allowances. The first change will affect the ‘Annual Allowance’ (or ‘AA’) which is the annual limit on pension savings attracting tax relief. This limit […]

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Time for ‘tax year end planning’ (pre-Budget)

Mark — Thu, 13 Feb 2014 15:30:10 +0000

The budget will take place on March 19th 2014 so that gives us all just 5 weeks (at time of writing) for ‘tax year end planning’. So perhaps now is the time to start reviewing investments. N.B. We’re not financial advisers (we are tax agents and accountants) so we can’t give advice on investments. But […]

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Autumn Statement by the Chancellor of the Exchequer

Mark — Mon, 09 Dec 2013 18:27:37 +0000

On 5 December 2013 George Osborne, Chancellor of the Exchequer, gave his Autumn Statement in Parliament. Key announcements included: A rise for the Personal Allowance, as was long-anticipated, to £10,000 in 2014/15; the higher 40% tax rate threshold also increasing to £41,865; A new, transferable, tax allowance of £1,000 for married couples and those in […]

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New tax break for married couples

Mark — Mon, 14 Oct 2013 11:25:29 +0000

In this recently filmed interview David Cameron said: “Marriage is a great institution and it helps to build good and strong societies so I think it’s right to back marriage properly in the Income Tax system – most other advanced industrial countries do and it and we should do it too.” So on the eve […]

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Confused about your tax code?

Taxfile — Mon, 22 Oct 2007 09:50:00 +0000

A tax code is usually made up of one letter and several numbers, for instance 161L or K567 . A tax code is used by your employer or pension provider to calculate the amount of tax to deduct from your pay or pension. If you have the wrong tax code you could end up paying […]

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IHT: Transfer of unused nil-rate band

Taxfile — Wed, 10 Oct 2007 15:29:00 +0000

The Pre-Budget 2007 Report published on Tuesday 9th October announced various changes, one of them referring to the inheritance tax (IHT). Previously, married couples could transfer an unlimited sum to each other when one died without paying inheritance tax. But when the survivor died, their estate was then taxed at 40% on anything exceeding £300,000. […]

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