Category: Tax Planning

New PAYE process for High Income Child Benefit Charge

One of the many criticisms aimed at the High Income Child Benefit Charge (HICBC) is that anyone caught by the charge needs to submit a self-assessment tax return even if all of their tax is collected under PAYE. However, this […]

Abolishing the pensions lifetime allowance

Although the lifetime allowance was effectively abolished from April 2023 as the lifetime allowance charge was removed, it has been retained on statute for a year to allow time for the intricacies to be ironed out. Draft legislation, to take […]

Behind the numbers on income tax

New income tax statistics from HMRC appear to be good news, but the numbers are not what they seem. Taxpayer’s marginal rate Basic Rate Higher Rate Additional Rate 2020/21 Average tax rate 9.5% 21.8% 38.3% 2023/24 Average tax rate 9.9% […]

Wealth tax, take two?

Hard on the heels of the Sunday Times Rich List, will new proposals for a wealth tax gain any traction? In 2020, a group of economic research bodies set up the Wealth Tax Commission to examine the options for a […]

Tax gap at all-time low

The tax gap is the difference between the amount of tax that should, in theory, be paid to HMRC, and what is actually paid. For 2021/22, the gap was at an all-time low of 4.8% (or £35.8 billion), although in […]

HMRC offers options on undeclared wealth

HMRC is offering taxpayers named in the leaked Pandora Papers a chance to correct their tax affairs. The October 2021 leak involved almost 12 million documents revealing hidden wealth and tax avoidance. The papers revealed that many taxpayers had used […]

Important HMRC Update: R&D Tax Credit Claims

Does your company submit or intend to submit claims for R&D tax credits?  HMRC has recently announced important updates regarding the procedure for filing an R&D tax credits claim. We have summarised the changes that you need to be aware […]

More estates paying IHT 

The combination of a frozen inheritance tax (IHT) nil rate band and considerably higher property values has pushed more estates into the IHT net.

Attention self-employed: get ready for a longer tax year. 

The government has changed the taxation system for self-employed individuals and partners in partnerships, requiring them to pay tax on their trading profits earned during the tax year instead of the accounting year.  The tax year 2023/24 will act as […]

New tax year resolution: don’t be careless

The former Chancellor, Nadim Zahawi, is reported to have paid a 30% tax penalty as part of a £5 million settlement with HMRC regarding the disposal of shares in a company he had co-founded.

Mind your allowances

Until fairly recently, it was usually beneficial for tax for shareholder directors to take dividends instead of bonuses, because dividends are taxed at lower rates than earnings.

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