Turner Lister & Co - TLC Accountants

30/11/2024

Company car and van tax changes
The 100% green first year allowance will be extended for a further year. This is a benefit which allows you to write off the full cost of the vehicle or plant against profits in the first year you own it.

If you own a double-cab pick up, those with a payload of one tonne or more will now be treated as cars for certain tax purposes. This is a change following a Court of Appeal judgment.

From 1 April 2025 for Corporation Tax, and 6 April 2025 for income tax, double cab pick ups will be treated as cars for the purposes of capital allowances, benefits in kind, and some deductions from business profits. The existing capital allowances treatment will apply to those who purchase these vehicles before April 2025.

Transitional benefit in kind arrangements will apply for employers that have purchased, leased, or ordered a twin cab vehicle before 6 April 2025. They will be able to use the previous treatment, until the earlier of disposal, lease expiry, or 5 April 2029.

The van and fuel benefit is set to increase by CPI from 6 April 2025.

For more information on how we can support you, contact Team TLC Accountants and Tax Advisers, experts in business finance.

29/11/2024

📅 Time to complete your tax return before Christmas takes over?

We recommend most strongly that you don't wait until the 31 January 2025 deadline to file your tax return, we have just too many examples of where that decision has been regretted!

Anyway, there are good reasons to file your return before the end of the year:

Budgeting - know exactly how much tax you need to pay by 31 January 2025 and plan your finances better.

Proof of Income - your tax return can be used if you need to apply for a mortgage, loan, or benefits.

If you're ready to start your tax return now and you'd like a handy checklist, we've got one on our blog that may help.
https://www.tlcaccountants.com/your-self-assessment-checklist-2023-24/

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Your self assessment checklist 2023/24 30th April 2024 Here’s your handy checklist for getting all of your self-assessment information together for the tax year ending 5 April 2024. Remember the return needs filing and you need to have made your first payment by midnight on 31 January 2025. Access...

28/11/2024

Stamp Duty on Second Homes
Stamp duty on buy-to-let properties and second homes will increase from 3% to 5% on homes worth up to £250,000 in a bid to support first-time home buyers. Reeves did not extend a discount for home-buyers set to expire next year.

On second homes, the bands are now:
5% for up to £250,000
8% for the next £250.001 to £925,000
13% for £925,001 to £1,500,00
15% for any value above £1.5M

First-time buyers pay no stamp duty on property purchases up to £425,000, although this is set to fall to £300,000 next year.

For more information on how we can support you, contact Team TLC Accountants and Tax Advisers, experts in business finance.

27/11/2024

ALL AIM-listed shares will attract IHT of 20%
The government is reducing the rate of business property relief to 50% in all circumstances for shares designated as “not listed” on the markets of a recognised stock exchange, such as AIM.

This means all AIM-listed shares will attract Inheritance Tax (IHT) of 20%. Previously it was nil. This will affect around 0.3% of estates each year.

From 6 April 2025 the government will also introduce a new residence based system for IHT, ending the use of offshore trusts to shelter assets from IHT, and scrap the planned 50% reduction in foreign income subject to tax in the first year of the new regime.

For more information on how we can support you, contact Team TLC Accountants and Tax Advisers, experts in business finance.

26/11/2024

Company Car and Van Tax Changes

Company car tax rates for 2028-29 and 29-30 are being fixed to give people certainty and to incentivise the take up of electric vehicles, while rates for hybrid vehicles will be increased to align more closely with petrol and diesel cars. This is to focus support on fully-electric vehicles.

In short, it will cost you more to have a company car from 2028-29, and fully electric will remain the best option, tax wise. Talk to us if you're thinking of investing in a company car.

Find out how we can support you, contact Team TLC Accountants and Tax Advisers, experts in business finance.

25/11/2024

Business rates

High street retail, hospitality and leisure businesses will benefit from lower business rates multipliers from 2026-27. For 2025-26, the small business multiplier will be frozen. Together with Small Business Relief, this will, the government says, protect more than one million small properties from inflationary increases.

Retail, hospitality and leisure businesses will receive up to 40% relief, up to £110,000 per business, and councils will be compensated for the loss in income and admin costs as a result of these measures.

