Thousands of taxpayers filed their Tax Return over the festive period. For those of you who wrapped presents, peeled sprouts and did more than their fair share of the washing up, here are some last minute tips to help you complete your 2018-19 Tax Return.
The 31 January Tax Return filing deadline is approaching fast!
- If self-employment or property expenses are less than £1,000, could you save tax by claiming the £1,000 trading or property allowance instead?
- Consider the £7,500 rent-a-room allowance if you let rooms in your home.
- Only 50% of loan interest is deductible in landlords income and expenditure accounts in 2018-19, is your property business commercial?
- Does the reduced dividend allowance of £2,000 give rise to an unexpected Tax liability?
- A claim for foreign tax should be restricted in line with the double tax treaty.
- Higher rate taxpayers should claim tax relief for pension contributions deducted from net pay or paid to independent pension schemes; and Gift Aid payments to charity.
- If eligible, non-taxpayers should consider transferring 10% of their allowance to their spouse.
In December 2019, the government announced that it is to make a package of changes to the controversial and retrospective loan charge; a measure designed to tackle unpaid tax on disguised remuneration arrangements (e.g. loan arrangements).
If affected, do call us to discuss how this will affect the entries on your Tax Return. In certain circumstances, HMRC may allow an extension to file your 2018-19 Tax Return.
The first budget of our new government will take place on 11 March. Could the Conservatives majority result in some unexpected announcements?
Tax affects every area of our lives, its shaped our past and will change our future. Contact our Cambridge Tax team on 01223 810100 for friendly help and support.
