Taxes
HMRC Investigates Airbnb Landlords with Short-Term Lettings
HMRC is writing to landlords who may have undeclared income from short-term lets and holiday homes – with online platforms such as Airbnb and Booking.com now obliged to provide payment data to the government. The number of individuals with unreported income on second homes is believed to be around 700,000, about a third of landlords…
Read MoreLoan Trusts for Inheritance Tax Planning: Everything You Need to Know
Inheritance tax is a concern for many individuals who are looking to pass on their assets to their loved ones. One way to minimise the impact of inheritance tax is through using trusts. Trusts are legal arrangements that allow an individual to transfer their assets to a separate legal entity, which a trustee manages for…
Read MoreHMRC Chases 4,300 Influencers and Content Creators Over Tax
To keep up with the rapid expansion of the digital economy, HMRC is chasing thousands of influencers and content creators, including gamers and retailers, for taxes that haven’t been paid on income or gifts received online. This includes people who earn money in exchange for product promotion, as well as those who are paid by…
Read MoreThe Child Benefit Trap: the High-Income Child Benefit Charge
As parents, it is important to understand the potential implications of receiving Child Benefit and the impact it may have on your tax liability. With increasing inflation and wages, many may find themselves in a higher tax bracket, leading to the possibility of falling into the “Child Benefit trap.” In this article, Mercian Accountants will…
Read MoreRecent tax changes: limited company or partnership?
In light of recent tax changes (Autumn 2022), it might be worth considering whether a partnership or company is now the most tax-efficient way to operate your business from the start of 2023/24 (6th April 2023). Don’t forget the big picture: tax on profits is only one consideration. Limited liability, other taxes such as Inheritance…
Read MoreTax year-end planning by 5th April 2023
Spring is coming, and the end of the 2022/23 tax year (Wednesday 5th April) is fast approaching. Now is the time to consider any tax year-end planning opportunities and ensure you don’t waste any of tax allowances or exemptions. We have broken this guide into helpful sections: Personal circumstances differ, so if you have any questions…
Read MoreSchool Fees Tax Planning Guide
A private school education is an investment into your children’s (or grandchildren’s) future, but comes at a significant cost. According to the Independent Schools Council (ISC), the average fee per term was £5,064 in 2021, which equates to over £15,000 per year – and this is only set to increase as time goes on. With…
Read MoreTax Guide for Content Creators and Social Media Influencers
Introduction Are you a digital entrepreneur who’s unsure about their tax responsibilities? Whether your hobby is vlogging, blogging, reviewing, or streaming, if you earn money (e.g., royalties and advertising fees) or receive gifts (e.g., products, holidays, or accommodation) from it, then HMRC could class you as having taxable income, and require you to submit a…
Read MoreMTD Has Changed VAT Return Filing – Act Now to Avoid Penalties
On 1st November, HMRC closed their old system for quarterly and monthly VAT return submission. Instead, businesses must now file these returns through Making Tax Digital (MTD) compatible software, unless they’re exempt. We can file for you, or, if you haven’t yet chosen a compatible software package, we offer discounted software licences to clients, from…
Read MoreAutumn Statement 2022: Key Tax Change Highlights
This morning (Thursday 17th November), Chancellor Hunt unveiled his 2022 Autumn Statement, featuring tax rises and spending cuts worth billions, in order to tackle the cost-of-living crisis, and rebuild the UK economy. The changes include freezing allowances and thresholds that will pull millions into paying tax for the first time, hundreds of thousands into higher…
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