Business rates are clearly still firmly in the Chancellor's sights as a discussion paper was published and businesses invited to contribute to shaping future policy.

For more information on how we can support you, contact Team TLC Accountants and Tax Advisers, experts in business finance.

24/11/2024

Stricter rules on Inheritance Tax - Agricultural Land and Property

Reeves made changes to the way agricultural land and property will be treated when someone dies. From April 2026, certain types of property, such as farms and family business assets, including private shares in your own company, will be included in the calculations for inheritance tax when someone dies.

For agricultural land and businesses worth less than £1m there will continue to be no inheritance tax payable. On assets worth more than £1m, tax will be payable at 20% because of a 50% relief, compared to a current IHT rate of 40%.

For more information on how we can support you, contact Team TLC Accountants and Tax Advisers, experts in business finance.

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23/11/2024

Corporation Tax to remain unchanged and capped at 25%

The Treasury's published Budget document references a Corporate Tax Roadmap and says the main rate of Corporation Tax will be capped at 25%.

Corporation Tax is currently paid on a sliding scale based on a business's profits, with the minimum rate set at 19% on profits of less than £50,000, rising to 25% on profits over £250,000. Profits between £50,000 and £250,000 are taxed at 25% but benefit from a sliding scale of marginal relief.

TLC Tax Advisers will work out the rate and amount of Corporation Tax you need to pay when doing your year-end accounts, but you can go to the government calculator using the link, if you want to take a look for yourself. https://www.gov.uk/guidance/corporation-tax-marginal-relief

For more information on how we can support you, contact Team TLC Accountants and Tax Advisers, experts in business finance.

22/11/2024

Limited changes for the Self Employed

With income tax rates remaining unchanged, the one thing to note relates to the Small Profits Threshold (SPT). SPT is the amount you can earn without paying National Insurance, while still receiving credit as if you did. The Small Profits Threshold will increase to £6,845 a year.

The main Class 2 NIC contribution will be £3.50 a week from 6 April 2025.

For more information on how we can support you, contact Team TLC Accountants and Tax Advisers, experts in business finance.

21/11/2024

Tax and NI threshold freeze won't be extended

The freeze on income tax and national insurance thresholds will not be extended beyond the decisions made by the previous government to freeze until April 2028.

So there's definitely time to prepare for 2028-29, when tax thresholds will be uprated in line with inflation once again.

For more information on how we can support you, contact Team TLC Accountants and Tax Advisers, experts in business finance.

20/11/2024

Stricter rules on Inheritance Tax

The Chancellor made changes to which estates of deceased will be subject to inheritance tax.

Currently, no tax is payable on the first £325,000-worth of assets when someone dies, referred to as the nil-rate band. If that person also owned a property, there's an allowance of £175,000 against a property passed to children or grandchildren, referred to as the residence nil-rate band.

The residence nil-rate band will continue to taper up to £2m.

Qualifying estates can continue to pass on up to £500,000 and the qualifying estate of a surviving spouse or civil partner can continue to pass on up to £1 million without an inheritance tax liability. The Chancellor committed to fix these rates until 5 April 2030.

Any money saved in a pension and not spent by the time the pension holder dies is not included in the value of the estate.

From April 2027, money in pensions will be included, which will bring around 8% of estates into the inheritance tax regime each year.

For more information on how we can support you, contact Team TLC Accountants and Tax Advisers, experts in business finance.

19/11/2024

Capital Gains Tax (CGT) Going Up

The CGT rate rose from 10% to 18% for those who pay the basic rate of tax, and from 20% to 24% for those who pay higher rate tax at the end of last month, 30 October 2024. This matches the existing rate for residential property (only your main home), which remained the same. The rate of CGT is still the lowest in the G7, Reeves says.

CGT is charged on profits made when you sell assets such as second homes or investments.

Business Asset Disposal Relief (BADR) - sometimes referred to as Entrepreneurs' Relief - and Investors’ Relief (IR) will continue to offer a way to pay a lower rate of CGT. Both rates will rise to 14% from 6 April 2025, and to 18% from 6 April 2026.

For more information on how we can support you, contact Team TLC Accountants and Tax Advisers, experts in business finance.