Although finance costs, predominantly loan interest, are now disallowed as an expense that can be utilised to reduce taxable rental income, these charges do qualify for a tax credit limited to 20% basic rate Income Tax.
HMRC’s vision to digitalise the UK tax system continues to unfold with General Partnerships that have a taxable income above £10,000 set to join Making Tax Digital (MTD) for Income Tax from April 2025.
Online VAT returns will close on 1 November 2022 as part of HMRC’s Making Tax Digital (MTD) movement. This will leave VAT registered businesses to choose either using MTD compatible software or face penalties, unless they are exempt.
Peter Simons, Partner at Corby and Northampton-based accountancy practice Moore, has retired after a career spanning 33 years with the firm.
Moore Kingston Smith has supported RC365 Holding Plc on its fundraise of £2 million and admission to the London Stock Exchange on 23 March 2022.
Tax Diary September/October 2022
The Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home. This is halved if you share the income with your partner or someone else.
To keep your earnings in sync with increases in prices is becoming progressively difficult. Most individuals – whether employed or self-employed – would find it unrealistic to secure pay rises (if employed) or price increases (if in business) unless the demand for their goods or services was high.
There is no tax to pay on trading income or earnings from land and property as long as the income from each of these two sources does not exceed £1,000.
If you’re a sole trader running a small business, it is safe to say that you’ll be incurring business expenses.
The government has announced an extension to the Recovery Loan Scheme (RLS) from August 2022.
The 5% reduced rate of VAT is available for a wide range of residential conversion and renovation projects, but it is often overlooked. Applying 5% rather than 20% VAT can dramatically reduce the construction budget.